Thinking of setting up a trading business in Dubai? You’re not alone. With Freezone licenses starting from just AED 6550, it’s tempting to jump right in. But hold on - is a general trading license from a Freezone really the best move for you? Or is there something more you should consider before committing your hard-earned investment?
At CSPzone, we’ve helped hundreds of traders - just like you - set up successful companies in Dubai. Some start in Freezones. Others go Mainland. So, we’ve seen the full picture. And in this article, we’re going to share that insight with you.
Let’s go through it together.
A general trading license allows you to import, export, and distribute a wide variety of goods - not just one type of product. From electronics and garments to foodstuff and skincare - you can legally trade them all under one license.
Isn’t that amazing? You don’t need a separate permit for each category. That’s why many new entrepreneurs choose this route - it’s flexible and wide-ranging.
Did you know you can get a Freezone general trading license in Dubai for as low as AED 10k? Some Freezones like IFZA, Shams, and SPC Freezone are offering irresistible packages for solo entrepreneurs and SMEs. You’ll get:
1. Fast-tracked registration
2. 100% foreign ownership
3. No need for a local sponsor
4. No corporate or income tax
Sounds good, right?
But wait - there’s more to it than just the price tag.
Here’s where many first-time business owners get surprised.
With a Freezone general trading license, you cannot sell directly into the Dubai mainland. That’s right - your Freezone license allows you to trade within your zone or outside the UAE (international), but not directly to consumers or businesses in mainland Dubai.
So if your goal is to sell to local supermarkets, retail stores, or walk-in customers in the mainland - you’ll need either:
1. A local distributor as a pertner (mainland company), or
2. A mainland license
Isn’t this an important point to know before registering?
Here’s what you must be prepared for:
Customs Clearance: Goods imported to Freezone must go through customs when entering mainland Dubai.
VAT Registration: If your turnover exceeds AED 375,000 annually, VAT registration is mandatory.
Warehouse Requirements: Freezone authorities may require you to lease a small warehouse or flexi-desk for compliance.
These logistics may not seem major, but they impact your bottom line - so it’s worth planning for.
Freezone general trading license is ideal when:
1. You’re starting small and selling globally through B2B export
2. You want full ownership and no local partner
3. You don’t need a shop or office in the mainland
4. You plan to sell through online channels outside UAE
For example, one of our clients selling electronics to Africa saved thousands by using a Freezone general trading license.
If your target customers are inside Dubai or you want to scale with retail shops, showrooms, or supply to major local retailers - go with a Mainland license. Yes, it’s costlier (starting from AED 30,000+), but the trade freedom you get is unmatched.
Don’t let a cheaper license restrict your growth.
The answer is: It depends on your business model. Want to trade globally and keep costs low? Freezone may be perfect.
Want to tap into Dubai’s massive consumer market? Mainland is better.
Let CSPzone help you choose wisely. Pick the right Freezone or Mainland authority, understand hidden costs and compliance and avoid wrong license types. Get your license issued - without stress. CSPzone is more than a consultant. We’re your partner in success.
