General Trading.
General Trading is one of the ten most-licensed activities at IFZA. This page covers what the licence permits, the QFZP / Corporate Tax position, VAT treatment, indicative cost in USD, and the home countries from which the most applications for this activity originate.
At a glance
| Feature | Position |
|---|---|
| IFZA activity classification | 4690.18 — General Trading |
| Year-1 all-in cost (USD) | USD 11,100 |
| Time to licence issuance | 5–7 business days |
| Visa quota (standard) | Up to 9 investor/employee visas under flexi-desk package |
| QFZP 0% qualifying status | NOT generally qualifying — most trading is non-qualifying unless within a Designated Zone distribution structure or qualifying commodities trading |
| UAE VAT (5%) | Mandatory VAT registration above USD 102k turnover; standard 5% on UAE sales, zero-rated on exports |
| UAE Corporate Tax | 9% above AED 375,000 profit; 0% under QFZP if conditions met |
| Audit requirement | Not required for non-regulated activity; recommended for QFZP claims |
What this licence covers
The IFZA General Trading activity is the broadest physical-goods commercial licence IFZA issues. It authorises the import, export, distribution and storage of essentially any non-restricted physical goods — textiles, consumer products, FMCG, industrial equipment, machinery, building materials, electronics, household goods. It is one of the most-applied-for activities at IFZA, particularly for Indian, Pakistani, Turkish, and Italian founders building import-export operations between their home country and the GCC.
It does NOT authorise: restricted goods (firearms, pharmaceuticals subject to MOH approvals, food products requiring Dubai Municipality food-safety approval, alcohol, tobacco), regulated commodities (oil/gas, precious metals at scale — these need separate licences), or financial-services products. Quasi-restricted categories (cosmetics, supplements, electronic components subject to TRA approval) may require additional regulator approval on top of the General Trading licence.
QFZP — the most important point
This is where General Trading differs structurally from professional-services activities. Distribution of goods is a Qualifying Activity ONLY where the goods are distributed in or from a Designated Zone to a customer that resells, processes or alters them. Pure import-export to UAE consumers, or trading on the UAE mainland without a Designated Zone fulfilment structure, is NOT a Qualifying Activity. Trading of qualifying commodities (metals, minerals, energy, agricultural commodities) is separately qualifying when conducted on a recognised commodities exchange.
Practical implication: most IFZA General Trading entities operate at 9% UAE Corporate Tax above the AED 375,000 profit threshold, not at QFZP 0%. The Small Business Relief (zero CT for entities with revenue under AED 3 million, available through FY2026) may apply for smaller operators. For larger operators, structuring through DMCC (commodity-trade specialism) or JAFZA (port-adjacent Designated Zone trading) often improves the QFZP positioning.
Indicative cost — higher than services
The General Trading licence package is more expensive than professional-services licences because of additional government fees. Year-1 all-in is approximately USD 11,100 (vs USD 10,120 for consultancy). The IFZA government fee component is USD 5,180 (vs USD 4,200 for services bundles); the additional cost reflects the broader activity scope.
Banking — established and straightforward
General Trading is the prototypical UAE small-business profile and is extremely well-received across banking. Wio Business / Mashreq Neo Biz onboard within 5-10 days; Tier 1 banks (Emirates NBD, ADCB, FAB) within 3-6 weeks. Trade-finance facilities (letters of credit, trust receipts, invoice financing) become available within 6-12 months of operating history with a Tier 1 bank.
Customs and import-export workflow
An IFZA Trading licence gives access to a UAE Importer Code from Dubai Customs (issued automatically with the licence). Standard import workflow: pro-forma invoice → Letter of Credit or T/T payment → Bill of Lading → Dubai Customs declaration → DP World / port discharge → Duty (typically 5% on most goods; higher on alcohol/tobacco) and 5% VAT on landed cost → Storage in IFZA Business Park or third-party warehouse.
For Designated Zone treatment (deferring VAT and customs until release into mainland), JAFZA or DMCC warehouse storage is preferred over IFZA Business Park, which is not a Designated Zone.
When General Trading is not the right answer
- Pure ecommerce. Use Ecommerce activity — narrower, cheaper, better-suited for online-only operation.
- Single-product or niche-category trading. A specific Trading activity (e.g. "Building Materials Trading", "Electronics Trading") is often cheaper and equally effective.
- Commodities trading at scale. DMCC for commodities, JAFZA for industrial bulk; better-classified for QFZP qualifying.
- Pure services with occasional product resale. Add the relevant Trading sub-activity to a services-primary licence bundle instead of fronting with General Trading.
Indicative year-1 cost in USD
| Component | Year 1 | Year 2+ |
|---|---|---|
| IFZA government licence fee (General Trading bundle, up to 3 activities) | USD 5,180 | USD 5,180 |
| Establishment card & immigration file | USD 800 | USD 400 |
| Investor visa (1 visa) | USD 1,300 | USD 400 (renewal) |
| Emirates ID + medical + biometrics | USD 320 | USD 120 |
| ArxSetup professional fee + KYC + bank introduction | USD 3,500 | USD 2,000 |
| All-in total | USD 11,100 | USD 8,100 |
Add-ons: VAT registration (USD 950), Corporate Tax registration (USD 550), additional visas (USD 1,300 each), bespoke shareholders' agreement (from USD 3,500), trademark registration (from USD 5,500).
Top countries applying for this activity
Applications for this activity most commonly originate from the following countries (drawn from IFZA application data and our own client mix):
Common questions
Why is General Trading more expensive than other activities?
The IFZA government fee component for General Trading is approximately USD 5,180 vs USD 4,200 for professional-services bundles. The premium reflects the broader activity scope (effectively unrestricted physical-goods trade). Smaller operators considering only a single product category may save by selecting a narrower trading activity instead.
Can I trade alcohol or tobacco under General Trading?
No. Both are excluded from General Trading and require specific licences (alcohol: Dubai Tourism Department licence + dedicated trading activity; tobacco: separate trading activity + Excise Tax registration). Same for firearms, pharmaceuticals (MOH approval), and other restricted categories.
Will I qualify for QFZP 0% as a General Trading entity?
Generally no. Most General Trading entities operate at the standard 9% UAE Corporate Tax above the AED 375,000 profit threshold. Small Business Relief (0% CT below AED 3m revenue, through FY2026) applies for smaller operators. For structures specifically targeted at qualifying distribution from a Designated Zone, DMCC or JAFZA are better-suited than IFZA.
Do I need a physical warehouse?
Not for the licence itself. Pure trading-house operations using third-party logistics (3PL) providers like Aramex, ShipBlu, or DP World fulfilment are common. Where physical inventory storage is needed, IFZA Business Park has small warehouse units available; JAFZA / DMCC are alternative free zones with port-adjacent storage.
How does the UAE Importer Code work?
Dubai Customs issues an Importer Code automatically alongside the trade licence. The code is used for all import declarations through Mirsal 2 (Dubai Customs' electronic system). For exports, customs declarations are similarly automated. We provide a Customs-Code onboarding session as part of standard General Trading engagement.