A trader needs a warehouse. A manufacturer needs a factory. Both need approvals that never appear in the license fee.

Dubai is a natural base for companies that move or make physical goods, but setting up a trading or manufacturing business is more involved than registering a consultancy. The license type, premises, customs and product approvals all shape your cost and timeline.

This guide explains the key steps, and how business setup consultants in Dubai can help you plan them.

Quick answer: Trading companies need a commercial (trading) license, usually a warehouse, and customs registration. Manufacturers need an industrial license, a physical factory or industrial premises, and federal industrial registration through the Ministry of Industry and Advanced Technology (MoIAT) alongside the local license.

Two license types: trading and industrial

Choosing the wrong license means an amendment later, with extra cost and time.

Setting up a trading company

Specific or general trading

A specific trading license covers one category of goods, while a general trading license covers several and carries higher DET fees. Pick the one that matches what you really sell.

Mainland or free zone

A DET mainland commercial license gives you unrestricted access to the UAE market. Free zones such as JAFZA and Dubai South sit near major ports, which suits import, export and re-export businesses. If you plan to sell inside the UAE from a free zone, ask how that works, because goods moving into the mainland may involve customs duty (one guide cites 5%).

Warehouse, visas and customs

• Warehouse: trading businesses that stock inventory need registered warehouse space, which costs significantly more than a standard office.
• Visas: your visa quota grows with your office or warehouse footprint, which matters if you need drivers, warehouse staff and sales staff.
• Customs: after your license is issued, you register with Dubai Customs for an importer/exporter code before goods can move.
• Product approvals: some products need approval from another authority, for example pharmaceuticals need Ministry of Health or DHA product approval.

Setting up a manufacturing company

The premises come first

An industrial license requires a physical facility: an industrial unit, warehouse or factory. The premises must comply with planning, zoning, building, safety and operating requirements, and not every property suits every manufacturing activity. This step can be more involved than an office-based setup.

Federal industrial registration

Alongside the local DET or free zone license, manufacturers must register with MoIAT. One consultancy explains that the MoIAT Industrial Production Certificate registers your factory and can make it eligible for a 5% customs duty waiver on imported machinery, spare parts and raw materials used directly in production. Treat that as a point to confirm with MoIAT for your own case.

Choosing a location

• Mainland (DET): unrestricted selling across the UAE, with premises in an industrial area
• Free zones: often favored by export-focused manufacturers. Zones commonly associated with industry include JAFZA (heavy industry), Dubai Industrial City (light manufacturing) and Dubai South (aviation and logistics-linked activity). One guide notes that all manufacturing, trading and after-sales activities can be combined under a single JAFZA industrial license

If you sell locally from a free zone, you may need a distributor or a mainland arrangement, so plan your customers first.

Costs that surprise traders and manufacturers

• Warehouse or factory space, often the largest cost line
• Equipment and facility requirements for industrial premises
• Regulator approvals for certain products
• Customs registration and duties
• Visas, medical tests and Emirates ID for each person
• Health insurance, bank minimums and accounting
• Annual renewals of license, premises and visas

A free zone's own guide advises asking for a line-by-line split of what's included, excluded and triggered later. One 2026 guide puts first-year free zone costs from under AED 20,000 to over AED 80,000, and industrial premises can push totals higher.

Tax basics for goods businesses

Corporate tax is 0% up to AED 375,000 and 9% above. Registration is required even if you owe nothing, with an AED 10,000 penalty for late registration. VAT registration is mandatory once taxable supplies pass AED 375,000 over 12 months, which trading businesses can reach quickly. Free zone companies pay 0% only on qualifying income, if every condition is met, so check how your sales and customers are treated.

How business setup consultants in Dubai help

• Match the license to your activity (specific vs general trading, or industrial)
• Compare mainland and free zone around your customers and shipping routes
• Plan premises and visa quotas together
• Map every approval early: customs, product approvals and MoIAT
• Prepare your bank application, without promising approval
• Build a two-year cost forecast including renewals
• Set up a compliance calendar for VAT, corporate tax and renewals

Questions to ask before you commit

1. Which license fits my activity, and why?
2. What premises do I need, and do they meet the rules?
3. Which approvals apply to my product?
4. How will customs registration work?
5. What will year-two costs look like?
6. Who handles VAT and corporate tax after setup?

Common mistakes

• Taking a trading license when the business actually manufactures
• Choosing a flexi-desk and then needing warehouse space
• Leaving product approvals to the end
• Ignoring customs registration until goods arrive
• Forgetting renewals in the budget

Final thoughts

Goods businesses need more planning than service companies: premises, approvals, customs and costs all move together. The right business setup consultants in Dubai map those pieces before you sign a lease or pay a fee. If you'd like help with your trading or manufacturing plans, the team at Thrive Consultants is happy to talk it through