Dubai is among the world’s major centers for import and export business. From Free trade zones to business licenses, this country makes everything simple for business owners so that they can enter the UAE’s trade hub with many opportunities.
As an import-export business in Dubai, you can setup company in either mainland. offshore or various freezone in UAE which facilates warehouse, logistics and other export related ancillary services.
Understand Import-Export Business in Dubai
Before starting, conduct thorough market research to identify profitable products and industries. Some high-demand import and export sectors in Dubai include:
- Electronics and gadgets
- Automobiles and spare parts
- Food and beverages
- Textile and fashion apparel
- Gold and jewelry
- Medical equipment and pharmaceuticals
Research market trends, competitors, and legal requirements to ensure your business aligns with Dubai’s trade policies.
Import Export Business in Dubai (MainLand Vs FreeZone Vs Offshore)
When setting up an import-export business in Dubai, the type of company registration – Mainland, Freezone, or Offshore – significantly affects your business operations. Here’s a breakdown of each to help you decide:
- Mainland:
- You can trade anywhere in the UAE, including the mainland and free zones or accross the globe.
- Require Local Emirate Sponsor (w.r.t to some business activities)
- Suitable for companies that want to operate with UAE government agencies, within UAE market.
- Freezone
- Absolutely 100% foreign ownership
- Exemption from corporate tax and custom duties
- Ideal for business which re-exports and deals globally
Some of the preferred Free Zones for trade-related import-export business include:
- Jebel Ali Free Zone (JAFZA)
- Dubai Airport Free Zone (DAFZA)
- Dubai Multi Commodities Centre (DMCC)
- Dubai South Free Zone
- Sharjah Airport International Free Zone (SAIF Zone)
Mainland companies attract UAE corporate tax regime and VAT, But they benefit from access to the local market and broader economic opportunities, hence it is preferable to opt Freezone, as they enjoy 100% corporate tax exemptions and duty free import-export benefits.
- Get an Import-Export Dubai Trade License
It requires a trade license, which is to be issued by either DED for mainland business or by a Free Zone authority to lawfully operate an import-export business in Dubai. The types of licenses are:
- General Trading License (for multiple products)
- Specific Trading License (for specialized goods)
Documents Needed to Acquire Business License
- Passport copies of shareholders
- Business plan
- Trade name reservation
- Initial approval from authorities concerned
- Lease agreement of an office, if applicable
- Registered with Dubai Customs
To import and export goods, you need to register your business with Dubai Customs and obtain a Customs Code. This will allow you to clear your goods through customs and adhere to UAE trade regulations.
- Open a Business Bank Account
A corporate bank account is a must for the transaction. Select a bank in Dubai that offers international trade support and multi-currency transactions. Some of the popular banks are:
- Emirates NBD
- Mashreq Bank
- Dubai Islamic Bank
- HSBC
- Standard Chartered
- Import & Export License/Permit
Some goods necessitate specific licenses and approvals from the respective governing bodies:
- Food & Beverages – Dubai Municipality
- Pharmaceuticals & Medical Equipment – Ministry of Health & Prevention (MOHAP)
- Electronics & Telecom Equipment – Telecommunications Regulatory Authority (TRA)
- Chemicals & Hazardous Materials – Dubai Civil Defense
- Establish Logistics and Warehouse
A hassle-free supply chain is essential to any import-export venture. Transportation and warehousing facilities should be selected according to the business’s needs:
- Partner with reliable shipping and logistics companies.
- Rent a warehouse in a Free Zone to avoid customs duties.
- Use bonded warehousing for temporary storage without immediate customs clearance.
- Taxation and Compliance
Dubai has a business-friendly tax system, but some rules apply:
- Customs Duties: Generally, 5% on imported goods unless exempted.
- VAT: 5% VAT is applicable on most goods and services.
- Excise Tax: Levied on specific goods like tobacco, energy drinks, and carbonated beverages.
- Free Zones: Free Zone businesses get export tax exemption.
- Corporate Tax is 9% over and above AED 3,75,000 profit.
Conclusion:
The strategic location and business-friendly policies make it a very lucrative opportunity to start an import-export business in Dubai. The proper company structure, acquisition of required licenses, registration with Dubai Customs, and adherence to tax and trade regulations ensure the successful establishment and growth of trading ventures in the UAE.
