Have you ever thought of starting an import and export business in Dubai? If not, then why disregard this wonderful opportunity? If yes, then what’s the wait for?
Dubai has been a center of trade and commerce for centuries. This legacy keeps drawing merchants worldwide to its vibrant markets in quest of diverse goods. With its strategic position connecting East and West, it stands as a pivotal trading hub facilitating seamless trade across continents.
Reason to start an import and export business in Dubai
The UAE offers substantial benefits to businesses. For instance, a favorable tax framework, a pro-business environment, a consumer market with high purchasing power, etc. provides a lucrative landscape for entrepreneurs. Furthermore, the advanced technology and infrastructural facilities streamline the logistics of large-scale trading operations, creating an ideal locale for establishing and expanding import-export business in UAE.
Here’s a brief guide on why an import export business in UAE can be a successful venture –
- Strategic location – The United Arab Emirates is located at the crossroads between Asia, Africa, and Europe. This makes it an ideal hub for transporting goods across international borders and connecting with a vast network of buyers and sellers.
- Business-friendly environment – The UAE has a welcoming environment for businesses. It offers tax breaks, streamlined regulations, and free trade zones, making it easier and cheaper to establish and operate an import-export business.
- Fewer restrictions – Being an open economy, the UAE companies have few restrictions on trade which allows them to import and export a wide variety of goods.
- Government support – The UAE government actively supports the trading sector by investing in infrastructure, negotiating free trade agreements, and providing all kinds of assistance to businesses.
- Outstanding infrastructure – The government’s investment in UAE infrastructure is extensive. It has created top-notch airports and seaports to enable the movement of massive volumes of cargo, thereby accelerating import and export processes.
- Free trade agreements – The United Arab Emirates has formed free trade agreements with various countries. This feature help in reducing trade barriers and import duties, making it more affordable for businesses to import and export goods.
Setup guide for import export business in UAE
Obtaining a license for an import-export business in Dubai is a straightforward process. The key steps are described below: –
Choose a location
Mainland and Freezone are two major options for setting up business in Dubai, UAE. The mainland is the most traditional business zone overseen by the Department of Economic Development (DED). On the other hand, free zones cater to specific industries, offering tax breaks and other incentives to entities. Each freezone has its own set of rules and benefits which are regulated and controlled by the respective local authorities.
Finalize a name
The trading name you choose for your import and export business in Dubai must be unique, relevant to your activities, and most importantly, conforming with Dubai’s naming regulations. Once you have selected a suitable name, check for its availability. You can seek help from the business experts of Shuraa for this step.
Register your business
Once the location and name of your business are finalized, proceed to register your business with the respective authorities. This step involves choosing a unique business name adhering to UAE regulations, defining the business activity to determine the type of trade license, and deciding whether to operate within a Free Zone or on the Mainland. The business setup consultants of Shuraa will assist you in choosing the right legal framework for your business and obtaining pre-approvals from relevant officials.
Obtain an import-export license
A trade license will authorize your import-export activities. Therefore, you need to approach the relevant department, DED or free zone authorities, to apply for an import-export license, specifying the products you intend to import and export.
Register with customs
After successfully registering your business, you need to obtain an import/export code from Dubai customs. This code will facilitate clearing goods through customs for import and export.
Secure an office space
You will require an official space for your import-export business in Dubai. You can either find a physical office premise or opt for a Flexidesk, whichever suits your preferences. The rental charges may vary; however, flexi desks are a more cost-effective alternative for startups.
Obtain a visa
For a visa, you can choose between a transit visa, an import-export visa, or a residence visa for a prolonged stay. The validity of a transit visa is 14 days (about 2 weeks), whereas, for an import-export visa, it is 30 days (about 4 and a half weeks). On the other hand, a residence visa lasts for up to 1 year. Each of these visas facilitates the transportation of goods within the respective period.
Furthermore, you would also require visas for your employees and business partners. Hence, it is ideal to seek assistance from the visa consultants at Shuraa who will research the requirements and apply through the relevant authorities on your behalf.
Navigate customs and compliance
Entities involved in trading must declare their imports and exports and adhere to specific goods requirements to ensure compliance with Dubai’s customs regulations. Adequate knowledge of these regulations will help avoid penalties or delays in business operations.
Therefore, businesses must make sure to declare their imported goods to the Customs department, assessing applicable taxes and duties accordingly. They must also fulfill regulatory requirements for specific categories of goods like food products, beauty items, and pharmaceuticals.
Read also: Business Analytics for Project Management: Ensuring Project Success in Mumbai
Documents required for an Import-export license
The documentation process for securing an import export license in Dubai is specific and can vary depending on the location of the business. However, the general requirements are as follows:-
- List of selected Trade names
- Description of business activities
- Passport and UAE residence visa copies of all the shareholders
- Entry permit of partners who are on a visit visa
- Passport copy and Emirates ID of local sponsor
- Import Export Code (IEC) application (as required)
Cost of setting up an import-export business in Dubai
The overall cost of starting an import and export business in Dubai relies on the specific business requirements and operational activities. For instance, the territory from which one is carrying out the operations, the nature of the activities, etc.
Essential tips for an import and export business in Dubai
Here are some important tips to consider while planning an import-export business setup in Dubai –
- Choose a reputable and experienced partner like Shuraa Business Setup, who has a good understanding of the Dubai market.
- Do your homework and research the market before getting started with the setup process. Analyze the potential competitors, the demand for the products you intend to trade, and the rules governing import-export activities in Dubai.
- Understand the costs involved in running an import-export business. it may include office rent, staff remuneration, shipping charges, and the cost of handling goods.
- Have a solid business plan in place that encompasses a marketing strategy, a financial plan, and a clear understanding of the risks involved.
- Insure the goods you intend to export. This will protect your investment in case of damage or loss of goods during shipping.
- Familiarize yourself with different classes of dangerous goods and prohibited items and the strict rules and regulations regarding shipping these items.
Consult with Shuraa
An import and export business in Dubai can be a rewarding opportunity both in terms of profitability and expansion. However, to get an import-export business license, you need to learn and understand the UAE’s trade formalities. Shuraa Business Setup will be your expert guide. They will answer all your business-related queries and manage all aspects of your import-export license allowing you to trade legally in the UAE. They will also assist you with the Dubai Customs requirements and obtain external approvals on your behalf.
Book a free consultation now at www.shuraa.com or simply mail your queries at info@shuraa.com.
