The UAE’s strategic geographical location has helped the country emerge as an essential player in the international market. Along with its easy accessibility to air and water, Dubai’s stable trade relations and favorable economic atmosphere have contributed to its growing business popularity over the past decades.
Every year the UAE imports and exports a wide range of goods from and to countries like India, Japan, China, Turkey, the EU, and many others. That is why starting an import-export business is a lucrative business prospect.
But before venturing on to start an import-export business in Dubai, any resident or foreign entrepreneur must possess an import-export license in Dubai, registered under a local company.
To start an import-export business, you need to go through some necessary formalities which are very smooth. Let’s discuss what those are:
How to acquire an Import Export Licence in Dubai?
It is inspiring news that the import-export license in Dubai is not so difficult. Starting an import-export business and acquiring an import-export permit is a step-by-step procedure that requires you to focus on multiple aspects of your business. The type of trading activity, company name, setup, and visas all form an integral part of the entire process.
Decide Your Trading Activity
The first step to starting an import-export business is to decide on the specific trading activity, that is precisely what commodity you wish to trade. This is important because your import-export license may depend on the particular trading commodity.
Since the UAE exports and imports a great range of goods, including car parts, jewelry, beauty products, drinks, clothes, etc., it is necessary to determine the trading type and activity.
Decide your business setup.
The UAE offers entrepreneurs various business setup options, and each setup comes with its advantages and disadvantages. Hence, you must choose a design that benefits you in your import-export activities.
The free-zone business setup is usually best suited for import-export business as it offers direct links and easier access to airports, ports, and highways. Moreover, the free zones also provide a 100% tax exemption on all import-export activities.
Apply for your import-export license
To get an import-export license in Dubai, you need to apply for it, depending on your business setup. For instance, if you plan to start an import-export business on the mainland, you can apply it directly through the Department of Economic Development (DED), or you can also apply to the emirate municipality.
Whereas, if you plan on setting up your trading business in one of the free zones, then the application for the import-export license must go to the managing authority of the respective free zone.
However, a company/business setup consultancy firm can help you in the entire process of starting a Business Setup in Dubai by managing the whole application and obtaining the import-export license.
Customs Requirements
Customs requirements form an essential focus when planning on starting an import-export-trading business with Dubai’s broader world. Even though setting up your company in the free zone allows you to enjoy import-export tax exemption, it still demands an import code.
You can acquire your code by applying to the Federal customs authority, where you will be asked to provide some important documents, including a copy of your general trading license, passport, and trading activity details.
Visa
Foreign entrepreneurs can also acquire visas while applying for their licenses, which will enable them to sponsor dependent visas for their families or work access for their employees.
Starting an import-export business with a low license cost
The overall import-export license cost in Dubai depends on several factors. Your trade license cost may increase depending on the number of dependent and working visas and co-working facilities. Furthermore, you will also be required to pay a minimum duty of 5% if you want to sell imported goods in the local market.
The UAE’s favorable business environment and economic stability make it exceptionally easy to start an import-export business in Dubai. The not-so-complicated application procedures for the import-export license and its significant business structures and benefits make a good location for local and foreign entrepreneurs alike.
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