Dubai is one of the world's top business hubs, thanks to its strategic location between Asia, Europe, and Africa. It’s a hotspot for international trade, and it is supported by the government’s business-friendly policies. Dubai imports commodities like food, vegetables, gold, cars, and more. At the same time, the city exports gold, crude oils, fabrics, steel, and electrical equipment. The opportunity here is massive for anyone looking to start an import-export business.
In this article, we will walk you through the step-by-step process of starting an import-export business in Dubai. You'll learn about the required licenses, import export license cost, and extra approvals like registering with Dubai Customs. Let’s get started!
Import Export Business Opportunity
Dubai’s import-export market is huge and growing. From importing fruits and vegetables to cosmetics, and from industrial materials to car parts and steel, the opportunities are endless. In 2023, Dubai achieved non-oil foreign trade of AED 2 trillion which is one year ahead of the target! Total imports alone were worth around $448 billion. You could import fruits and vegetables from India and supply them to UAE supermarket chains, or explore niches like cosmetics. The market is enormous, and the profit potential is high.
How to Start Import Export Business
To start any business in Dubai, you need a trade license and specific approvals from authorities. For an import-export business, you need a trade license that includes import-export as a business activity. Then, you’ll apply for an Import Export Code and register your business with Dubai Customs.
In Dubai, you can start your business in two jurisdictions: Mainland under the Department of Economic Development (DED) or in a Freezone, which has its own rules and regulations.
Mainland or Freezone?
This is a key decision. Choosing between Mainland and Freezone depends on your business activity, the types of commodities you want to import or export, and whether you plan to resell in the UAE local market. To help you make the right choice, explain your business plan to one of our representatives, and we’ll guide you on the best business structure for your needs.
At CSPzone, we can help you select the right business structure and ensure your business setup goes smoothly.
Steps to Start Import Export Business in Dubai
Here’s a quick guide to getting started with a Mainland business in Dubai:
1. Select Your Business Activity - This is crucial since Dubai has rules about which activities are permitted for businesses.
2. Select Legal Structure - Choose from options like LLC (Limited Liability Company) or Sole Proprietorship.
3. Trade Name Approval - Provide three trade name options, and the authorities will approve one based on availability. Your trade name is essential for branding and business identity, so choose wisely!
4. Get Initial Approval - Once your trade name is approved, apply for initial business approval.
5. Prepare MOA/AOA - Draft the Memorandum of Association (MOA) and Articles of Association (AOA) for your company.
6. Provide Lease Agreement - If required, submit a lease agreement for your office space.
7. Pay the License Fee - Pay the fees to receive your trade license and start operating legally.
Import Export License Cost in Dubai
The license for starting an import-export business in Dubai costs around AED 20,000. However, the final cost may vary based on any additional business activities you add to your license. This fee covers the license itself, and you'll also have additional expenses like office Ejari (lease), visas for investors, and other business setup costs.
Getting Your Import Export Code
Once your business is registered, the next step is to obtain an Import Export Code (IEC) from Dubai Customs. This code is a unique identification number that allows you to legally import and export products in Dubai.
What is the Import Export Code?
If you want to import or export in Dubai, you need to register with Dubai Customs. Once registered, you'll be issued a Custom Client Code, also known as an Import Export Code (IEC). This code is mandatory for clearing goods imported to Dubai under your company’s name. Only fully registered companies with valid trade licenses can get this code.
Documents Required for IEC Code
Here are the documents you’ll need to apply for the IEC:
1. Copy of trade license
2. Visa and passport copy of the authorized signatory
3. Phone number and email ID
4. Registered business address
5. Undertaking letter
The fee for getting the IEC code is AED 120.
How to Apply Online for IEC
1. Visit the Dubai Trade Online Portal and click on "Start New Service Request."
2. Fill in all the necessary details, including business name, authorized person name, and business activity.
3. Pay the required fee of AED 120.
4. You’ll receive your Import Export Code via email within one working day.
Once you have your trade license and Import Export Code, you’re ready to start your import-export business in Dubai!
At CSPzone, we assist with every step of the process, from business setup to obtaining your Import Export Code. Get in touch, and we’ll make the setup process smooth and hassle-free!
