Business Setup UAE: How to Register an Import and Export Company in Dubai Mainland or Free Zone
For entrepreneurs aiming for business setup UAE, starting an import and export company in Dubai—either in the mainland or a Free Zone—offers exciting opportunities. This article walks you through the entire registration process, legal requirements, and benefits you can expect from launching a global trading business from Dubai.
Advantages of Business Setup UAE for Import and Export Companies
The UAE is strategically located at the crossroads of Europe, Asia, and Africa, making it a hub for international trade. Here are the top reasons to consider an import-export business setup UAE:
- Tax Benefits: No import/export tax in many cases and corporate tax exemptions in Free Zones.
- World-Class Infrastructure: Access to ports like Jebel Ali and air freight options at Dubai International Airport.
- Business-Friendly Regulations: Streamlined registration and licensing processes.
- 100% Foreign Ownership: Available in several Free Zones and increasingly in mainland setups.
Types of Jurisdictions: Dubai Mainland vs Free Zone
Understanding the difference between setting up in Dubai Mainland and a Free Zone is crucial before registering your business.
Dubai Mainland Registration
If your company plans to trade directly within the UAE market, a mainland license is necessary. Advantages include:
- No restriction on business location (operate anywhere in UAE)
- Ability to bid for government contracts
- No limit on the number of visas (based on office space)
Free Zone Registration
Ideal for businesses focused on international trade. Key benefits are:
- 100% foreign ownership without a local sponsor
- Customs privileges for import and export goods
- Fast-track business setup processes
Some of the top Free Zones for import/export include:
- Jebel Ali Free Zone (JAFZA)
- Dubai Airport Free Zone (DAFZA)
- Dubai Multi Commodities Centre (DMCC)
Key Steps for Business Setup UAE
The process of setting up your import and export business in Dubai follows a specific sequence. Here’s a step-by-step guide for both Mainland and Free Zone registrations:
1. Determine Business Activity
Choose your business activity carefully. Activities like general trading, importing specific goods, or export consultancy are available. The choice affects your license type and regulatory requirements.
2. Choose Business Jurisdiction
Decide between Dubai Mainland and one of the Free Zones based on your target market. If you want to trade within the UAE, opt for Mainland. For global trade, Free Zones offer cost-effective solutions.
3. Reserve Trade Name
Select a unique and compliant trade name via the Department of Economic Development (DED) or the Free Zone authority depending on your location choice.
4. Prepare Documents
The general set of documents includes:
- Passport copies of shareholders
- Visa details if applicable
- Proof of residence
- No Objection Certificate (NOC) if the individual is on a UAE employment visa
5. Apply for Initial Approval
This approval allows you to move to the next stage. It clarifies that there are no objections from UAE authorities.
6. Sign the MOA/LSA Agreements
If you register in the mainland, you’ll typically sign a Memorandum of Association (MOA) and possibly a Local Sponsor Agreement (LSA). Free Zone companies usually submit an Incorporation Certificate.
7. Choose Business Location
You must lease an office or warehouse. Options vary between virtual offices in some Free Zones or full-scale warehouses in logistics hubs.
8. Obtain Import/Export Code
Register with Dubai Customs to obtain an import/export code. This is essential for customs clearance.
9. Final License Issuance
The last step is the issuance of your trade license. With this, you can start operations legally.
Cost of Registering an Import and Export Company in Dubai
Costs differ based on jurisdiction, business type, and the size of operations. Estimated startup costs include:
- License Fee: AED 10,000 – AED 25,000
- Office Rent: AED 15,000 and up (depending on location)
- Visa Costs per Person: AED 3,000 – AED 7,500
- Dubai Customs Registration: AED 500 (one-time fee)
A Free Zone setup may cost less due to bundled packages, especially for startups.
Legal Obligations and Compliance
Regardless of your registration area, you must ensure compliance with UAE law, including:
- Annual audit (mainland companies)
- Customs regulations for imports and exports
- Timely renewal of business licenses
- Registration for VAT if revenue exceeds the threshold
Common Challenges and How to Overcome Them
Entrepreneurs may face several hurdles. These include legal complexities, finding local sponsors (for mainland), or understanding customs procedures. To avoid pitfalls, refer to our guide on common mistakes to avoid when opening a company in Dubai.
Documents Required to Obtain Dubai Customs Code
To register your company with Dubai Customs and obtain the code needed for import/export transactions, provide these documents:
- Trade license copy
- Owner and manager passport copies
- Emirates ID (if available)
- Company stamp
- Tenancy contract or lease agreement
Free Zones Ideal for Trading Companies
If you’re launching a business in a Free Zone, consider reading our guide on the top industries for trading companies in Dubai to identify where to invest.
Useful Tips for Smooth Registration
- Hire a local business setup consultant.
- Verify the latest regulations with Dubai Customs.
- Plan your logistics in advance – ports and warehousing options.
- Leverage Free Zone packages for cost-efficiency.
Conclusion
Business setup UAE for an import and export company, whether in Dubai Mainland or a Free Zone, is a streamlined process if approached correctly. With access to strategic trade routes, tax-friendly regimes, and robust infrastructure, Dubai is one of the best global locations for international trading businesses. Be sure to stay up to date on legal requirements and partner with professional consultants to ensure compliance and success.
For the most accurate information and requirements, you can always refer to the UAE Government Portal.
