You cannot legally import or export goods without an import-export trade license in the UAE. You can get a license from the Department of Economic Development (DED) or a free zone authority, depending on your jurisdiction. Â
Benefits of a UAE Trade License for Import-Export
Starting an import-export business in the UAE offers entrepreneurs a strategic trade location, low corporate tax, no export tax, full business ownership, and modern logistics infrastructure.Â
- Strategic trade location: The UAE sits at the connects Africa, Europe, and Asia, making it an international trade hub.
- Low Corporate Tax: There is 0% Corporate Tax on income up to AED 375,000. After that, only 9% applies to taxable profits. Certain qualifying free zone businesses can also be exempt from CT.
- 0% export tax: There is no export tax for businesses with an import-export license in the UAE.
- Full business ownership: Foreign investors and entrepreneurs can completely own their business without a local sponsor. This rule now applies to both free zone and mainland businesses.
- Modern logistics infrastructure: UAE free zones have advanced warehousing, cold storage, and digital customs clearance.
How to Start an Import-Export Business in UAE?
To start an import-export business in the UAE, you need to choose a jurisdiction, define your trade activities, register your company, get a customs code, and open a corporate bank account.Â
Here is a step-by-step breakdown:
- Choose your jurisdiction: Decide between mainland or free zone. Free zone companies are quicker to set up and offer better international access.Â
- Reserve your trade name: Submit up to three unique business names for approval. It must follow UAE naming conventions.
- Get initial approval: Provide passport copies, proof of residence, and a business plan to the relevant authority. Your idea has to be approved before you apply for a trade license.
- Trade license issuance: Your trade license allows you to legally carry out your business operations in the UAE. It will need to be renewed every year.
- Register with Customs: Apply for your Import-Export Code (IEC) through Federal Customs Authority or local emirate customs departments.
- Open a corporate bank account: A bank account for your business is mandatory. Partnering with local business setup consultants can simplify the process.Â
What is the Cost of an Import-Export License in UAE?
An import-export license in UAE starts from around AED 6,800 for a basic trade license. The exact cost depends on your jurisdiction (free zone or mainland). Starting an import-export business in the UAE can cost around AED 25,000 to AED 100,000 depending on the size of the business.
Documents Required for Import-Export Company Setup in UAE
You will need to submit all your shareholder’s identity documents, business plan, and company incorporation documents to get a UAE trade license for import-export.Â
To get an import-export license in the UAE:
- Passport copies of all shareholders
- Proof of residence or address
- Business plan
- Memorandum of Association (MOA)Â
- Copy of entry stamp or residence visa
- Tenancy agreement for office or warehouse
- Letter of request for the import-export code
How to Keep Your Import-Export Business Compliant
Every import-export business in the UAE has to comply with the customs duties, local VAT laws, and the restricted good regulations. They are also required to have a valid trade license at all times. Here’s what businesses can do to stay compliant:Â
- Use HS codes: Every product must be classified using the correct Harmonized System (HS) code. Incorrectly classifying products can lead to penalties.
Â
- Register for VAT: If your revenue exceeds AED 375,000, you must register for VAT and charge 5% on applicable transactions.
Â
- Customs Duty: Standard duties apply when goods enter the local UAE market from a free zone. The general import tax rate is 5% of the Cost, Insurance, and Freight (CIF) value.
Â
- Pay Corporate Tax: 9% corporate tax applies on income above AED 375,000. Most free zone entities are exempt, but only if they meet qualifying conditions.
Â
- Pay excise tax: Harmful products like tobacco and alcohol carry excise taxes of 50% to 100%.
Â
- Renew your license: Import-export trade licenses are valid for one year. Late renewals can result in penalties.
Â
- Get approvals for restricted goods: Pharmaceuticals, food, and telecom equipment need additional approvals from relevant government bodies before you can import them.
Â
- Keep records: Keep all invoices and customs declarations. Authorities conduct audits and you need a complete paper trail.
UAE Import-Export License Vs General Trading License
An import-export license allows businesses to move goods in and out of the UAE. It is used for importing products into the country and exporting them to international markets. This type of license is suited for businesses focused specifically on cross-border trade.
A general trading license in UAE allows businesses to trade a wide range of goods, both within the UAE and internationally, under a single license. It is mostly used by companies dealing in multiple product categories.
So, an import-export license is more specialized, while a general trading license offers greater flexibility. Businesses focused on international trade operations usually choose an import-export license, while companies handling a variety of goods often prefer a general trading license.
Start a Business in Sharjah with SRTIP Accelerator
If you are looking to set up a business in Sharjah, the SRTIP Accelerator gives you a specialized environment built for technology-driven and innovation-led companies, including those in international trade. Our experts handle the entire business setup process, starting from guiding you through jurisdiction options, applying for a license, to opening a bank account.Â
Get in touch for a free consultation!
Â
Frequently Asked Questions
There are two types of import permits in the UAE: permits for Restricted Goods (such as pharmaceuticals and telecom equipment) and permits for Duty Exempted Goods. Restricted goods permits require approvals from relevant regulatory bodies before import is allowed.
The top three exports from the UAE are Crude Petroleum (USD 105 billion), Refined Petroleum (USD 57.9 billion), and Gold (USD 32.8 billion). Precious stones, aluminium, and marine vessels are also major exports for the country.
IEC stands for Import-Export Code. It is the unique registration number issued by customs authorities that allows your business to legally clear imports and exports through UAE ports.
