International investors looking to
generate revenue in the UAE, and especially in Dubai, can make a choice on one
of the prolific fields of the import and export sector. Accessibility to global
markets and profiting from the tax regime in the trading sector attracts
entrepreneurs who want to prosper in a competitive industry. UAE is today the
rapidly growing center for import / export businesses.
Imports in Dubai
Machinery, food, chemicals, and
transport equipment are the significantly imported products in Dubai. Dubai
also imports textiles and metals from China and various primary items from
India such as cotton, garments, machinery, instruments or plastics.
Jewelry and gold are also important
among the key goods imported. Other import partners are the USA, Japan, and
Germany. Imports into the UAE include electronic equipment, precious metals,
furniture and appliances, inorganic chemicals, minerals, fabrics, shoes,
vehicles, ceramic goods, alcoholic beverages and dairy products as well.
Exports in Dubai
The UAE is a member of the World
Trade Organization and the Emirates is a major trade partner for around 32
countries around the world. The major export items constitute natural gas and
crude oil, as well as food and re-exported goods. Dubai also exports metals
such as aluminum or copper, with Japan, South Korea, Thailand, India and Iran
as its primary export partners.
Benefits Of Import / Export Business In UAE:
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100% foreign ownership
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0% personal income & personal tax
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100% repatriation of capital and profit
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Minimal Import/Export duty
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0% corporate tax
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No restrictions on funds transfer
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Efficient administrative services
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Quick licensing and business set-up process
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Stable Government
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Stable rules and regulations
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Business friendly environment
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World-Class infrastructure with efficient
communication system
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Low start-up and operational cost
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No visa restrictions
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No restrictions to hire foreign employees
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Pre-built structures- offices, factories, warehouses
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Quick and efficient business support services
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Modern IT infrastructure
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Easy access to sea ports, airports and road
transport
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24/7 operational ability
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Ready consumer market across MENA and Asia
regions
All you need to learn about import-export at the UAE
Whatever plan you choose to go
down, there are a few things you should know before you begin.
1. Setting up in a free zone: Establishing
an import-export business in a free zone of the UAE is exceptionally
uncomplicated and normally takes just a matter of days. You may choose from any
of the more than 40 free zones in the UAE, although some may be more
appropriate than others. For example, if you plan to import and export
predominantly by sea, Jebel Ali Free Zone (JAFZA) is probably a good choice
because it is directly connected to the busy port of Jebel Ali. In contrast if
you mostly transfer cargo by air, Dubai Airport Free Zone (DAFZA) is probably
more suited. You might also want to set up in a free zone that is already home
to other large organizations – both Aramex and IKEA have warehouses in Dubai
South, while Ras Al Khaimah Economic Zone (RAKEZ) is where Franke and Mahindra
trades from.
2. Affordable startup: Besides
being easy and fast, it is also very economical to start an import-export business
in the UAE. The cost of establishing in popular free zones like JAFZA (AED
15,000) or Sharjah Media City (SHAMS) (AED 11,500) can be very fair.
You will also have to rent
warehouse space if you plan to store the goods. JAFZA provides warehousing from
AED 350-600 per square metre, per annum. Moreover, if you really want to keep
start-up costs low, there are many free zones that do not necessitate initial
capital payments.
3. Partnering requirements: If you
set up an import-export business in a free zone, you will have to deal with a
local trade partner throughout the mainland. Most enterprises choose to work
with local distributors like Aramex to manage such logistics on the mainland. Others
merge this with their own e-commerce portal to cut the middle man-selling
online directly to customers and shipping goods via Aramex.
4. Customs considerations: Wherever
you set up your company in the world, if you are importing or exporting, you
will have to consider the customs. You'll need to obtain an import code from
UAE customs to import goods into the UAE by sea or air. Once you have that, you
can import goods through any of the ports in the UAE. As for prices, products
passing through customs from a free zone to the local market are liable for duties
of up to 5 per cent (although this varies depending on the product) here in the
UAE. When setting up your business, bear in mind that customs duties may
quickly add up and, if you import large volumes of goods for sale to the local
market, a mainland setup can make more financial sense.
5. Plenty of visa options: Once you
launch your import-export business in a free zone of the UAE, you will be
eligible to apply for multiple visas. The exact number visas you may request
depends on where you are setting up, since each free zone has its own maximum
cap. Several, like SHAMS, issue a total
of six visas whereas others, depending on the size of your office or warehouse,
permit you to apply for more. The general rule is 100 square feet of office
space or warehouse space per visa.
6. It’s easy to sponsor dependants:
As a UAE business owner it is not only easy for you to apply for visas for your
employees, you may also sponsor dependants for their visas. If you require a
visa for a spouse, child or domestic workers, the procedure is intuitive: entry
permit, adjustment of status, medical fitness test, registration of Emirates ID
and stamping of visas. Considering that this is such an important process, it
is a wise idea to get advice from a specialist on establishing UAE Free Zone
companies and confirm that both you and those you plan to sponsor fulfill the
eligibility criteria before starting an application.
7. Set up with multiple
shareholders: Although you can certainly setup your import-export company as a
sole owner, you can also set up your business with multiple shareholders. These
may be individuals, corporate entities or a mix of the two.
8. Easy to arrange your corporate
bank account: Once you have your business license to trade in the UAE, you will
have all you need to open your corporate bank account. The application process
is swift and straightforward. Free zone staff can provide advice on the best
bank to suit your needs – and can even arrange branch meetings for you, if you
wish. The same support can also be offered by a business development specialist
– or instead, you're welcome to approach any local or international bank on
your own.
There are more than 40 free zones
& local authorities for your business licensing requirements. And each Free
Zone and Jurisdiction has particular rules and regulations and different setup
costs, and not every business activity is permitted.
If you're a small general trader
looking for the cheapest option to set up import export business from one of
the UAE free zone, the best option to follow is below.
Contact a registered business
consultant to advise you toward your investment in the best possible way.
Business activity range – there
are four forms of business / trading licenses.
One Activity Trading License
Two Activities Trading License
Three Activity Trading License
General Trading License
Choose Jurisdiction – When
you set up your company in Free Zone, you will have 100% ownership and if you
incorporate your business as a local company, you will need a local sponsor who
will hold 51% share and you will hold 49% of the shares.
Payment & Getting License
– You need to make the payment after all the above steps to setup your company
in a Free Zone or as a local company. Your business consultant will do everything
possible to set up a business in UAE.
When payment is made with all the
necessary documentation, you can obtain your business license within 3-5
working days after which you can start your residency visa process.
Document Required To Setup An Import / Export Business:
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Owner / Partner passport copy
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Owner / Partner visa copy (if already a UAE
resident)
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Owner / Partner visit visa copy (if new to UAE)
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Owner / Partner passport size photograph (white
Background)
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Three proposed business names
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Business plan
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Power of attorney (if required)
It has never been any easier to set
up your own company. PMC Solutions DMCC takes care of everything so that you
can concentrate on what matters-build your business. For more information about
company formation in the UAE mainland or free zones, please call us on +971 588631656,
or send an email to setup@pmcsolutions.me
