If you are considering starting an export business from India to Dubai, this is a great time to do it. The UAE is well-known for its oil wells, seven-star hotels, wealth, business streets, and vast desert lands. Imports of goods and services into Dubai account for 68.48 percent of GDP. With such large numbers, Indian entrepreneurs, investors, and businessmen stand to gain significantly from doing import-export business in Dubai.
In this article, you will learn everything about how to start an export business from India to Dubai. Let us observe:
1. An overview
The import and export business is an industry that meets the demand and supply for goods and commodities across jurisdictions and countries. As a result, import-export licenses are in high demand. They define an import as a commodity that is brought into one country from another.
It is a product of the sending country. A commodity exported is one that is sent or transferred to another country. In the receiving country, it is an import. International trade refers to the exchange of goods and commodities. Hence, international trade has had a significant impact on the UAE’s economy.
Many investors look forward to doing business in the UAE, as it has great relations with several countries. This is why it has become in the main hub for international trade in the Middle East. Starting an export business from India to Dubai is therefore a popular business venture. This business is popular for the following reasons:
- For foreigners, it is really easy to start a business.
- It is strategically located between the continents of Asia, Europe, and Africa.
- People can easily travel to and from anywhere in the world. This is because of its location. The UAE is in the center.
- It has excellent global connectivity via air and sea routes.
- It has an excellent time zone, allowing for seamless coordination and trade with both Eastern and Western countries.
2. Dubai import and export business license
Import-export firms must apply for a trade license and register their export business from India to Dubai. To do so, you must submit an application to the Department of Economic Development (DED). Import and export businesses must obtain a Commercial License and register as a Limited Liability Company (LLC).
2.1. How much does an import-export license in Dubai cost?
The following are the import-export license fees in Dubai for a few Emirates in the UAE:
- Dubai: an import-export license will cost around AED 24,000 in Dubai.
- In Sharjah, you will have to pay around AED 23,000 and up for this license.
- The license will cost AED 24,000 in Ajman (approx.).
- The license will cost AED 20,000 in Ras Al Khaimah (approx.).
Please keep in mind that the figures discussed for Dubai import-export license fees are estimates and may vary depending on your specific business needs and operational activities. Hence, the Dubai import-export license fees are determined by the territory from which the business is conducted, as each authority has set its own fee for obtaining the license.
3. What documents are required to obtain an import-export license in Dubai?
You must submit the following documents for applying for the license:
- Options for trade names
- Commercial activity.
- All shareholders’ passports have been copied.
- Partner’s UAE residence visa (copy).
- They will require a copy of the entry stamp or visa page; this is in case the partner is on a visit visa,
- Copy of local sponsor’s passport and Emirates ID
4. How to begin an export business from India to Dubai?
All companies doing business in Dubai must follow specific regulations regarding business setup, business license, company naming, business activities, and more. This section will walk you through the steps of starting an export business from India to Dubai.
4.1. Collaborate with Connect Services Middle East
The first step in launching an export business from India to Dubai is to join forces with Connect Services Middle East. Our professional services will handle all aspects of your import-export business license, company registration, and setup process, allowing your import-export company to trade legally.
Hence, we will also assist you with all Dubai customs documents required by this government agency, as well as obtain external approvals on your behalf.
4.2. Select a trading name
Secondly, we will assist you in deciding on and registering your company name with the UAE Registry Office. You may use your name in the company’s trade name, but it must be used in its entirety rather than just your surname or initials.
In addition, the business name must adhere to the UAE’s naming policies, which include the prohibition of offensive or profane language, as well as references to Allah or Islam.
4.3. Determine your trade license’s business activity
Thirdly, outlining your import-export business activities is required for your Dubai import-export business license. Your import business license allows you to carry out several activities that the Dubai Department of Economic Development (DED) has specifically defined for this business and company type.
Penalties may apply if you fail to list all of your business activities. To align your license application and business activities, it is best to work with a company formation expert like us. Additionally, we can help you get your trade license.
4.4. Establish the legal structure of the company
In Dubai, all import-export business categories require an import-export business license. The legal requirements of the UAE government for this type of company structure require a local sponsor to collaborate with a foreign entrepreneur or investor. The local sponsor must be an Emirates citizen and own at least 51% of the import and export company.
When trading in UAE customs territory, export-import business owners must apply for a Commercial License and register their company as a Limited Liability Company (LLC). According to the Dubai Customs agency’s legal requirements, company structure laws require foreign entrepreneurs and investors to apply for a business license from the Dubai Department of Economic Development (DED).
After obtaining their trade licenses, these companies must register as an import-export business with Dubai Customs before trading legally. Thanks to recent changes in UAE business regulations, establishing your export business from India to Dubai is a streamlined process.
Hence, if you are unsure about any steps, seek expert advice from our agents to assist you in obtaining your import and export business license in Dubai.
4.5. Request preliminary approval for import and export business activities
To conduct business in the local market with an export and import permit and a trading license, you must first obtain approval from Dubai’s DED. This preliminary approval indicates that the Dubai government has no objections to your export and import license. Note that this is not the same as a temporary export permit.
4.6. Document preparation
To begin the application process for an export and import license, all partners, shareholders, and the company’s local sponsor must sign the Memorandum of Association (MOA) or Local Service Agent Agreement (LSA) documents at the DED.
4.7. Decide on a business location
All import-export licensees must rent a commercial space. In addition, the rental agreement/tenancy contract, along with the other documents required for the import-export license application, must be submitted. Dubai has world-class infrastructure and business locations in adjacent prime zones for efficient import and export business activities.
Finding a business location is simple; however, determining which one best suits your company’s needs necessitates the assistance of experts. Thus, Connect Services Middle East can assist you in choosing the best offices and logistics spaces for your company.
4.8. Registering with Dubai Customs
Lastly, you must register your business with Dubai Customs once the DED has notified you of your successful import-export license and you have paid for the trading license. This step will provide your company with its own Customs Code, which is assigned to export-import businesses. This Customs Code must be provided with every import and export transaction.
5. What can you export from India to Dubai?
Dubai accounts for 70% of the UAE’s import and export trade. Because of the UAE’s free trade regulations, India’s exports contribute to the economic development of Dubai, and re-export business in Dubai contributes to India’s economic development on multiple levels. So, the following are the most common goods exported from India to the UAE via Dubai customs:
- Petroleum-based products.
- Mineral fuels, mineral oils, and byproducts.
- Textiles and clothing.
- Precious metals and stones, both precious and semi-precious.
- Iron, steel, and associated byproducts.
- Plastics and their byproducts.
- Electrical equipment, machinery, and parts.
- Machines and mechanical devices.
- Ships, boats, and other similar floating structures.
- Organic chemicals.
The local UAE market has a growing demand for Indian imports. Therefore, entrepreneurs and investors have a huge opportunity to increase the export of these products to Dubai for re-export.
6. What are the advantages of starting an export business from India to Dubai?
In terms of business opportunities, the Middle East’s trading market ranks 12th in the world. Are you wondering what entices Indian investors and businessmen to invest their money and resources in Dubai’s export-import trade? So, examine the advantages of doing import and export business from India to Dubai.
6.1. Traditional business culture
Before discovering oil, Dubai and other parts of the UAE traded natural resources such as minerals, spices, peal, and copper with many countries. The discovery of oil in 1962 was a significant training milestone. As a result, trading has always been a favorable opportunity for Indian investors to import and export to Dubai.
6.2. Friendly import-export environment
The potential 2 billion people market from Europe and Asia can be reached in 4 to 8 hours of travel time. This is backed up by an advanced airline network of international and domestic carriers, as well as well-maintained logistics centers.
Furthermore, the world-class infrastructure and high standard of living entice Indian investors to begin exporting from India to Dubai.
6.3. Dubai trade laws and advantages
Lastly, they designed Dubai’s trading laws to encourage healthy competition, protect the interests and rights of businesses and customers, and provide a stable environment for SMEs and other businesses. Furthermore, Dubai provides favorable tax benefits, allowing foreign traders to trade freely within certain constraints.
7. How can Connect Services Middle East help you?
When you work with a team of experts like Connect Services Middle East, establishing a business in the UAE is simple. Starting an import-export trading company in Dubai can be a difficult process due to the requirements for an import-export business license, company structure, handling of required documents, and visas.
When you work with us, you will avoid unnecessary delays or rejections and the entire process will be easy. Connect Services Middle East’s company formation specialist team can get you started once you provide us with some basic documentation and information about the nature of your import-export business and business activities.
You can let our team take care of your business setup with our tailored services. We will handle your trade license and visa applications, communicate with all relevant local departments and authorities, and notify you when you are ready to trade. It really is that easy. All you have to do is contact us through our phone +971 43 316 688 or our email firstname.lastname@example.org.