India is one of the UAE’s biggest trading partners regarding raw materials, labor, or whatever it may be. The nations’ trading relationship is a strong one. Now, if you are a businessman looking to diversify your services by starting an export business from India to Dubai, you are in the right place. In this comprehensive guide, we will dive into the steps and benefits of starting an import-export business in Dubai.
Why Start an Import-Export business in Dubai
Dubai is an exciting global destination for tourists and travelers and one of the fastest-growing economic centers globally. It has a population comprising more than 90% foreign nationals, all enjoying a high standard of living afforded by the UAE’s business-friendly and zero-tax environment. The UAE boasts a leading road infrastructure and air and seaports that support every business and trading activity.
The UAE extends substantial benefits to businesses, such as a favorable tax obligation—levying 0% corporate tax on income up to AED 375,000 and a modest 9% beyond that threshold. This, coupled with a pro-business environment and a consumer market characterized by high purchasing power, presents a lucrative landscape for entrepreneurs.
If you’ve been considering starting an export business from India to Dubai, these are some benefits to be aware of:
- The government offers multiple incentives for new businesses
- Leading air, sea, and road networks that support all commercial and trading activities.
- Strategic location and ease of global accessibility
- Great time zone for easy coordination with the Western world
- High-end infrastructure
- Multiple business (economic, free zones) zones with a flexible approach
- High standard of living
- Minimum or no-tax environment
Steps To Start an Export Business From India to Dubai
All businesses doing business setup in Dubai are regulated by rules on company formation, business licensing, company naming, business operations, and other things.
Below are the steps you should follow to launch your company:
Step1: Choose a trade name for your business
You can choose and register your company name with the UAE Registry Office with the assistance of Business Link. Your name may be used in the company’s trade name, but it must be used in its full name, not just your surname or initials. The firm name must adhere to the UAE’s naming laws, which prohibit the use of any words that are obscene, insulting, or make references to Allah or Islam. Make sure you have a few (minimum 3) name suggestions. Business setup professionals can assist in making sure you can get the trade name approval from DED.
Step2: Decide the trading activity
A description of the trading business operations is important for an import-export business license in Dubai. Your import business license permits you to engage in several activities that Dubai’s Department of Economic Development (DED) has explicitly designated for this enterprise and company type. You can be fined if you don’t include every element involved in your business operations. To coordinate your license application and business activity, it is best to work with business setup experts.
Step 3: Choose your business location
You can start an export business from India to Dubai in the mainland or free zone areas. The best free zones have direct roads and links to highways, airports, and ports. Moreover, free zones offer full exemptions from all export-import taxes and zero currency limitations. Indian businesses doing import-export businesses can also resettle all profits and capital.
On the other hand, you can set up a trading business in the mainland directly with the UAE local market.
With business premises in nearby key zones for effective transportation and logistics of import and export business activities, Dubai offers a first-rate infrastructure. It is important to choose an ideal trading location. For an import-export business, make sure you choose a location that is accessible and affordable via land, air, and sea. Let business professional experts assist you in finding an ideal mainland or free zone location that best serves your company’s needs.
Get assistance today from Business Link business setup experts to know the whole process.
Step4: Obtaining the license and paperwork
Make sure all partners, shareholders, and the local sponsor of the firm sign the Memorandum of Association and Local Service Agent Agreement (if required) documents. This is a crucial step in obtaining the legal paperwork and documentation processes.
Step 5: Get additional approvals if required
This will be based on the business/trade activity you choose. Some business types will need additional government approvals. Ensure that you know of this while choosing the business activity.
Consult our business setup expert.
Step 6: Pay the fees
You will receive the payment voucher. After this step is complete, you’re good to go! No more steps are required.
Step 7: Collect the trade license
This can be collected either at DED’s service centers or online, through DED’s website.
Documents Required To Start Import Export Business
The documents needed to start an export business from India to Dubai depend on the kind of products you wish to trade. However, some documents mostly asked by Indian businessmen to show while starting an import-export business in Dubai are as follows:
- Passport copies of the shareholders.
- Entry stamp or Visa page.
- Passport-size photograph.
- Trade name
- Business activity
- Passport copy of owners and shareholders
- UAE residence visa of partners and/or shareholders
- Local sponsor’s passport copy and Emirates ID (if this is not a GCC-national-owned company)
These documents can be done by hiring trusted PRO Services in Dubai:
What can you export to Dubai from India?
Dubai handles 70% of the UAE’s import and export trade. India’s exports help Dubai’s economy grow partly because of the UAE’s free trade laws, and re-exporting from Dubai also benefits India’s economy in many ways.
Entrepreneurs and foreign investors have growing opportunities to increase the export of products for re-export.
There is a list of items you can easily trade between the two places:
- Petroleum-based goods
- Mineral oils, fuels, and associated by-products
- Textiles and clothing
- Valuable metals and gemstones
- Steel, iron, and allied byproducts
- Plastics and associated waste
- Electrical devices, tools, and components
- Mechanical devices and machinery
Contact a professional business setup consultant before ensuring the products you wish to trade comply with the government’s regulations.
After clearing the licensing process and supporting documentation, exports of goods from India to Dubai can begin. You can also look for professional business setup companies to help you because the process can be time-consuming. Business consultancies can expedite the procedures for you. They can help you with many things, like getting quotes from the Dubai Chamber of Commerce and starting with product distribution and storage. Collectively, these things might launch your export business from India to Dubai sooner than you planned!
