India is one of the UAE’s biggest trading partners regarding raw materials, labor, or whatsoever 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 blog, we will take an in-depth look at how to start an import-export business in Dubai.
Why you should consider starting an import-export business in Dubai:
- 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
How to start your import-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:
Step 1: Pick a trade name
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 and 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.
Step 2: Identify your trade license’s business activity and business structure
For your import-export business license in Dubai, a description of your import-export business operations is important. Your import business license permits you to engage in a number of 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 each and every element involved in your business operations. In order to coordinate your license application and business activity, it is best to work with business setup experts.
Step 3: Obtaining the necessary 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 4: Be wise when picking a business location
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.
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 have knowledge of this while choosing the business activity; if not, consult a business setup expert.
Step 6: Pay the required government fees
You will receive the payment voucher. After this step is complete, you’re good to go! No more steps are required.
Step 7: Get your import-export trade license
Your service provider will contact you once your license is ready for collection.
What is the paperwork needed to start an import-export business?
To setup a business in exporting, you will need the following documents which can be done by hiring trusted PRO Services in Dubai:
- 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)
What can you export to Dubai from India?
70% of the UAE’s import and export trade is handled by Dubai. 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 a variety of things, like getting quotes from the Dubai Chamber of Commerce and starting with product distribution and storage. Collectively, these things might just launch your export business from India to Dubai sooner than you planned!