Dubai’s free zones are world-renowned for fostering international business, particularly in import and export activities. This article explores how obtaining a free zone license for import and export can benefit businesses, whether you’re looking to tap into the UAE market or extend your global reach.
We’ll walk you through everything you need to know, from the types of free zones in Dubai for import and export businesses to the costs and steps required for obtaining a free zone license. Along the way, you’ll discover why free zones offer unmatched advantages, such as 100% foreign ownership and tax exemptions. By the end of this article, you’ll clearly understand how to set up your business and trade in Dubai’s dynamic marketplace.
What is a free zone license?
A free zone license is a specific business license issued by one of Dubai’s many free zones, allowing companies to operate inside the UAE and internationally. These licenses are tailored to various business activities, with import and export among the most prominent. By obtaining a free zone license, businesses can benefit from a range of incentives, including 100% foreign ownership, no customs duties on imports and exports, exemptions from personal income, and low corporate taxes.
Free zone licenses are ideal for businesses involved in international trade, as they streamline operations and make cross-border activities more efficient. Whether you’re importing goods from overseas or exporting them to global markets, a free zone license provides the flexibility and ease needed to succeed in Dubai’s thriving commercial landscape.
Free zone license for import and export: step-by-step
Step #1: Partner with Trade License Zone
Begin your import and export business in Dubai by partnering with Trade License Zone. With our in-depth knowledge of the UAE’s free zone regulations and business setup process, we ensure a hassle-free experience in obtaining your free zone license. Trade License Zone navigates the complexities of the legal and administrative requirements so you don’t have to. From selecting the right free zone to preparing the necessary documents, Trade License Zone offers full support at every stage, handling the technicalities while you focus on growing your global trading network.
Step #2: Choose the right free zone
Dubai boasts over 30 free zones, each offering unique benefits depending on your business type. When selecting a free zone for your import and export business, consider factors such as location, specific industry focus, and available infrastructure. For example, if your business deals with a broad range of products, a free zone like the International Free Zone Authority (IFZA) might be ideal due to its wide range of activities available. The right free zone can significantly enhance your operational efficiency and access to markets.
Step #3: Select your business activity
Once you’ve chosen the appropriate free zone, the next step is to define your business activity. Free zone authorities require businesses to specify their import and export activities, such as the type of goods they will handle. Certain free zones specialise in specific sectors, so matching your business activity with the free zone’s focus is essential. Trade License Zone can help you navigate these options to ensure you choose the best fit for your needs.
Step #4: Submit the required documents
To obtain your free zone license, you will need to submit a series of documents. These typically include passport copies of the business owners, digital passport photos, and KYC (Know Your Client) information. Depending on the free zone and your chosen business activity, additional documents may be requested. Trade License Zone will assist in preparing and submitting these documents to ensure they meet all legal requirements.
Step #5: Apply for Import/Export Code
To legally import and export goods in Dubai, you must apply for an import/export code from Dubai Customs. This code is essential for clearing goods through ports and customs authorities. The process involves submitting your free zone license, relevant business documents, and an application form to Dubai Customs. Trade License Zone can handle this process, ensuring your business fully complies with customs regulations.
Step #6: Open a corporate bank account
Once your free zone license is approved, you must open a corporate bank account to manage your financial transactions. Free zone companies in Dubai enjoy access to various local and international banks. However, each bank has its own requirements and procedures, which can be time-consuming. With Trade License Zone, we help streamline the process of opening your account, ensuring all paperwork and documentation are in order.
Step #7: Start trading
With your free zone license and import/export code in hand and your bank account set up, you are ready to begin trading. Trade License Zone will continue to provide support, helping you stay compliant as your business evolves.
Documents required to obtain an import and export license.
- Passport copies of the company’s shareholders and managers
- Proof of residency (if applicable)
- Completed free zone license application form
- Business plan
- KYC information
- Memorandum of Association (MOA) and Articles of Association (AOA)
- Lease agreement
- Import/Export Code application form
Trade License Zone simplifies this process by helping you gather and submit these documents accurately, ensuring your application is handled efficiently.
Benefits of setting up an import and export business in a free zone
1. Tax advantages and 100% foreign ownership
One of the most significant benefits of setting up an import and export business in a Dubai free zone is the favourable tax environment. Free zone businesses enjoy low corporate taxes and zero personal income taxes, which allows you to maximise profits. Additionally, you retain 100% ownership of your company, a rare advantage compared to businesses set up outside the free zones, where local partners are often required.
2. No customs duties on imports and exports
Free zone companies can benefit from exemptions on customs duties for goods imported and exported through the zone. This translates into considerable cost savings, especially for businesses involved in high-volume trade. Goods can move freely between free zones and international markets, making it an ideal setup for companies engaged in global trade operations.
3. Access to international markets
Dubai’s strategic location between Europe, Asia, and Africa provides unparalleled access to key global markets. Setting up in a free zone positions your business at the heart of one of the world’s busiest trade hubs, with easy access to seaports, airports, and land routes. This logistical advantage allows for faster, more efficient trade with international partners.
4. Simplified business setup and operations
Free zones are designed to attract international investors and businesses, and the process for obtaining a license and starting operations is streamlined to be as efficient as possible. Trade License Zone helps businesses navigate these processes, ensuring your company can start trading with minimal delays. You also benefit from reduced bureaucracy, with free zones offering various government services under one roof.
5. World-class infrastructure
Dubai’s free zones are known for their state-of-the-art infrastructure. Whether you need warehouse space, office facilities, or access to advanced logistics, free zones provide the resources required to run an import/export business efficiently. This infrastructure, combined with the city’s modern transport links, makes Dubai a highly attractive location for businesses involved in global trade.
Types of free zones in Dubai for import and export
Dubai offers more than 30 free zones, each offering unique advantages for import and export businesses. These free zones are tailored to specific industries and business needs, providing companies with the infrastructure, logistics, and incentives required to thrive. Below is an overview of the major free zones in Dubai that are ideal for import and export businesses, along with their key features and focus industries.
1. International Free Zone Authority (IFZA)
Focus Industry: Consulting, trading, services, technology, logistics, precious stones and metals
Key Features: The International Free Zone Authority (IFZA) is one of the UAE’s most prominent and broad-scoped jurisdictions. Their flexible structure allows various activities under a single license, making it appealing to many entrepreneurs. IFZA is known for its competitive pricing, flexible business setup options, and range of office solutions from virtual to co-working space and private offices.
2. Dubai Airport Free Zone (DAFZA)
Focus Industry: Aviation, electronics, and high-tech goods
Key Features: Dubai Airport Free Zone (DAFZA) is strategically located within Dubai International Airport, making it perfect for businesses involved in the import and export of high-value or time-sensitive goods such as electronics, pharmaceuticals, and luxury items. The zone offers top-notch logistics support and facilities designed to speed up customs clearance and global distribution, making it a key player in air freight trade.
3. Dubai Multi Commodities Centre (DMCC)
Focus Industry: Commodities trading, precious metals, and energy
Key Features: DMCC is a global hub for commodities trading, especially for businesses dealing in gold, diamonds, tea, and energy. It is the world’s most interconnected free zone, offering state-of-the-art infrastructure and a strategic location in the heart of Dubai. DMCC is ideal for companies requiring import/export operations and a robust platform for international trade and commodities markets.
4. Dubai South Free Zone
Focus Industry: Aviation, e-commerce, and logistics
Key Features: Dubai South Free Zone is located near Al Maktoum International Airport and is designed to be a logistics hub for air freight and e-commerce businesses. The zone offers businesses a flexible environment with fast-track customs clearance, making it an attractive option for global trade and e-commerce companies. With world-class infrastructure and facilities, Dubai South is tailored to businesses looking for logistical ease.
5. Dubai Silicon Oasis (DSO)
Focus Industry: Technology, electronics, and IT equipment
Key Features: Dubai Silicon Oasis (DSO) is a technology-driven free zone ideal for businesses importing and exporting electronics, software, and IT equipment. With a focus on innovation, DSO offers a combination of commercial and residential facilities, making it perfect for businesses looking to operate in the tech space. The zone also provides access to global markets and offers strong support for research and development.
6. Jebel Ali Free Zone (JAFZA)
Focus Industry: Logistics, manufacturing, and trade
Key Features: Jebel Ali Free Zone (JAFZA) is one of the UAE’s largest and most established free zones near the Jebel Ali Port, the world’s ninth-largest container port. JAFZA is ideal for businesses engaged in heavy import and export operations due to its proximity to seaports and logistics hubs. The free zone offers excellent infrastructure, warehousing, and access to international markets through efficient shipping routes.
Costs involved in setting up a free zone import/export business
Setting up an import/export business in one of Dubai’s free zones offers numerous advantages, but it’s essential to understand the associated costs to plan your budget effectively. Below is an overview of the main expenses involved when establishing a free zone business for import and export, including licensing costs, visa fees, office rentals, and other considerations.
#1: Free zone license costs
The cost of obtaining a free zone license depends on the specific free zone you choose and the type of business activity. An import/export license typically costs between AED 12,000 and AED 50,000 per year. Some free zones offer packages that bundle the license with additional services like office space or visa quotas. It’s essential to consult with Trade License Zone to find the most cost-effective solution for your business.
#2: Visa fees
You must account for visa fees if your business requires staff or investors to reside in Dubai. An investor visa typically costs around AED 4,500 to AED 5,500, depending on the free zone and visa type. Additional visa fees apply for employees, with some free zones offering multiple visa packages as part of their setup deals. Consider the number of visas your business may need when planning your budget.
#3: Office rental and workspace costs
Dubai’s free zones require companies to have a registered address, ranging from a virtual office, flexi-desk, or shared office to full-fledged office space or warehouses, depending on your business needs. Flexi-desks start at around AED 6,000 per year, while larger office spaces and warehouse facilities can range from AED 15,000 to AED 100,000 or more, depending on the location and size. Choosing the right workspace will depend on the scale of your import/export operations.
#4: Customs and import/export code fees
To operate an import/export business, you must apply for an import/export code from Dubai Customs, which has an associated fee. Typically, this costs around AED 1,000 to AED 2,000 per year. Additionally, depending on the nature of your goods, customs clearance and handling charges may apply, which can vary based on the type of products and trade volume.
#5: Miscellaneous costs and business setup services
In addition to the primary costs listed above, there are other expenses that entrepreneurs should consider when setting up a free zone business. These may include:
- Document processing and legal fees: Handling registration and legal documentation can add AED 1,000 to AED 5,000 to your initial costs.
- Insurance: Depending on the nature of your business, you may require specific insurance policies, such as liability or property insurance, which can range between AED 2,000 and AED 10,000 annually.
With Trade License Zone’s planning and guidance, setting up your import/export business in a Dubai free zone can be a financially rewarding investment.
Why work with Trade License Zone?
Navigating the complexities of setting up a business in a Dubai free zone can be challenging, especially for entrepreneurs unfamiliar with local regulations. That’s where Trade License Zone comes in. We take the hassle out of the licensing process by providing end-to-end support, from choosing the right free zone to handling all necessary paperwork and legal requirements. Our extensive experience in UAE business setups ensures a seamless, stress-free experience, allowing you to focus on growing your import and export business.
Each import/export business is unique, which is why Trade License Zone offers tailored solutions to meet your specific needs. Whether you’re a small startup looking for cost-effective options or a larger enterprise seeking to maximise trade benefits, we provide personalised guidance at every step. Our experts will help you select the most suitable free zone based on your business activity, target markets, and logistics requirements. With Trade License Zone’s expertise, you can rest assured that your business will be set up for success.
Don’t let the complexity of Dubai’s free zone regulations slow you down. By partnering with Trade License Zone, you gain access to a team of specialists dedicated to making the business setup process as smooth and efficient as possible. Whether you’re just starting or looking to expand your global trading operations, we have the knowledge and resources to help your business thrive. Get in touch with us today for personalised assistance, and let us guide you toward success in Dubai’s dynamic import/export sector.