26 Apr 2025

How to Legally Set Up an Import-Export Business in the UAE

Fathi Bisher

The United Arab Emirates (UAE) is a global trade hub, offering entrepreneurs access to a thriving economy and strategic location bridging East and West. However, setting up an import-export business here requires careful planning and compliance with a well-defined legal framework governed by UAE laws and regulations.

1. Choosing the Right Business Structure

The business structure is primarily governed by Federal Decree-Law No. (32) of 2021 on Commercial Companies, which outlines rules for establishing and operating companies in the UAE.

1. Mainland CompanyRequires registration with the Department of Economy and Tourism (DET) under the applicable Emirate and must comply with the Commercial Companies Law. Certain activities may still require a UAE national as a service agent or partner.
2. Free Zone CompanyGoverned by respective Free Zone Authorities and supported by UAE Cabinet Resolution No. (58) of 2020 regarding the regulation of beneficial owner procedures. Free zone companies are generally limited in trading directly within the UAE unless through a licensed distributor.

2. Obtaining the Necessary Trade Licenses

Trade licensing is regulated by the Department of Economy and Tourism (mainland) or relevant Free Zone Authority, in accordance with Federal Law No. (1) of 1972 concerning the Competencies of Ministries and Powers of Ministers, and its amendments.

1. General Trading LicensePermits multiple commercial activities under a single license.
2. Import/Export LicenseRequired for engaging in foreign trade, issued by the licensing authority and often linked to Customs Code registration.
3. Sector-Specific LicensesAdditional approvals may be required under specific laws, such as:
4. Federal Law No. (10) of 2015 on Food Safety
5. Federal Law No. (4) of 1983 concerning the Pharmaceutical Profession and Pharmaceutical Institutions

3. Customs Registration and Compliance

Customs operations are governed by the Common Customs Law of the GCC States and enforced by the Federal Customs Authority. All import/export entities must obtain a Customs Code via the relevant emirate's customs department.

4. Banking and Financial Setup

To ensure financial compliance:

1. Federal Decree-Law No. (20) of 2018 on Anti-Money Laundering and Combating the Financing of Terrorism applies.
2. Opening a corporate bank account must follow Central Bank of the UAE regulations and know-your-customer (KYC) protocols.

5. Logistics and Warehousing

Free zones like JAFZA, RAKEZ, or Dubai Airport Free Zone offer streamlined logistics under their own regulations, while mainland businesses may need compliance with Federal Law No. (24) of 2006 concerning Consumer Protection, particularly for storage and handling of goods.

6. Product-Specific Approvals

Regulatory compliance for specific products is essential:

1. Food & Beverage – Must adhere to the UAE Food Law (Federal Law No. 10 of 2015) and obtain clearance from the Emirates Authority for Standardization and Metrology (ESMA).
2. Pharmaceuticals – Regulated under Federal Law No. 4 of 1983, with approvals from the Ministry of Health and Prevention (MOHAP).
3. Electronics & Telecom – Require compliance with standards set by the Telecommunications and Digital Government Regulatory Authority (TDRA) under Federal Law by Decree No. (3) of 2003 Regarding the Organization of the Telecommunications Sector.

7. Taxation and VAT Compliance

While the UAE is known for its business-friendly tax environment, certain obligations still apply:

·       Corporate Tax:  As of June 1, 2023, the UAE introduced a federal Corporate Tax under Federal Decree-Law No. (47) of 2022 on the Taxation of Corporations and Businesses.

1.     Corporate tax is generally imposed at a standard rate of 9% on taxable profits exceeding AED 375,000.

2.     Free zone entities may benefit from preferential tax regimes if they comply with regulatory requirements and maintain “Qualifying Income.”

·       Value Added Tax (VAT): Introduced in 2018 under Federal Decree-Law No. (8) of 2017 on Value Added Tax:

1.     A 5% VAT applies to most goods and services, including imports.

2.     Businesses involved in import-export activities must register for VAT if their taxable turnover exceeds the mandatory threshold (currently AED 375,000 annually).

3.     Proper VAT invoicing, record-keeping, and periodic filings are required to stay compliant.

Failure to comply with tax regulations may lead to administrative penalties under the Federal Law No. (7) of 2017 on Tax Procedures.

Final Thoughts

Establishing an import-export business in the UAE is a promising venture when done in accordance with the country’s robust legal and regulatory environment. Awareness and compliance with the applicable laws are key to successful operations.

Need Legal Guidance?Contact FB Legal Group at info@fblegalconsultancy.com for expert legal support tailored to your business goals.