How to Start Export Business to Dubai From India?

If you are thinking of starting an export business in Dubai from India, it is a nice opportunity to start it right away. UAE is well known for its oil wells, 7-star hotels, wealth, business streets, and vast desert lands. Imports of goods & services to Dubai comprise 68.48% of GDP. With such big numbers, Indian entrepreneurs, investors, or businessmen can benefit a lot from doing an import-export business in Dubai. 

Undoubtedly, the infrastructure with the UAE's position at the joining of busy trade routes between China, Europe, and MENA (the Middle East and North Africa) parts, makes it the most famous place for import and export business. In this article, you will get to know the benefits, costs, and easy methods to open an export business in Dubai from India. 

Why Choose Dubai for Your Export Business?

Dubai’s position as a gateway to the Middle East, Africa, and Asia makes it an ideal destination for Indian exporters. The UAE’s strong trade relations with India, bolstered by the Comprehensive Economic Partnership Agreement (CEPA), facilitate smoother trade with reduced tariffs. Additionally, Dubai’s world-class infrastructure, including Jebel Ali Port and advanced logistics, ensures efficient trade operations.

The Middle East’s trading market has ranked 12th in the world for offering business options in Dubai. Are you thinking about what interests Indian investors and businessmen to pond their money and resources in Dubai’s export-import businesses? Check out the benefits of doing import-export business in Dubai.

Traditional Trading Culture 

Dubai and other parts of the UAE traded natural resources like minerals, spices, peal, and copper with many countries for years before finding oil. The discovery of oil in 1962, became an extensive training milestone. Therefore, trading has always been a favoring scope for Indian investors to import and export to Dubai.  

Import-Export Friendly Environment 

The potential 2 billion people market from European and Asian areas can come within 4 to 8 hours of traveling. This is supported by the advanced airline network of international and local carriers and well-maintained logistics centers. Moreover, the world-class infrastructure and high standard of living excite Indian investors.  

Favorable Dubai Trade Laws & Benefits 

Dubai’s trading laws are made in a way to encourage good competition, save the interest and rights of businesses and customers & offer a reliable environment for SMEs and other companies. Also, Dubai offers favorable tax benefits, allowing foreign traders to trade freely within limited restrictions.  

How To Start an Export Business to Dubai From India?

Below is a list of easy steps which any Indian businessman, investor, or entrepreneur can follow to start an import-export business in Dubai.  

Step 1: Conduct Market Research

Before diving into exports, thorough market research is essential to identify demand and competition in Dubai. Understanding consumer preferences and market trends will help you select the right products. Partnering with experts like Shuraa India can provide valuable insights into the UAE market.

• Identify High-Demand Products: Focus on products like automobiles, petroleum, jewelry, textiles, and food items, which are popular in Dubai.
• Analyze Competition: Study existing suppliers and their pricing to position your products competitively.
• Understand Consumer Behavior: Dubai’s multicultural population, including a large Indian expatriate community, drives demand for Indian goods.

Step 2: Choose the Right Products to Export

Selecting the right products is critical to your success. Dubai imports a wide range of goods from India, making it essential to align your offerings with market needs. Here are some top products to consider:

Focus on products that align with your business capabilities and have strong demand in Dubai. For instance, Indian handcrafted apparel and jewelry are particularly popular due to their quality and affordability.

Step 3: Obtain an Importer-Exporter Code (IEC)

To legally export from India, you must secure an Importer-Exporter Code (IEC) from the Directorate General of Foreign Trade (DGFT). This unique identification number is mandatory for international trade.

• Application Process: Apply online through the DGFT portal with documents like PAN card, Aadhaar, and bank details.
• Processing Time: The IEC is typically issued within 2-3 days.
• Cost: Minimal fees apply, usually around INR 500.

Consult with Shuraa India to ensure a smooth IEC application process and avoid delays.

Step 4: Register Your Business in Dubai

To start an export business to Dubai from India, you need to establish a legal entity in the UAE. You can choose between a mainland setup or a free zone, depending on your business goals.

Mainland vs. Free Zone Setup

• Mainland: Ideal for trading directly with the UAE market. Requires a local sponsor holding 51% shares unless operating under specific exemptions.
• Free Zone: Offers 100% foreign ownership, tax exemptions, and simplified customs procedures. Popular free zones include IFZA, RAKEZ, Jebel Ali Free Zone (JAFZA) and Dubai Multi Commodities Centre (DMCC).

Steps to Register Your Business

1. Choose a Trade Name: Select a name compliant with UAE regulations (no offensive or religious references). Submit 3-5 options to the Department of Economic Development (DED) or free zone authority.
2. Define Business Activities: Specify import-export activities for your trade license.
3. Select Legal Structure: Opt for a Limited Liability Company (LLC) for mainland or a free zone company for full ownership.
4. Obtain Initial Approval: Submit your business plan, passport copies, and other documents to the DED or free zone authority.
5. Secure a Business Location: Rent a physical office or warehouse, ensuring accessibility to ports and airports.
6. Apply for Trade License: Obtain a general trading license or specific commercial license based on your products. Costs range from AED 13,500 to AED 28,500, depending on location and visa requirements.

Shuraa India can assist with company registration, license applications, and finding suitable business locations in Dubai.

Step 5: Obtain an Import-Export Code in Dubai

An Import-Export Code (Customs Code) from Dubai Customs is mandatory for trading activities in the UAE. This code ensures compliance with customs regulations.

• Application Process: Register through the Dubai Customs portal with your trade license, passport, Emirates ID, and UAE residence visa. Pay an AED 120 application fee.
• Processing Time: The Customs Code is issued within 1-2 days.
• Additional Permits: For products like food, pharmaceuticals, or cosmetics, obtain permits from Dubai Municipality or the Ministry of Health.

Step 6: Prepare Necessary Documentation

Exporting from India to Dubai requires specific documents to comply with customs regulations in both countries. Incomplete documentation can lead to delays or penalties.

Key Documents for Export

• Certificate of Origin: Proves the goods were manufactured in India.
• Bill of Lading/Airway Bill: Tracks the shipment.
• Packing List: Details the contents of the shipment.
• Pro Forma Invoice: Outlines terms between exporter and importer.
• Health Certificate: Required for food products, attesting to safety for consumption.
• Arab Certificate of Origin: Mandatory for exports to Dubai.

Work with Shuraa India to ensure all documents are correctly prepared and attested by the UAE Embassy in India and the Ministry of Foreign Affairs (MOFA) in the UAE.

Step 7: Partner with Reliable Logistics Providers

Efficient logistics are crucial for timely delivery and cost management. Dubai’s advanced infrastructure, including Jebel Ali Port, supports seamless shipping.

• Choose a Freight Forwarder: Partner with companies like ShiprocketX for end-to-end shipping solutions with no weight restrictions.
• Understand Customs Duties: Most goods face a 5% customs duty in Dubai, though free zones offer exemptions. The CEPA reduces tariffs on many Indian products.
• Plan Warehousing: Rent storage facilities in free zones or mainland for efficient distribution.

Step 8: Build a Strong Online Presence

An online presence enhances your credibility and reach in Dubai’s competitive market. Create a professional website showcasing your products and production capacity.

• List on eCommerce Platforms: Platforms like Amazon and eBay are popular in Dubai.
• Create a UAE-Specific Domain: Use a subdomain like www.yourbusiness.uae to appeal to local customers.
• Attend Trade Shows: Network with buyers at events like those hosted by the Dubai Chamber of Commerce.

Step 9: Comply with UAE Regulations

Compliance with UAE trade regulations is critical to avoid penalties. Ensure your products meet quality standards and labeling requirements, especially for consumer goods.

• Labeling Requirements: Arabic labeling is mandatory for consumer products.
• Quality Certifications: Obtain certificates of conformity for textiles, food, and other regulated products.
• Prohibited Goods: Avoid exporting restricted items like alcohol or pork products.

Shuraa India can guide you through regulatory compliance, ensuring your business adheres to UAE laws.

Step 10: Open a Business Bank Account

A UAE business bank account is essential for seamless transactions. Banks require your trade license, shareholder identification, and registration documents.

• Choose a Reputable Bank: Opt for banks with experience in international trade.
• Leverage Currency Stability: The UAE dirham’s pegging to the US dollar ensures financial stability.

Documents Required To Start an Export Business in the UAE

The documents needed to start an export business from India to Dubai depend on the kind of products you wish to trade. However, some common documents that are 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. 

How much does it cost to export from India to Dubai?

The cost of starting an export business in Dubai varies between AED 15,000 to AED 30,000. However, there are many other determinants of cost such as the number of shareholders and tax regulations when you like to sell in the Dubai local market.  

Let’s Get Started For Export Business From India to Dubai 

Starting an export business to Dubai from India is a promising opportunity, given Dubai’s strategic location, favorable trade policies, and high demand for Indian products. By following the steps outlined—market research, product selection, licensing, and logistics planning—you can establish a thriving export venture.

Partnering with Shuraa India simplifies the process, allowing you to focus on growing your business in one of the world’s most dynamic markets. Take the first step today and tap into Dubai’s vast trade potential.