Setting up a trading company in the UAE: import/export licences
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Setting up a trading company in the UAE: import/export licences
UAE trade volumes are substantial, the country sits between East and West by design, and its ports handle cargo for the wider Gulf, Africa, and South Asia. That makes it a genuinely useful base for an import/export operation. The setup, though, has more moving parts than a standard service company, and the gaps between those parts are where shipments get held.
What licence does a UAE trading company actually need?
A company trading physical goods in the UAE needs a commercial trading licence, not a professional or industrial licence. The licence is issued either by the Department of Economy and Tourism (DET, formerly DED) for mainland companies, or by the relevant freezone authority for freezone entities.
The licence must list the specific products you intend to trade, described in terms the issuing authority recognises. Broad descriptions like “general trading” cover a wide range of goods and are available from many authorities; product-specific descriptions are narrower but sometimes required. Either way, what the licence says has to match what you actually ship. Customs checks this.
Customs registration: the step most founders miss
The trading licence tells regulators what you are allowed to do. The customs registration number (or “customs code”) is what you need to actually do it, to import or export goods through UAE ports and airports.
This registration is issued by UAE Customs, and the process runs separately from the company formation. Freezone companies typically register with the freezone’s customs authority; mainland companies register with the emirate’s customs body. In practice, your clearing agent or freight forwarder will ask for this number on day one. Not having it ready is the main reason first shipments stall.
Freezone vs mainland: a practical comparison for trading companies
The freezone vs mainland question matters more for trading businesses than for service companies, because it directly affects how you can move goods.
| Freezone trading company | Mainland trading company | |
|---|---|---|
| Import into freezone | Duty-free, straightforward | N/A, not freezone-based |
| Sell into UAE mainland | Requires mainland agent/distributor or customs entry | Direct, no additional layer |
| Re-export to third countries | Generally smooth | Generally smooth |
| Formation cost | Varies by freezone; RAKEZ is often competitive | Varies by emirate and activity |
| Best suited for | Re-export, entrepôt trade, B2B supply chains | Businesses selling directly into the UAE domestic market |
JAFZA (Jebel Ali Freezone Authority) deserves a specific mention for physical goods businesses. Its integration with Jebel Ali Port means bonded warehousing, multi-modal logistics, and customs clearance can sit inside the same ecosystem. For companies moving serious volumes, that operational proximity matters.
Additional permits: the layer beyond the licence
Many product categories require approvals from sector regulators before goods can be legally imported or sold, regardless of what your trading licence says. These are not optional extras, they are legal requirements with real enforcement.
Common examples include:
- Food and consumer products: ESMA (Emirates Authority for Standardisation and Metrology) certification for products on the UAE conformity mark scheme
- Pharmaceuticals and medical devices: Ministry of Health and Prevention registration
- Chemicals: registration with the relevant authority depending on classification
- Electronics and telecoms equipment: TDRA type approval
The list is product-specific and changes. Getting a clear picture of what your goods require before formation (or at least before the first shipment) saves a lot of remedial work later.
What about VAT and corporate tax for trading companies?
UAE VAT at 5% applies to most goods traded domestically. Exports are generally zero-rated, and goods moving through designated freezones can qualify for VAT relief in certain conditions. Mainland companies must register for VAT once they cross the registration threshold.
On corporate tax: the UAE’s 9% CT applies above the threshold. Freezone entities can qualify for the 0% Qualifying Freezone Person (QFZP) rate on qualifying income, but trading companies need to review this carefully, the rules on what counts as qualifying income in a physical goods context are specific, and getting it wrong has filing consequences.
Common mistakes when setting up a UAE import/export business
A few patterns repeat. Founders choose a freezone for its lower cost without checking whether that freezone supports the logistics infrastructure their supply chain actually needs. Licence activity descriptions are written too broadly or too narrowly. Customs registration gets left until the first shipment arrives. Sector permits are discovered late. None of these are difficult to fix before formation; all of them are expensive to fix after.
The structure that works for a UAE trading company is straightforward, the execution is where the detail lives.
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