Trading Business in UAE
The UAE is one of the largest re-export hubs in the world. Non-oil foreign trade crossed AED 3.5 trillion in 2024, with Jebel Ali Port handling over 14 million containers a year. Whether you are importing electronics, exporting commodities, or running a general trading operation, the UAE gives you access to 2 billion consumers within a 4-hour flight radius. The challenge is picking the right jurisdiction and getting the customs and licensing structure right the first time. Choose wrong and you end up with a license that does not cover your activities, or a Free Zone setup that blocks you from selling into the local market. We help trading companies avoid both mistakes.
Common Setup Structure
- Free Zone for international re-export and commodity trading (DMCC, JAFZA, RAKEZ)
- Mainland for direct trade with UAE retailers, distributors, and government contracts
- General Trading License covers multiple unrelated product categories
- Specific Trading License for one or two defined product lines, lower cost
- Corporate bank account in AED and USD is standard for any trading operation
- Customs registration through Dubai Customs or the relevant emirate authority
Licensing Considerations
- Federal Customs Authority (FCA) registration is mandatory for all importers
- Dubai Customs code required for imports into Dubai; separate codes for other emirates
- Product-specific approvals for food, pharma, cosmetics, and telecoms (ESMA, MOIAT)
- Trade name must match your activity: General Trading, Electronics Trading, etc.
- Free Zone trading companies need NOC from the Free Zone to sell goods into mainland UAE
- Dual licensing now available at many Free Zones (DMCC, IFZA) for mainland market access
Accounting Requirements
- Inventory tracking by SKU with FIFO or weighted average costing methods
- Multi-currency bookkeeping in AED, USD, EUR, and CNY for import/export transactions
- Letter of Credit (LC) documentation and bank guarantee accounting
- Customs duty reconciliation and recoverable import VAT tracking
- Landed cost calculations that allocate freight, insurance, and duties to product cost
- Trade receivables and payables management with aging analysis
Tax Obligations
- VAT at 5% on all sales within the UAE; exports are zero-rated with valid documentation
- Import VAT recoverable through the VAT return using customs import declarations
- Corporate Tax at 9% on taxable profit above AED 375,000; Qualifying Free Zone Persons keep 0% on qualifying income
- Transfer pricing documentation required for transactions with related overseas entities
- Country-by-Country Reporting (CbCR) for groups with revenue above AED 3.15 billion
- Economic Substance Regulations apply if you hold UAE-sourced income from certain activities
Common Mistakes to Avoid
Trading FAQ
Common Questions
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