Expanding your export business from India to Dubai, UAE, is a profitable opportunity due to Dubai’s thriving economy and strategic location. In 2024, Indian businesses can benefit from Dubai’s role as a re-export business center, connecting East and West.
This guide will cover the costs, key steps, market research, necessary documents, most exported products and the benefits of trading between these two countries, ensuring you meet all regulatory trade requirements.
Key Steps to Set Up an Export Business from India to Dubai, UAE
Market Research and Business Planning
- Market Research: Identify the demand for specific products in the UAE and understand consumer behavior and preferences.
- Partner with Trade License Zone: Manage all aspects of your import-export business license, assist with company registration, customs documentation, and external approvals.
Obtain Necessary Codes and Approvals
- Importer-Exporter Code (IEC): Secure this mandatory identification number from the Directorate General of Foreign Trade (DGFT) to officially recognize your involvement in international trade.
- Harmonised System (HS) Code: Ensure accurate classification of your products for customs purposes to determine customs duties and regulations.
Business Registration and Licensing
- Choose a Trade Name: Ensure the business name complies with UAE naming policies.
- Define Business Activities: Outline specific import-export activities to be included in the business license application.
- Define the Company’s Legal Structure: Register the business as a Limited Liability Company (LLC) with a local sponsor holding at least 51% of the company’s shares.
- Apply for Initial Approval: Obtain initial approval from Dubai’s Department of Economic Development (DED).
Document Preparation and Company Setup
- Prepare Required Documents: Collect necessary documents, including passports, residence visas, and Emirates IDs of all partners and shareholders. Sign the company’s Memorandum of Association (MOA) or Local Service Agent Agreement (LSA).
- Choose a Business Location: Rent a business location and provide the tenancy contract with the import-export license application.
Customs and Shipping
- Register with Dubai Customs: Obtain a unique Customs Code necessary for all import and export activities.
- Gather Essential Documents: Prepare and submit necessary documents, such as commercial invoices, packing lists, shipping bills, and specific certificates or permits required for your product category.
- Engage a Shipping Agent or Freight Forwarder: Hire a reputed shipping agent or freight forwarder for smooth transportation and proper guidance on the most appropriate mode of transportation.
- Complete Customs Clearance in India: Submit the shipping or export bill to Indian customs authorities with supporting documents and pay any applicable export duties.
- Arrange Transportation to the Designated Port or Airport: Ensure proper packaging and labeling of products according to international shipping standards.
- Seek a Custom Clearing Agent in Dubai: Hire an experienced agent to facilitate smooth customs clearance in Dubai by submitting required documents to Dubai customs authorities.
- Pay Applicable Customs Duties and Fees: Evaluate and pay applicable customs duties, taxes, and extra charges before goods are released.
- Arrange Delivery of Goods in Dubai: Coordinate with reliable logistics companies for timely delivery to the desired destination.
Documents Required
- Certificate of Origin: Indicates where the goods were processed or manufactured.
- Commercial Invoice: Issued by the exporter to the importer.
- Bill of Entry, Airway Bill, or Sea Waybill: For tracking international cargo.
- Detailed Packing List: Lists the relevant exporters and their shipped goods.
- Pro Forma Invoice: Outlines agreed terms and conditions between importers and exporters.
- Sales-Purchase Contract: Agreement between both parties.
- Export-Related Documents: Necessary for shipment.
- Temporary Shipment Documents: For temporary exports.
- Specific Certificates: Depending on the nature of the goods.
- Insurance Certificate: For the shipped goods.
- Manufacturer Details: Including manufacturing and expiry dates.
For food exports, additional documents include:
- Original Health Certificate: Certifies the food’s safety for human consumption.
- Original Halal Certificate: For meat, chicken, and poultry products.
Advantages of Exporting to Dubai and the UAE
Dubai’s East-meets-West position makes it a prime hub for global trade and re-export business activities. The city offers a zero-tax environment, leading road infrastructure, and world-class air and seaports, creating a business-friendly environment. Multiple free trade zones provide favorable conditions for export and import, including exemptions from customs rules and laws.
Top Products to Export from India to UAE (Dubai)
Exporting goods to Dubai from India is a lucrative opportunity due to the high demand for various Indian products in the UAE. Here are some of the top export products that are in high demand to start an export business in UAE from India:
Why Export These Products?
- Market Demand: Dubai’s diverse and growing market ensures a steady demand for these products.
- Strategic Location: Dubai’s position as a global trade hub facilitates easy distribution to other Middle Eastern and African markets.
- Trade Agreements: The UAE-India Comprehensive Economic Partnership Agreement (CEPA) provides favorable trade terms, reducing tariffs and simplifying customs procedures.
Tips to Grow Your Export From India to Dubai
- Creating a Localised Digital Marketing Strategy: Adapt content and marketing strategies to resonate with local audiences. Geo-targeting can increase engagement and potential conversions.
- Identifying Potential Partners: Network with potential partners through trade shows and business expos.
- Building Trust and Credibility: Understand local business etiquette and cultural nuances. Engage in face-to-face meetings and build strong relationships.
- Understanding Customer Expectations in the UAE: Provide quick responses and efficient service. Adapt to changes in business hours and consumer behavior, especially during Ramadan.
Partnering with Trade License Zone can streamline the process and ensure compliance with all legal and regulatory requirements, helping you achieve success in doing business in Dubai and the vibrant UAE market.
The Cost Of Setting up an Export Business to UAE
| Description | Cost Component |
|---|---|
| Trade License | AED 15,000 to AED 30,000, varies based on the type and scope of business. |
| Company Registration | Fees for registering the company with the Department of Economic Development (DED). |
| Documentation and Legal Fees | Costs for preparing and processing necessary export documentation. |
| Shipping and Logistics | Varies based on the weight and volume of goods; approx. INR 1,170 per kg for smaller shipments. |
| Customs Duties and Tariffs | Reduced or eliminated for many products under the CEPA agreement. |
| Regulatory Compliance | Costs for adhering to UAE’s import regulations and standards. |
| Marketing and Promotion | Budget for advertising and promoting products in the UAE market. |
FAQS (Frequently Asked Questions)
How much does it cost to export from India to Dubai?
The cost for international courier services from India to Dubai starts at 590/- rupees per kilogram.
What is the best product to import into the UAE?
The primary products imported into Dubai include machinery, food, chemicals, and transport equipment. Additionally, Dubai imports textiles and metals from China, and a variety of primary products such as cotton, fabrics, machinery, instruments, and plastic products from India.
Can we export milk from India to Dubai?
Yes, Dubai is a significant importer of Indian dairy products. Popular dairy items exported from India to Dubai include milk, butter, cheese, yogurt, and ice cream. India also exports a large quantity of fruits and vegetables to Dubai, as it is one of the leading producers and exporters in the world.
Which country imports the most from India?
As of March 2024, the countries importing the most from India were the United States ($7.51 billion), United Arab Emirates ($4.01 billion), Netherlands ($2.11 billion), Singapore ($1.59 billion), and China ($1.56 billion). On the import side, India mainly imported from China ($7.75 billion), Russia ($5.85 billion), United Arab Emirates ($4.89 billion), Iraq ($3.34 billion), and the United States ($3.14 billion).
Which is the best export food from India?
In the fiscal year 2022, basmati and non-basmati rice, along with spices, were the top agricultural exports from India. Rice exports alone generated $9.65 billion in revenue, and wheat exports saw a notable increase from $567 million to $2.2 billion from FY 2021 to FY 2022.
How to find buyers for export?
To find buyers for your export business, consider the following strategies:
- Conduct thorough market research.
- Start a foreign wholesale export operation.
- Participate in trade fairs.
- Utilize third-party agencies.
- Use online marketplaces.
- Hire a salesperson specializing in exports.
