Quick Answer

• A valid UAE trade licence covering a trading activity is required before importing goods from China for resale.
• Free zones suit re-export and sourcing hubs; mainland licences allow direct sales into the local UAE market without a distributor.
• The mainland formation sequence runs through nine official steps, from activity selection to final fee payment.
• Most mainland trading activities now permit up to 100% foreign ownership, with no local partner required.
• Total setup cost depends on jurisdiction, activity count, and visa quota rather than one fixed AED figure.

Do You Actually Need a Trade Licence Before You Can Import From China?

Yes. UAE rules require a valid trade licence covering a trading activity for any commercial import or export business, whether obtained through the mainland formation process or an equivalent free zone route. 

Without one, customs clearance, bank trade finance, and bulk resale aren’t legally possible.

A trade licence is what turns a sourcing plan into a legal business. Here is what it unlocks and what stays out of reach without it:

• With a license: customs clearance under a company name, access to bank trade finance and letters of credit, bulk resale to distributors or retailers, and the ability to sponsor employee visas.
• Without a license: no commercial customs clearance, no corporate bank account, and no legal basis to invoice UAE buyers for wholesale quantities.

The mainland route follows the “steps to start a business” sequence published by the UAE government, while free zones run a parallel but similarly structured application. 

Some product categories, such as food items, pharmaceuticals, or telecommunications equipment, need additional approvals from a specialized authority before the trade licence is issued.

So, it’s worth checking whether a specific China-sourced product category falls into a regulated list before applying.

Should You Choose a Mainland or Free Zone Setup for a China Import-Export Business?

It depends on where the buyers are. Free zones offer full foreign ownership and are built for re-export and regional trading hubs, while a mainland licence allows direct sales into the local UAE market without needing a distributor in between.

Both routes now allow up to 100% foreign ownership for most trading activities, so ownership alone isn’t the deciding factor anymore. What actually separates them is market access and physical footprint.

If most China-sourced goods are heading straight to UAE retailers or end buyers, the mainland is usually the better fit. If Dubai is being used as a re-export base to Africa, the GCC, or South Asia, a free zone setup tends to make more sense.

Banking is one practical difference worth factoring in early. Mainland companies with a local trading history sometimes find it easier to open accounts with UAE banks that prioritize local market activity. 

Free zone companies with a clear re-export model need to show banks a well-documented supply chain and buyer list from the outset.

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Step-by-Step: How Do You Get an Import-Export Trade Licence in the UAE?

The mainland process follows nine official steps, and most free zones mirror this sequence with jurisdiction-specific paperwork. Following it in order avoids the rejection loops that come from applying before approvals are in place.

1. Identify the business activity (general trading, specific commodity trading, or a defined product category).
2. Select a legal form (typically an LLC for import-export ventures with more than one shareholder).
3. Apply for the trade licence with the relevant economic department.
4. Register the trade name.
5. Apply for initial approval to proceed with the application.
6. Draft the Memorandum of Association and, where applicable, a local service agent agreement.
7. Secure a physical location and register the tenancy contract.
8. Obtain any additional government approvals the activity requires.
9. Submit final documents and pay the prescribed fees.

This sequence mirrors the UAE government’s published mainland steps, and the activity classification in step one is where most first-time traders lose time, since the wrong activity code can trigger a rejected application.

What Documents Do You Need for an Import-Export License?

The mainland baseline covers identity documents, trade name approval, an initial approval certificate, a Memorandum of Association where applicable, and proof of a registered business location. 

Free zones may ask for a few jurisdiction-specific extras, so it’s worth confirming with the relevant free zone authority before submission.

Before you apply:

• Passport copies of all shareholders and managers
• Proposed trade name options, checked against naming conventions
• A defined business activity or activities from the approved list

At submission:

• Trade name approval certificate
• Initial approval certificate
• Memorandum of Association, notarized where the legal form requires it
• Tenancy contract or Ejari registration (mainland) or free zone facility agreement
• Any sector-specific no-objection certificates

Document requirements can shift slightly between free zones, so this checklist reflects the mainland baseline as the reference point.

How Much Does It Cost to Set Up an Import-Export Business in the UAE?

Total cost depends heavily on whether the structure is mainland or a free zone, how many business activities are registered, and how many visas are needed. 

There is no single all-in AED figure that applies across the board, and any number quoted without those variables attached should be treated as a rough estimate at best.

Can a Foreign National Own 100% of a Trading Company in the UAE?

Yes, for most trading activities. Mainland rules no longer require a majority Emirati shareholder for the great majority of commercial activities, and free zones have offered full foreign ownership by default for years.

A foreign national can typically set up and fully own a general trading or specific commodity trading company on either the mainland or a free zone without a local partner holding equity. 

A small number of strategic or regulated sectors still carry additional ownership conditions, so confirming the specific activity against the current mainland ownership list before finalizing a structure is worth doing.

Also Read: How to Start an Import Export Business in JAFZA Free Zone (2026 Step-by-Step Guide)

Can Your Free Zone Trading Company Move to the Mainland Later?

In principle, yes. The UAE’s Federal Decree-Law No. 20 of 2025 amended the Commercial Companies Law to add a formal mechanism for transferring a company’s registration between free zones and the mainland, or between emirates, without requiring liquidation or re-incorporation.

The Ministry of Economy and Tourism confirmed this directly in a January 2026 briefing on the amendments, describing a new article “regulating and legitimizing the transfer of a company’s registration in the commercial register with the relevant authorities.” 

The Ministry also stated the transfer process depends on the compatibility of registration systems between the two locations, the absence of legal impediments, and approval from the relevant authorities.

For import-export businesses, this matters if a company starts in a free zone to take advantage of re-export flexibility and then later needs direct access to the local UAE market. 

The exact steps and timelines vary by emirate and free zone, so confirming current requirements with the relevant free zone authority before initiating a transfer is the safest approach.

Costs and regulations are subject to change. Confirm current figures with the relevant UAE government authority or with JSB before making decisions.

Frequently Asked Questions

1. Do I need to be physically present in the UAE to get an import-export trade license?

Not for every step. Many trade name and initial approval applications can start remotely, but an authorized signatory typically needs to be present for document notarization, bank account opening, and Emirates ID biometrics once the licence is issued.

2. Is a free zone licence enough if I only plan to re-export goods, not sell locally?

Yes, in most cases. Free zones are built for re-export and regional trading, and a free zone trading licence generally covers import, storage, and re-export activity without requiring a mainland presence.

3. Can I start with a free zone company and move to mainland later if I need local distribution?

In principle, yes, since the 2025 Commercial Companies Law amendment introduced a transfer-of-registration mechanism. Current requirements should be confirmed with the relevant authority before relying on this route, since exact steps vary by emirate and free zone.

4. Do I need a local UAE partner to own an import-export company?

No, not for most trading activities. Mainland companies can now be up to 100% foreign-owned for the majority of commercial activities, and free zones already offer full foreign ownership by default.

5. What’s the realistic timeline from application to having a usable trade license?

Timelines vary by jurisdiction and activity, and the mainland’s nine-step sequence has been streamlined considerably compared to a few years ago. 

Complex or regulated activities that need extra government approvals will typically take longer than a straightforward general trading licence.

6. Does JSB handle both the company formation and ongoing compliance, or only the initial setup?

JSB handles the full lifecycle, from activity selection and trade licence application through bank account opening, PRO services, and annual compliance and renewal support.

Reviewed by Gaurav Keswani, Founder, JSB Incorporation.

Gaurav Keswani is the Founder of JSB Incorporation, a Dubai-based business setup and immigration consultancy. He appeared on Talk 100.3 FM answering live listener questions on UAE Golden Visa eligibility, citing GDRFA and ICP guidelines directly on air. JSB Incorporation handles documentation preparation and application coordination; all visa and license decisions rest with the relevant UAE government authorities—GDRFA, ICP, DET, and DLD.

Ready to Start Trading With China?

Getting the jurisdiction, ownership structure, and documentation right from day one makes the sourcing and shipping side far easier to manage down the line. 

JSB Incorporation handles the licensing, banking, and compliance work involved in setting up an import-export company in the UAE.

Book a free consultation with JSB Incorporation to choose between a mainland or free zone structure for a China import-export business and get support with the trade licence application from start to finish.