I want to open a Free Zone trading company. Can I trade with Dubai Mainland from such a company?
If you want to trade with Dubai from a Free Zone you have to comply with two conditions:
1. You can trade only thorugh a local Dubai company, which will be appointed as your Distributor or Dealer. This company will be buying products from your Free Zone firm and selling them locally.
2. You have to pay 5% import tax. Technically speaking, Fee Zone is an economically separate erea from the rest of the emirates. It means that any product coming from a Free Zone is coming from “outside”, so import tax has to be paid.
There are some categories of goods that can be brought to UAE without import duty.
For some products duty is very hight – it’s 50% for alcohol and 100% for cigarrettes.