How to start a logistics business in Dubai, UAE?
Starting a logistics business in Dubai is one of UAE’s most profitable industries. The strategic location which provides access to Asia, Europe & the Western countries is a boon for anyone looking to start a logistics company in the UAE.
Aspects such as diversification of the industry, harmonization of regional trade & export regulations, expansion & modernisation of logistics services, are all major contributors to the logistics industry in UAE. In fact, UAE is all set to receive a major economic boost thanks to the shipping and logistics services made available.
Benefits of a logistics business set up in Dubai
The biggest benefit of setting up a logistics company in Dubai is Dubai itself. Logistics as an industry involves activities such as warehouse management, item packaging & repackaging, material handling, and finally deliveries. Accordingly, the region where the company is located is of utmost importance.
Dubai offers connectivity across three channels: land, sea, & air. This is further augmented by advantages such as:
- World-class infrastructure
- Lenient taxation policies
- Zero restrictions on trading locations
- No minimum capital required
- Government agency cooperation
- Low import duty
- Wide range of optional business activities
Setting up your logistics business in UAE Mainland
Entrepreneurs looking to open their company in UAE also enjoy several benefits depending upon the region they setup their business in. Logistics business setup in UAE mainland enjoy numerous benefits the country has to offer. Dubai mainland offers opportunities for all types of markets, thus leading to high profitability and easy distribution across UAE.
Setting up your logistics business in UAE Free Zones
Free zones in the UAE are the region which offer maximum profits for logistics companies. This is because there are specific free zones assigned to conduct & promote logistics businesses only. Additionally, some of the most popular free zones for logistics business which offers maximum profits for logistics companies are:
- Dubai Logistics City or Dubai World Central
- Jebel Ali Free Zone
- Dubai South Free Zone
- Dubai Airport Free Zone
Steps to start a logistics business in Dubai
Entrepreneurs wanting to start their logistics business can ease through the process with the help of reliable business setup firms such as Shuraa. They can get assured services including error-free documentation & fast-tracked processing. The process can be broken down into some simple steps:
Choose your business activity
It is important to be specific about the type of logistics trading that you wish to deal in. Thus, your chosen activity must be among select activities from the Department of Economic Development (DED) in Dubai. DED offers thousands of approved activities that are sure to appeal to you.
Company name selection
UAE companies must follow certain rules when comes to naming their business. First & foremost, you need to ensure that your desired name is available. It is advisable to avoid offensive terminology, famous brand names, or abbreviations (when naming the organisation after yourself) when comes to selecting your company’s name.
Applying for your UAE trade license is the next and most important step of the process. For company formation in UAE mainland, DED is the license issuing organisation. However, the respective free zones in which the logistics business registers themselves will issue their license.
To work in the UAE, expats need to hold a UAE residency visa. You can obtain your investor visa after a simple biometric scan, medical check-up, and a chest x-ray.
A UAE business license enables you to offer visa sponsorship not only for your family (spouse, parents, children) but also for your employees. The number of visas you can apply for are dependent upon the size of your company, your business activity, and also your personal income (for dependent visas).
Set up a logistics business in Dubai: Documents required
- Passport copies of shareholders
- Visa copies of shareholders (visit/residence visa)
- Passport copy of manager along with CV
- Proof of trade name reservation
- Proof of initial activity approval
- Legal agreement of physical address in UAE
- License payment proof
Types of business activities included under logistics license in Dubai
Once you open a logistics company in UAE, you are eligible to conduct operations such as goods storage, supply chain management, transfer of goods between points of origin & consumption. Accordingly, there are several types of business activities that fall under the logistics business in Dubai:
- Freight brokerage
- Shipping line agents
- Customs brokerage
- Warehouse management
- Cargo transportation (via air, sea & land)
- Third party logistics
Shuraa is your one-stop solution for business setup in Dubai!
UAE happens to be one of the earliest countries to bounce back from the effect of the Covid-19 pandemic. It is also among the few to have seen a definite rise in the logistics industry since then. Dubai has since then emerged as the epicenter of global trade/commerce in the UAE.
With Shuraa Business Setup, you can form your global logistics trade company and operate out of the UAE. We offer expert services coupled with over 20+ years of experience. Join hands with us, today!
To get in touch with our consultants, send a WhatsApp message for a chat query on +971507775554. You can also email us at [email protected]. You can also call us at +971501304032 or + 971501249534.