Dubai has become a top hub for trade and logistics thanks to its world-class infrastructure, port and airport facilities, and free trade policies.
As a hub between the East and West, Dubai’s location makes it a convenient hub to connect and service the two corners of the world by road, air and sea.
Starting a logistics company in Dubai is the most profitable business one could do in Dubai. Let’s look at how to set up a logistics company in Dubai:
Setting Up A Logistics Company In Dubai Logistics City Free Zone
- Defining your business activities: Logistics entails a wide range of activities like freight and cargo, carriers, etc. Therefore, it is important to decide what type of logistics business you want to run.
- Selecting a jurisdiction and company name: The name of the company should be unique and should not contain any blasphemous language
- Applying for a license:
- Applicants must fill out an application
- Register your business by submitting all relevant documents.
- It may take up to 15 days for the registration process to be completed
- A detailed business plan must be submitted
- The submission of any additional documents requested or required
- You need to make your visa applications
- Open a corporate bank account
- A business license can be obtained after all documents have been submitted and approved, as well as an account has been opened
- Fees must be paid to the free zone authority
- As a final step, the registrar of companies can issue your company a certificate of incorporation.
Required Documents for Setting Up a Logistics Company in Dubai
Getting a logistics business started in Dubai requires a few documents. An application form, coloured photographs of the owner and shareholders, and a copy of your passport are often all that are required.
In any case, we recommend that you keep the following documents on hand:
- A copy of each shareholder’s passport
- Managers’ and shareholders’ data
- Proof of trade name reservation
- Initial activity approval proof
- Attested Articles of Association (AOA) and Memorandum of Association (MOA)
- Legal document confirming the company’s physical address
Set Up A Logistics Company In Ras Al Khaimah Free Trade Zone
Ras Al Khaimah Free Zone is one of the most popular locations for logistics companies because of its excellent conditions and innovative features. The centre combines airport cargo and freight shipments and hence is a universal transport centre.
Important things to know before starting a logistics company in Dubai, UAE:
Considering the benefits and perks, there is no better place for a logistics business internationally. Before setting up a logistics company in Dubai/UAE, you need to ensure the following:
- Customs, documentation, and paperwork process: you need to be aware of all customs procedures, documentation, and paperwork requirements. Before venturing into the logistics industry, you should be aware of the customs and clearance process.
- Meet your client in person: Meeting your logistics supplier in person ensures clear communication between all parties involved, reducing the possibility of mishaps. Credit terms with a signed agreement are also important. It makes it easier to resolve any conflict later on.
- Identify the logistics market in Dubai: the logistics market in Dubai is fairly fragment, with a wide range of suppliers. Therefore, it is best to go with a company with experience. They usually know all the customs rules and will save you from costly clearance failures.
- Due to its proximity to some of the world’s busiest seaports and airports. Dubai is assure to thrive in the logistics industry. It has excellent road links to neighbouring Emirates and countries surrounding the UAE as well. Therefore, no matter whether you plan to market locally, internationally, or domestically, you have a lot of options.
- Logistics companies in Dubai can benefit from tax benefits, where taxes are extremely low.
- This business does not require a minimum capital investment, no currency restrictions, and no visa requirements
- In addition to free cargo and freight connections, Dubai also offers free-zone benefits that enhance further business activities and opportunities.
logistics in the UAE
Dubai holds 45% of the market share for logistics in the UAE. Despite other jurisdictions’ offerings, Dubai is the place to set up your business if you have serious aspirations.
Due to its geographical location and infrastructure, Dubai is an ideal supply and re-distribution hub. As it is strategically located at the centre of international trade. It is well-position globally and well connect by air, water, and road. Due to this, it serves as a transhipment hub for international trade.
In addition, this is a great time to invest in and start a logistics company in Dubai. Due to the UAE’s flexible regulatory procedures, quick timelines, and easy application and approval processes, Dubai is a great place to do business. Additionally, you can own 100% of the onshore company, giving you complete control.
Formation of logistics companies on the mainland and in free zones
- Formation of Logistics company in Dubai Mainland: Depending on the jurisdiction, forming a company in Dubai has its benefits. There is no doubt that logistics companies on the mainland are a very preferre choice because of the wide variety of markets available which makes logistics businesses profitable due to easy distribution throughout the UAE. It is possible to operate freely with imported and locally manufactured goods on the mainland if you want 100% ownership of your business.
- Formation of Logistics company in Dubai Free zone: Free zones offer the highest profits for logistics companies since certain jurisdictions are solely dedicated to logistics. Business in free zones is smooth and efficient due to their great location, infrastructure, and good connections through roads, airways, and waterways.
Free Zones, however, have certain limitations that you should be aware of:
- Your free zone license does not allow you to work with clients outside its jurisdiction, and
- When collaborating with big local brands, mainland brands, or government entities, certain limitations may apply.
Benefits of setting up a Logistics Company in Dubai
- Benefits of taxation
- No minimum capital requirement
- There are no restrictions on trading locations
- Dubai is the fastest-growing economy
- Benefits of Free zone
- First-class infrastructure
- Work along with government bodies
- No restriction in currency limitation
- Import duty is low
- More options for business activities.
- No limitations to the number of visas.