As an early adopter of luxury and innovation, the UAE is the center of international trade. Sitting between Europe, Asia, and Africa; Dubai is developing into logistical powerhouse that connects markets with full efficiency. You can begin a logistics business in Dubai to play a part in the thriving shipping industry.
Dubai offers the perfect starting point for companies looking to get into the rapidly expanding transportation and cargo sector. Its top-notch deep sea ports and airports as well as its investor-friendly regulations are driving the sector. But negotiating this competitive environment calls for careful preparation, knowledge of regulations, and a calculated strategy.
Whether you’re an established entrepreneur seeking to grow or an aspiring business owner. You can create a company in Dubai to enter the profitable logistics sector of the UAE. This article provides you all the necessary information for embarking on this exciting new venture.
Process for starting a logistics business in Dubai
This is the step-by step procedure to register a logistics business in Dubai.
- Define business model and services
- Select compliant company name
- Choose right business structure and location
- Acquire initial approval with NOC
- Determine necessary licenses
- Registration of logistics business
- Secure additional approvals and compliance
Now, we briefly look upon these steps of forming a logistics business in Dubai.
Define business model and services
Assessing the scope of your logistics business in Dubai is the first step. Clearly outlining your offerings will assist you in making a strong business strategy. Therefore, think about the following matters beforehand.
- Will you focus on last-mile delivery, warehousing, or freight forwarding?
- Are you more interested in international or domestic logistics?
- Will you need to form alliances with airlines and shipping firms?
Select compliant company name
Come up with a memorable business name that perfectly aligns with your logistics brand in Dubai. Also, finalize a unique trade name that is distinguishable from the competitors and other companies. Both of these official names of your logistics business must follow the UAE’s corporate naming regulations.
Choose right business structure and location
Decide the legal business structure of your logistics delivery business in Dubai. Consider establishing an LLC entity for its minimal liable nature. Wisely pick the type of your Dubai logistics company keeping in view the jurisdiction from these options.
- Mainland company: It lets you operate delivery operations anywhere in the UAE. Foreigners can hold 100% ownership in the logistics firm in Dubai. However, they may need to onboard an Emirti nominee director for local liaison.
- Free zone company: It provides seamless business setup, tax perks, and full-time foreign ownership. Nevertheless, it restricts corporate logistical operations outside the free zone. Thus, the logistics business in a free zone can only send cargo deliveries internationally, and to the mainland.
- Offshore company: It is perfect for companies who don’t engage in the local UAE trade. Primarily, its main focus is on carrying out logistics activities abroad.
Acquire initial approval with NOC
Logistics firms in Dubai have to acquire the initial approval from the requisite regulator. Mainland logistics businesses can get the no objection Certificate (NOC) from the Department of Economic Development (DED). Free logistics companies in Dubai can obtain the preliminary approval from the applicable free zone authority.
Determine necessary licenses
You must acquire the essential licenses from the relevant authorities to lawfully run a logistics company in Dubai.
- Trade license: Logistics businesses in Dubai have to get the trade license for lawful trading. Mainland logistics companies have to get it from the Department of Economic Development (DED). Free zone logistics firms have to take the trade license from the requisite administrative authority of the chosen free zone.
- Transport license: It is compulsory for conducting transport and freight business in Dubai.
- Customs clearance license: If you import and export items as part of your business, then you need it.
- Warehousing license: In case, you plan to run storage facilities, then you require it.
Registration of logistics business
After finalizing your company’s structure, register your logistics setup in Dubai with the appropriate regulatory authority. Submit the following legal documentation with your application. Pay the license fee and other regulatory dues.
- Copies of your passport and visa
- Photocopy of your Emirates ID
- Business plan
- Trade name reservation certificate
- NOC from the DED or the free zone authority
- Memorandum of Association (MOA)
- Ejari/tenancy contract
- Customs registration documents
Secure additional approvals and compliance
The legal and regulatory standards of Dubai must be adhered to by logistics companies.
- Dubai Customs Clearance: To make import and export procedures easier, register with Dubai Customs.
- Permit from the RTA: Obtain the permits from the Roads and Transport Authority (RTA) if your company provides transportation services.
- Health and Safety Regulations: Guarantee adherence to labor and workplace safety legislation.
