Thanks to its advantageous location and first-rate infrastructure, the UAE is a major international center for manufacturing and trade. The production and delivery sector greatly assists in the seamless flow of commodities throughout the MENAT region and beyond. Entrepreneurs can start a supply chain business in Dubai to avail a special chance to enter the booming market.
The greater scope of the goods delivery sector makes setting up a new business an exciting move. However, you must have all information on regulatory requirements and possible business structures for success. This article offers a comprehensive how-to for establishing a supply chain business in Dubai to the prospective investors.
Registration process for supply chain business in Dubai
Companies need to follow the following procedure to register and efficiently run supply chain activities in Dubai.
- Select company name: Come up with a suitable business name that align with UAE’s corporate trade naming regulations.
- Finalize business jurisdiction: Dubai mainland is the right option for most supply chain businesses. Also, the free zones like JAFZA, DLC, and Dubai South provide decent facilities to supply chain companies. Nevertheless, the multinational supply chain firms can open offshore company or branch offices or representative offices to expand their operations.
- Choose corporate structure: You can pick a limited liability company (LLC) or a limited liability partnership (LLP) structure for disclosing minimal liable nature.
- Acquire initial approval: Get an NOC from the Department of Economic Development (DED) or free zone authority for supply chain company in Dubai.
- Secure office and warehouse space: Rent/lease an appropriate space that suits your operations requirements and fulfills the business plan.
- Apply to regulators with legal documentation: Submit the license application to the regulatory authority with the necessary legal paperwork.
- Obtain the license: Get the right license after the regulatory approval for carrying out warehousing, freight forwarding, or delivery operations.
- Maintain compliance: Fully comply with the Emirati supply chain regulations and international logistical delivery standards.
Best areas for establishing supply chain company in Dubai
In case, you want to launch your own supply chain delivery company in Dubai. Then, you have to get very strategic about the location where you establish your supply chain operations. Here are some of the prime locations you can consider for your supply chain business in Dubai, UAE.
- Dubai Logistics City (DLC): As a well-connected area, DLC is specifically designed for supply chain companies in Dubai and internationally.
- Jebel Ali Free Zone (JAFZA): One of the biggest hubs for logistics, JAFZA provides critical seaport or airport access and tax breaks.
- Dubai South Free Zone (DSFZ): Containing an integrated logistics corridor, DSFZ is easily accessible from Dubai International Airport and Al Maktoum International Airport.
- Ras Al Khor Industrial Area: Well known for its storage facilities in Dubai, Ras Al Khor Industrial Area is ideal for local distribution hubs.
- Dubai Industrial City: Perfect for manufacturing activities, Dubai Industrial City is perfect for supply chain operations.
Some supply chain delivery operations in Dubai to pursue
Newbie business owners can create a variety of supply chain setups in Dubai from these options.
- Freight forwarding: The freight forwarding is about the coordination and management of the movement of commodities by air, sea, and land. Also known as freight forwarders, they work as intermediaries between manufacturers or importers/exporters of goods and the businesses needing them. For seamless deliveries, freight forwarders manage paperwork, customs clearance, and shipment tracking.
- Warehousing and distribution: Companies in the distribution and warehousing sub sector offer order fulfillment, inventory control, and storage facilities. Also known as distribution warehouse or distribution center, it stores ready-to-sell inventory until items are ready for delivery. Retailers, wholesalers, and e-commerce enterprises frequently collaborate closely with warehousing organizations.
- E-commerce delivery fulfillment: Online retail companies can use eCommerce fulfillment for last-mile deliveries in the UAE. After-all, the need for effective order fulfillment and speedy delivery services is growing in Dubai. Also, the people are quickly embracing the e-retail industry in Abu Dbahi, Sharjah, and Ajman.
Conclusion
Emirati and foreign entrepreneurs can take advantage of the United Arab Emirates’ advantageous location and cutting-edge infrastructure. Subsequently, launching a supply chain business in Dubai there offers a plethora of opportunities. Because of its business-friendly policies, Dubai is a great place for conducting supply chain operations across the UAE.
FAQs about supply chain sector in Dubai
These are the answers to the common questions about the supply chain sector in Dubai.
Depending on the business structure and regulatory approvals, the Dubai registration process of a supply chain company takes 2-3 weeks.
Both mainland Dubai and free zones allow foreigners to hold full ownership of the supply chain companies. Nonetheless, some supply chain operations onshore may require local service agents. Beforehand, confirm the eligibility criteria of 100% foreign ownership in Dubai mainland for your chosen supply chain activities.
Supply chain companies have to adhere to the UAE customs legislation, transportation restrictions, and safety standards. Particularly, those supply chain businesses engaged in specialized logistics like cold chain storage. These regulations are applicable on freight forwarders dealing with both inbound and outbound cargo delivery.
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