In Dubai, one of the industries that bring in the highest revenue is the logistics industry. Starting a logistics business in the United Arab Emirates is advantageous due to the country’s convenient position, which allows for easy transportation to and from Asia, Europe, and Western countries.
It has direct connections with every region of the world thanks to its exceptional air, land, and sea freight facilities. Additionally, its low tax regime and lack of regulatory procedures make international trade simple and inexpensive. In addition to being a highly competitive market overall, Dubai’s logistics sector is also particularly competitive. To establish a solid foundation for long-term growth in this sector, a substantial initial investment is needed.
Developing a Logistics Business in Dubai
Due to its convenient location and well-developed infrastructure, Dubai serves as a major shipping hub for a wide variety of goods. In Dubai, investors have access to a wide variety of business opportunities and can easily launch their new ventures. Many companies rely on third-party logistics providers for assistance with tasks like overseas shipment and storage, making logistic support crucial for their operations.
Profits from a logistics business in Dubai can be maximized effectively by an entrepreneur who possesses management skills, a unique plan of operation, a results-driven strategy, and extensive expertise. In addition, making significant investments and taking the right methods with the use of the most up-to-date applicable technologies will help you stand out from the competition.
Benefits of a Logistics Business Set up in Dubai
Warehouse management, product packing and repackaging, material handling, and ultimate delivery are all components of the logistics sector. As a consequence of this, the geographic location of the company is of the utmost significance. The city of Dubai, itself, is the greatest asset for establishing a logistics company there.
Several modes of transportation are available in Dubai: by land, by sea, and by air. Furthermore, this is enhanced by advantages such as:
· World-class facilities
· Flexible taxation policies
· There are no trading location restrictions
· Minimum capital is not required
· Government agency cooperation
· Low import duty
· Extensive selection of optional business activities
· Complete repatriation of capital and profits
· There are no restrictions on the number of visas available
Documents required to start a logistics business in Dubai
Starting a logistics company in Dubai, UAE requires minimum documentation, comprising the following:
· Passport copies of the shareholders
· Personal data of the shareholders and managers
· Trade name reservation proof
· Proof of initial activity approval
· Attested Articles of Association (AOA) and Memorandum of Association(MOA)
· Indication of the physical address of the company in a legal document
Types of logistics businesses in Dubai
When you establish a logistics firm in the United Arab Emirates, you’ll be able to handle tasks like warehousing, supply chain management, and moving products from point A to point B. This means that a wide range of industries in Dubai can be classified as part of the logistics sector.
· Industry and trading companies
· Contract logistics service providers
· Logistics service providers
· Stevedoring and cargo handling services
· Freight brokerage
· Shipping line agents
· Customs Brokerage
· Warehouse management
· Cargo transportation
Getting Started with a Logistics Company in Dubai
Your first order of business in the United Arab Emirates should be to locate a reliable local specialist who can steer you in the right direction. Agents that specialize in setting up new businesses, such as ExpressPRO, can handle each stage of the procedure on your behalf. Working with a professional can help you avoid the headaches of forming a company, save you time and effort, and improve your chances of having your license application approved.
In a few easy steps, we can walk you through the process of establishing a logistics firm.
1. Select Your Business Activities
You’ll need to name the specific sector of logistics in which you’ll be engaged in business, and make sure that sector is included on the list compiled by the Dubai Department of Economic Development (DED). Not outlining every planned action can cause problems down the road. But there are thousands of legal pursuits to pick from, so you’ll find one that works.
2. Select Your Company Name
The next step is to come up with a catchy name for your logistics firm. A company’s name in the United Arab Emirates (UAE) must follow specific guidelines. Avoid using any obscene or profane language. If you’re going to name your company after yourself, try to stay away from popular brand names and acronyms.
3. Apply for UAE Trade License
The following, and most crucial, step is to apply for a commercial license to do business in the UAE. When applying to form a mainland company, this application must be sent directly to the Dubai Department of Economic Development (DED), or the local equivalent if you choose to set up shop in another emirate. This is essentially an online process, and it can be finished in a matter of hours.
4. Obtain Your Residency Visa
If you want to set up a business in the United Arab Emirates, you’ll need a valid work visa and a trade license. Once again, we can assist you in acquiring this crucial piece of paper. Once you’ve passed a biometric scan, medical exam, and chest x-ray, you’ll be able to get your visa.
If you have a business license in the United Arab Emirates, you can sponsor family members for their visas as well. This could be a member of the immediate family, such as a spouse, parent, or child, or a domestic worker, such as a housekeeper. The number of visas you can request is determined by factors like the size of your business, the type of organization you run, and the amount of money you make each year (for dependent visas).
5. Set up a Corporate Bank Account
One final requirement for conducting business in the UAE is opening a business bank account. In some cases, foreign investors have a hard time getting the banking services they need. But we’ll listen carefully to figure out what those are and then connect you with a bank that can best serve you.
Dubai’s Most Popular Logistics Hubs
Choosing an appropriate economic jurisdiction is an important part of developing a solid strategy for launching a logistics company in Dubai. This is because the location of your logistics business in Dubai will play a significant role in determining the course that your company will take in the future.
Because of this, we recommend that you establish your logistics company in one of Dubai’s many free zones. However, you also have the option of beginning operations on the mainland, which would expand the scope of your business but also make the initial setup of the business more challenging.
The four Dubai free zones where you can establish your logistics company are as follows:
· Dubai Logistics City (DLC)
In the United Arab Emirates, Dubai Logistics City was the first free zone created specifically to foster the development of the logistics industry. This free zone has a total area of 140 square kilometers, making it one of the largest in Dubai. Approximately 12 million tons of air cargo pass through Dubai Logistics City every year. Dubai World Central is another name for Dubai Logistics City.
· Dubai Airport Free Zone
If you want your logistics company to have a major impact on a global scale, setting up business in Dubai Airport Free Zone is the way to go. This is because the Dubai Airport Free Zone allows you free access to the rest of the world. In addition, having your logistics company in Dubai’s Dubai Airport Free Zone makes it simple to import and export. There are about 1800 businesses in the area, employing over 15000 people.
· Dubai South Free Zone
Back in 2006, the local authorities in Dubai established the Dubai South Free zone. With so many companies now located there, it has certainly progressed since then. Because of the excellent infrastructure and extensive government assistance, businesses have been able to expand rapidly there. High-tech storage facilities are readily available, making the Dubai South Free Zone an attractive location for logistics companies.
· Jebel Ali Free Zone
As a final note, Jebel Ali Free Zone is widely regarded as one of Dubai’s premier free zones. It is the oldest free zone on our list, having been established in 1985. With three decades under its belt, it can naturally claim to have matured into a robust and thriving entity. As an illustration, nearly 24 percent of all FDI in Dubai comes in through the Jebel Ali Free Zone. Hence, if you’re looking to attract investors, setting up business in Jebel Ali Free Zone as a logistics company is a great option.
Setup Your Logistics Company in Dubai with ExpressPRO
When you have the appropriate information at your disposal, establishing a logistics company in Dubai does not have to be an unduly challenging process. Although, it does necessitate a certain level of prior understanding concerning the procedure. It’s also worth noting that submitting a fully-completed, error-free license application will simplify the application process.
When forming a new business in the UAE, it is recommended that you work with a company formation specialist, such as ExpressPRO, to help you ensure that this is the case.
We are a team of company formation experts that are committed to making the ambitions of startups and small and medium-sized enterprises a reality. ExpressPRO is capable of handling your application for a license, as well as assisting you in creating corporate bank accounts and providing guidance about the banking institution that is best suited to meet the requirements of your particular business.
We also provide visa and immigration services and can help you with any paperwork, approvals, work permits, or visas you need to conduct business in the United Arab Emirates. Our professionals can help you set up your company, apply for any necessary licenses or visas and handle any other administrative tasks, so you can focus on operating your business.