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 & modernization 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 enjoys 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 offers 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 Bizgate. 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 organization after yourself) when comes to selecting your company’s name.

License application

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 organization. However, the respective free zones in which the logistics business registers themselves will issue their license.

Visa application

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, and 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

Bizgate 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 Bizgate Business Setup, you can form your global logistics trade company and operate out of the UAE. We offer expert services coupled with over 10+ years of experience. Join hands with us, today! 

To get in touch with our business expert advisor, send a call or whatsapp us at +971 56 220 1709. Also, you can email us at startups@bizgatebss.com.