Dubai’s connection with the major global commercial hubs is ever-improving and ever-growing. This enables every entrepreneur to consider starting a logistics company in Dubai. Read on to know How to Start a Logistics Company in Dubai.
Thanks to the lower freight cost and cost-effective transportation, Dubai is one of the busiest sea-air multimodal transport hubs. The city has been expanding its airlines and shipping with around 400 cities worldwide. Therefore, the logistics sector has seen huge growth over the decades.
However, with the coming of many companies in the city, there is a huge client market for your logistics company in the UAE. Anyone who wants to move their goods from one point to another is on your roster. So, this blog discusses How to Start a Logistics Company in Dubai.
Benefits of Opening a Logistics Company in Dubai
The country’s reputation as a foreign-friendly country is strengthened by its flourishing and innovative culture which makes it one of the best places to start a logistics company.
Listed below are some benefits of starting a logistics company in Dubai:
- Due to the advancement of technology and supportive administration, almost no paperwork is needed to begin a logistics company in Dubai.
- Dubai’s strategic location connecting the East, West, North, and South links producers, manufacturers, and suppliers from all over the world. This factor helps promote the logistics sector in Dubai.
- The UAE has a terrific public transportation system and one of the best telecommunication facilities and other amenities.
- The UAE government always keeps on taking initiatives aimed toward the betterment of foreign companies in the city. For example, the recently launched ‘Dubai Global’ project provided companies with logistical support to help them expand their operations in over 30 markets globally.
- The city exempts almost every foreign business from paying taxes. These include all types of tax from income and business to personal taxes. However, some companies are required to pay 5% VAT on some business activities.
- Many free zones are available in Dubai, making it easier for you to have full ownership of your logistics business.
- Your logistics business, whether it is on the mainland or free zone, need not pay taxes to the government.
- Once you have all the relevant documents with you, the process of getting a license becomes an easier task.
How to Start a Logistics Company in Dubai?
Before setting up a logistics company in Dubai, you must have all the necessary documents. This helps smoothen the company formation in UAE. Some of the required documents are as follows:
- Copies of passports and visa
- Two passport-size photographs
- Entry visa and stamp pages
The documents may vary according to the business activities, location, and company structure. Our experts at A&A Associate LLC can provide you with a detailed list of all the necessary documents required for your logistics business in Dubai.
The step-by-step process for starting a logistics business in Dubai is curated and listed below to help you in setting up a business in Dubai with ease:
Step 1: Choose a Unique Name
Your logistics company’s name should be unique and memorable. Moreover, choosing an acceptable and legally safe name as per the strict naming conventions of Dubai can save you from legal confrontations. So, choose a name accordingly and register it with the concerned authorities in the UAE.
Step 2: Decide the Structure of Your Company
An adequate company structure that suits your company will help run your logistics company efficiently. You can decide on a suitable structure such as a sole proprietorship, a foreign company’s branch office, or a Limited Liability Company. Choose a business structure that will suit your logistics business.
Step 3: Apply for the License
As per the laws in Dubai, every business requires a business license. Opening a corporate bank account would help to ease the process of getting a business license for your logistics company in Dubai. Submit the required documents and pay the fee to get your business license.
You can apply for any type of business license as many types of business licenses are available in the UAE. You also have to apply for additional permits for your business.
Step 4: Choose a Business Location
Every location has its own benefits and facilities. Select a business location according to your business needs. You can choose the mainland or the free zone areas for your logistics company setup. You will need a physical office and a parking space to park your fleet of vehicles for your business. Consider the number of vehicles you will employ, your budget, and the technologies required before choosing your business location.
Read the Difference Between Freezone and Mainland Company Setup to know more.
Step 5: Get Your Business License
You can get your business and cargo license in Dubai once you have completed all the necessary steps mentioned above.
Once you have obtained your license, you can begin your logistics business in Dubai. You can now proceed with all the activities that you have planned for your logistics business such as seeking out prospective clients and contracts.
How Much Does It Cost to Start a Logistics Business in Dubai?
The final cost of starting a logistics company depends on a variety of factors. The factors include the type of license you choose, the number of vehicles required, security features, driver skills development training costs, promotional campaigns, additional approvals, and the like. Therefore, coming up with an accurate task is no easy feat. It can start from around AED 18,000 for setting up a logistics business in Dubai.
Our professionals at A&A Associate can help you determine the right amount needed based on your business requirements.
Also read how business setup consultants in Dubai can help you in setting up a business in Dubai.
Start Your Logistics Company With Us
A&A Associate in Dubai and the United Arab Emirates is one of the best business setup consultants in Dubai. Our professionals can guide you in setting up a business in Dubai and help you expedite the process of getting approvals from the concerned authorities. If you need our full-fledged support and guidance throughout, all you have to do is get in touch with us!