How to Start a Logistics Company in Dubai?

Dubai’s ever-improving connectivity with major global commercial hubs makes many entrepreneurs want to start a logistics company in Dubai.

Dubai is one of the busiest sea-air multimodal transport hubs globally, thanks to the cost-effective transport and lower freight cost. The city has been investing tens of billions in expanding its shipping and air lines with over 400 cities worldwide. Consequently, the logistics sector in the UAE has seen a huge growth. 

Moreover, with the advent of many companies in the UAE, there is a large prospective client market for your logistics company in Dubai. Anyone who wants to move goods from point A to point B is on your roster. So, this blog talks about how to start a logistics business in Dubai.

Benefits of Starting a Logistics Company in Dubai

UAE’s reputation as a foreign business-friendly country is strengthened by a flourishing innovation culture, making it one of the best places to start a logistics company in Dubai

Following are some of the benefits you may reap:

  • Thanks to advanced technology and supportive administration, starting a logistics company in Dubai needs almost no paperwork. 
  • The cutting-edge infrastructure of Dubai attracts a large number of Indian entrepreneurs. Moreover, the city has a terrific public transportation system. It also has one of the best telecommunication facilities and other amenities.
  • Dubai, thanks to its strategic location connecting East, West, North and South, links manufacturers, producers and suppliers from all over the globe. The locations of airports and seaports also serve great connectivity. These factors specifically promote the growth of the logistics activities in Dubai.
  • The UAE government keeps on taking initiatives aimed towards the betterment of foreign businesses in Dubai. For instance, the recently launched ‘Dubai Global’ project aims to provide companies with logistical support to expand their operations in over 30 markets globally.
  • The employees in the UAE have business skills all over the world. In fact, its talent pool specialises in demanding fields such as management and operations. 
  • Dubai exempts almost every foreign business from all types of taxes. These include income, business and personal taxes. But, some companies may be mandated to pay a 5% VAT on certain business activities.
  • Dubai has many free zones, allowing you to have 100% ownership of your logistics business. 
  • Your logistics company in the Dubai mainland and free zones will not need to give a part of its capital invested and profits earned as taxes to the UAE government. 
  • Once you have all the relevant documents, getting a visa in Dubai is easy. Moreover, the new visa rules make the foreign national-dominated job market more adaptable. 

What Are the Documents Required to Set Up a Logistics Company in Dubai?

Before you start setting up a logistics company in Dubai, you must have all the required documents. This smoothens the business setup process. Some of the documents are as follows:

  • Copies of passports and visas 
  • Two passport-size photographs 
  • Entry visa and stamp pages

The documents vary as per business activities, company structure, and location. The professionals at the Shuraa Business Setup can provide you with a comprehensive list of the required documents based on your logistics business activities. 

How to Start a Logistics Company in Dubai?

You must go through some steps to start a logistics company in Dubai. The steps given below will help you understand it better:

1. Choose a Name

Your logistics company’s name should be easy to remember. Moreover, an acceptable and legally safe name will not save you from legal confrontations. So, choose a name for your logistics company and register it with the concerned authorities.

Note: The UAE authorities have laid down some rules for naming a company. Shuraa Business Setup professionals can help you with the same, ensuring that the name is compliant.

2. Decide Your Company Structure

The adequate company structure for your logistics business will help it run efficiently. So, decide on a suitable structure. You can choose from a sole proprietorship, a Limited Liability Company (LLC) or a foreign company’s branch office.

3. Apply for the Licence 

Every business requires a license in Dubai as per the law. Besides, opening a corporate bank account would ease with a license for your logistics business. To apply for a logistics license, submit the required documents and pay the fees.

Many types of business licenses are allowed for businesses in Dubai. Also, you may have to apply for additional permits for your business. Shuraa experts can help you with the license, permits, and logistics license costs in Dubai.

4. Choose Your Business Location

Every location offers distinct benefits and advanced facilities. Accordingly, select a business location in Dubai. You can choose either the mainland or one of the free zones. You’d need a physical office and space to park your fleet of vehicles for your logistics business. So, consider the number of vehicles you’d employ, the technologies required, and your budget. Besides, think about whether to rent or lease. 

5. Get Your Licence

You can obtain your logistics and cargo license in Dubai once you’ve successfully completed all the steps.

Shuraa Business Setup professionals can simplify the logistics company formation process for you. This may include visa eligibility, additional permits, bank accounts, and fees. 

6. Launch Your Logistics Business

Once you’ve obtained your license, you can start your logistics business in Dubai. You can proceed with the activities you’ve planned for your logistics business, such as seeking out customers and contracts.

What Is the Cost of Starting a Logistics Company in Dubai?

A variety of factors decide the final cost of setting up your logistics business in Dubai. For instance, the license you choose, vehicles required, driver skills development training costs, security features, promotional campaigns, additional approvals, and so on. Thus, coming up with an accurate cost is not easy. It may start from around AED 18,000 to set up a logistics company in Dubai.

Professionals from Shuraa Business Setup can help you determine the exact cost based on your logistics business activities. They will also ensure that you do not spend more than required.

Start Your Logistics Company in Dubai With Shuraa

Shuraa Business Setup experts can help you acquire every resource necessary to start a logistics company in Dubai. We can also expedite the process of getting approval from concerned authorities. Moreover, if your logistics company has specific needs, we can prepare custom-made business setup solutions. All you need to do is get in touch with us!