How to Set Up a Logistic Company in the UAE?

by Zaara 31, Mar 2022

Logistics is the art of transporting commodities, resources and knowledge in and out of an entity and science. It covers aspects of the supply chain in a sector, including inventory management and goods transport and can encounter various benefits by getting to grips with logistics and doing it more effectively. With tighter funds and shorter margins, concentrating on these potential cost savings could mean all the difference between make or break is especially crucial for SMEs.

There is steady growth in the Dubai economy and balanced development in various countries. It is a favourable place to set up a logistics business in Dubai. One of the most profitable companies in Dubai is the logistics sector. There is an endless logistics company in Dubai, primarily in the Ras Al Khaimah and Free Zones areas.

The UAE is sponsored by government grants and has a fantastic market climate. The UAE has many lucrative and enticing locations. Indeed, one of these is the logistics sector and any operation connected to it. It is undoubtedly one of the UAE's most profitable businesses. There is a tremendous market demand that induces rapid growth in domestic and global transportation regularly. It refers to both multinational freight administrations on an expansive scale and local wholesale deliveries of various goods.

Advantages of Setting Up a Company in Dubai

  • Taxation advantages
  • No minimum capital requirement exists for
  • No trading place limits
  • The fastest-growing economy in Dubai is
  • Benefits from the free zone
  • Infrastructure in the First Tier
  • Act together with government departments
  • There is no limit to currency restrictions.
  • Low duty to import
  • More options for company operations.
  • The number of visas does not have any restrictions.

Three Key Logistics Business Hubs

There are several options to choose from when it comes to logistics, as most Dubai free zone jurisdictions offer logistics licenses. But the rivalry is reduced to the Jebel Ali Free Trade Zone, Dubai South Free Zone, and Dubai Airport Free Zone when it comes to providing the right infrastructure and ancillary services that can help your business expand.

1. Jebel Ali Free Zone

Within a single custom bonded area, Jebel Ali Free Zone provides an air-sea-land logistics corridor. It allows the seamless flow of cargo from sea to air without any customs control needed to place it in prime position. Competition for warehousing and industrial space is fierce, with hundreds of logistics worldwide situated in the free zone. Prices tend to be on the higher end with increased competition and a prime spot.

2. Dubai South Free Zone

The Dubai South Free Zone is a relatively new player in the industry, but substantial government investment means it will become one of the country's preferred logistics hubs. The dedicated Logistics District has state of the art warehouses at competitive rates catering to businesses of all sizes. With access to Jebel Ali’s port through a superior logistics corridor and the International Airport of Al Maktoum, it is easy to understand why new logistics companies have experienced a boom.

3. Dubai Airport Free Zone (DAFZA)

The Free Zone of Dubai Airport is the ideal location for logistics companies that cater directly to air-based logistics. The bulk of air freight flies via Dubai International Airport. It is no wonder that it has become the traditional location of many multinational logistics companies. The Dubai Flower Centre, where Dnata handles cargo and perishables for all airlines, includes other cargo facilities at DXB. DXB is the third busiest hub in the world for international air freight.

Steps to Start a Logistics Business in Dubai

When starting any company in the UAE, the first step should be to find a reliable local professional who can direct you through the process.

Company setup agents can do any step of the process on your behalf. Working with a professional will also help minimise errors and delays, improve the chances of a suitable license application, and remove the hassle of company creation.

Step 1: Selecting Your Business Activities

You will need to identify the logistics area you will trade and ensure that your chosen operation aligns with those published by the Department of Economic Development of Dubai on the list. Failure to specify each planned operation could lead further down the line to problems. However, there are thousands of licensed operations to choose from, so we're sure to find one that fits the bill.

Step 2: Choosing Your Company Name

Next, we will assist you in choosing an acceptable company name for your mainland UAE firm. You have to abide by a specific collection of naming conventions when selecting a company name in the UAE. In short, you can avoid any language which is offensive or profane. Stop terms and avoid abbreviations of well-known organisations. You must also verify the availability of your preferred name for registration.

Step 3: Making Your License Application

We will then move on to the essential phase in the process after assisting with your early admin: applying for your UAE trade license. This request shall be made directly to the Dubai DED or local equivalent if you wish to develop yourself in another Emirate when applying to form a mainland corporation. This procedure is mainly carried out online and can be completed within hours.

Step 4: Making your Visa Applications

As well as a trade license, you are required to have a residency visa to work in the UAE. Again, we have the opportunity to help you get this vital text. There are several steps in the visa application process, including biometric screening, a medical scan, and a chest x-ray. As the holder of a UAE business license, you can also sponsor others for their visas. It could be a partner, a parent or child, or, for example, a domestic worker, a housekeeper. The maximum number of passes you can apply for depends on your company’s size, the setup you have selected, and your income for dependent visas.

Step 5: Opening a Corporate Bank Account

Finally, to trade in the UAE, you would need a corporate bank account. It isn't always easy to access banking facilities as an overseas investor. However, before putting you in contact with an organisation that is most capable of fulfilling them, we will take the time to consider your needs.


Documents Required to Set Up a Logistic Business in Dubai

  • Passport copy of each shareholder
  • Copy of managers passport and curriculum vitae
  • Personal data sheet of shareholder and manager
  • Proof of trade name reservation
  • Proof of initial activity approval
  • Attested and notarized memorandum and articles of association
  • Notarised and attested power of attorney appointing a legal representative
  • Documents of legal agreement showing the physical address of the company

Start Your Logistic Company in Dubai with Commitbiz

Setting up a logistics company in Dubai doesn't have to be overly complicated if you're armed with the right skills.

That being said, it needs a degree of prior process awareness. Moreover, it is necessary to remember that the licensing process is only straightforward if the license application is complete and free from errors at the time of the request.

It's an excellent opportunity to work with a mainland business creation specialist, such as Commitbiz, when forming a new company in the UAE, to help you ensure that this is the case.

We are a team of specialists in business registration who are passionate about bringing to life the dreams of young entrepreneurs and SMEs.

Commitbiz will also assist with opening corporate bank accounts, managing your license application, and advising on the most suitable financial institution to meet your particular needs.

We also provide visa and immigration services, and it is possible to handle all government formalities, licenses, work permits and visa applications needed for UAE trade.

In short, our experts will set up your business on your behalf, build your license and visa applications, and take care of all the requisite administrators, leaving you free to run your business.

If you want to start a logistics company in the UAE, we at Commitbiz can help you. Contact us today- we’d be happy to assist you.