How to Start a Transport Business in Dubai?

by Priyadarshini Balamurugan 13, Jun 2023

Transportation is the glue that gels the world together, so a company registration in Dubai will be a kick-start for your business dream. The transport business is constantly growing due to the increase in other sectors.

Every business sector needs transportation at any point in time. May it be any size of business for packaging, import, or export, every business needs a transportation facility.

People with the dream of doing business setup in the Dubai Emirate are interested in starting a transportation business, but again it is always better to start with the proper process the first time. Hence starting a business here always corresponds to where you start, how you start, and the perks of starting the same.

Continue reading to get answered all your questions regarding 'How to Start a Transport Business in Dubai.'

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Upper Hand of Starting a Transport Business in Dubai?

Obtaining a business license in Dubai comes with its own perks, as listed down below.

  • Taxation Benefits

Everyone knows that Dubai is best known for its tax benefits. With its no-tax policy, it attracts foreign investors to invest in Dubai.

  • Free Zone Benefits

Dubai offers different jurisdictions like the mainland and freezone to the investors as per their needs and choice. Comparatively, the freezone is more cost-effective than the mainland.

  • Modern Infrastructure

Dubai is the fastest-growing economy with top-tier infrastructure.

  • Extended Trading Locations

No unnecessary limitations on trading locations.

  • No Minimum Capital Requirement

There is no minimum capital requirement to start a business in Dubai. This is the one major fact why Dubai is known as a business-friendly nation.

  • Easy Access to Work with Government Agencies

Government accessibility is easy compared to other nations. To make it more easy, hire a local service agent to deal with all your legal work.

  • No Restrictions on the Number of Visas

Visa has no limitations. The number of visas will increase as big as your business. 

  • Low-Cost Energy Resources

Energy resources are the majorly dominant resource in the UAE, so the price of energy resources is low. So business based on energy resources has scope here.

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How to Start a Transport Business in Dubai?

Starting a transport business setup in Dubai involves several steps and requirements. Here is an outline of the process.

  • Decide the Type of Transport Business

You have options like taxis, buses, and rental cars, so decide on the type of transportation business you wish to start. Before deciding, read the list of transport business types allowed in Dubai;

  • Heavy truck transport companies in dubai.
  • Light trucks transport cargo.
  • Transportation by water.
  • Heavy machinery rental and transportation.
  • Rental car service.
  • Services for bus rental transportation.
  • Passenger transportation (taxi services transport and tour buses).
  • Trucks and related transportation are examples of specialized rental vehicles.
  • Service for renting motorcycles
  • Vehicle towing and transport are both available.
  • Transportation of petroleum.
  • Service for renting bicycles.
  • Vehicle Fleet Management services are available.
  • Services for luxury vehicles.
  • Decide a Business Name

Every business should have its name, which should be the replica of any other business’s name; you should use any negative terms, deities' names, or any religion’s name. You can submit a maximum of 3 name options to the authority.

  • Get the Trade License

After deciding on the name, the next step is to get the trade license. Register your business with the Department of Economic Development to get a trade license.

  • Other Approvals

Getting a trade license is not the end; for starting a transport business in Dubai, it is mandatory to get approval from Dubai Roads and Transport Authority (RTA).

  • Vehicle Registration

It is mandatory to register your vehicle with RTA and to have additional documents like insurance, license, and other relevant documents.

  • Choose a Perfect Location 

Decide the location of your business and set up a physical office depending on the type of transport business you choose to incorporate. While choosing the location, adhere to the legal regulations of Dubai.

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Mandatory Documents Required for a Company Setup in Dubai

Go through the list given below to make sure the documents are readily available before submitting the application;

  • ID proof and address proof 
  • Copy of passport
  • Trade name confirmation (from the registry office)
  • Commercial license (copy)
  • Activity approval certificate (from city management agencies)
  • MoM & AoA (Notarised)
  • Lease agreement (Ejari)
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End Note - Connect with Us for Your Business Setup in Dubai

Dubai offers an immense number of opportunities to start your transport business, but it might look hard to get through the process. It’s always better to hold hands with an expert. Here is Commitbiz to help you through the process.

Connect with our experts today to get your company license.

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FAQs

What are the legal requirements to start a transport business in Dubai?

To start a transport business in Dubai, you must register your company with the Department of Economic Development (DED) and obtain a commercial license. Additionally, you must obtain a transport license from the Roads and Transport Authority (RTA) and register your vehicles with the RTA

What types of transport businesses can be started in Dubai?

Several types of transport businesses can be started in Dubai, including taxi, limousine, bus, and freight and logistics services.

What are the startup costs of starting a transport business in Dubai?

The startup costs associated with starting a transport business in Dubai can vary depending on the type and size of the business. You will need to factor in the price of obtaining licenses and permits, registering vehicles, purchasing or leasing cars, hiring staff, and marketing your business.

How can I finance my transport business in Dubai?

There are several ways to finance your transport business in Dubai, including obtaining a loan from a bank or financial institution, seeking investment from venture capitalists or angel investors, or using your savings.

What are the regulations governing transport businesses in Dubai?

The regulations governing transport businesses in Dubai are set by the RTA and include rules related to licensing, vehicle safety and maintenance, driver qualifications, and insurance requirements.