transport company license in dubai

Set Up Your Transport Business in Dubai, UAE

by Sweta Bose 06, Jun 2023

The dominant economic hub of the Middle East is the United Arab Emirates. Dubai is the main force behind this nation's transformation into one of the top four worldwide commercial and investment destinations. 

Therefore, Starting a Transport Business in Dubai will be undeniably profitable if you adhere to all the government guidelines and initiate your company formation through us.

The Advantages of Starting a Company to Provide Transport Services in Dubai

There are numerous benefits to why set up a company in Dubai. Some of them are mentioned below:

Strategic Location

With convenient European access, Dubai is the most significant business hub in the Middle East and Africa. In actuality, it is the meeting point between East and West. 

Leading-Edge Infrastructure

Dubai has world-class air, road, and maritime infrastructure. For international investors wishing to launch a transport company, the UAE's world-class road network, significant sea ports, worldwide shipping and logistics commercial assets, airports, and high-quality basic services in Dubai only serve to increase its attraction.

Dubai's Advantages for Businesses

One of the alluring motivations to live and work in the UAE is the tax savings for foreigners and foreign-owned businesses. The UAE recently amended its corporate policy to permit foreigners to fully own their enterprises and changed its immigration regulations, which increased Dubai's appeal as a location for foreign investment, entrepreneurs, and job seekers.

Absence of Any Minimum Capital Investment

The absence of any minimum capital investment requirements in Dubai is another alluring factor for starting a business, particularly a transportation business. Through specialized support centers, business accelerators and incubators, and other initiatives, the government may better help SMEs with free zones specifically dedicated to specific industries.

Activities Permitted under the Transport Company License in Dubai

In Dubai, there are three primary types of transport services that are permitted:

  • Freight Companies,
  • Companies that transport and store specific goods
  • Courier Companies.

According to your business needs, you can select any of the following service activities:

  • Cargo transport by heavy trucks
  • Water transport service
  • Cargo transport by light trucks
  • Rental and transport of heavy machinery
  • Bus rental transport services
  • Car rental service
  • Passenger transport (taxi services transport and tour buses)
  • Motorcycles rentals service
  • Special rental vehicles - trucks and related transport
  • Vehicle towing services and vehicle transport
  • Refrigerated transport
  • Specialist transportation services such as gas tanks, money, and valuables transport
  • Bicycle rentals service
  • Petroleum transport.

Obtain Your Transport Company License in Dubai

Here are the necessities to launch a transport company in Dubai.

  • Choose your trading strategy and organizational structure: Select the best type of transport business to run in the Mainland or the Free zone.
  • Choosing a Business Name and Registering It: Choose the appropriate name for your company.
  • Note the Documents of Your Company: The company's Memorandum of Association (MOA) and Articles of Association (AOA) with the DED (Department of Economic Development in Dubai) are the documents that must be notarized.
  • Application for a Business Licence: Before submitting an application for a transportation license in Dubai, you must first submit a commercial license application.
  • The National Transport Authority will give your transport company a license, whilst the Dubai Department of Economic Development will manage the commercial license application process through a free zone application.
  • Obtain the license and pay the fees: The National Transport Authority will provide a business license to your organization.
  • Pick a location for your company: Get a lease agreement for the office, retail, or warehouse space that you've chosen.
  • Create a bank account to conduct business in the UAE in accordance with your operations and activities.

The following are considerations you should make while starting a Transport Business Setup in Dubai:

  • The UAE National Transport Authority must provide you with a transport license.
  • Safety gear should be installed in the transport vehicle, and all technical requirements should be met.
  • A UAE national can only apply for a transport license.
  • You must first get a commercial license before submitting an application for a transport license in Dubai.
  • The transport license would need to be renewed every three months for another 30 days.
  • To obtain a license, passenger vehicles must pay AED 100 + AED 5 for each passenger seat.
  • Vehicles transporting commercial products must pay AED 100 + AED 10 for each tonne of the vehicle's gross weight.

The following documents are required in Dubai to set up a transport company:

  • Passport copies of the stakeholders
  • Proof of trade name reservation
  • Personal data sheet of everyone (managers & stakeholders)
  • Proof of initial activity approval
  • Attested and notarized power of attorney
  • Copy of the lease of the company's physical address
  • Notarized and valid MOA & AOA
  • Trade license payment receipt.

Start Your Transport Services in Dubai – Choose Us for Company Incorporation

The price of getting a transportation business license will vary depending on your region, type of business, size of the organization, chosen activities, government charges, and other operational fees. There is no denying that starting a transport company is profitable. 

For advice on Start Transport Business in Dubaiget in touch with Commitbiz, a business setup consultant in Dubai.

FAQs

What are the benefits of setting up a transport company in Dubai?

There are many advantages, and some of them are mentioned below:

  • Strategic Location
  • Leading-Edge Infrastructure
  • Dubai's Advantages for Businesses
  • Absence of Any Minimum Capital Investment.

What are the primary types of permitted transport services?

In Dubai, there are three primary types of transport services that are permitted:

  • Freight Companies,
  • Companies that transport and store specific goods
  • Courier Companies.

What type of license do you need to obtain for a Transport Business in Dubai?

A Commercial Trade License.

How is the cost of getting a Transport Company License in Dubai determined?

The cost of getting a transportation business license will vary depending on your region, type of business, size of the organization, chosen activities, government charges, and other operational fees.

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