Dubai economy continues to show stable growth and balanced development of different industries. While two decades ago, the United Arab Emirates was just meant for exporting crude oil, today it is the world's largest centre of finance and logistics. Logistics in the region is at a peak, stimulating international trade relations.
The favorable geographical location between the trading pathways of the West, Africa, Europe, and Asia, have made Dubai an international transit hub. This has resulted in a strong trade relationship between the UAE and countries such as Germany, USA, France, Italy, China, India, Japan, and the UK. A distinctive system, which unites large airports, wide roads and world-class ports in Dubai increases the scope of logistics.
In this article, you can find detailed information on how to start a logistics, courier service, and a road transportation service in Dubai.
1. Logistics Business in Dubai
If you are planning to start a logistics business in Dubai, the most viable choice of location for the office would be Dubai Logistics City (DLC). Dubai Logistics City is one of the fastest growing free zones in Dubai dedicated to and designed for logistics-related businesses. You can reap plenty of advantages by setting up your business in DLC. Some of the these are:
- Favorable geographical location
- Easy and simple legal formalities
- Ultra-modern logistic facilities provided by the government
- The place is home to more than 7000 companies
- Inbuilt warehouse facilities
- Well-organized distribution system catering to the Middle East, Africa, South East European, and SAARC countries
- Easy availability of visa services
How to Set Up a Logistics Business in DLC Free Zone?
Dubai free zones provide numerous offers to investors and entrepreneurs to set up their business in Dubai. DLC, one of the highly developed free zones in Dubai, is also a place with plentiful offers and incentives. One can set up a Free Zone - Limited Liability Company (FZ-LLC) or a Branch of an existing company in this free zone. Here is the procedure to set up a logistics business in DLC:
- Fill up the application form for initial approval
- Submission relevant documents for the business registration process. The process will take 15 days
- Submit a detailed business plan, along with other documents
- After submitting the documents, you can acquire a business license
- Pay the requisite fees to the free zone authority
- Subsequently, the Registrar of Companies will issue an incorporation certificate for your company
Documents Required to Set Up a Logistics Business in DLC
- Passport copies of the shareholders
- Copy of CV and passport of the manager
- Personal data sheet of all shareholders and managers
- Trade name reservation proof
- Proof of initial activity approval
- Attested and notarized Article of Association and Memorandum of Association
- Notarized and attested power of attorney appointing a legal representative
- The document of legal agreement showing a physical address of your company
2. Courier Service in Dubai
How to Set Up a Courier Service in Dubai?
- Any courier company in Dubai must be licensed through the Emirates Post Group
- The company or owner must get the commercial license and trade activity registration from the concerned authority
- The Emirates Post Group takes 20 working days to issue a license
- Fill the online application form provided by the Emirates Post Group, along with the relevant documents
- The owner of the courier service can be of any nationality
- The cost per license is AED 100,000
- The license can be applied online through the Emirates Post Group portal
Documents Required to Start a Courier Service in Dubai
- Passport copy of the owner and the shareholders
- Copy of the local family book
- Initial approval copy
- Trae name reservation copy
- Copy of the commercial license and trading register certificate
- Copy of the established firm (if any)
- Lease contract copy (if any)
3. Road Transportation Business in Dubai
Requirements to Start a Transportation Business in Dubai
You should keep the following things in mind while setting up a transportation business in Dubai:
- One can get a transport license from the National Transport Authority, UAE
- The transport vehicle must be equipped with safety gear, and all technical conditions must be fulfilled
- The transport license applicant must be a UAE citizen
- One must get a commercial license before applying for a transport license in Dubai
- Transport license will be issued for 3 months and must be renewed within 30 days
- Passenger vehicles must pay AED 100, plus AED 5 for each passenger seat to get a license
- Vehicles transporting commercial goods need to pay AED 100, plus AED 10 for each tonne of the vehicle’s gross weight
If you are planning to run your business in the logistics sector in Dubai, don’t give it a second thought! The logistics sector of Dubai is contributing a major portion to its economy. So, this is the right time to contact a business setup consultant in Dubai to get guidance for your logistics business incorporation process.
Commitbiz Management Consultants can advise you on the business milieu of Dubai. We at Commitbiz help our clients in company incorporation process, accounting, bookkeeping, intellectual property protection, tax advisory, and other value-added services. For any business help or advice, do contact us – we'd be happy to assist!
1. Which freezone in Dubai is dedicated to setting up a logistics business?
Dubai Logistics City Freezone has been built to promote and provide better logistic and trade facilities in the UAE.
2. Which are the business activities under logistics in Dubai?
- Freight Broker
- Customs Broker
- Warehouse Storage
- Air Cargo Transportation
- Sea Cargo Transportation
- Land Cargo Transportation
3. What is the cost of setting up a courier business in Dubai?
The cost of getting a delivery service license in Dubai can vary depending on different aspects of your delivery service business. However, the approximate license cost will be AED 6,000 to AED 7,000, excluding the sponsorship and other expenses.
4. Which are the different types of transportation activities popular in Dubai?
The following types of transporting companies are pretty common in Dubai:
- Freight companies
- Courier companies
5. Who issues the transport license in Dubai?
The National Transport Authority is the regulatory body that issues a transport-specific license in Dubai.