Dubai Logistics City (DLC) Free Zone

Dubai Logistics City (DLC) Freezone is a popular freezone dedicated exclusively to the logistics industry that offers a comprehensive ecosystem for businesses to thrive. It is strategically located with direct access to air, sea, and road transportation, making it an ideal hub for international supply chain operations.

Setting up a business in this Dubai freezone is one of the most favourable options for entrepreneurs like you, given the availability of a wide range of licenses and benefits offered, like tax exemption, full repatriation of profits, 100 percent ownership, and many more.

Read this article to understand the various facilities available at DLC freezone, the licenses available, the step-by-step process of setting up a company in the freezone and other essentials.

Facilities Available at DLC Freezone

There are various facilities available to new business owners looking for business setup in Dubai Logistics City freezone. They are explained below -

1. Logistics Facilities

DLC offers various types of services that facilitate logistics and create revenue, such as -

• Warehousing

This freezone offers you certain facilities like bonded warehouses, temperature-controlled storage, and general shipping services.

• Freight Forwarding

Companies require transportation services, which are easily available in DLC. By setting up a freight forwarding company in Dubai, you can milk the business opportunity of transporting goods by land, sea, or air. It is a profitable venture in the logistics sector.

• Customs Clearance

Establishing a company in the Dubai Logistics City free zone is beneficial because it has room for customs clearance facilities. It speeds up the import and export process.

2. Value Added Services

DLC Logistics goes beyond basic shipping with value-added services like item identification and assembly. Some of the services include -

• Packaging and Labelling

Packaging protects your products during transportation, while labelling ensures accurate order tracking and inventory management.

• Light Assembly

The light assembly services guarantee the efficient loading of goods, ensuring no risk of loss/damage to the items.

While they may look like distinct services, it is important to note that they are often interlinked. Combined service provision will be economically and logistically beneficial for the business.

Which Licenses are Available at DLC Freezone?

Let us take a look at the different types of licenses available in Dubai Logistics City free zone -

1. Logistics License

A logistics license is issued to businesses engaged in providing various logistical services, such as forwarding, sorting, storage, distribution, and transportation inside the United Arab Emirates (UAE).

2. Industrial License

An industrial license in DLC freezone is issued to businesses that are engaged in manufacturing tasks using labourers or silent machines.

3. Trading License

A trading license is issued to businesses that store, distribute, import, export and sell particular products within the UAE.

4. Service License

A service license is issued to businesses that conduct activities like training, insurance, consulting, and catering.

5. Education License

An educational license is issued to businesses engaged in educational operations and educational consultancy.

The vast range of licenses available within the freezone is evidence of Dubai Logistics City’s commitment to fostering an environment that is advantageous for logistics firms operating in Dubai. DLC freezone facilitates operations and encourages growth in the logistics sector by offering specialised permits needed to carry out certain business activities.

Legal Entities within DLC Freezone

There are some legal entities available for setting up a company in the DLC freezone. Each of them is explained below -

a) Free Zone Limited Liability Company (FZ-LLC)

• This entity can be identified and treated as having legal rights and responsibilities.
• The liability of the shareholders in a limited liability company (LLC) is limited only to the number of shares they own.
• The entity must have shareholders, directors, a company secretary, and a general manager.
• The minimum capital required to start an FZ-LLC is AED 3,00,000 with a minimum share value of AED 1.

b) Branch Office

• The branch office’s name must be similar to that of its parent company and include the word ‘branch’.
• It is mandatory to appoint a general manager for your branch office who is responsible for the business operations.
• This type of entity does not need to have a board of directors and appoint a company secretary.
• A branch office acts as a representative office of an already existing business entity situated outside the free zone.

Process to Start a Company in Dubai Logistics City

When looking to set up a company in the DLC freezone, you must be aware of the organised set of steps. Let us take a look at them-

Step 1 - Apply for Initial Approval

You need to begin by applying for certain initial approvals from the DLC Free Zone Authority.

Step 2 - Choose Your Business Activity

Choose an appropriate business activity within the free zone that suits your company’s objectives.

Step 3 - Choose Appropriate Business Structure

Select an appropriate legal structure for your business. It must match your requirements and help in business expansion.

Step 4 - Submit Documents

You must submit the necessary documents along with the application as per the guidelines of the DLC Free Zone Authority. The documents which must be submitted include -

• A business plan outlining your business strategy.
• Feasibility study (in some cases).
• Copies of passports and visas for shareholders and directors.
• Address proof for shareholders and directors.
• No Objection Certificate (NOC) from your home country (if applicable).
• Power of Attorney authorising a local representative to act on the company’s behalf (optional).

Step 5 - Make Payment

Once the application and documents are submitted to the authority, you need to make payments of the processing and licensing fees.

Step 6 - Obtain Business Licence

The next step involves obtaining the relevant Dubai business license from the authorities. It ensures that you can run your business operations without any hassle.

Step 7 - Open Corporate Bank Account

Having a corporate bank account for your business is necessary to ensure that all financial transactions related to business operations can be verified.

Step 8 - Secure Employee Visas (if required) -

In case you hire employees from locations outside of the UAE, securing visas for them becomes imperative for you.

Certificates Issued after Company Incorporation in DLC

Once you set up a company in the DLC freezone, the authorities will issue certain important certificates depending on the type of chosen business structure. They are mentioned below:

I. For a Free Zone Limited Liability Company (FZ-LLC)

• Incorporation certificate.
• Articles of Incorporation of the company.
• Memorandum of Association (MoA) of the company.
• Share certificate for each shareholder.

II. For Branch

• The registration certificate of the company.

Through this article, we have looked into the essentials of opening a company in Dubai Logistics City freezone. It is one of the best places for logistics-focused businesses. The business-friendly policies and strong connections facilitate business expansion.

Commitbiz LLC is your one-stop solution. Our team is experienced, knowledgeable and capable of helping with company formation and other business-related activities in Dubai and other countries located in the Middle East. We ensure a simplified incorporation process, follow up on compliance, and resolve all your queries. Book a free consultation with us today.