Dubai Logistics City (DLC) is the world’s first platform built for the purpose and development of logistics. This Dubai free zone is the biggest and most ambitious project taken up by the government to increase the trading opportunities for the Emirate but also houses other business communities like restaurants, shops, leisure facilities, and other services with beautiful geography.
Logistics-driven companies have a great scope, and business growth DLC is a built-apart corridor connecting DLC via Jebel Ali Port. Companies in Dubai Logistics City are spread over a vast area, with the air cargo turnover amounting to almost 12 million tons annually. Supported by the Jebel Ali Sea Port and because of its systematic supply and provision fit-out, DLC has become the zenith of logistical operations in the Emirates.
There is a pre-built warehouse facility, custom-built units for freight forwarders, and a separate lane for heavy vehicle movement. DLC is a comprehensive tax arrangement for the UAE, African, and North Asian countries.
Dubai Logistics City Free Zone
Logistics companies in Dubai reap plenty of benefits from DLC. Let us look at this free zone's license types and legal entities.
Available License Types
The provision of favorable licensing options contributes to the success of logistics companies in Dubai.
1. Logistics License
The holder of this license can handle products and logistics services such as storage, distribution, inventory management and transportation, order management, forwarding, sorting, and clearing within the UAE but is not allowed to sell them within the UAE.
2. Industrial License
The holder of an industrial license may deal in light manufacturing, such as blending, purifying, repacking, mixing, wrapping, and assembling products using noiseless machinery or laborers.
3. Trading License
A trading license grants authorization for the storage, distribution, importing, exporting, and selling of products specified in the permit. The selling of finished goods and products is allowed within the UAE only through a licensed local distributor or agent.
4. Service License
It permits an individual or a firm to carry out activities like training, insurance, consulting, and catering.
5. Education License
This license holder can carry out education, educational consultancy, and social services operations.
Companies can choose and register their company as one of the following legal entities:
1. Free Zone – Limited Liability Company
It is a legal entity with its legal stature.
The liability of a shareholder in a Limited Liability Company (LLC) is limited to the value of the share capital one holds
A Free Zone-LLC must have shareholders, directors, a company secretary, and a general manager.
The minimum capital required to start a Free Zone-LLC is AED 300,000, with a minimum share value of AED 1.
2. Branch of a Foreign or Local (UAE) Company
A branch is a representative office of an existing legal entity outside the free zone
A branch office in this free zone cannot have a board of directors or a company secretary
A branch must have a general manager who is responsible for its business activities
The name of a branch must be the same as the name of its parent company and end with the designation, i.e., “branch.”
Procedure for Business Setup in DLC Free Zone Authority
The business setup procedure in Dubai Logistics City has been made simple for logistics companies in Dubai. These are the steps that a company needs to go through to start its operations:
1. Get the Initial Approval
The first step is filling out the application form and getting initial approval from the free zone authority.
2. Submit the Essential Documents
After getting the initial approval, one must proceed with the business registration process. The documents requested by the authorities need to be submitted, which will be reviewed.
The approximate time taken for document reviewing is 15 days. The business plan, along with other documents, should be submitted.
3. Obtain the Business License
After submitting the documents, the next step would be acquiring a business license.
4. Pay the Necessary Fees
The requested non-refundable fee should be submitted to the free zone authority.
5. Collect the Respective Certificates
Once all the documents have been verified and the fee has been paid, the Registrar of Companies will issue the following certificates according to the legal form of the company:
For a Free Zone Limited Liability Company (FZ-LLC)
Each shareholder gets one’s share certificate
Memorandum of Association of the company
Articles of Incorporation of the company.
The registration certificate of the company.
Dubai Logistics City is a prime spot for logistics-based companies that contribute to the import-export trade of a country. There can be no better place in the world for companies that are into logistics and trading activities to start their business in Dubai free zone. The visa regulations are liberal, and the workforce is easily available, with visa services for labor, transportation, and other purposes.
Commitbiz will help your company from the time of registration till incorporation and even after that.
Contact us, and we’ll be glad to assist.
What are the other activities except logistics performed in Dubai Logistics Free Zone?
Light manufacturing, assembly, value-added services.
What are the parts that DLC consists of?
- Air cargo terminals
- Land plots for industry or contract logistics
- Land plots for forwarders
- Land plots for the aviation industry
- Shared forwarders warehouses
- Integrator facilities
- DLC Office Park
- DLC Labor Village
What is the tax policy in Dubai Logistics City?
- No corporate tax
- No personal income tax
- No customs duties
What are the projects undertaken by DLC free zone?
Air cargo terminals, office parks, labour village, and other amenities.
When was DLC free zone established?