Dubai Logistics City (DLC), also known as Dubai World Central, is the world’s first platform which was built for the purpose and development of logistics. DLC has been built to promote and provide better logistic and trade facilities in the UAE. Dubai Logistics is a government initiative which is the world’s first purpose-built aerotropolis. DLC is built in the neighboring region of Jebel Ali Sea Port, covering an area of 140 sq. km. This Dubai free zone is the biggest and most ambitious project taken up by the government in order to increase the trading opportunities for the Emirate but also houses other business communities like restaurants, shops, leisure facilities, and other services with a beautiful geography. Logistics-driven companies have great scope and business growth in DLC as all the amenities and benefits here are focused only on the development of the logistics and trade sector of the UAE.
Companies in Dubai Logistics City are spread over a vast area, with the air cargo turnover mounting to almost 12 million tons every year. DLC will be cherished with the completion of the Al Maktoum International Airport and will give a head start to many other projects in the free zone, like air cargo terminals, office park, labor village, and many other amenities. 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 UAE.
Benefits of Business Setup in Dubai Logistics City Free Zone
Being the world’s biggest platform for the logistics industry, DLC provides numerous benefits for companies that start a business in it. The top benefits of starting a business in DLC are:
- It is a personalized sector built to cater to the huge requirement of logistics
- The free zone offers 100% foreign ownership, free transfer of capital, and exemption from income tax
- DLC is a built-apart corridor connecting DLC via Jebel Ali Port
- The landscape covers a sprawling area providing a home to over 7000 companies, including many of the 500 fortune club companies
- There is a pre-built warehouse facility, custom built units for freight forwarders, and a separate lane for heavy vehicle movement
- DLC is into a comprehensive tax arrangement for the UAE, African and North Asian countries
- It has a well-defined distribution channel catering to African, South-East European, Middle East, and SAARC (South Asian Association of Regional Cooperation) countries
- The visa regulations are liberal and the workforce is easily available, with visa services for labor, transportation, and other purposes
Licensing Options in Dubai Logistics City
Logistics companies in Dubai reap plenty of benefits in DLC, and the provision of favorable licensing options contributes to the success of logistics companies in Dubai. The companies that set up their business in DLC can opt for one of the following types of licenses:
1. Logistics License
The holder of a logistics license is allowed to handle products and logistics services such as storage, distribution, inventory management and transportation, order management, forwarding, sorting and clearing within the UAE, but 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 storage, distribution, importing, exporting and selling of products which are specified in the license. The selling of finished goods and products is allowed within the UAE only through a licensed local distributor or agent.
4. Service License
A service license 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 operations in the field of education, educational consultancy, and social services.
Legal Entities in Dubai Logistics City
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 own legal stature.
- 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, 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 Foreign or Local (UAE) Company
- A branch is a representative office of an existing legal entity outside the free zone
- A branch office in Dubai Logistics City 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 Dubai Logistics City
The business setup procedure in Dubai Logistics City has been made simple for logistics companies in Dubai. These are the steps which a company needs to go through in order to start its operations in Dubai Logistics City:
- The first step is to fill up the application form and getting the initial approval from the free zone authority.
- After getting the initial approval, one needs to proceed towards 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 to the authorities.
- After submitting the documents, the next step would be acquiring a business license.
- The requested non-refundable fee should be submitted to the free zone authority.
- 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)
- Incorporation certificate
- Each shareholder gets one’s individual 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 which contribute to the import-export trade of a country. DLC is the first integrated platform for logistics sector, and there can be no better place in the entire world for the companies that are into logistic and trading activities, to start their business in Dubai free zone. Commitbiz will help your company from the time of registration till incorporation, and even after that. Our team of business advisors can sail you through registration, licensing, banking, acquiring a business facility or a business workplace, and all the legal formalities which are requested by the free zone authority. Our experts will guide you in all the procedures, and ensure that you get a hassle-free business incorporation in Dubai free zone. Contact us and we’ll be glad to assist.