logistics license in dubai

How to Obtain a Logistics License in Dubai?

by commitbizadmin 02, Mar 2023

In Dubai, there has never been a better time to launch a logistics business. So, Dubai is the place to be if your logistics, shipping, or packing business wants to access one of the most prosperous shipping hubs in the world.

You need a logistics license in Dubai to operate legally in this industry if you want to start a logistics firm in the Emirate. It is a permit that enables you to lawfully run a logistics firm out of the Emirate. 

This license covers a wide range of logistics enterprises, including freight and customs brokers, warehouse businesses, logistics planning organizations, sea, and air cargo transportation services, and much more.

Advantages of Establishing a Logistics Business in Dubai

The advantages of getting a logistics business setup industry license in Dubai are clear, given its status as one of the top shipping centers in the globe. Among the principal benefits are:

Location

On the world map, Dubai is situated in a key area. The sea and air routes that are centered in Dubai carry a tremendous amount of trade. 

Trade between Asia, Africa, Europe, and, to a lesser extent, Australasia and the Americas is centered on the Emirate.

Great Tax Advantages
Starting a logistics company in Dubai will allow you to benefit from the Emirate's extremely cheap income and corporation taxes. Additionally, if you decide to have your business base in a free zone, you might not have to pay any corporate tax or VAT at all.

World-Class Facilities

Many people consider Dubai's seaports and airports to be among the greatest in the world. This first-rate infrastructure will make it simple and easy for you to start trading.

An Administration that Encourages Trade

The Dubai government works to make the Emirate a competitive yet fair location to launch a logistics company. It takes a pro-market, pro-business stance.

Nearby Other Logistics Businesses
In Dubai, countless logistics companies with specialized operations are based. This implies that a wide range of possible clients, suppliers, employees, and business partners will be available close by for your logistics company. 

In comparison to locating your company somewhere with a less developed sector, all of this makes it simpler and more effective to run your firm.

International Trade Treaties

Dubai and the entire United Arab Emirates have a vast network of international trade agreements with nations all over the world. This implies that trading with business partners anywhere will be simple for you.

How to Establish a Logistics Company in Dubai?

You must do the following actions in order to proceed with your logistics business setup in Dubai:

1. Decide on a Company Name

The first step is deciding on a trading name for your business. The name must adhere to UAE business naming regulations and should reflect the primary activities of your company.

2. Choose a Free Zone or the Mainland

If you plan to conduct business directly with partners in the Emirate, setting up a shop on the mainland of Dubai is a wise choice.

3. Get a License in Logistics

You must fill out an application form for your company and send it to the Department for Economic Development (on the mainland) or the administrators of your preferred free zone, along with a few supporting documents. The procedure can be completed online and just requires a few hours.

4. Submit all Necessary Paperwork
There are a lot of documents you need to submit when requesting a logistics company license. Commitbiz can guide you through the procedure if you are unaware of which papers are required or the format in which to give them.

As a form of application, if you're an ex-pat and want to be based in mainland Dubai, you'll need copies of your passport, your local sponsor's passport, your Emirates ID, and your memorandum of association.

5. License for Logistics Shall be Issued

The logistics license will typically be granted in a matter of days, at which point you can begin setting up your company.

6. Initiate the Visa Processing
Several proprietors of logistics companies hire foreign staff. You will also need to apply for visas for all of your international staff if this is a part of your business plan. 

You can get assistance from Commitbiz with the process of applying for employment visas.

Logistics Business in Dubai, UAE – The Types

Logistics businesses of all shapes and sizes can apply for a professional license in Dubai. They consist of the following:

Customs Agents

While dealing with customs officials, they make customs declarations.

Transport Brokers

These brokers take care of all aspects of brokerage for land, sea, and air freight.

Transporting Goods

These companies handle packing and sorting for various land, sea, and air transportation companies.

Leasing

This includes renting out ships, containers, and other machinery.

Management of Fleet

These companies oversee fleets of ships, railroads, planes, and other modes of transportation.

These businesses offer logistics planning services to make sure goods are transported safely from point A to point B.

Storage and a Warehouse

These businesses provide warehouse spaces for managing inventory, packing, loading, and receiving.

Government Agencies that Provide Special Approvals to Start a Logistics Company in Dubai

Many governmental entities may require additional authorization before you can apply for your logistics license in Dubai. We can assist if you're unsure of which authorities you need approvals from.

Dubai Customs

They give the go-ahead for the export and import of commodities.

Dubai Police

The police have given warehouse and logistics companies their approval for security systems.
Authorities in Aviation, Shipping, and Transportation

These organizations grant you a license to conduct business in each of their respective fields.

Food Regulation Department

This division will issue licenses for food kept in Dubai warehouses.

Civil Defense

They are in charge of regulating the import and export of dangerous goods.

Ministry of Climate 

The import of agricultural products, live animals, fertilizers, and associated goods is the department's primary objective.

We have guided numerous business owners who needed assistance setting up their operations in Dubai, as well as established logistics firms. We can assist you at every step of the application procedure, including obtaining the necessary official approvals.

FAQs

What are the permitted business activities under the logistics license in Dubai?

This license covers a wide range of logistics enterprises, including freight and customs brokers, warehouse businesses, logistics planning organizations, sea, and air cargo transportation services, and much more.

What type of license do we require to start a logistics business in Dubai?

A professional license in Dubai.

Why is it advantageous to set up a logistics company in Dubai?

In Dubai, countless logistics companies with specialized operations are based. This implies that a wide range of possible clients, suppliers, employees, and business partners will be available close by for your logistics company.

How do the location and the world-class facilities play a key role in starting a logistics business in Dubai?

The sea and air routes that are centered in Dubai carry a tremendous amount of trade. Trade between Asia, Africa, Europe, and, to a lesser extent, Australasia and the Americas is centered on the Emirate.

Many people consider Dubai's seaports and airports to be among the greatest in the world. This first-rate infrastructure will make it simple and easy for you to start trading.

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