Everything you need to notice about starting a logistics company in Dubai.

November 13, 2021by Kinjal0

if you are willing for Starting a logistics company in Dubai than you may already know that the UAE has one of the most stable economies in the world, and it is served by various economic activities. In Dubai, establishing a logistics company can be considered one of the most feasible business ideas. Then if you want to have a prosperous and productive business, here is how to set up a logistics company in Dubai.

In this article, you will be able to learn how to establish your logistics company, the activities you can perform in this business, the benefits you can acquire, and other information necessary for you to start your logistics company in Dubai. And this is the content that would be discussed in the article:

  1. Dubai as a logistics hub.
  2. What should you do to start your logistics company in Dubai?
  3. Steps to follow to start your logistics company in Dubai.
  4. What are the documents required to start your logistics company in Dubai?
  5. Things you should know before starting a logistics company in Dubai.
  6. The benefits of logistics companies in Dubai.
  7. What activities can you perform by obtaining a license for your logistics company in Dubai?
  8. Logistics operations in Dubai Free Zones.
  9. Get expert consultancy with Connect Services Middle East.

Dubai as a logistics hub.

Dubai is leading the logistics of the United Arab Emirates due to its geographical location that positions it as an ideal point to distribute and supply. We can say that it is at the center of international trade and, because of its location, its ports have become transshipment points for countries in Asia and Europe.

Moreover, thanks to its many legal permissions, it attracts the attention of businessmen from all over the world who wish to establish their business in the UAE. This way, it increases trade opportunities and improves international relations, making Dubai a good place to start a logistics company.

While the idea is quite attractive, it should recall that there are rules and requirements that an entrepreneur must comply with before starting a logistics company in Dubai.

We will tell you why you should set up a Company in Dubai Mainland.

What should you do to start your logistics company in Dubai?

As mentioned above, logistics companies present a great business opportunity in Dubai. So it is not surprising that entrepreneurs from all over the world want to be part of this business. By being located in the heart of the Middle East, they have easy access to land, air, and sea freight areas. This facilitates imports and exports by creating direct links with different parts of the world.

However, for them to dive into the world of logistics operations in Dubai, first, there are a number of requirements and steps that entrepreneurs or prospective investors must fulfill in order to launch their logistics company in Dubai.

Steps to follow to start your own logistics company in Dubai.

It is necessary to comply with a series of steps to establish any type of business in the United Arab Emirates, the same is the case for logistics companies. Here are some of the steps to start your logistics company in Dubai:

Choose and define the business activities of the business.

Although it will be a logistics company, the logistics field has several fields, so you must specify in which logistics area you want to specialize. To find out which activities fall into the logistics field you can review the list published by Dubai’s DED. This way you will avoid starting with a wrong activity that is outside the Dubai logistics area and save yourself from future problems.

Select the name of your logistics company.

Choosing a business name can be more complex than you might think. Initially, you have to take into account guidelines such as that the name should not contain offensive language, that abbreviations are not allowed, and that it should be unique. Also, before registering, the ideal is to seek help from an expert in the field to guide you so that you do not commit plagiarism. This way, you will be able to register your company’s name without problems.

Make the application for the license.

The application for the license must be made at the DED in Dubai. You can do this online or personally and you will have to fill a form. In addition, you must send all the requested documents and submit a detailed business plan. It should be noted that extra documents may be required. This means this will depend on the exact location where you want to start the logistics company in Dubai.

Apply for a Visa.

Beyond just a license, to work in the UAE the entrepreneur must apply for a Resident Visa. One of the advantages of having a Visa is that this way it is easier to sponsor others to get it. However, there must be direct ties such as a spouse, children, parents, or even a domestic worker.

Like the license, to obtain the visa, the entrepreneur must present several documents and comply with a series of steps for the State to grant the Visa.

Open a bank account.

While this is not a simple process, with the right help, having a corporate bank account will be a piece of cake. Of course, in order to trade in Dubai, it is necessary to have a bank account in the company’s name. Moreover, this step is found in most business processes in the United Arab Emirates.

Finally, once you have completed the above steps, you will need to submit all the documents. Furthermore, you must pay the required fees for the approval of your company to start your logistics company in Dubai.

It is important to note that starting a business in Dubai is not simple and requires the fulfillment of an exhaustive procedure. For this reason, at Connect Services Middle East we offer you the help you need to manage the application and obtaining of your licenses, visas, and the registration of your companies. In addition, we can streamline the processes so that starting your logistics company in Dubai will not require much effort.

Learn about the E-trader license in Dubai.

What are the documents required to start your logistics company in Dubai?

As mentioned above, to start your logistics company in Dubai you not only need to comply with a procedure. Also, you need to gather the required documents to establish your logistics company. Some of them are:

  • Copy of your passport.
  • Copy of the passport of the company’s shareholders, if applicable.
  • Passport photographs must be in color.
  • Personal data of the shareholders and directors.
  • Memorandum of Association.
  • Proof of the reservation of the company’s name.
  • Business plan.

It is important to note that the amount and type of documents you will need will depend on the type of commercial activity in the logistic field that you are going to conduct. In addition, the documents may vary if you decide to establish the company in a Free zone.

You might be interested in the types of business licenses in Dubai.

Things you should know before starting a logistics company in Dubai.

As we already mentioned, Dubai is full of opportunities when it comes to logistics companies due to its geographical advantages. Consequently, many investors want to start a logistics company in Dubai. However, there are some points you should be clear about before starting this journey:

Customs processes. It is necessary for investors to have knowledge of customs procedures and all the required documentation. Beyond this, it is important that they know clearly the guidelines and procedures at the moment of carrying out a logistic process. Therefore, we recommend receiving appropriate advice from experts.

Knowing the market. Since the logistics market in Dubai is booming and has different areas, it is necessary to have knowledge of the market and how it is managed. In other words, if the investor knows how to take advantage of market opportunities, finding the right suppliers, they can save costs and avoid mistakes in the process. To do so, they can also count on specialized advice that will help them to know each market segment and thus guide them in making decisions.

Click here to learn about Designated Areas in the United Arab Emirates.

Know the parties involved. Something beneficial when executing logistics processes is to know the parties involved in the process, from customers to suppliers. This way they can ensure effective communication and avoid mishaps during the transaction.

Consider all the advantages. It is well-known that establishing a business in Dubai has several advantages. However, investors should study each of the advantages that they will have when starting a logistics company in Dubai. This way, they will be able to have clear and focused objectives. Professional help can also guide them to know all the strengths of setting up a business in Dubai.

The benefits of logistics companies in Dubai.

According to the information already provided throughout this article, there are several advantages of starting a logistics company in Dubai. Nevertheless, here are some of the benefits:

  • Dubai’s economy is proliferating, making it a great investment opportunity.
  • Dubai has a world-class infrastructure.
  • The location has busy airports and seaports, facilitating international trade and commerce.
  • Very low or almost no taxation.
  • With proper management, it is easy to get a Visa.
  • It has Free zones, which is beneficial.

What activities can you perform by obtaining a license for your logistics company in Dubai?

It is important to know some of the activities that you can perform when obtaining your license. As mentioned before, there are several activities, here are some of them:

  • Customs agency. To prepare declarations corresponding to customs and cargo clearance.
  • Freight forwarding. Whether for sea, land, or air freight, it includes packing, fleet management, freight forwarding, container or vessel leasing, and shipment management.
  • Warehousing and storage. For the entry of goods, classification of cargo, packaging of goods, and management of facilities or warehouses.

Logistics operations in Dubai Free Zones.

As we know, Dubai has several free zones that attract the attention of foreign investors. As far as the logistics business is concerned, it also has strong points with adequate infrastructure. For this reason, starting a logistics company in the Dubai Free Zones is an even more tempting idea. Below we will name some of the most virtuous Free zones for logistics processes:

  1. One of the main ones is the Jebel Ali Free Zone where it is possible to manage land, sea, or air processes thanks to its customs area. This means that it has a location that facilitates commercial and logistic operations.
  2. Another very relevant one is the Dubai Airport Free Zone. For all those who prefer to carry out air activities, this free zone is the ideal one. Many express or airfreight companies tend to set up in favorable areas such as this one.
  3. Apart from the two already mentioned, there is the Dubai South Free Zone, which has access to Al Maktoum International Airport and Jebel Ali Port. With these links, it is easy to see why this Free Zone has been so successful with logistics companies. This way, it becomes a perfect bridge for the logistics operations that the company develops.

Set up your business in the UAE Free Zones, see all the benefits.

Get expert consultancy with Connect Services Middle East.

Starting a business can be a rigorous process that requires many documents, permits, and approvals. At Connect Services Middle East, we help you manage your visas, licenses, bank accounts, and more. We also provide you with advice and support from professionals in the field to start your business in the UAE.

At Connect Services Middle East, we have collaborators that help us to make the process of setting up your business in the UAE simple and fast. From obtaining permits and approvals to outsourcing human resources to take advantage of every business opportunity in the UAE.

Start a business in the United Arab Emirates; here we give you the steps you need.

Would you like to contact Connect Service Middle East to obtain more information about how to start a logistics company in Dubai, UAE? If you have any questions, call us on +97143316688. You can email us at info@connectme.ae, and you will talk to one of our representatives who will answer your questions.

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