Getting started with a logistics business in Dubai can be a profitable business idea due to many reasons. One of the reasons could be Dubai’s strategic location. The ideal location of Dubai works as a bridge and provides access to all the major continents for different trading and traveling purposes. In simple words -a meetup point for the eastern and the western side of the world. Offering logistics services in the UAE can be a lucrative business for you.
The diversity in the trade industry, and the regulations, and conventions of trading, import, and export, are the aspects of the logistic business market in the UAE that you have to look after. Though, since the economic boost after the pandemic, the shipping and logistic business in Dubai, and the UAE is again going to skyrocket.
In this blog, we have explored all the aspects of starting a logistics company in Dubai, covering documentation to the registration process and everything else you need to know.
Benefits of starting a logistics business in Dubai
Starting a logistics business in Dubai is a great opportunity for entrepreneurs looking to capitalize on the city’s bustling economy.
Location: With its strategic location at the crossroads of Europe, Asia, and Africa, Dubai is one of the top trading hubs in the world.
Infrastructure: It has an established infrastructure, excellent international connectivity, and a well-developed legal system, making it ideal for setting up businesses.
Tax regime: there are many incentives like free zones and tax exemptions offered by the government to encourage businesses to set up shop.
Business opportunities: There are also plenty of opportunities for collaboration with local partners or investors from other countries.
Low import duty: along with reliable tax exemption, the customs duties at Dubai’s and UAE sea and airports are also low as compared to other world ports.
Zero capital required: anyone with a solid business idea can create an empire here in Dubai as you require zero minimum capital investment to start your business.
In short, Dubai is an ideal destination for starting a logistics business as it offers tremendous potential for growth and profitability.
Steps to start a logistics business in Dubai
Starting a logistics business in Dubai is an exciting venture with immense potential. If you want to start your logistic business in Dubai, or in the UAE, taking the help of Vigor corporate services can make the process easy and more efficient. From taking care of all the paperwork, we ensure the process gets done without any delays or errors.
Here are the steps you need to follow when applying for a logistic trade license in Dubai.
There are many different types of business activities under each business trade license. You have to be specific in terms of choosing your business activity for a logistic trading license. You can choose your business activity from the list updated by the Dubai Department of Economic Development (DED). There are hundreds of business activities for you to choose from.
There must be a name for your company that you will use for trade purposes. Here in the UAE, there are some conventions related to choosing a name for your company.
The company name shouldn’t be offensive or blasphemous. It should be unique and must be available in the directory of the DED Dubai and you cannot also use abbreviations while choosing your company’s name.
When you apply for a logistic trade license in Dubai or the UAE, you have options to do business in the UAE mainland or the free zone of the UAE. If you want to start a business in Dubai mainland, the Dubai DED will issue you the trade license. But for free zones, contact the respective free zone for license issuance.
Everyone who is not a UAE native requires a visa to work and reside in the UAE. You can get an investor visa by passing through biometric, medical, and chest x-ray scanning.
The business trade license provides you with a facility for visa sponsorship. You can sponsor visas for your family members and employees with your business license. The number of visas you can sponsor depends on the size, type, and activity of your business along with your personal income.
With proper planning and dedication, launching a successful logistics business in Dubai is possible.
Documents required for setting up a logistics business in Dubai
When setting up a logistics business in Dubai, there are a few documents that need to be obtained. These documents include:
- Passport copies of shareholders
- Shareholders’ visa copy
- Shareholders’ Emirates ID copy
- License payment voucher copy
- Initial activity approval copy
- Tenancy contract approved by Ejari
- Manager’s CV and passport copy
- Trade name confirmation proof
What are the permitted business activities of logistics license in Dubai
Logistics licenses in Dubai permit businesses to engage in all transportation, distribution, and storage activities within the region. This includes the movement of goods through air, sea, land, and rail; warehousing and storage of goods; as well as customs clearance services.
Companies like you who are holding a logistics license are allowed to provide freight forwarding services for international shipments as well. Some of the well-known business activities that are included in the logistics business are:
- Shipping line
- Custom Brokerage
- Warehouse delivery and management
- Cargo transportation
You also have the option to offer additional services such as packing and repacking of goods including, palletizing, shrink-wrapping, reworking and relabelling of items, or reverse logistics solutions such as the management of returns. Also, providing e-commerce solutions for online retailers is also a great business activity.
All in all, a logistics license offers a wide range of opportunities for businesses to participate in regional trade through various means.
Final thoughts on logistic business in Dubai
The United Arab Emirates is one of the fastest-growing country leaders and is economically less-affected by a pandemic. You can see a remarkable rise in business incorporations in Dubai and other emirates. And the logistics business in the UAE is one of them as Dubai has been introduced as a hub of global trade and commerce services in the middle east and for the world.
With Vigor business setup, you can start your logistic business in Dubai with the opportunity to operate and do business internationally.
We have been offering expert company formation services to entrepreneurs like you. Get in touch with our consultants right now, and start your logistic business in Dubai without further ado.