Dubai’s ever-improving connectivity with major global commercial hubs makes many entrepreneurs want to start a logistics company in Dubai. Dubai is one of the busiest sea-air multimodal transport hubs globally, thanks to the cost-effective transport and lower freight costs. The city has been investing tens of billions in expanding its shipping and airlines with over 400 cities worldwide. Consequently, the logistics sector in the UAE has seen huge growth.
Moreover, with the advent of many companies in the UAE, there is a large prospective client market for your logistics company in Dubai. Anyone who wants to move goods from point A to point B is on your roster. So, this blog talks about how to start a logistics business in Dubai.
Benefits of Starting a Logistics Company in Dubai
The UAE’s reputation as a foreign business-friendly country, coupled with a thriving innovation culture, makes Dubai one of the best locations to start a logistics company. Here are some key benefits:
1. Minimal Paperwork and Efficient Processes
Thanks to advanced technology and supportive government administration, starting a logistics company in Dubai involves minimal paperwork, streamlining the setup process.
2. State-of-the-Art Infrastructure
Dubai boasts cutting-edge infrastructure that attracts numerous Indian entrepreneurs. The city features an excellent public transportation system and top-notch telecommunication facilities, enhancing operational efficiency.
3. Strategic Geographic Location
Dubai’s strategic position connects the East, West, North, and South, linking manufacturers, producers, and suppliers worldwide. The city's well-placed airports and seaports ensure great connectivity, promoting logistics growth.
4. Supportive Government Initiatives
The UAE government continually implements initiatives to benefit foreign businesses. The recently launched ‘Dubai Global’ project aims to provide logistical support for companies looking to expand into over 30 global markets.
5. Skilled Workforce
Dubai’s talent pool is renowned for its business skills, specializing in management and operations. This ensures access to a highly skilled workforce for your logistics company.
6. Tax Exemptions
Foreign businesses in Dubai are generally exempt from income, business, and personal taxes. However, some companies may need to pay a 5% VAT on specific business activities.
7. 100% Ownership in Free Zones
Dubai offers numerous free zones that allow you to maintain 100% ownership of your logistics business, providing greater control and flexibility.
8. No Capital and Profit Taxes
Logistics companies operating in Dubai’s mainland and free zones are not required to pay taxes on capital invested or profits earned, maximizing your profitability.
9. Easy Visa Process
Once you have the necessary documents, obtaining a visa in Dubai is straightforward. The new visa regulations also make the job market more adaptable for foreign nationals.
By leveraging these benefits, starting a logistics company in Dubai can lead to significant growth and success in the thriving market.What Are the Documents Required to Set Up a Logistics Company in Dubai?
Before you set up a logistics company in Dubai, you must have all the required documents. This smoothens the business setup process. Some of the documents are as follows:
- Passport copies of all shareholders
- Visa copies of shareholders (visit or residence visa)
- Passport copy and CV of the company’s manager
- Proof of trade name reservation
- Initial activity approval from the relevant authority
- Legal agreement for a physical office or warehouse address in the UAE
- Proof of payment for the trade license
The documents vary as per business activities, company structure, and location. The professionals at the Shuraa Business Setup can provide you with a comprehensive list of the required documents based on your logistics business activities.
How to Start a Logistics Company in Dubai?
You must go through some steps to start a logistics company in Dubai. The steps given below will help you understand it better:
1. Choose a Logistics Company Name
Your logistics company’s name should be easy to remember. Moreover, an acceptable and legally safe name will not save you from legal confrontations. So, choose a name for your logistics company and register it with the concerned authorities.
Note: The UAE authorities have laid down some rules for naming a company. Shuraa Business Setup professionals can help you with the same, ensuring that the name is compliant.
2. Decide Your Company Structure
The adequate company structure for your logistics business will help it run efficiently. So, decide on a suitable structure. You can choose from a sole proprietorship, a Limited Liability Company (LLC) or a foreign company's branch office.
3. Apply for the Logistics Licence
Every business requires a license in Dubai as per the law. Besides, opening a corporate bank account would ease with a license for your logistics business. To apply for a logistics license, submit the required documents and pay the fees.
Many types of business licenses are allowed for businesses in Dubai. Also, you may have to apply for additional permits for your business. Shuraa experts can help you with the license, permits, and logistics license costs in Dubai.
4. Choose Your Business Location
Every location offers distinct benefits and advanced facilities. Accordingly, select a business location in Dubai. You can choose either the mainland or one of the free zones. You’d need a physical office and space to park your fleet of vehicles for your logistics business. So, consider the number of vehicles you’d employ, the technologies required, and your budget. Besides, think about whether to rent or lease.
5. Open a bank account
6. Launch Your Logistics Business
Once you've obtained your license, you can start your logistics business in Dubai. You can proceed with the activities you’ve planned for your logistics business, such as seeking out customers and contracts.
What Is the Cost of Starting a Logistics Company in Dubai?
The Cost of Starting a Logistics Company in Dubai ranges between AED 18,000 and AED 50,000, depending on the type of license you require, the number of visas, the number of vehicles for operations, and driver training costs.
Professionals from Shuraa Business Setup can help you determine the exact cost based on your logistics business activities. They will also ensure that you do not spend more than required.
Start Your Logistics Company in Dubai With Shuraa
Shuraa Business Setup experts can help you acquire every resource necessary to start a logistics company in Dubai. We can also expedite the process of getting approval from concerned authorities. Moreover, if your logistics company has specific needs, we can prepare custom-made business setup solutions. All you need to do is get in touch with us!
