Starting a Logistics Company in UAE is a prospective business investment for entrepreneurs. Logistics Company in UAE plays a vital role in UAE’s trade and commerce ecosystem. The investor can get a Logistics License in UAE from the Department of Economic Development (DED) mainland or the Free Trade Zones.
UAE is the perfect location for setting up a Logistics Company. The strategic location, one of the world’s busiest airports, a booming regional economy, international business hubs in the city, etc., make UAE the ideal choice for logistics companies to establish their headquarters.
In this article, we will explore the ways to get a Logistics License in UAE, the requirements, and the process of starting a logistics company.
What is a Logistics Company in UAE?
Logistics Companies help other businesses move their goods and materials across the country or internationally. The Logistics License in UAE allows companies to avail of the facilities for the storage, transportation, and delivery of goods. They ensure the goods arrive at the customer’s destination on time and in perfect condition.
In UAE, logistics companies offer a wide range of services, from transportation to delivering goods. There are multiple categories in the logistics business sector, and companies offer services to customers at different stages.
Logistics License Fees in UAE from the Free Zones in Dubai start from AED 11,900 for a Zero Visa quota. Similarly, for a logistics license from the UAE Mainland, the Trade License Fee will be approximately AED 28,000 for a virtual office license.
Starting a Logistics Company in UAE?
A Logistics company in UAE can be set up in either the mainland or the Free Trade Zones. There are two major business jurisdictions in UAE for starting a logistics company. Depending on the services of the company, the investors can choose the business jurisdiction.
For example, to facilitate global trading and shipping activities having a logistics company in the Free Zone is ideal. The proximity to the Airports and Seaports for the logistics company will help to keep the overhead costs low.
Also, Free Trade Zones in the UAE have Zero import duty, thus ideal for imports from foreign countries to UAE. Companies in the Free Zone can approach a logistics company to facilitate re-exports or transport the goods locally to the final destination.
By submitting the documents of the investor to the respective business jurisdiction and making the fee payment, the Logistics Trade License will be made available to the investor. They can proceed to open a bank account in any of the local UAE Banks or international banks.
In case the logistics company is set up in the Dubai Economy, the company can be set up as a 100% foreign-own limited liability company or a virtual office license in the Dubai Mainland. Depending on the no. of shareholders the investor must choose the right company structure for the logistics company in UAE.
Special Approvals for obtaining a Logistics Company License
For obtaining a logistics business license in UAE, the investor must get a few special approvals from the Federal Transport Authority (FTA) and Customs Clearance Permit from Dubai Customs.
After obtaining the Logistics Company License, the Memorandum of Association must be prepared for the company and get it attested by the Ministry of Economy. Take an office space and prepare the tenancy contract accordingly. Now you are legally eligible to conduct a logistics business in UAE.
Steps to Starting a Logistics Company in UAE
Once you have obtained the necessary licenses and permits, you can begin the process of setting up your logistics company in the UAE. Following are the steps to starting a logistics company in the UAE:
- Choose a business name and register the company with the Department of Economic Development (DED) or the respective Free Trade Zones.
- Obtain a DED or Free Zone trade license by submitting the investor passport copy, photograph, and trade name (3 Proposed Names).
- Get the name approval and initial approval from the respective authorities. There are special permits from the Ministry of Economy, Federal Transportation, Customs, etc.
- Choose a location and office space for your business and prepare the tenancy contract.
- Submit all the documents for final approval and obtain the Logistics Business License.
- Proceed to obtain the investor visa under the company and Set up a local UAE bank account.
To make the logistics company in UAE completely functional the investor must recruit and hire staff, open a bank account, and purchase the necessary equipment, such as trucks, vans, storage containers, etc.
Logistics businesses require significant capital to start business operations and gain traction. The entrepreneur must also develop a marketing plan, start advertising the services, and more to gain a presence in the UAE market.
Types of Logistics Companies in UAE
There are several types of logistics companies in the UAE, each offering different services. Some of the most common types include:
- Freight Forwarders: These companies specialize in arranging the transportation of goods from one place to another
- Customs Brokers: These companies are responsible for helping businesses with the customs clearance process
- Trucking Companies: These companies provide transportation services for domestic movement of goods
- Warehousing Companies: These companies provide storage services for imported goods in the UAE.
- Air Freight Companies: These companies specialize in handling air freight shipments.
So in conclusion, starting a logistics company in the UAE can be a great way to capitalize on the country’s booming economy. To get a logistics license in UAE, the investor must meet certain requirements and permits from the government departments.
The investor should also be aware of the types of services of logistics companies in the UAE. With the right planning and preparation, the entrepreneur can establish a successful logistics company in the UAE.
Connect with our expert team to know more about setting up a Logistics Company in UAE!
Contact Us: Aurion Business Consultants