How to Setup a Logistic Company in UAE?
The epidemic of the previous year revealed numerous vulnerabilities in the worldwide logistics business. The United Arab Emirates, on the other hand, is one of the few nations that were able to rebound rapidly from the negative position. It is the only country in the world where the logistics industry has grown consistently since the outbreak.
Dubai is the economic and financial center of the United Arab Emirates (UAE), and the region’s favorable business environment is fostering the growth of businesses of all types. The logistics business is one of Dubai’s most lucrative industries.
Due to its strategic location and outstanding infrastructure, Dubai is perfectly suited to serve as a hub for supply and redistribution. It is well-connected by air, sea, and land, and its placement at the center of global trade is advantageous. This places it in a favorable position internationally.
Setting up a logistic company in UAE can be a daunting task. There are many legal and bureaucratic hurdles to clear before you can even start operations. However, with the help of a knowledgeable lawyer and some advanced planning, it is possible to get your business off the ground quickly and efficiently.
In this article, we will outline the basic steps you need to take to setup a logistic company in UAE. So read on for all the info you need to setup a logistic company in UAE.
Benefits of Starting a Logistics Company in the UAE
Dubai is a particularly excellent supply and re-distribution hub due to its infrastructure and geographical position. In Dubai, investors have access to a plethora of business options, enabling them to begin their entrepreneurial journey without experiencing any obstacles.
Logistical assistance is of the highest significance since so many businesses depend on third-party logistics service providers to help them achieve their needs for international shipping and storage.
The following is a list of some of the most significant advantages of establishing a corporation in Dubai:
- Excellent infrastructure.
- Taxation policies are simple.
- There are no trading location limitations.
- There is no minimum capital requirement.
- Collaboration among government agencies.
- Import duty is low.
- A wide range of optional business activities is available.
Logistic License in UAE: Types of Business Activities Allowed
In the UAE, one may get licenses for a wide variety of different kinds of logistics company operations. In addition to the primary activities of the company, UAE governmental authorities are responsible for providing licenses for logistics business such as Dubai Customs · Dubai Police · General Civil Aviation Authority. Certain aspects of logistics need additional permissions from the relevant authorities.
1. Freight broker
Providing brokerage services for freight transportation by air, sea, and land, as well as addressing concerns pertaining to customs and insurance brokers.
2. Custom Broker
putting together customs declarations and bills of lading, as well as representing a declarant in front of customs officials for the purpose of cargo clearance.
3. Warehouse Storage
Warehouse facilities and management, products incoming, sorting, loading, unloading, packaging goods, raw materials, and more are some of the services provided by a warehouse.
4. Air Cargo Transportation
Transport by air, packaging and sorting at airports, administration of air fleets, including leasing, and freight forwarding services are all provided.
5. Sea Cargo Transportation
Sea freight services include container, bulk shipments, packaging and sorting at the seaports, and leasing of vessels and containers.
6. Land Cargo Transportation
Transportation of overland freight by road and rail, acceleration of shipments, and assistance for the dispatch of groupage goods.
7. Third-Party Logistics
Any service contract that involves the warehousing and transport of a product is subject to the requirements of 3P. This involves providing services such as transportation and storage for customers. A third-party logistics (3PL) provider may only provide one service, such as inventory management, shipping, or warehousing. On the other hand, they could also provide bundled services and management for a client’s complete supply chain as part of a system-wide offering.
How to Start a Logistic Business in UAE?
Entrepreneurs who wish to create a logistics business can make the process easier with the assistance of reputable business setup providers. They can expect reliable services such as error-free documentation and expedited processing. The process of establishing a logistics firm in the UAE can be divided into many easy steps:
Step 01: Select Your Desired Location
Free zones in the UAE are the location that provides the most lucrative opportunities for businesses involved in logistics. This is due to the fact that some free zones have been designated solely for the purpose of conducting and promoting enterprises related to logistics. Some of the most popular Free zone areas are as follows:
- Dubai Logistics City
- Dubai World Trade Centre
- Jebel Ali Free Zone
- Dubai Airport Free Zone
- Dubai South Free Zone
- Ajman Free Zone
- Dubai Media City
- Sharjah Media City (SHAMS)
- International Free Zone Authority
- Dubai Production City
- Dubai Multi Commodities Centre
Step 02: Define your business activities
You must be specific about the kind of logistics trade in which you want to participate. Therefore, the Dubai Department of Economic Development (DED) must authorize the activity you wish to participate in. It gives you access to hundreds of sanctioned activities.
Step 03: Choose your company name
When it comes to naming their businesses, UAE businesses must adhere to a set of rules. Before you do anything further, you must ensure that the name you chose is not already in use. When selecting a name for your company, it is advisable to avoid terminology that may be seen as negative, well-known brand names, or acronyms (unless you plan on calling the organization after yourself).
Step 04: Apply for your logistic license
The next and most significant stage in the procedure is for you to submit an application for a trading license. DED is the organization responsible for providing licenses for the creation of companies on the UAE mainland.
Step 05: Apply for UAE Visa
To be eligible for employment in the UAE, foreign nationals must first obtain a resident visa in the UAE. After undergoing a straightforward biometric scan, a medical exam, and a chest x-ray, you will be able to get your investor visa.
You are eligible to give visa sponsorship not only to your family members (spouse, parents, and children) but also to the people who work for your company if you have a UAE business license. The number of visas for which you are eligible to apply is proportional to the size of your firm, the nature of your commercial endeavors, and your own personal income (for dependent visas).
Step 06: Required Documents
- Copies of Passport of all the shareholders
- Copies of Visas of All the shareholders
- Copy of a passport of your manager along with his CV
- Proof of your Business Name Reservation
- Proof of your initial activity proposal
- Legal agreement of your physical address in UAE
- Proof of your License Payment
Step 07: Opening bank account
You will be able to get a business license after you have gone through the steps of submitting all of your paperwork, having them approved, and creating a bank account. Make sure you provide the authorities in charge with the relevant payments.
Logistic License Cost in UAE
The logistics license in Dubai permits enterprises to perform a range of logistic services, including warehousing, transportation, distribution, sorting, forwarding and clearing operations, order management, inventory management, etc. This kind of license is a popular alternative for companies who want to perform services directly related to clearing and forwarding goods. The yearly cost of a 15,000 AED logistics license at Jebel Ali Free Zone (JAFZA) is the same regardless of the number of activities and groups selected.
How Airzone Can Help You Setup Logistic Company in UAE?
At Airzone, we provide business setup services in the United Arab Emirates of your choice, which may be modified to meet the requirements of your company. We have a solid understanding of your business concept, and with the assistance of our business setup advisors, we will map out and process your requirements for the company in a manner that is tailored to meet your specific objectives.
We will assist you through the entirety of the process of forming a logistics company in Dubai, beginning with providing you with advice and directing you through the entirety of the legal and company setup process. We are here for you at every step of the way to help you with the dos and don’ts that you need to know in order to get started with a logistics firm in Dubai.
The United Arab Emirates has become the regional leader in logistics as a result of its ability to capitalize on the opportunities presented by its location on a transcontinental trade route. Dubai is the commercial and financial center of the United Arab Emirates (UAE), and there is no doubt that, due to the region’s favorable atmosphere for doing business, enterprises of all types are growing there.
Particularly for the logistics sector, Dubai’s geographical location and infrastructure make it an ideal hub for supply and distribution, and it is expected that the industry would generate more than 30 billion USD by 2035. In addition, the logistics industry in Dubai is characterized by high levels of competitiveness. If you want to create a firm presence in this business and achieve long-term success, you will need to make a substantial financial commitment. Airzone is here to streamline your procedure to setup a logistic company in UAE.