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How to Start a Logistics Business in the UAE?

Sharjah Research Technology
and Innovation Park (SRTIP)

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How to start a logistics business in the UAE?

One of the most thriving commercial ventures in the UAE is starting a logistics company in Dubai. Any business owner wishing to launch a logistics business in the UAE will benefit from the country’s advantageous position, which offers access to Asia, Europe, and the Western world.

The logistics sector in the UAE is influenced by a myriad of factors. These include industrial diversification, synchronization of regional trade and export limitations, and development and modernization of logistics services. Because of the shipping and logistics services available, the UAE is about to see a significant economic boom.

Logistics firms in the UAE provide a broad range of services, including commodities delivery and transportation. The logistics business sector is further divided into several divisions, and businesses offer services to clients at various phases.

Special Approvals for Getting a License for a Logistics Company

The investor needs to secure a Customs Clearance Permit from Dubai Customs and a few additional permissions from the Federal Transport Authority (FTA) to operate a logistics firm in the UAE.

 

The Memorandum of Association for the business must be produced and attested by the Ministry of Economy following the acquisition of the Logistics Company License. Take an office space and draft the lease agreement appropriately. You can now lawfully operate a logistics company in the United Arab Emirates.

Establishing a Logistics Company in Dubai- Know the Advantages

The city of Dubai itself is the main advantage of establishing a logistics business there. The logistics sector encompasses various tasks, including material handling, item packaging and repackaging, warehouse management, and delivery. As such, the company’s location is significant.

 

Three modes of communication are available in Dubai- air, sea, and land. It is enhanced even more by benefits like the ones discussed below: 

 

  • Top-notch infrastructure; 
  • Reasonable tax laws
  • No minimum capital is needed; 
  • Zero trading location restrictions;
  • Government agency collaboration; 
  • Low import duties; 
  • A broad range of possible business activities



Establishing a logistics company in the Mainland of the UAE

Depending on the area they choose to establish their company in, entrepreneurs wishing to launch in the UAE can also take advantage of several advantages. Establishing a logistics firm in the UAE mainland offers many advantages. The mainland of Dubai provides prospects for all kinds of marketplaces, which promotes profitability and simple delivery throughout the United Arab Emirates.



Setting up logistics business in Free Zones

The UAE’s free economic zones are locations where logistics firms may make the most money. It is so that only logistics-related enterprises may operate in and get promoted in the designated free zones. Furthermore, a few of the most well-liked free zones that provide the most earnings for logistics firms is SRTIP free zone.

For companies looking to launch a logistics firm in the Free Zone, the Sharjah Research, Technology, and Innovation Park (SRTIP) accelerator program offers a plethora of advantages. This free zone, which allows for 100% foreign firm ownership, has produced unmatched opportunities across a range of industries by providing access to a worldwide portfolio, digital trade platforms, end-to-end logistical solutions, and support at every stage of the supply chain.

SRTIP Accelerator helps logistics firms in the following ways:

SRTIP  Accelerator has  built a community  consisting of thousands of  companies from across the globe . Numerous industries are served by these companies, which employ thousands of specialists. With its specific industry cluster for transportation and logistics, SRTIP has assisted businesses in meeting the demands of their specialized markets.

A variety of services are offered by the SRTIP Accelerator to assist logistics and transportation companies. This covers banking, VAT and accounting services, trademark registration and patent, legal services, license for the SRTIP free zone, and access to more than 1,000 commercial activities.

How to launch a logistics business in the UAE?

Reputable business setup company like SRTIP can make the process seem easier for entrepreneurs looking to launch a logistics company. They can receive definite services, such as accelerated processing and error-free correspondence. The procedure can be segregated into easy steps as mentioned below:

 

Decide on your business venture

Be clear about the kind of logistics trading you want to engage in is decisive. Therefore, the activity you select needs to be one of the permitted programs offered by the Department of Economic Development (DED) in Dubai. You will undoubtedly find thousands of approved activities offered by DED appealing.

 

Choosing a company name

When naming their business, UAE corporations are required to abide by several regulations. You must first confirm that the company name you have in mind is accessible. When choosing a name for your firm, it is best to stay away from inflammatory language, well-known brand names, or abbreviations (unless you are calling the organization after yourself). Select a name for your firm and register it with the relevant Free Trade Zones or the Department of Economic Development (DED).

 

Application for a license

The crucial stage in the procedure is to apply for a trading license in the United Arab Emirates. DED issues licenses for company formation in the UAE mainland. The license will be issued by specific free zones where the logistics company has registered. Acquire a DED or Free Zone trading license by providing a copy of the investor’s passport, a picture, and the trade name (three proposed names).

 

Application for Visa

Expats must have a UAE residency visa to work in the country. A quick biometric scan and physical examination are required before you may receive your investor visa.

You can sponsor employees’ visas along with those of your family members (spouse, parents, and kids) if you have a UAE company license. The quantity of visas you can apply for is determined by your company’s size, the nature of your business, and your income (in the case of dependent visas).

 

Office Set Up

Establish the location and size of your office space with a tenancy agreement.

 

Documents needed to start a logistics company in UAE

  •  Copies of the shareholders and resume
  • Copies of the shareholders’ passports (visit/residence visas)
  • Documentation proving the trade name reservation
  • Documentation proving the approval of the initial activity
  • Legal agreement confirming the physical address in the United Arab Emirates
  • Proof of license payment

Kinds of Commercial Operations Covered by A Dubai Logistics License

You can perform diverse commercial operations relevant to your business needs. Hence, it proves beneficial in many ways. These include supply chain management, product storage, and the safe movement of goods between sites of origin and consumption after launching a logistics company in the United Arab Emirates. 

 

In the United Arab Emirates, there are numerous logistics businesses. Each of these provides a unique set of services to meet the discerning needs of their targeted clientele. Among the most prevalent kinds are the ones that are discussed below:



  • Customs Brokers: These businesses assist businesses with the customs clearance process. • Freight Forwarders: These businesses specialize in organizing the transfer of products from one location to another.
  • Trucking Businesses: These businesses offer transportation services for moving commodities within the country.
  • Warehousing Trades: These businesses offer storage for imported commodities in the United Arab Emirates.
  • Air Freight Businesses: These businesses focus on managing air freight shipments.

Your one-stop shop for setting up a business in Dubai is SRTIP!

One of the first nations to recover from the Covid-19 pandemic’s effects is the United Arab Emirates. UAE is also one of the few countries that has seen a noticeable uptick in its logistics sector since that period. Since then, Dubai has been the focus of UAE’s international trade and commerce. Sharjah Research, Technology, and Innovation Park (SRTIP) is a premier institution that looks into the licensing requirements of businesses to function. Hence, their services allow business owners to establish a global logistics trade company, based in the United Arab Emirates. Contact us today and accelerate your journey towards innovation and success with SRTIP Accelerator!

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