Dubai, a global hub for trade and commerce, offers unparalleled opportunities for entrepreneurs looking to venture into the logistics industry. With its strategic location, world-class infrastructure, and business-friendly policies, Dubai has become a prime destination for logistics companies seeking to expand their operations. The logistics industry in Dubai is thriving, with a growing demand for efficient and reliable services to support the emirate’s booming economy. Starting a logistics business in Dubai can provide entrepreneurs with a competitive edge in the global market, allowing them to capitalize on the region’s vast potential for growth and success.
How to Register a Logistics Business in Dubai, UAE
The following steps to register a logistics business in Dubai, UAE includes:
- Choose Your Business Activity: Choose the type of logistics trade activity you want to do, and make sure it fits with what Dubai’s Department of Economic Development (DED) has permitted.
- Company Name Selection: When naming your company, go by the guidelines and make sure the chosen name is both legally permissible and accessible to prevent problems.
- License Application: Obtain a UAE trade license by applying through the DED for enterprises operating on the mainland or the relevant free zones for those operating within them.
- Visa Application: Obtain a resident visa for the UAE, as it is necessary to work there. This includes submitting an application for an investor visa and, depending on the size and scope of your business, maybe sponsoring staff and family visas.
- Required Documents: Prepare the required paperwork, including copies of the manager’s passport, shareholders’ passports, and visas; moreover, make sure you have the documentation proving your trade name reservation, first activity approval, legal agreement for a physical address in the United Arab Emirates, and evidence of license payment.
Requirements to Establish a Logistics Business in Dubai, UAE
The list of requirements to establish a logistics business in Dubai, UAE includes:
Documents Required:
- Passport copies of shareholders.
- Business Plan
- Memorandum of Association
- Visa copies of shareholders (visit/residence visa).
- Passport copy of the manager, along with their CV.
- Evidence of trade name reservation.
- Confirmation of initial activity approval.
- Legal agreement for a physical address in the UAE.
- Proof of payment for the license fee.
Special Approvals:
Obtain special approvals from the Federal Transport Authority (FTA) for a logistics business license in the UAE.
Business Setup Steps:
- Decide on your business type.
- Choose a business name.
- Seek initial approval.
- Create necessary agreements.
- Obtain government approvals.
- Apply for a business license
Licenses Required to Operate a Logistics Business in Dubai
The difference licenses required to operate a logistics business in Dubai includes:
- Commercial license: A commercial license is a general trading license that allows you to engage in various commercial activities, including logistics services. This license is issued by the Department of Economic Development (DED) for mainland companies.
- Customs clearance license: If your logistics business involves customs clearance and import/export activities, you will need to obtain a customs clearance license from the relevant authorities.
- Warehouse license: If you plan to operate a warehouse or storage facility as part of your logistics business, you will need to obtain a warehouse license from the appropriate authorities.
- Transport license: If your logistics business involves transportation of goods, you will need to obtain a transport license from the relevant authorities. This license is typically issued by the Roads and Transport Authority (RTA).
Conclusion
Starting a logistics business in Dubai can be highly rewarding due to the city’s strategic location, excellent infrastructure, and business-friendly atmosphere. By following the required steps and obtaining the necessary licenses, you can establish a thriving logistics business in this prosperous market. To ensure a smooth registration process, it is advisable to seek the assistance of a local business consultant. Don’t hesitate any longer! Begin your logistics business in Dubai today and seize the numerous opportunities this vibrant city presents.
Interested in starting your logistics business in Dubai? Reach out to OnDemand International now for professional guidance and support during the registration process.
Frequently Asked Questions
What are the popular free zones for logistics business in Dubai?
Some of the most popular free zones for logistics business in Dubai are:
- Dubai Logistics City (DLC) or Dubai World Central (DWC)
- Jebel Ali Free Zone (JAFZA)
- Dubai South Free Zone
- Dubai Airport Free Zone (DAFZA)
What is the duration of a customs clearance license for a logistics business in Dubai?
The duration of a customs clearance license for a logistics business in Dubai depends on the validity of the company’s trade license:
- Initially, the customs code will be valid until the expiry date of the business’s trade license.
- Upon renewal of the trade license, the customs code will also be automatically renewed.
The customs clearance license is tied to the trade license and will need to be renewed along with the trade license when it expires. The exact duration can vary depending on the type of trade license issued, but is typically valid for 1-3 years before requiring renewal.
How to Obtain Custom Clearance License in Dubai for Logistics Business?
To obtain a customs clearance license for a logistics business in Dubai, you need to fulfill the following key requirements:
- Hold a valid trade license granted by the UAE licensing body, such as the Department of Economic Development (DED) for mainland businesses or the respective free zone authority for companies operating in free zones.
- Engage in trade activities that involve importing or exporting goods to and from a foreign country into the UAE.
- Apply for an Import-Export Code (IEC) issued by the Dubai Customs Authority. This code is required to import and export goods.
- Submit the necessary documents, which include:
A copy of your current trade license
Copies of passport, visa, and Emirates ID of the applicant
An undertaking letter if you hold a professional license - Register on the Dubai Customs website (dubaitrade.ae) and make an online application for the customs code, along with the required payment.
- Obtain approval from Dubai Customs after review of your application. Once approved, you will receive your Customs Code.
- Ensure that your customs code is valid until the expiry date of your business license. Upon renewal of your trade license, the customs code will also be renewed automatically.
