Dubai Logistics City (DLC) was the world’s first platform designed particularly for the growth and development of logistics. The largest and most ambitious project the government has undertaken to boost trade opportunities for the Emirate is the Dubai Free Zone, which also houses various business communities with lovely scenery, including dining establishments, retail stores, entertainment venues, and other services.
Businesses focused on logistics can operate in a wide range and see rapid growth. DLC is a constructed passageway that connects DLC with Jebel Ali Port. Businesses in Dubai Logistics City are dispersed throughout a large region, and the yearly air freight turnover is close to 12 million tons. DLC has evolved as the apex of logistical operations in the United Arab Emirates, thanks to the Jebel Ali Sea Port and its well-organized supply and provision fit-out.
A dedicated lane for the transit of heavy vehicles, specially constructed units for freight forwarders, and a pre-built warehouse facility are all there. DLC is a comprehensive tax plan designed for North Asian, African, and UAE nations.
Benefits of Start a Business in Dubai Logistics City Free Zone
- Complete Ownership
- 0% of Corporate Tax Rate
- Fast and Easy Incorporation Process
- No Trade Restriction
- Exemption from Trading License
- World-class Infrastructure
- Trouble-Free Immigration
Types of licenses in Dubai Logistics City Free Zone
- Industrial Licenses: An industrial license holder may use noiseless machinery or staff to do light manufacturing tasks such as blending, purifying, repacking, mixing, packaging, and assembling things.
- Service License: It enables an individual or a company to conduct activities such as training, insurance, consultancy, and catering.
- Trading License: A trade license allows the storage, distribution, importation, exportation, and sale of the specified items. Finished goods and products may only be sold within the UAE through a licensed local distributor or agency.
- Logistics License: People with this license can handle goods and shipping services in the UAE, like storing, distributing, managing inventory, transporting, moving, sorting, opening, and clearing. But they can’t sell them in the UAE.
Types of companies in Dubai Logistics City Free Zone
Company with limited liability in a free zone
It has its legal status. A partner in a Limited Liability Company (LLC) is only responsible for the amount of money they put into the business. The people who own shares in a Free Zone-LLC must also be directors, company secretaries, and general managers. To open a Free Zone-LLC, you need at least AED 300,000 in cash and at least one AED1 share. Branch of a company in the UAE or another country
A branch office is an office outside of the free zone that acts as an agent for a real business. A board of directors or a corporate secretary are not permitted at a branch office in this free zone. A branch office needs a general manager who is in charge of all of its work. There must be a match between the name of the branch and the name of the parent company, ending with “branch”.
Documents required to start a business in Dubai Logistics City
- A copy of each shareholder’s passport.
- Proof of license payment.
- The manager’s passport and CV are required.
- Copies of owners’ visas (visit or residence visa)
- Proof of permission for the original action.
- Proof that a trade name has been reserved.
- Agreement in writing of a real address in the UAE.
Procedure for setting up a business in Dubai Logistics City
- Select a business activity: DLC can handle a wide variety of logistical tasks, including freight forwarding, warehousing, transportation, and distribution.
- Choose a company name: The firm name should be distinctive and not derogatory. It’s also worth checking to see whether the name is available as a domain name.
- Obtain preliminary approval: This is accomplished by the submission of an application to the DLC authority. A business strategy, financial projections, and a copy of the company’s passport must be included in the application.
- Apply for a business license: This is accomplished by the submission of an application to the Dubai Department of Economic Development (DED). A copy of the company’s passport, a copy of the first approval, and a copy of the leasing agreement (if applicable) must be included with the application.
- Establish a company bank account: This is accomplished by visiting a bank of your choosing and presenting the necessary documentation.
- Employee visas should be obtained: This is done by applying to the General Directorate of Residency and Foreigners Affairs (GDRFA). Copies of the employee’s passport and visa, as well as a copy of the company’s trade license, must be sent with the application.
- As needed, get additional permissions or licenses: A customs clearing permit, a transit permission, or a storage permit may be required.
Setting up a company at Dubai Logistics City provides various benefits for enterprises in the logistics and supply chain industries. Its strategic position, free zone privileges, and superior infrastructure make it a perfect centre for regional and international business. OnDemand International may play a critical role in ensuring a seamless and successful introduction into this market, offering end-to-end assistance and experienced guidance throughout the process. With their advice, firms can manage the hurdles of establishing a presence in DLC and benefit from the possibilities offered in this vibrant and developing logistics centre.
Individuals who are business owners or employees in DLC need to acquire suitable visas through the General Directorate of Residency and Foreigners Affairs (GDRFA). The type of visa and the specific requirements will vary based on the individual’s nationality and their role in the business.
DLC-operating businesses are excluded from the corporation, personal income, and capital gains taxes. Nevertheless, they might be liable for Value Added Tax (VAT) and potentially other indirect taxes.
Entities functioning in DLC are required to adhere to the legal frameworks and regulations enforced in the United Arab Emirates, alongside adhering to the specific rules set by the Dubai Logistics City Authority.