/ Blogs / Business Setup Consultancy / Logistic Company In The Uae

How to Set Up a Logistic Company in the UAE?

By Shivangi - 08 Apr 2022 Last Updated: 08 Apr 2022
How to Set Up a Logistic Company in the UAE?

Dubai's economy is growing continuously, and different countries are developing in a balanced manner. Dubai is an excellent location for establishing a logistics company. The logistics industry is one of the most profitable in Dubai. In Dubai, there are numerous logistics companies, primarily in the Ras Al Khaimah and Freezones regions. Here's in this blog we’ll see how to start a logistics business in Dubai.

What is a Logistic Company?

The art of transporting commodities, resources, and knowledge into and out of an entity and science is known as logistics. It covers aspects of a sector's supply chain, such as inventory management and goods transport, and can gain a variety of benefits by better understanding and implementing logistics. With diminishing funds and shrinking margins, focusing on potential cost savings could mean the difference between making or breaking a business, which is especially important for SMEs.

The UAE is subsidized by the government and has a fantastic market climate. The UAE is home to a vast number of lucrative and exciting locations. One of these is the logistics sector and any operations associated with it. It is without a doubt one of the most profitable businesses in the UAE. There is a huge market demand, which causes rapid growth in domestic and global transportation on a regular basis. It refers to both large-scale multinational freight administrations and local wholesale deliveries of various goods.

Three Important Logistics Business Hubs

When it comes to logistics, most Dubai freezone jurisdictions offer logistics licenses, so there are several options to choose from. When it comes to providing the right infrastructure and ancillary services that can help your business expand, the competition is reduced to the Jebel Ali Free Tradezone, Dubai South Freezone, and Dubai Airport Freezone.

The three key logistics business hubs in Dubai:

Jebel Ali Freezone

Jebel Ali Freezone provides an air-sea-land logistics corridor within a single custom-bonded area. It enables the seamless flow of cargo from sea to air without the need for customs control, allowing it to be placed in prime position. With hundreds of logistics facilities located in free zones around the world, competition for warehousing and industrial space is strong. With increased competition and a prime location, prices tend to be on the higher end.

Dubai South Freezone

The Dubai South Freezone is a newcomer to the industry, but significant government investment means it will quickly become one of the country's preferred logistics hubs. The Logistics District offers state-of-the-art warehouses at competitive rates to businesses of all sizes. With access to Jebel Ali's port via a superior logistics corridor and Al Maktoum International Airport, it's easy to see why new logistics companies are booming.

Dubai Airport Freezone (DAFZA)

The Dubai Airport Freezone is an ideal location for logistics firms that specialize in air-based logistics. Dubai International Airport handles the majority of air freight. It is no surprise that it has become the preferred location for many multinational logistics firms. Other cargo facilities at DXB are included in the Dubai Flower Center, where Dnata handles cargo and perishables for all airlines. DXB is the world's third busiest air freight hub.

How to Begin a Logistics Business in Dubai?

When establishing a business in the UAE, the first step should be to locate a reputable local professional who can guide you through the process.

Dhanguard as a company formation expert can complete any step of the process on your behalf. Working with an expert at Dhanguard will also help to reduce errors and delays, increase the likelihood of a successful license application, and eliminate the hassle of company formation.

The steps for establishing a logistics company are outlined below:

Choosing Business Activities

You will need to identify the logistics area in which you will trade and make sure that your selected operation aligns with those published on the list by Dubai's Department of Economic Development. Failure to identify each planned operation may result in problems later on. However, there are thousands of licensed operations to choose from, so we'll be able to find one that meets our needs.

Selecting a Name for Your Business

Following that, we will assist you in selecting an appropriate company name for your mainland UAE firm. When choosing a company name in the UAE, you must follow a set of naming conventions. In short, you should avoid any offensive or objectionable language. Terminology should be avoided, as should abbreviations for well-known organizations. You must also confirm that your preferred name is available for registration.

Read more: How Can You Get a Company Easily Registered at Low Cost in UAE?

Making an Application for a License

After assisting with your initial paperwork, we will proceed to the next key step in the process: applying for your UAE trade license. If you want to develop yourself in another Emirate, you must make this request directly to the Dubai DED or the local equivalent when applying to form a mainland corporation. This procedure is mostly done online and can be completed in a matter of hours.

Generating Visa Applications

To work in the UAE, you must have a residency visa in addition to a trade license. we have the opportunity to assist you in obtaining this critical text. The visa application process consists of several steps, including biometric screening, a medical scan, and a chest x-ray. You can sponsor others for visas as a holder of a UAE business license. It could be a partner, a parent or child, or a domestic worker, such as a housekeeper. The maximum number of passes you can apply for is determined by the size of your company, the setup you have chosen, and your income for dependent visas.

Opening a Corporate Bank Account

Finally, in order to trade in the UAE, you must have a corporate bank account. As an overseas investor, it is not always easy to obtain banking services. However, before putting you in touch with the organization best suited to meet your needs, we will carefully consider your requirements.

Documents Required to Set Up a Logistic Business in Dubai

The following documents required for Logistic Business in Dubai:-

  • Passport copy of each shareholder

  • Copy of managers passport and curriculum vitae

  • Personal data sheet of shareholder and manager

  • Proof of trade name reservation

  • Proof of initial activity approval

  • Attested and notarized memorandum and articles of association

  • Notarized and attested power of attorney appointing a legal representative

  • Documents of legal agreement showing the physical address of the company

Conclusion

Setting up a logistics company in Dubai doesn't have to be difficult if you have the right skills. It does require some prior process awareness. Furthermore, keep in mind that the licensing process is only simple if the license application is complete and error-free at the time of the request. Our experts will set up your business on your behalf, create a license and visa applications, and handle all administrative tasks, leaving you free to run your business.

We at Dhanguard can assist you if you want to start a logistics company in the UAE. Contact our experts and we'll be delighted to assist you.

Dhanguard provides the business setup and company formation services in Dubai, UAE with the guidance of our professional team of consultants. Faster and hassle-free company setup in Mainland and Freezone in UAE.

Get Instant Advice