The economy of Dubai has always shown stability and a strong balance between various industries. Two decades ago, the UAE was just good for exporting crude oil. Today UAE is already considered the world’s center of logistics and finance. Logistics in this area is now at its peak and it stimulates international trade relations.
It is also considered an international transportation hub which is located in the center of Asia, Europe, and Africa. This gives the strong trading ties between the UAE and other countries such as Japan, Italy, USA, China, France, UK, India, and Germany. The UAE also has a distinct system of transportation that unites largest airports, world-class ports, and wide roads especially found in Dubai increased the logistics of the country.
How to Set Up a Logistics Business in Dubai
The most viable location for a logistics business is the Dubai Logistics City (DLC). This is known as one of the fastest growing free zones in the Dubai area which is dedicated to logistics-related businesses. The following are some of the advantages that you can acquire from setting up a logistics business in the DLC:
- Simple and easy legal requirements
- In-house warehouse facilities
- Visa services that are highly accessible
- Modern logistics facilities provided by the government
- More than 7,000 companies found in the area
- Most favorable geographical conditions
- A highly organized distribution system that caters to Africa, South East European, Middle East, and the SAARC countries.
There are many offers by the free zones in Dubai for investors and entrepreneurs who set up businesses. It’s possible to set up a Free Zone Limited Liability Company (FZ-LLC). This is a branch of an already existing company in that particular free zone.
The requirements are the following:
- CV copy and passport of the manager
- Proof of initial activity approval
- Shareholders’ passport copies
- Notarized and power of attorney appointing a legal representative
- Proof of trade name registration
- Shareholders and managers’ personal data sheets
- Attested and notarized Article of Association and Memorandum of Association
- Document of legal agreement that shows the company’s physical address
How to Set Up a Courier Service Business in Dubai
The steps to set up a courier service in Dubai:
- Any courier company in Dubai has to be licensed through the Emirates Post Group
- It takes 20 working days for this organization to issue a license
- Any nationality can be the owner of the business
- The license can also be applied online
- You can also fill out the online application form and submit the other document requirements
- The cost of every license of AED 100,000
- The owner must obtain the commercial license and trade activity registration from the designated authority agency
The following are the documents required for a courier service business in Dubai:
- Copy of the local family book
- Trade name reservation copy
- Lease contract copy
- Copy of the established firm
- The business owner a shareholders’ passport copies
- Copy of the commercial license and trading registration certificate
- Initial approval copy
Photographer: Antonio DiCaterina | Source: Unsplash
How to Set Up a Road Transportation Business in Dubai
The requirements to set up a road transportation business in Dubai are the following:
- Transport license from the National Transport Authority, UAE
- The transport license applicant must be a citizen of the UAE
- The license is issued 3 months after application and it must be renewed after 30 days
- A commercial license is required before applying for a transport license in Dubai
- The transport vehicle has to have safety gear and it must fulfill all the technical conditions
- Vehicles transporting commercial goods must pay AED 100, and additional AED 10 each ton of the vehicle’s gross weight
- Passenger vehicles are required to pay AED 100 and additional AED 5 for every passenger seat to acquire a license
Today is the right time to set up a logistics business in Dubai and the UAE. Logistics is considered as a major contributor to Dubai’s economy. If you’re still doubtful about the information we provided, contact HBS Dubai for advice.
