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Things to Consider Before How to Start a Logistics Company in Dubai, UAE

Logistics Company in Dubai

The post-pandemic business world has been kind to the logistics industry. As the supply chain networks of various industries strengthened after businesses learned about their weaknesses during the lockdowns. They have emerged from the pandemic stronger than ever.

That is why, this is the perfect time to start a logistics company in Dubai, UAE. Previously, this was a harder market to get into. However, you can easily start a logistics business in Dubai now.

Good logistics support is important for any business if they want to be successful. That is why good logistics businesses in Dubai hardly ever lack clients. As Dubai is situated in a strategic location that makes it the central hub for trade and prosperity in the UAE and throughout the Middle East.

This makes Dubai the prime spot for starting a logistics business in the UAE. However, you will need a foolproof plan and correct execution to start a successful logistics business in Dubai.

Key Factors to Consider When Start a Logistics Company in Dubai

Starting a logistics company in Dubai may be confusing even for veteran entrepreneurs. Thankfully, Company Setup experts are here to help you out no matter what your level of experience is.

Here are the factors you should consider when starting a logistics business in Dubai:

The Right Business Location

First and foremost, you need to select the perfect location to start your logistics business in Dubai. This is because the economic jurisdiction where you start your business has a lot of effects on how easily you can start and run your business.

Additionally, it also has an effect on how many clients you can reach and which contracts you can take. The main options you will have when starting a logistics business are the free zones or the mainland.

Logistics Business Activities

There are several business activities that you can select when starting a logistics company in Dubai. However, you cannot select every business activity related to logistics at once. That is why you need to consider this carefully.

Some of the popular business activities are related to Freight Brokerage, Customs Brokerage, Cargo Transportation, Warehouse Storage, Third-Party Logistics, etc.

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Business Setup Procedure

Maintaining the proper business setup procedure is very important regardless of what business you are starting in Dubai. This is especially important when starting a logistics business in Dubai. This is because you need to rent or lease warehouse space for your business.

In addition to this, you need to get various external approvals and get your space approved as well. That is why it is suggested that you seek assistance from experts when starting a logistics business in Dubai.

Company Name

Last but not the least, registration of the company name is one of the main steps in the process of setting up a logistics business in Dubai. This is because you will need to maintain the criteria set by the government of the UAE as well as stand out from the crowd.

In addition to this, you will need to select a trading name that is unique in the UAE. As a result, selecting a suitable trade name can be difficult.

Procedure to Start a Logistics Business in Dubai, UAE

The procedure for setting up a logistics business has been put down for you here:

  1. Define your business activities
  2. Choosing the jurisdiction and company name
  3. Making your license application
  4. Making your visa applications
  5. Opening a corporate bank account
  6. Pay the required fees to the free zone authority
  7. Finally, the registrar of companies can issue an incorporation certificate for your company

Documents Required to Start Logistics Business in Dubai

  • Passport copies of the shareholders
  • Personal data of the shareholders and managers
  • Trade name reservation proof
  • Proof of initial activity approval
  • Attested Articles of Association (AOA) and Memorandum of Association (MOA)
  • Document showing legal agreement of the physical address of the company

Popular Logistics Business Hubs in Dubai

One of the main steps in constructing a foolproof plan of setting up a logistics business in Dubai is to select a suitable economic jurisdiction. This is because the location of your logistics business in Dubai will play a huge part in deciding your business’s future.

That is why we suggest you start your logistics business in one of the popular free zones in Dubai. However, you can also start it on the mainland which will increase the scope of your business but also increase the difficulty of business setup.

Here are the four free zones where you should start your logistics business in Dubai:

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Dubai South Free Zone

Dubai South Free zone was started by the authorities in Dubai back in 2006. Since then, it has come a long way with all the businesses situated there. The rapid growth of the businesses there can be explained by its outstanding infrastructure and numerous government supports.

The Dubai South Free Zone is a prime spot for logistics businesses because of the availability of high-tech warehouses.

Dubai Logistics City (DLC)

Dubai Logistics City is the first free zone in the UAE that was established with the sole purpose of promoting logistics businesses and boosting their growth. This is one of the biggest free zones in Dubai with an area of 140 sq. km.

The Dubai Logistics City has an air cargo turnover of approximately 12 million tons a year. The Dubai Logistics City is also known as Dubai World Central.

Dubai Airport Free Zone

Dubai Airport Free Zone is the perfect free zone for a logistics business setup in Dubai if you are looking to have a powerful presence worldwide. This is because Dubai Airport Free Zone gives you unrestricted access to the whole world.

In addition to this, import and export are very easy when your logistics business in Dubai is located in Dubai Airport Free Zone. Over 1800 companies consisting of over 15000 professionals are situated here.

Jebel Ali Free Zone

Last but not the least, Jebel Ali Free Zone is one of the top free zones in Dubai. It was established in 1985 making it the oldest free zone on our list. Consequently, with its age, it has also seen enormous growth over its three decades of existence.

For example, the Jebel Ali Free Zone brings in about 24% of all of Dubai’s foreign direct investments. As a result, if you start a logistics business in Jebel Ali Free Zone, you are more likely to draw in investments.

How can Company Setup Consultants help you?

If you want to start a logistics company in Dubai, UAE? Company Setup Consultants will help you you with the entire process of logistics Company Formation in Dubai. This is because Company Setup Consultants have started various businesses setup all over the UAE.

To Speak with our Experienced Business Consultants for further information and assistance, call us at +971582595164. Send a WhatsApp Message for Chat Query on +971 582595164 or email us at info@companysetup.ae. Contact us today and hit the ground running.

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