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Things to Consider Before Setting up a Logistics Company in Dubai, UAE

The post-pandemic business world has been good for the logistics industry. Supply chain networks in different sectors became stronger after companies learned about their vulnerabilities during the lock-in. They have emerged from the pandemic stronger than ever.

That’s why this is the right time to set up a logistics company in Dubai, UAE. Previously, this market was more difficult to penetrate. However, now you can easily start a logistics company in Dubai.

Good logistics support is essential for any company if it wants to succeed. That is why good logistics companies in Dubai are almost never short of customers. Dubai’s strategic location makes it a central hub for trade and prosperity in the UAE and the entire Middle East region.

This makes Dubai the best place to start a logistics business in the UAE. However, to start a successful logistics business in Dubai, you will need a flawless plan and proper execution.

KEY FACTORS TO CONSIDER WHEN SETTING UP A LOGISTICS BUSINESS IN DUBAI

Setting up a logistics company in Dubai can be confusing even for experienced entrepreneurs. Fortunately, company formation experts are here to help you, whatever your level of experience.

Here are the factors you need to consider when starting a logistics company in Dubai:

THE RIGHT BUSINESS LOCATION

First and foremost, you need to choose the ideal location to start a logistics company in Dubai. This is because the economic jurisdiction in which you start your business has a big impact on how easy it is for you to start and run your company.

It also affects how many customers you can reach and what contracts you can sign. The main options that will be available to you when starting a logistics business are free zones or continental.

LOGISTICS BUSINESS ACTIVITIES

There are a number of business areas you can choose from when starting a logistics business in Dubai. However, you cannot choose all logistics-related business areas at once. Therefore, you need to consider it carefully.

Some of the most popular business activities include freight brokerage, customs brokerage, freight forwarding, warehousing, third-party logistics, etc.

PROCEDURE FOR SETTING UP A BUSINESS

Whatever business you are starting in Dubai, it is very important to follow the correct procedure for setting up a business. This is especially important when starting a logistics business in Dubai. This is because your business needs to lease or rent warehouse space.

In addition to this, you also need to get various external approvals and approval for your premises. Therefore, it is advisable to seek help from BestaxCAexperts when starting a logistics business in Dubai.

COMPANY NAME

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

THE PROCEDURE FOR SETTING UP A LOGISTICS BUSINESS IN DUBAI, UAE

Here is the procedure for setting up a logistics business:

  • Define your business
  • Choosing your jurisdiction and company name
  • Preparing the license application
  • Applying for a visa
  • Opening a company bank account
  • Pay the necessary fees to the free zone authority
  • Finally, the Registrar of Companies can issue your company registration certificate.
  • Documents required to start a logistics business in Dubai
  • Copies of shareholders’ passports
  • Personal details of shareholders and directors
  • Trade name reservation certificate
  • Proof of approval of the initial operation
  • Certified Articles of Association (AOA) and Memorandum of Association (MOA)
  • Document certifying the legal agreement of the physical address of the company
  • Popular logistics business centers in Dubai

One of the key steps in developing a sound plan for establishing a logistics business in Dubai is to choose a suitable economic jurisdiction. This is because the location of your logistics company in Dubai will play a major role in deciding the future of your company.

We, therefore, recommend that you start your logistics business in one of Dubai’s popular free zones. However, you can also start on the mainland, which will increase the size of your business but also complicate setting up.

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

DUBAI SOUTH FREE ZONE

The Dubai South Free Zone was launched by the Dubai authorities in 2006. Since then, it has developed considerably and is home to many businesses. The rapid growth of businesses in the zone can be attributed to its excellent infrastructure and numerous government supports.

The Dubai South Free Zone is a prime location for logistics companies due to 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 companies and facilitating their growth. It is one of the largest free zones in Dubai, covering an area of 140 square kilometers.

Dubai Logistics City has an air freight turnover of around 12 million tons per year. Dubai Logistics City is also known as Dubai World Central.

DUBAI AIRPORT FREE ZONE

The Dubai Airport Free Zone is the ideal free zone for setting up a logistics company in Dubai if you want to have a strong global presence. This is because the Dubai Airport Free Zone provides unrestricted access to the whole world.

In addition, if your logistics company in Dubai is located in the Dubai Airport Free Zone, imports and exports are very easy. There are more than 1,800 companies with more than 15,000 professionals.

JEBEL ALI FREE ZONE

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

For example, the Jebel Ali Free Zone receives around 24% of all Dubai’s foreign direct investment. Thus, if you set up a logistics business in the Jebel Ali Free Zone, you are more likely to attract investment.

HOW CAN BESTAXCA HELP YOU?

If you want to start a logistics company in Dubai, UAE? BestaxCA will help you throughout the process of setting up a logistics company in Dubai. This is because BestaxCA has set up various companies across the UAE.

To get in touch with our experienced business consultants for further information and assistance, contact us today and get started.

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