The logistics sector is one of the most profitable industries in the United Arab Emirates (UAE). With the constant growth of the UAE economy, starting a logistics company in Dubai, UAE can be a smart idea. As of its prime location connecting Asia, Africa, and Europe, Dubai stands as a hub for trade and commerce in the Middle East and North African (MENA) Region.
Due to its attractive nature for tourism and commerce, business setup in Dubai requires mindful planning and knowledge of the key steps involved.
Don’t worry. In this article, we will deal with the key steps on how you can setup a logistics company in Dubai, along with the benefits of launching a logistics business in Dubai. Let’s explore!
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Benefits of starting a logistics business setup in Dubai?
When it comes to starting a logistics business, Dubai offers a range of advantages. Below are some of the key benefits:
- Prime Location:
As mentioned above, Dubai’s prime location makes it an ideal hub for easy connectivity to Asia, Africa, and Europe, making it a perfect location to start your logistics business.
- Top-notch infrastructure
Dubai is known for its world-class infrastructure, including airports, seaports, rails, and roads. This gives you the added advantage of easy access to equipment to operate your business.
Dubai, UAE, has many freezones authorities offering 100% foreign business ownership and other incentives to foreign investors. These free trade zones are designed to promote logistics and trading activities.
- Business-Friendly Environment
The streamlined process of company formation in Dubai, low tax rates, minimal government intervention, and much more make it an attractive environment to start and grow your company.
- World-class Economy
Being a world-class economy, Dubai has a lot to offer in terms of business and success. It has one of the highest GDP rates, currently at $30.3 Billion as of the third quarter of 2023, and remarkably a low unemployment rate of just 2.75%.
- Tax Benefits
The UAE has a favorable tax regime with a 9% corporate tax and 0% personal income tax rates. This means you can enjoy significant profits and invest more money in your business.
What are the major logistics hubs in Dubai?
Dubai has 45% of the total share of the UAE’s logistics market. The feasible regulatory procedures, swift timelines, and easy application process make Dubai a great choice for starting your logistics business.
There are 4 major freezone jurisdictions in Dubai specifically designed to cater for logistics activities such as Freight Forwarding, Warehousing, Distribution, and Supply chain management in Dubai:
- Dubai South Freezone:
Dubai South Freezone greatly supports the government with its top-tier infrastructure established in 2006. It is located closer to the Al-Maktoum Airport, with an area of 145 square km. This most selected jurisdiction has access to downtown Dubai and modern warehouse equipment.
- Dubai Airport Freezone:
The Dubai Airport Freezone (DAFZA) is one of the over-blown airports with trading routes to Europe. It has over 1800 companies and 15,000+ professionals.
- Jebel Ali Free Zone (JAFZA):
Established in 1985, the Jebel Ali Freezone is the oldest freezone authority in UAE, with over 8000 organizations working under its jurisdiction, getting 24% of Dubai’s FDI.
- Dubai Logistics City (DLC):
The DLC, known as ‘Dubai World Central,’ is an ambitious project taken by the government of Dubai, UAE, to promote the development of logistics and trading in the UAE.
What are the important steps to consider while starting a logistics company in Dubai?
Here’s your complete step-by-step guide on how you can start your own logistics company in Dubai:
- Create a business plan outlining your company’s objectives.
- Determine the specific logistics services you will provide.
- Decide on the legal structure for your company.
- Choose a unique trade name for your company and obtain initial approval.
- Apply for the appropriate business license from the relevant authority.
- Register your logistics company with Dubai Customs.
- Complete the legal formalities.
- Register your company with the Dubai Department of Economy and Tourism (DET) or a relevant free zone authority.
- Pay the License fee and obtain a business license
- Open a business bank account in a local bank.
- Obtain visas for your employees.
How CBS can assist you?
Contact us to talk to an expert business setup consultant who can help you start your logistics company in Dubai without hassle.