How to start a logistics company in Dubai?

How to start a logistics company in Dubai?

One of the most profitable divisions in the enterprise today is the logistics division. A Logistics company handles services varying from storing commodities, repackaging, and delivering around the world. Institutions and corporations of all sizes depend upon logistics companies to assist them with their warehousing and international shipping demands, which means an undeniable demand from consumers, which induced an abrupt expansion in local and global transportation. It is the same for both broad-scale international cargo regimes and familial wholesale deliveries.

Why is the logistics business one of the most profitable businesses in Dubai?

Dubai is a rising transhipment hub across the world. Its geographical setting and leading infrastructure make it an ideal inlet for supply and distribution. According to the reports, Dubai dominates the UAE in logistics by clamping 45% of the gross share of the enterprise. The logistics division here is highly robust and competitive. You will need substantial up-front capital if you strive to make your business a profitable and endurable one. Also, If you have an intense desire for your business, there are many affordable jurisdictions across Dubai to begin a logistics firm. If you plan to start a logistics company in Dubai, it is essential to start up in one of the best jurisdictions. Most of the Dubai free zone jurisdictions offer logistics licenses. They also empower your business with the proper infrastructure and secondary services.

What are the advantages of beginning a logistics company in Dubai?

You can attain a lot of benefits by setting up your logistics business in Dubai. Some of these are listed below:

  • Availability of visa services is much easier.
  • Have free zones that offer business benefits.
  • Good geographical location.
  • Clear and straightforward legal formalities.
  • Consistent distribution system across the world
  • Avant-garde logistic facilities provided by the government
  • It has inbuilt warehouse facilities.

What are the steps for setting up a logistics company in Dubai?

If you’re equipped with the proper insight and knowledge, setting up a logistics business in Dubai won’t come to be overly complicated. However, it does require a level of experience and understanding of the procedure. Now, let’s look into the phases of setting up a logistics company in Dubai.

Choose your Business Activity

First of all, you have to specify the area of logistics that you’ll be trading in. Are you planning to prevail as a carrier? Run a cargo line? Or manage the supply chain for other corporations? You have to decide on this. Also, you need to confirm that your chosen activity lines up with those on the catalogue published by the Dubai Department of Economic Development (DED).  If you have failed to specify every intended action, that could lead to further problems. But anyway, there are thousands of permitted activities to choose from, so we’ll be able to find one that matches the bill.

Choose a Name for your Company

Next, you have to choose a proper name for your company. However, it must abide by a strict set of naming conventions. If you need to comprise your name with your company name, you must use the full name instead of just surname or initials. At all cost, you should prevent any offensive or heretical wordings. Also, you aren’t supposed to make any reference to Allah or Islam in your company name. You must also check that your chosen name is free to be registered.

Choose a Setup for your Company

There are mainly two types of company setup available in Dubai, the free zone and the mainland.

Free zones offer several benefits for all startups and include exemption from customs tax, zero currency restrictions, and the right to repatriate 100% of your capital & profit and much more. Nonetheless, the Mainland companies cannot provide all the benefits similar to that of the free zones. However, they are authorized to trade directly with the local UAE market without the requirement for a service dealer. Thus, a free zone setup is considered the most accessible and cost-effective way to launch a logistics company in Dubai.

Apply for the License 

Fill up the application form for obtaining the initial approval. For a trading company in Dubai, the application for the trade license for your company is submitted directly to the Department of Economic Development. Submit other relevant documents for the business registration process. In some cases, you may need to submit a detailed business plan along with the application form. The entire process can take up to 15 days to get reviewed and approved. Similarly, you can apply online for the license through their official website.

Submit your Visa Application

Like the trade license, it is mandatory to hold a residency visa to work in Dubai. The entire visa application process includes many steps, including biometric scanning and much more. However, the maximum number of visas you can apply for will depend upon the size of your business, your chosen setup and your private earnings.

Open an Account in the Corporate Bank 

Lastly, you need to open a corporate bank account. Obtaining banking services as a foreign investor is not always that easy. However, after receiving the license and visa from the officials, you become eligible to apply for opening a corporate bank account in Dubai.

What are the Documents required to start a logistics business in Dubai?

There is little documentation required while applying to starting a business in Dubai.

  • Firstly, you need a copy of your passport
  • Next, you need passport copies of your company shareholders
  • Two colour passport size photo
  • Personal data of the shareholders
  • Personal data of the managers
  • Also, you need a copy of the CV and passport of the manager
  • Finally, you need proof of Trade name reservation
  • Evidence of initial activity approval
  • Attested Articles of Association and Memorandum of Association
  • Document revealing legal pact of the physical address of your company
  • A Business Plan
  • For some cases,  you need notarized and attested power of attorney appointing a legal representative 


Dubai is one of the most logistics-friendly cities in the world. With its exceptional rapport by road, sea, and air, Dubai is ideally positioned to trade with all leading markets in the East and West. If you intend to run your business in the logistics division of Dubai, don’t waste much time for a second thought. The procedure of company amalgamation in Dubai is a formulation of simplicity and clarity. However, if you have any queries or doubts about the setting up of your logistics company inside Dubai, it will be wise to reach out to a company formation specialist.


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