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How to Start a Logistics Company in Dubai?

Dubai’s economy has stable growth and the balanced development of different countries and its geographical location and infrastructure make it an ideal supply and re-distribution gateway. It is strategically located at the centre of international trade, making it globally well-positioned as an emerging trans-shipment hub. Dubai’s ports have emerged as an essential trans-shipment point in the Europe-Asia trade. Also, it caters to the needs of increasing trade within global trade blocs.


When it comes to logistics, there are many choices to pick from as most Dubai free zone jurisdictions offer logistics licenses. However, when it comes to having the right infrastructure and ancillary services that can help your firm grow, the competition narrows down to Jebel Ali Free Trade Zone, Dubai South Free Zone, and Dubai Airport Free Zone.


Starting a logistics company in Dubai can be a profitable venture given the city's strategic location and growing economy. Here are the general steps to follow:
  • Conduct market research to identify the demand for logistics services in Dubai and the competitive landscape.

  • Choose a business structure and register your company with the Department of Economic Development (DED).

  • Obtain necessary permits and licenses, including a trade license, commercial license, and customs registration.

  • Find a suitable location for your logistics company and obtain necessary approvals from relevant authorities.

  • Purchase or lease the necessary equipment, such as vehicles and warehouse space.

  • Hire and train a team of professionals to manage your operations, including logistics coordinators, drivers, and warehouse staff.

  • Develop a pricing strategy based on the market demand and your operating costs.

  • Develop partnerships with suppliers and clients to establish your business network.


It’s important to note that starting a logistics company in Dubai can be a complex process, and it’s recommended to seek the help of a business setup consultant to ensure compliance with local laws and regulations. Additionally, it’s essential to understand the logistics industry’s best practices and keep up-to-date with the latest technologies and trends to remain competitive in the market.


Starting a logistics company in Dubai requires careful planning, compliance with local regulations, and a solid business strategy. Here are some general steps to guide you:


Develop a business plan: This should outline your company’s objectives, target market, services, competition, and financial projections. It should also identify the legal


Requirements and licenses needed to operate a Start a Logistics Company in Dubai

Choose a business structure: You can opt to set up a Limited Liability Company (LLC) or a Free Zone company. An LLC requires a local sponsor, whereas a Free Zone company provides full ownership to foreign investors but has certain limitations.


Register your company: This involves reserving your company name, obtaining initial approval from the Department of Economic Development (DED), and obtaining a trade license from the DED.


Obtain necessary licenses: You will need to obtain a license from Dubai Customs, Dubai Municipality, Dubai Chamber of Commerce, and the Road and Transport Authority (RTA). You will also need to register for Value Added Tax (VAT).


Set up your operations: You will need to identify suitable warehouse space, purchase equipment and vehicles, and hire staff.


Develop a marketing strategy: This should identify your target market and ways to promote your services, such as through online marketing, social media, and networking.


Ensure compliance: You will need to comply with local laws and regulations, such as those related to employment, health and safety, and environmental protection.


Starting a logistics company in Dubai can be a complex process, and it’s recommended to seek the help of a business setup consultant to ensure compliance with local regulations and avoid any legal issues.

Benefits of Start a Logistics Company in Dubai

The country’s reputation as a foreign-friendly country is strengthened by its flourishing and innovative culture which makes it one of the best places to start a logistics company. 
Listed below are some benefits of starting a logistics company in Dubai:


  • Due to the advancement of technology and supportive administration, almost no paperwork is needed to begin a logistics company in Dubai.

  • Dubai’s strategic location connecting the East, West, North, and South links producers, manufacturers, and suppliers from all over the world. This factor helps promote the logistics sector in Dubai. 

  • The UAE has a terrific public transportation system and one of the best telecommunication facilities and other amenities. 

  • The UAE government always keeps on taking initiatives aimed toward the betterment of foreign companies in the city. For example, the recently launched ‘Dubai Global’ project provided companies with logistical support to help them expand their operations in over 30 markets globally. 

  • The city exempts almost every foreign business from paying taxes. These include all types of tax from income and business to personal taxes. However, some companies are required to pay 5% VAT on some business activities. 

  • Many free zones are available in Dubai, making it easier for you to have full ownership of your logistics business. 

  • Your logistics business, whether it is on the mainland or free zone, need not pay taxes to the government. 

  • Once you have all the relevant documents with you, the process of getting a license becomes an easier task. 

Documents required Start a Logistics Company 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

The four key logistics business hubs in Dubai:

Dubai South Free Zone: Formed by the government of Dubai in 2006, the Dubai South Free Zone offers world-class infrastructure and outstanding support from the government. Located close to the Al Maktoum Airport, the Dubai South Free Zone has an area of 145 square km.


 This free zone is very well-planned with high-tech warehousing facilities and easy access to downtown Dubai. There are additional investments made by the government keeping in mind the prospects of the free zone as it emerges as a highly flourishing zone of Dubai. This is currently the most chosen jurisdiction by logistic companies in the UAE.


Dubai Airport Free Zone: the Dubai Airport Free Zone or DAFZA is another sought-after location for a logistics Business Setup in Dubai. Dubai airport is one of the world’s busiest airports with a trading route to Europe, and connected geographies, allowing great benefits to companies formed in DAFZA. DAFZA boasts of over 1800 companies and 15000+ professionals. Some of the biggest logistic conglomerates have their companies situated here.


Jebel Ali Free Zone: Jebel Ali Free Zone or JFZA was established in 1985. It has more than 8000 entities functioning in the jurisdiction currently making it one of the top free zone jurisdictions in Dubai. JAFZA attracts about 24% of Dubai’s FDI.


Dubai Logistics City (DLC), also known as Dubai World Central: the DLC is the world’s first platform built to promote logistics and trade facilities in the UAE. It covers an area of 140 sq. km. This free zone is Dubai’s biggest and most ambitious project taken up by the government. Companies in the DLC are spread over a vast area, with an air cargo turnover of almost 12 million tons a year.

Types of business activities Start a Logistics Company in Dubai

The basic operations involved in a logistics company are the planning, implementation, and control of the movement of storage of goods, services, or information within a supply chain and between points of origin and consumption. Following are the types of business activities that can be carried out for logistics business in Dubai:.


Freight Brokerage:

Brokerage for air, sea, and land transportation by freight, handling matters with customs and insurance brokers..


Customs Broker: Preparing customs declarations and bills of lading, representing a declarant with customs authorities for cargo clearance.


Warehouse storage: This involves warehouse facilities and management, goods inwards, sorting, loading, unloading, packing goods, raw materials, and more.



Air Cargo Transportation: Air Cargo transportation can include air freight, packing and sorting at the airport, air fleet management including leasing and freight forwarding.


Sea Cargo Transportation: sea cargo transportation including containers, RORO and bulk sea freight, packing and sorting at the seaports, vessel and container leasing can be licensed

Land Cargo Transportation: Overland freight by road and rail, expediting shipments, dispatch support for groupage cargo.


Third-party logistics or 3PL: 3P applies to any service contract involving the storage and shipping of a commodity. This includes warehousing and transportation services for clients. A 3PL company may offer a single service like warehousing or transport or inventory management. However, they may also offer a system-wide bundling of services and management for a client’s entire supply chain.


Start a Logistics Company in Dubai in Mainland and Free Zone:

Logistics company formation in Dubai Mainland: Forming a company anywhere in Dubai has its benefits depending upon the jurisdiction. Logistic companies in the mainland are a very preferred choice as it has the maximum benefits that the country has to offer due to all types of markets available which gives way to profitable logistics business due to easy distribution throughout the UAE. Those who want 100% ownership of their business and operate freely both with imported and locally manufactured goods can take the mainland option.


Logistics company formation in Dubai Free zone: For logistics, you can expect the highest profits from the free zone, since certain jurisdictions are solely for logistics business. There are many free zone jurisdictions in Dubai for logistics business. Free zones provide great location and infrastructure, just like the mainland, and they are very well connected through the roadways, airways, and waterways, making business smooth and efficient.

Procedure Start a Logistics Company in Dubai

You must go through some steps to start a logistics company in Dubai. The steps given below will help you understand it better:


1. Choose a Name

Your logistics company’s name should be easy to remember. Moreover, an acceptable and legally safe name will not save you from legal confrontations. Start a Logistics Company in Dubai So, choose a name for your logistics company and register it with the concerned authorities.


Note: The UAE authorities have laid down some rules for naming a company. BCM Branches India professionals can help you with the same, ensuring that the name is compliant.


2. Decide Your Company Structure

The adequate company structure for your logistics business will help it run efficiently. So, decide on a suitable structure. You can choose from a sole proprietorship, a Limited Liability Company (LLC) or a foreign company’s branch office.


3. Apply for the License 

Every business requires a license in Dubai as per the law. Besides, opening a corporate bank account would ease with a license for your logistics business. To apply for a logistics license, submit the required documents and pay the fees.


Many types of business licenses are allowed for businesses in Dubai. Also, you may have to apply for additional permits for your business. Start a Logistics Company in Dubai BCM Branches India experts can help you with the license, permits, and logistics license costs in Dubai.


4. Choose Your Business Location

Every location offers distinct benefits and advanced facilities. Accordingly, select a business location in Dubai. You can choose either the mainland or one of the free zones. You’d need a physical office and space to park your fleet of vehicles for your logistics business. So, consider the number of vehicles you’d employ, the technologies required, and your budget. Besides, think about whether to rent or lease. 


5. Get Your License

You can obtain your logistics and cargo license in Dubai once you’ve successfully completed all the steps.Start a Logistics Company in Dubai


Branches India branch professionals can simplify the logistics company formation process for you. This may include visa eligibility, additional permits, bank accounts, and fees. 


6. Launch Your Logistics Business


Once you’ve obtained your license, you can start your logistics business in Dubai. You can proceed with the activities you’ve planned for your logistics business, such as seeking out customers and contracts.


Advantages of Start a Logistics Company in Dubai

  • Taxation benefits

  • There is no minimum capital requirement

  • No restrictions on trading locations

  • Dubai is the fastest-growing economy

  • Free zone benefits

  • First-class infrastructure

  • Work along with government bodies

  • There is no restriction in currency limitation

  • Low import duty

  • More options for business activities.

  • There are no limitations to the number of visas.

How Much Does It Cost to Start a Logistics Company in Dubai?

The final cost of starting a logistics company depends on a variety of factors. The factors include the type of license you choose, the number of vehicles required, security features, driver skills development training costs, promotional campaigns, additional approvals, and the like. Start a Logistics Company in Dubai Therefore, coming up with an accurate task is no easy feat. It can start from around AED 18,000 for setting up a logistics business in Dubai. Our professionals at BCM  can help you determine the right amount needed based on your business requirements. 

UAE governmental authorities required for special approvals

When you are applying for your logistics license in Dubai, Start a Logistics Company in Dubai you many need special approvals from a variety of governmental authorities. If you’re not sure which authorities you need approvals from, Creative Zone can help.


Dubai Customs: They approve clearance of imported and exported goods.


Dubai Police: The police approve security systems for warehouse and logistics companies.


Aviation/Maritime/Roads & Transport authorities: These bodies give permissions for you to operate in each of their domains


Food Control Department: This department will provide accreditations for food that is stored in warehouses in Dubai. Start a Logistics Company in Dubai


Civil Defence: They are responsible for overseeing import and export of hazardous materials.

Ministry of Climate Change: This department focuses on the import of agricultural goods, live animals, fertilisers, and related goods.


How Does a Logistics Company work in Dubai?

Logistics service providing companies specialize in dealing with numerous services ranging from keeping products stored, repackaging to delivering around the world. Start a Logistics Company in Dubai Thus, due to paramount importance, logistics in the region is at its peak, enhancing national and international trade relations among nations. Having such an ultimate role, it is worthwhile, as well as, sagacious to start a logistics company in Dubai.


A logistic company works around below mentioned roles:


  • Customs Broker

  • Freight Broker

  • Warehouse Storage

  • Land Cargo Transportation

  • Sea and Air Cargo Transportation

Contact us for Start a Logistics Company in Dubai

We at BCM Corporate services LLC, extend our quality services to our clients with well experienced & qualified Business consultants with rich expertise in document attestation Services in Dubai so Start a Logistics Company in Dubai that clients’ requirements of Business setup in Dubai. can be completed on time with satisfactory Results outcome. Please feel free to reach us for your Business setup and  Bookkeeping and Accounting Firms in Dubai requirements on our email id: info@branches.ae or call us on +971502585921




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