The UAE is a global trade hub. Businesses here move goods across continents. But setting up a logistics company is not simple. Many entrepreneurs struggle with paperwork, regulations, and approvals. Ignoring these steps can cause delays or fines. Some businesses fail to set up properly because they don’t follow the correct procedures and comply with regulations.
If you follow the right steps, you can establish a successful logistics business.
Meanwhile, Jitendra Business Consultants (JBC) helps you follow the correct procedures to set up a successful logistics business in the UAE.
Why Logistics in the UAE?
The location of the United Arab Emirates is ideal. It is situated where Europe, Africa, and Asia converge. Trade is facilitated by the UAE’s top-notch ports and airports. Additionally, there are tax advantages, particularly if you locate your business in a free zone. VAT and company tax may not be required of you. There is less red tape since the government supports business and encourages foreign investors.
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Decide on a Business Structure
The first step is choosing between a mainland or a free zone company.
- Mainland: You can trade directly with the UAE market and take government contracts. However, you need a local sponsor or service agent.
- Free Zone: You get tax benefits, full foreign ownership, and fewer restrictions. However, you may face limits on doing business within the UAE.
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Select a Name for Your Company
The UAE’s naming guidelines must be followed while naming your business. It must be logistically related and refrain from using derogatory language. Before moving forward, confirm availability with the authorities. For trademarks, use trademark search services.
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Submit a Logistics License Application
To conduct business lawfully, a logistics license is required. Whether your company is on the mainland or in a free zone affects the application procedure. Send in the necessary paperwork, which usually consists of:
- Form for a business application
- Copies of the owners’ passports and, if relevant, their Emirates ID
- A copy of the passport of the local sponsor (for mainland firms)
- Memorandum of Association (MOA)
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Get Special Approvals
Depending on your services, you may need approval from various UAE authorities:
- Dubai Customs: If you import or export goods
- Dubai Police: If you run a warehouse with security systems
- Transport Authorities: If you manage vehicles or shipments by sea, land, or air
- Ministry of Climate Change: If handling agricultural products
- Food Control Department: If dealing with perishable goods
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Secure Office and Warehouse Space
A physical address is required to register your logistics business. Many logistics firms operate from:
- Free zone warehouses (for international trade)
- Mainland storage facilities (for local and regional trade)
- Co-working offices (for logistics planning and brokerage services)
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Open a Corporate Bank Account
Once your company is registered, you must open a business bank account. Choose a UAE-based bank that suits your financial needs. Banks may ask for:
- Trade license
- MOA
- Proof of office address
- Business plan
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Obtain Visas for Employees
If you plan to hire staff, apply for their work visas. Free zones allow a limited number of visas based on office space. Companies on the mainland can recruit based on their needs. You can hire PRO services in UAE for easy visas.
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Create a Tax and Compliance Account
Even though the UAE has tax advantages, if your revenue exceeds the threshold, you might have to register for VAT or other corporation taxes. To guarantee compliance, speak with a tax professional.
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Invest in Logistics Technology
To compete in the UAE’s logistics market, invest in:
- Tracking and fleet management software
- Automated inventory systems
- Digital freight booking platforms
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Start Operations and Build Partnerships
Once everything is in place, begin operations. Collaborate with:
- Shipping companies
- Customs brokers
- Warehouse providers
- Transport firms
Why Choose Jitendra Business Consultants?
In a nutshell, you need careful planning and adequate support to start a logistics business in the UAE. Experts consultants at JBC thoroughly follow the important steps, stick with the law and make good use of technology and knowledge to help you register your business in UAE.
In the least amount of time and at reasonable costs, our expert consultants will help you establish a strong and prosperous logistics company in the UAE.
