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If you are thinking of starting a logistics business in Dubai, then it’s one of the thriving startup ideas. And the reason is its geographical location and emerging connectivity with several ports that allow easy transportation.
In this blog post, we’ll share 6 essential points to consider for establishing a logistics company in Dubai. But before that, let’s explore some benefits of incorporating a logistics business in the UAE.
What are the benefits of starting a business in Dubai related to logistics operations?
There are a plethora of advantages of investing in a logistics business in Dubai. And why shouldn’t one start a logistics company in the UAE? After all, we all know its reputation when it comes to a business-friendly environment. Here are a few more benefits of incorporating a logistics entity in Dubai:
1. Since Dubai’s economy is thriving, investing here is a great opportunity, especially in the logistics sector.
2. The world-class infrastructure of Dubai is another good thing about launching a logistics company.
3. Liberal taxation laws
4. The UAE government offers easy rules and regulations for the issuance of visa
5. Availability of various UAE free zones dedicated to a specific industry or sector
Also Read: 7 Worth-investing Startup Business Ideas For Company Formation in Dubai
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List of Most Important Documents For Starting A Logistics Business in Dubai
Even though there are different documents requirements for various jurisdictions of the UAE, still the most essential documents are:
1. Present the passport and visas copies
2. Provide two passport-sized photographs
3. Provide entry visa and stamp pages
Now, when you know the most important documents for establishing a Dubai-based logistics company, let’s explore its setup process.
6 Essentials Steps To Perform Before Launching A Logistics Company in Dubai
1- Select The Name of Your Entity
Firstly, while setting up a logistics business in the UAE, you need to select an easy name for it. Just remember to use a legally safe name for your logistics entity. Next, you need to register it with the concerned authorities.
There are some rules and regulations set by the UAE authorities for naming a company. Always remember to abide by the naming rules.
2-Choose Your Logistics Company’s Structure
Another essential thing to check before launching your logistics company is to select its structure. Go for the one that’s most suitable for running your business efficiently. Enlisted below are a few types of company structures you can pick from:
1. Sole Proprietorship
2. Limited Liability Company(LLC)
3. Foreign Company’s Branch Office
3-Make Sure You Are Applying For The Relevant License
Having a relevant logistics business license in Dubai is also mandatory. So, you can’t skip this part. However, don’t forget to open a corporate bank account for ensuring hassle-free issuance of a logistics business license.
In order to apply for the logistics license, submit the needed documents and pay the fees. You might also require additional permits for your business. Thus, you need to hire business consultancy experts in Dubai for making things even easier.
4-Pick the Location of Your Business
Every location in Dubai offers a unique set of benefits and advanced facilities. Therefore, you need to be specific while choosing the location for your business. Either select the Dubai Mainland or pick one of the UAE Free Zones.
The best location is the place where you can effortlessly park the vehicles for your logistics company. All in all, pick the location that comes under your budget and can accommodate your vehicles.
5-Acquire Your Trade License
After the successful completion of the aforementioned steps, you can easily get your cargo and logistics license in Dubai. All you need to do is to check your visa eligibility, additional permits, corporate bank accounts, and pay the fees.
Usually, the trade license fee begins from AED 12,000 in Dubai. Whereas, the activity fees can begin from AED 150 and can be up to AED 500.
6-Get Started With Your Logistics Business
Your logistics business in Dubai can start once you obtain your license. As soon as you seek customers and contracts for your logistics business, you can proceed with your plans. These plans can include everything from integrating equipment to promoting the business.
Wrapping it up:
Establishing a logistics business in Dubai isn’t rocket science. You can do it effortlessly with a few easy steps. The best way to start a logistics company in Dubai is to seek guidance from a business consultancy firm in the UAE. So, wait no more and get guidance from them for starting your logistics entity in Dubai.
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