Dubai Logistics Licence Guide for 2022

Dubai Logistics Licence Guide for 2022

In Dubai, there has never been a better time to launch a logistics licence business. According to Statista, after the global economic shocks of 2020, freight entering the ports of the United Arab Emirates is quickly returning to pre-pandemic levels.

Therefore, Dubai is the place to be if your logistics, shipping, or packing business wants to access one of the most prosperous shipping hubs in the world.

What is a logistics Licence in Dubai?

Simply put, a logistics licence in Dubai is a permit that enables you to lawfully run a logistics firm out of the emirate. This licence covers a wide range of logistics enterprises, including freight and customs brokers, warehouse businesses, logistics planning organisations, sea and air cargo transportation services, and much more.

Our specialists can provide guidance if you’re wondering whether your company needs to apply for a logistics licence in Dubai.

Advantages of establishing a logistics business in Dubai

The advantages of establishing a logistics company in this emirate are clear given its status as one of the top shipping centres in the globe. Among the principal benefits are:

  1. Location

On the world map, Dubai is situated in a key area. The sea and air routes that are centred on Dubai carry a tremendous amount of trade. Trade between Asia, Africa, Europe, and, to a lesser extent, Australasia and the Americas, is centred on the emirate. For further information, see Steps to start business in Dubai

  1. Great tax benefits

Starting a logistics company in Dubai will allow you to benefit from the emirate’s extremely cheap income and corporation taxes. Additionally, if you decide to have your business base in a free zone, you might not have to pay any corporate tax or VAT at all.

  1. World class infrastructure

Many people consider Dubai’s maritime ports and airports to be among the greatest in the world. This first-rate infrastructure will make it simple and easy for you to start trading.

  1. A government that supports trade

The Dubai government works to make the emirate a competitive yet fair location to launch a logistics company. It takes a pro-market, pro-business stance.

  1. Proximity to other logistics companies

In Dubai, countless logistics companies with specialised operations are based. This implies that a wide range of possible clients, suppliers, employees, and business partners will be available close by for your logistics company. In comparison to locating your company somewhere with a less developed sector, all of this makes it simpler and more effective to run your firm.

  1. Global trade agreements

Dubai and the entire United Arab Emirates have a vast network of international trade agreements with nations all over the world. This implies that trading with business partners anywhere will be simple for you.

The best way to start a logistics company in Dubai

In Dubai, you must take the following actions in order to obtain your logistics licence in 2022:

1.Pick a company name

The first step is deciding on a trading name for your business. The name should be consistent with your company’s primary functions (such as “Elhassan Freight Broking”) and adhere to UAE business naming regulations.

2.  Select a free zone or the mainland

If you plan to conduct business directly with partners in the emirate, setting up shop on the mainland of Dubai is a wise choice. You can visit Launch your Travel Agency In Dubai for additional reference.

3. Apply for a logistics licence

You must fill out an application form for your company and send it to the Department for Economic Development (on the mainland) or the administrators of your preferred free zone, along with a few supporting documents. The procedure can be completed online and just requires a few hours.

4. Submit all required documents

There are a lot of documents you need to submit when requesting a logistics company licence. OnTime Biz can guide you through the procedure if you are unsure of the documents required or the format in which to give them:

• An application form

• A copy of your passport

• If you’re an expat who wants to base yourself in mainland Dubai, provide a copy of your local sponsor’s passport.

• An Emirates ID copy

• Your memorandum of association

5. Logistics licence will be issued

The logistics licence will typically be granted in a matter of days, at which point you can begin setting up your company.

6. Start processing visas

Many proprietors of logistics companies hire foreign staff. You will also need to apply for visas for all of your international staff if this is a part of your business plan. You can get assistance from OnTime business with the process of applying for employment visas.

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