Another report states that the UAE logistics market size is expected to show a growth rate (CAGR) of 5.58% during 2024-2032. The momentous growth in the e-commerce industry, and the implementation of government policies focusing on boosting trade and logistics are some of the major factors propelling the market growth.
What’s More?
The Bottom Line:
- What’s the Market Potential? It’s High. The market is projected to grow steadily, and the government is actively supporting its development.
- How’s the Competition? It’s Fierce. A well-defined strategy and a focus on a specific niche are crucial for success.
- What’s the Regulatory Environment like? It’s Complex. Partnering with legal or compliance experts can help you navigate the regulations effectively.
So, How to Start A Logistics Business In UAE?
Starting a logistics company in the UAE involves several key steps and obtaining various approvals.
Here's a step-by-step guide to help you get started:
1. Business Model:
Decide whether you want to start your logistics company in one of the UAE’s free zones for 100% ownership or in the mainland which may require a local sponsor.
2. Business Plan:
Develop a comprehensive business plan outlining your business model, services, target market, and financial projections.
3. Legal Requirements:
Register your business with the UAE’s Department of Economic Development (DED) or the respective free zone authority. You will need to choose a company name, fill out the application forms, and submit the required documents.
4. Trade License:
Obtain a trade license for your logistics company. The type of license will depend on your chosen business activities.
5. Office Space:
Secure an office space or warehouse that meets the requirements of your logistics operations.
6. Visas and Staffing:
Apply for visas for yourself, your employees, and your dependents. Ensure you comply with the UAE’s labor laws and regulations.
7. Bank Account:
Open a corporate bank account in the UAE to manage your finances and transact with your clients.
8. Customs Registration:
Register with Dubai Customs for a customs code if your business will be involved in import and export activities.
9. Additional Approvals:
Depending on your specific logistics activities, you may need additional approvals:
- Federal Transport Authority (FTA): For transportation-related activities.
- Customs Clearance Permit: From Dubai Customs for customs brokerage services.
- Ministry of Economy: For attesting the Memorandum of Association.
- Dubai Police: For security systems of logistics companies.
- Civil Defence: For handling hazardous materials and cargo.
- General Civil Aviation Authority: If your business involves air cargo transportation.
- Maritime Authority: For maritime logistics activities.
- Roads and Transport Authority: For land cargo transportation.
- Food Control Department: For food storage and delivery services.
Is Mainland Better than Freezone?
| Feature | UAE Mainland | UAE Free Zone |
| Market Access | Access to the entire UAE market | Limited market access; may require additional licenses for mainland trade |
| Ownership & Taxes | Requires majority UAE national ownership (minimum 51% is still applied for some logistical activities) and is subject to corporate tax (currently 9%) if qualified. | Allows 100% foreign ownership and typically can enjoy income tax benefits and exemptions on import/export duties. Free zones are also subject to corporate tax (currently 9%) if qualified. |
| Business Setup | Generally, more complex and time-consuming | Streamlined and faster business setup process |
| Regulations | Subject to all UAE regulations | May have fewer regulations, but specific to the free zone |
| Visas | Easier to obtain visas for employees | Obtaining visas may be subject to free zone regulations |
| Ideal for | Companies aiming for wider market access and distribution within the UAE | Consider business setup in Dubai free zone or anywhere across the UAE to focus on international trade and export |
Additional Considerations:
- Type of Logistics Business: The type of logistics services you offer may influence your choice. Some free zones specialize in specific logistics sectors.
- Long-Term Strategy: Consider your long-term plans. If you eventually want to expand into the UAE mainland market, setting up on the mainland might be a better option.
- Cost-Effectiveness: While free zones offer tax benefits, consider other setup and operational costs to determine the most cost-effective option.
Let CorpCreators be your guide!
Dubai beckons with its strategic location, world-class infrastructure, and thriving business environment. But navigating the legalities and complexities of setting up a logistics company can feel like a maze. That’s where CorpCreators comes in.
Our team of experts in Dubai business formation will help you:
- Chart the Right Course: We offer you the right recommendations to choose the ideal setup – mainland or free zone – based on your specific needs.
- Cut Through Red Tape: Streamline the business registration process, ensuring all legal requirements are met.
- Secure License & Approvals: Obtain the necessary trade licenses and approvals for your chosen logistics activities.
- Navigate Regulations: Understand and comply with UAE regulations for a smooth launch.
Don’t waste time deciphering logistics legalese. Start focusing on building your logistics empire and speak to our business setup consultants in UAE today. Book a free consultation now!
