Things to know while starting a Logistics Business in Dubai

Due to Dubai’s stable economy, many companies have been able to develop their operations successfully. However, many of them require logistics services in order to operate strategically and efficiently. In other words, if you learn how to start a logistics company in Dubai, you can develop a profitable business.

In this article, you will learn everything you need to know about the logistics industry and how it works in Dubai. And then, you’ll be able to learn about the company setup process of this type of business in this emirate. Furthermore, here are some tips and things that you should know about the business setup process of your logistics company. Let’s observe:

  1. What is a logistics company and what are its main business activities and services?
  2. Why setting up a logistics company in Dubai can be a profitable business idea?
  3. What things should keep in mind when starting a logistics company in this city?
  4. Learn about the key business locations for setting up a logistics company in Dubai.
  5. What are the licensed business activities that logistics companies can carry out in Dubai?
  6. How can you complete the business setup process in Dubai to start your logistics company?
  7. What are the main documents that the company setup process requires?
  8. How can Connect Free Zone help you set up your logistics company in Dubai successfully?

1. What is a logistics company and what are its main business activities and services?

 

There are many reasons why Dubai is a successful business hub, and one of them is due to the logistics sector. And also, it’s due to its strategic location and the easy access that investors can have to airports and seaports. In other words, it’s easy to carry out transshipment and import and export of goods to and from other continents.

And because of these activities, Dubai is the perfect place to learn how to start a logistics company in Dubai. Nonetheless, you should first know about the exact activities that a profitable logistics company carries out in this city. Some of the main services of a logistics business are planning, implementing, and controlling the movement of storage of goods.

More precisely, the business activities that you can perform with this business are:

  • Freight brokerage.
  • Warehouse storage.
  • Customs broker.
  • Cargo transportation (by air, sea, and land).

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2. Why setting up a logistics company in Dubai can be a profitable business idea?

By knowing how to start a logistics company in Dubai and setting it up, you can enjoy multiple benefits. For example, you will be able to take advantage of Dubai’s geographical location and the ultra-modern facilities that it provides. Besides, all the legal formalities in this emirate are very simple and easy to understand.

On the other hand, investors like you can enjoy low tax rates, world-class infrastructure, and direct freight and cargo connections. With these benefits, it is easier to operate a logistics company. And you can easily set it up by using Connect Free Zone services.

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3. What things should keep in mind when starting a logistics company in this city?

Although the information related to how to start a logistics company in Dubai is simple, you should consider certain things. And keeping in mind those factors will allow you to create a stable and profitable logistics business in Dubai. Now, let’s see what those important things are the reasons why you must take them into consideration:

  • Understand the logistics market: this is the main thing you should be aware of before starting your business. One of the first things that you’ll notice is that this market is fragmented due to the variety of supplies. Therefore, contact Connect FZ to know more about this market and its rules, so you can avoid delays and losses.
  • Meet your clients in person: the best way to ensure efficient communication between the involved parties is by scheduling face-to-face meetings. And this method also avoids misunderstandings between you and your clients, as well as solves any possible issues.
  • Customs, paperwork, and documentation: a crucial element that you should always be aware of is the procedures related to these things. So before starting your logistics company, make sure to know more about customs and documentation with an expert.

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4. Learn about the key business locations for setting up a logistics company in Dubai.

Although you can learn how to start a logistics company in Dubai jurisdictions, you should know about certain favorable locations. And these places are known as free zones, and you can find more than 20 of them all over Dubai. However, each free zone offers different benefits for logistics companies, which is why some locations are more convenient than others.

Therefore, learning about these places is as important as learning about the business setup process. And in case you require more accurate information, Connect Free Zone can provide you with the guidance you need. In Dubai, you can find four special free zones in which you can make your logistics business more profitable. And those locations are the following ones:

However, you can find many other available free zones in which you can establish your logistics company. In fact, you can either choose a free zone or Dubai Mainland, which is another excellent alternative for logistics companies. However, the benefits and requirements in this jurisdiction are slightly different than in a free zone.

Therefore, the most effective way to choose a business location that suits your needs is by contacting us. With our services and advice, you’ll be able to explore all available options and easily select the most favorable one.

5. What are the licensed business activities that logistics companies can carry out in Dubai?

As we mentioned before, the logistics industry in the UAE is made up of several areas and services. That’s the main reason why you should know about them while learning how to start a logistics company in Dubai. The following activities are the main ones that logistics companies can carry out in Dubai:

  • Warehouse storage: just like its name mentions, it involves the use of warehouse facilities and management. And it also includes goods inwards, loading, unloading, sorting, raw materials, packing goods, and many other tasks.
  • Cargo transportation: in this case, there are three types of cargo transportation activities that you can choose. And those are cargo transportation by land, air, and sea.
  • Freight brokerage: it can be for land, air, and sea transportation by freight. It also involves handling matters with customs and insurance brokers.
  • Customs broker: activities like these include preparing customs declarations and bills of lading. Besides, it also involves representing a declarant with customs authorities for cargo clearance.

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6. How can you complete the business setup process in Dubai to start your logistics company?

In order to learn how to start a logistics company in Dubai, your best option is to contact a specialist. For example, getting in touch with Connect Free Zone team can help you set up your logistics company in time. And during this process, there will be several steps to follow to establish your business, and those are these:

  • Choose your desired business activities: since there are many activities related to this sector, you must determine the ones you’ll carry out. And also, you must make sure your activities align with the ones allowed by the pertinent authorities.
  • Select a proper business name: the next step is determining a name for your company. Before making your final decision, it is important to make sure it follows the rules and regulations.
  • Apply for the most suitable license: after selecting your company’s name, you will need to get your license. In this case, you must submit the application form along with the required documents, and then the authorities will issue your license.
  • Apply for the visas you need: having a visa is important to legally stay and work in the UAE. Therefore, you must complete the application process to obtain it. The easiest way to complete is by requesting the visa and government services that Connect Free Zone offers.
  • Open your business bank account: and lastly, opening a corporate bank account is the final step to complete the setup process. You can either choose a local or an international bank to open a bank account for your company.

Here you can learn about the process you need to complete to set up a company in Ajman Free Zone.

7. What are the main documents that the company setup process requires?

Learning how to start a logistics company in Dubai includes learning about the necessary documents to complete the setup process. And being aware of these documents is a vital factor to avoid delays during the company formation of your business. Therefore, you should take a look at those important documents that you will need to set up your logistics company:

  • A few copies of the shareholders’ passports.
  • A copy of the manager’s passport and CV.
  • Personal information about each shareholder and manager.
  • Proof of the trade name reservation and initial activity approval as well.
  • The attested and notarized AOA (Article of Association) and MOA (Memorandum of Association).
  • Also, the attested and notarized Power of Attorney, in which a legal representative is appointed.
  • And also, it will be necessary the document of the legal agreement, in which it is shown a physical address of the company.

Nonetheless, you should keep in mind that some additional documentation might be necessary during the business setup process. But it’ll depend on several factors, such as your chosen location and jurisdiction, and the type of business structure you choose. In any case, contacting Connect Free Zone can help you get more accurate information as well as other useful services.

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8. How can Connect Free Zone help you set up your logistics company in Dubai successfully?

If you want to start operating your logistics company in Dubai as soon as possible, you should get professional help. And by getting help from an agency like Connect Free Zone, you can obtain high-quality services and advice. This way, setting up your business will be an easy task and it will not take too much of your time.

Due to our many years of experience, our team is ready to provide you with the most effective services. And besides, we can help you make vital decisions to benefit your business in the short or long term. For example, we can find the most suitable business location for setting up your company in Dubai or the UAE.

On the other hand, making your company more efficient after its setup process is also essential to make it thrive. Therefore, we have a wide range of services that you can use to improve your company’s operations significantly. For instance, you can find the employees you need by requesting recruitment services, staff outsourcing services, and many others.

Would you like to contact Connect Free Zone to obtain more tips and information about the company setup process of a Logistics Business in Dubai, UAE? If you have any questions, call us on +97143316688. Or you can also email us at info@connectfz.ae, and you will talk to one of our representatives who will gladly answer all of your questions.

Kinjal

Kinjal
Kinjal works at Connect Service Middle East as a sales assistant. She graduated from Mumbai University in India and moved to the United Arab Emirates in 2018. She specializes in UAE mainland company formation, freezone company formation, bookkeeping, VAT registration, and PRO services.

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