Start a logistics business in Dubai | Best Business Establishment Consultants
The UAE is one of the best places where you can start a logistics business with the best business setup consultants in Dubai. This is one of the booming businesses in the country, which can provide you with great benefits offered by the economy of the UAE. However, this is often a process that contains many uncertainties and doubts.
In this article, we will show you everything you need to know to set up your logistics company in Dubai. This includes which are the best places to do it and the complete process to be able to establish yourself legally in the country.
The largest niche logistics businesses in Dubai
If you are thinking of starting a business but are nervous about it, the best business setup in Dubai can help you get started. You may feel that hiring the best business start-up companies in Dubai may be an unnecessary cost but it may be beneficial for you. Here is why you need to hire a consultancy:
- They reduce the time and cost of locating a space. The consultancies know very well all the spaces that are available for any type of business. In addition, they can provide you with financial support to establish your business.
- They provide a clear orientation of the business environment. In this sense, the consultants will be able to give you a more complete orientation on the most suitable place to locate your company in the country.
- They are useful assistants for you that will save you time. Business consultants will process all the necessary processes for your company. In addition, they will guarantee that it complies with all the legal and financial requirements stipulated in the Emirates.
- They are knowledgeable of the laws. The best business setup consultants in Dubai know the laws, therefore they will be able to help you comply with them to the letter. Thus, this will avoid inconveniences due to non-compliance with the laws, which will save you time and money.
- They are trusted mediators. In this sense, if you do not speak the language of the country, English or Arabic, the consultants can serve as mediators.
At present, many consulting companies are operating in the country. Without a doubt, it is Connectzone who can help entrepreneurs navigate the complex process of setting up a logistics business in the emirate. However, if the company is logistics, in Dubai there are some key commercial areas for this:
Dubai South Free Zone
The free zone south of Dubai is one of the most recommended destinations by the best business consultants in Dubai. In this area, you will find accommodation in villas and apartments in a residential area of 715 hectares. In addition, it offers other great benefits such as the ones we will mention below:
- Facilities for companies
- Tax-free business transactions
- Total foreign ownership
- Full repatriation of profits and capital
- No taxes for import and export
- Flexible commercial lease
- Miscellaneous commercial activities
- To establish a business, you need little documentation
- You can easily access to the Jebel Ali Sea Port and to the Al Maktoum Airport
- No proof of share capital is required and no currency restrictions, plus competitive rates
- modern facilities
- Industrial license for light manufacturing activities
Dubai Airport Free Zone
The Dubai Airport Free Zone or Dafz, is another of the free economic zones recommended by the best business setup consultants in Dubai. Likewise, this area offers merchants the possibility of doing business of the following types:
- Allows the FZCO or Free Zone Company. This is limited liability that operates within the area or branch of an existing one. In addition, it is in the free trade zone area of the region. This area is located in the vicinity of the Dubai International Airport, UAE.
- Opening of branches of already existing foreign companies in the airport area without requirements for capital stock.
- A subsidiary company may have 100% of the shares of a business established in the free zone.
- The DAFZ zone has approximately 2,000 registered companies from a wide range of industries and qualified professionals.
Jebel Ali Free Zone
This area, known by its acronym as Jafza, is part of the integrated shopping center as well as being the flagship of DP World in the region. In this case, this area offers excellent growth opportunities, as well as easy access to the market. Additionally, Jafza perfectly meets the individual needs of each company.
In the same way, it offers development solutions to each particular business that includes the image, function, and strategy to follow in the place of employment. Jafza is an environment where logistics companies easily thrive just like other business enterprises. Moreover, the best business setup consultants in Dubai recommend it because it supports key businesses by creating business value with large monetary figures.
How to start a logistics company in the UAE?
Starting a logistics company in Dubai is a very profitable idea due to its location, which is strategic, providing access to Asia, Europe, and the rest of the world. In addition, it is an opportunity to showcase the expertise of the best business setup consultants in Dubai.
The logistics industry in the UAE is characterized by the harmony between trade, expansion, export, and modernization. In addition, Emirates is ready to take new impulses through the logistics and shipping services available in the region. Likewise, starting a business in Dubai offers the advantages of connection by sea, land, and air, as well as the following:
- Establish your logistics business in the mainland UAE
- World Class Fundamentals
- Comprehensive tax policies
- Government Agency Cooperation
- No restrictions on commercial locations
- Does not require minimum capital
- Low import taxes
- The extensive scale of optional business activities
Additionally, if you decide to open a business in the Emirates, you will receive additional benefits and opportunities depending on the region where you establish it. Thus, you will have access to the different ranges of markets, which makes it profitable and easy to distribute in the Emirates. In addition, with the best business setup consultants in Dubai, you will be able to adapt to the most important business environment in the region.
These free zones are the ones that provide excellent profits for businesses that have to do with logistics. In addition, the free zones are the ones assigned to undertake logistics companies specifically for their great advantages and opportunities.
Market research and business plan
The first thing to decide is the type of business you want to do with your logistics company in Dubai. In this case, the best business setup consultants in Dubai can help you choose it according to your objectives. Therefore, it is important to determine the specific area and that said activity is included in the DED list.
This includes thousands of activities, so you are almost guaranteed to find the activity that works best for you. Here is a list of the different types of logistics activities that you can practice in Dubai:
- In this area, you must store different types of merchandise in a safe and secure space until its final transport.
- Freight transport. In this case, you must transport merchandise from one place to another, including transfers from customs and documentation.
- Similar to the previous one, in this area, you will have to move merchandise to customers or retailers.
- supply chain. This involves managing the supply process, from raw materials to delivery of finished products.
Legal structure and company registration
In choosing a legal structure, you will need to consider the type of business you are starting. Then, you must apply to the Department of Economic Development DED, in the continental zone or to the Registration and Licensing Authority of the Free Zone.
Also, try to obtain the visa and permits that are necessary for the personnel that will work in your business. This includes obtaining your residence visa to work in the United Arab Emirates. To do this, you must meet the requirements that include biometric scanning, a complete medical examination, among others.
Likewise, once you obtain your business license, you will be able to sponsor the visa of the workers of your business. This also includes family members such as parents or children and spouses, as well as domestic workers. However, the number of visas you can sponsor depends on the size of the business, the setup, and your earnings.
Also, it is a mandatory legal requirement to open a corporate bank account for companies wishing to establish themselves in the UAE. Similarly, opening an international bank account is more convenient for investors since the local one is a more complicated process.
In addition, the best business setup consultants in Dubai are the ones that will help you in this and other processes. For example, this year there are tax changes and new labor laws that contribute to making investment from foreigners to companies in the country much more attractive.
Among them is the 9% corporate tax that began in June of this year. Likewise, the Labor Law regulates the labor rights of private sector workers who work in the territory of free zones. However, in the financial center of Dubai and the Global Market of Abu Dhabi, they have their own rules and labor regulations.
Business license and permits
The Best business setup consultants in Dubai are the ones who will submit the business license application and other necessary permits to the DED. With this, you will have the license to start commercial activities in the country. However, the application process is simple and the authorities have established facilities to do it online and quickly.
In this case, the consultants can carry out this process for you due to the knowledge of the laws and the experience in this aspect. The necessary approvals for your logistics company in Dubai are the following:
- Commercial license. As we mentioned, you need to apply for this license at the Dubai Department of Economic Development (DED). This license allows any type of business to carry out its activities in the UAE.
- Customs clearance license. This is for logistics companies involved in the transport of goods, you must obtain it from the customs clearance of the Dubai Customs Authority.
- Transportation license. If you decide on a transport company, you will need to obtain this license from the Highways and Transport Authority (RTA).
- Warehouse license. This is necessary if you decide that your company works in the area of storage of products and merchandise.
Office space and location
You need to decide if you prefer to establish your logistics company on the mainland or in one of the various free zones that Dubai owns. For this, you can count on the services of the Best business setup consultants in Dubai. In addition, you should consider that on the continent there are specific laws and regulations, and the free zones have their own.
Likewise, a license for a free zone allows you to operate only in that zone and outside of the UAE. However, a license for companies in the continent will serve you to work throughout the country.
In addition, the entity you establish in Dubai will result from the combination of your business license, legal entity, and registered office. Therefore, according to the laws, your business license will be tied to the office size of your business. Likewise, the offices in the free zones are equipped with what is necessary and the rates cover all services.
Office space can be rented for between AED 1,300 and AED 1,600 per square meter of space per year. In this way, there is greater transparency and predictability in cost management for your company.
All these processes are easier to complete with the help of the best business setup consultants in Dubai. In this case, at Connectzone you will find the assistance you need to complete the establishment of your logistics business in Dubai. Therefore, do not wait any longer and work with our team of professionals to have the greatest success.