Dubai has become well-known as a central hub for business, with lots of opportunities for launching successful businesses in practically every conceivable category. One area of increasing demand in the UAE, especially since the advent of the pandemic, is that of business logistics, transportation, and storage. Dubai is one of only a handful of nations to see sustained growth within its logistics industry throughout the pandemic, and demand for business logistics services is only expected to continue to increase around the region.
Dubai’s strategic geographical location and impressive modern infrastructure make it extremely attractive for supply and distribution business setups. Plus, the Dubai economy is booming, thanks in part to favorable government regulations for business, and thanks too to Dubai’s current hosting of World Expo 2020 (currently running through March 2022). So, could you set up your own logistics company in Dubai? You sure can, as long as you follow the right expert tips and guidance! Read on to learn more about all the things you should know about planning and launching a logistics company in Dubai.
What does a logistics company actually do, and how does it work?
Logistics companies help with the planning and implementation of business logistics, including the transportation and storage of various goods and products. More specifically, a logistics company can help you get your needed assets from Point A to Point B. There are several logistics companies which operate in Dubai Free Zones as well as the Dubai Mainland, and they engage in helping to manage and facilitate many important areas of the supply chain function. A logistics company will partner with a local or regional business to help provide for the needs of the entire supply, sourcing, and storage process in an efficient manner. A logistics services provider can also help with international shipping and warehousing needs. If you’re an entrepreneur with exceptional operational skills and a good business plan, you can maximize revenue by operating a logistics business in Dubai. Logistics services which succeed in Dubai leverage modern technology and apps, and specialize in storage, repackaging, and delivery of products and assets to points across the globe. If this sounds like something right up your alley, you should give some serious consideration to starting your own logistics company in Dubai!
Benefits of starting a logistics company in Dubai
• Free Zone and other taxation benefits, including low import duties.
• Dubai is one of the fastest-growing economies in the world, with an infrastructure that’s second to none.
• No unnecessary restrictions on trading locations or currency limitations.
• No minimum capital requirement and 100% foreign ownership of your business.
• Numerous options for business activities, including both import and export privileges.
• Commercial flexibility and independence.
Points to note before starting a logistics company in Dubai
1. Processes related to customs, documentation, and paperwork:
You must become familiar with all the procedures regarding customs, paperwork, and documentation required. This is essential before venturing into a logistics industry startup.
2. Meet with your prospective client or clients in person:
A one-on-one with the supplier in the logistics field is extremely helpful as it ensures clear communication between all parties involved and helps to prevent any potential miscommunications or mishaps. Also, signing a credit about credit terms beforehand is a crucial step for avoiding any conflicts down the road.
3. Gain an understanding of the logistics market:
The logistics market in Dubai is somewhat fragmented, with suppliers in place all over the UAE. For this reason, it’s best to go with an experienced company. This can help save you on costs, clearance fails, and navigation around applicable customs rules.
4. Logistics in Dubai are well-poised to flourish:
This region hosts some of the world’s busiest seaports and airports. The present infrastructure also boasts great road links to the other Emirates, as well as to surrounding countries. So, whether you’re looking to focus your logistics business on a local, national, or international level, all of these options are equally open to you.
5. Setting up a logistics business in Dubai has other perks too, including:
Let’s start with the taxation benefits; businesses in Dubai enjoy extremely low tax rates. In addition, there’s no minimum capital requirement for businesses, no currency limitations, and practically no visa limitations. Dubai also offers free cargo and freight connections, along with other Free Zone benefits which benefit business enterprises.
Steps to start a logistics company in Dubai
If you’re considering setup of a logistics company in Dubai, you’ll first need to choose an ideal location to suit your business preferences. In addition, there is a set of processes any new business will need to follow to ensure the success of setting up a logistics business venture in Dubai. Below are some points of procedure you’ll need to keep in mind:
• Fill out the application, and gain initial approval from the concerned authorities.
• Submit relevant documentation for the registration of your business.
• Expect the process of registration to take approximately 15-20 days.
• Generate and submit a detailed business plan, along with the other required documents.
• Obtain your business license from the regulatory authorities.
• Pay the requisite fees to the respective Free Zone authority.
• You will then be issued an incorporation certificate for your company by the registrar of companies in Dubai.
Got some more specific questions about setting up a logistics company in Dubai? Connect with us at MSZ Consultancy today! Choosing to partner with a local expert like MSZ can help to smooth out the entire experience considerably. At MSZ Consultancy, we’re world-class business arrangement specialists who help visionaries like yourself get your business up and running in Dubai. We’re experts of our trade, and we’re here to help!
Reach out now to book a free initial consultation with us! Give us a call at +971525441248 or just shoot us an email at info@mszconsultancy.com. Don’t wait; let’s get started!
Frequently Asked Questions
1. How do I start my own logistics company?
• Complete any necessary training
• Pick a location
• Research your competitors
• Choose a niche for your business to occupy
• Create a thorough logistics and transportation business plan
• Choose a name for your business entity in accordance with UAE supervisory guidelines
• Open a business bank account
• Look into options for loans and financing
2. What are the different types of logistics?
There are four main areas of logistics management: supply, distribution, production, and reverse logistics. Each sector focuses on a different aspect of the supply chain process.
3. Is logistics a profitable business?
Absolutely! Running a transport and logistics business in Dubai can certainly be a profitable venture.
4. What are the documents required to start a logistics business?
• Passport copies of the shareholders
• Personal data of the shareholders and managers
• Trade name reservation proof
• Proof of initial activity approval
• Attested Articles of Association (AOA) and Memorandum of Association (MOA)
• Document showing legal agreement about the physical address of your company
5. How can I succeed in the logistics business?
• Get the right transportation management technology and applications
• Find ways to automate the process as much as possible
• Start a vendor compliance program
• Establish alliances with key suppliers
• Measure and communicate key metrics for your business
• View your supply chain as a circular entity, rather than linear
• Keep a pulse on key trends within the logistics industry
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