Why Set up a Logistics Company in the UAE?

Strategically positioned between East and West, the UAE is now recognized as a world-class hub for international commerce. Of note, it focuses on logistics. This strategic geographical location has led to the emergence of the UAE as a major multimodal transit and re-export hub.

Exploiting the opportunity afforded by being placed on a transcontinental trade route, the UAE has become the regional leader in logistics and caters to the trade demand from Europe, Asia, Africa, the USA, and the Middle East. With a progressive approach to foreign investment and an extensive double taxation treaty regime, the UAE has become a country of opportunity for foreign businesses.

The UAE government has created economic free zones aimed specifically at companies providing logistics services. However, it is worth noting that companies incorporated in such free zones are limited to operating within the free zone and internationally only.

Mainland or Free Zone, which is right for you?

In the UAE there are two main jurisdictions for companies: Mainland and Free Zone. You can set up the company in either of them.

Logistics companies can be incorporated in the mainland as well, with an LLC structure and now 100% foreign ownership*. Moreover, there is no minimum requirement for office premises, it can be as minimum as 20 sqm office in a business center anywhere in the mainland jurisdiction. *No local sponsor/ agent is required.

A Mainland DED license allows your company without any limitations to trade and provide services anywhere in the UAE or internationally.

Free-trade Zones are particular economic areas set up with the objective of offering tax concessions and customs duty benefits to expatriate investors.

*Regardless of the jurisdiction you choose, there may be a requirement to obtain external approval from the authority. This will depend on your business activity.

All UAE Free Zones are restricted to operate only inside that particular Free Zone or internationally. Jurisdiction limitations do apply to ensure the business is undertaken legally.

This structure is perfect for you if your clients are mainly international companies outside the UAE. If however, you plan to provide services to large Mainland corporations that are audited by the Federal Tax Authority, you will be required to have a Mainland branch or to register a license under the Mainland economy department.

Logistics-related activities with the name of external approval if required:

1. Sea Freight & Passengers Charters – Dubai Maritime City Authority – electronic approval required – after the DED license is issued
2. Customs Broker – Dubai Customs approval – electronic – obtaining of customs broker activity approval, initial approval request from DED. Online registration can be done via the Dubai Trade Portal.

• Cargo Loading & Unloading Services
• Cargo Packaging
• Sea Cargo Services – Dubai Maritime City Authority – electronic approval
• Air Cargo Services – Dubai Civil Aviation Authority
• Shipping Containers Loading & Unloading Services
• Sea Shipping Lines Agents – Dubai Maritime City Authority – electronic approval

It is recommended to add only those activities, which will be operated, as some activities from Transport, Shipping, and Storage group require additional approvals from other authorities.

What are the steps to obtain the license?

STEP ONE: Trade Name Reservation with the Department of Economic Development (DED)

Requirements:

Upon submission of the above documents, the DED will issue the Trade Name Reservation Certificate (valid for 3 months, renewable for the same period upon request, subject to payment of the same trade name reservation fee).

STEP TWO: Initial Approval from the Department of Economic Development (DED)

Requirements:

Receipt addressed to the Dubai Municipality for external approval.

STEP THREE: Execution and signing of the MOA in DED

Time Frame: Same working day (subject to availability of all supporting documents)

STEP FOUR: Commercial License Issuance by the DED

Requirements:

a. All documents submitted to the DED listed in Step 2;

b. Trade Name Reservation Certificate – copy (to be obtained from Step 1);

Time Frame: Approx. 4 working days (subject to the availability of all supporting documents)

After the Mainland license has been issued the company should register within the Immigration and Labor system. After completion, there will be the option for partners’ and employees’ visa registration.

Do you need more guidance and support to establish your logistics business in UAE?

Bizzmosis has designed a variety of business support packages to help business owners in the UAE advance and succeed. To learn more, contact us

📧 hello@bizzmosis.com ☎️ +971 4 568 6522 📞 +971 52 979 8169

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