Dubai economy’s constant growth and favorable business environment have been the reasons why investors around the world have taken interest in setting up businesses in Dubai. The guide provides you with the details on “how to start a logistics company in Dubai?”.
What Does a Logistics Company Do?
Logistics service providing companies will help plan, implement, and manage/control the storage and movement of goods and products from one place to another. In other words, simply within a supply chain and between the points of origin and destination. Several logistics organizations engage in handling some or all of the aforementioned supply chain functions.
Logistics companies, in a nutshell, assist businesses to transport goods or products from the point of origin to the point of destination covering the overall process, efficiently.
Logistics Business in Dubai
Dubai’s infrastructure and geographical location make it an extraordinarily supply and re-distribution gateway. Investors can select a plethora of business choices in Dubai and initiate their entrepreneurial journey without any obstacles. Logistic support is of utmost significance since numerous businesses rely on logistics service providers to help them with their international shipping and warehousing needs.
An entrepreneur having management qualities, with an exceptional operation plan, result-driven approaches and in-depth knowledge can efficiently maximize revenue from logistics business in Dubai. Furthermore, substantial investment and appropriate approaches with using the latest relevant technologies can also help stand out from the industry.
Difference Between Logistics and Shipping Company in Dubai
To understand the difference between logistic and shipping companies in Dubai, first, understand the basic definitions of both.
Shipping refers to the process of moving or transporting goods from one point to another. The shipping services fall into several categories, however, the two basic categories are titled “hazmat shipping” – the movement of hazardous products, and “same day shipping” – for expedited transportation of products. In addition, both of the types required different processes, documentation, handling, managing and arrival times as well as means of transportation.
As we stated above, logistics is the process of transporting goods or products from one place to another. It typically involves several areas including material handling, packaging, warehousing and delivering them to the final spot.
The primary difference between both is their scope and scale. Logistics basically operates on a far greater scale than shipping. It involves all the planning, integration, management and controlling of all the steps involved in the process. Also, logistics is an integrated part of the supply chain process that’s a core part of the business itself. In Dubai, logistics obtained overriding importance among the businesses.
Benefits of Starting a Logistics Company in Dubai
Apart from a growing economy and business-oriented freight forward company incorporation process, there are numerous other reasons why you should start a logistics company in Dubai. A few essentials are mentioned below:
- Taxation benefits.
- Free zone benefits.
- Low import duty.
- Dubai is the fastest-growing economy with outclass infrastructure.
- No unnecessary restrictions on trading locations.
- There is no restriction in currency limitation.
- There is no minimum capital requirement.
- Work along with government bodies.
- 100% repatriation of capital and profits.
- There are no limitations to the number of visas.
- Commercial flexibility and independence.
- Import and export privileges.
- Low-cost energy resources.
- Numerous options for business activities.
Steps to Open a Logistics Company in Dubai
If you are looking for ways pertaining to “how to set up a logistics company in Dubai”, then first and foremost, consider choosing a perfect location that can make your business successful eventually.
In addition, to setup a logistics company in Dubai, there is a certain process that businesses have to go through for the smooth success of setting up a logistics business in Dubai. Below is the procedure to start a logistics company in Dubai;
- Fill up the application and get it approved initially by the concerned authorities
- Submit relevant documentation for the registration of business.
- The process of registration may take 15 – 20 days approximately.
- Generate and submit a detailed plan, along with all other required documents.
- Go for obtaining a business license from concerned authorities.
- Pay the requisite fees to the free zone authority.
- You will be issued with an incorporation certificate by the Registrar of companies in Dubai, for your company.
Documents Required to Open a Logistics Company
Below is the list of essential documentation that you will require to submit to open your logistics company in Dubai:
- Passport copies of the shareholders
- Visa copies of shareholder either visit visa or residence visa
- If residence visa, then NOC from the current sponsor
- Copy of CV and passport of the manager
- Trade name reservation proof
- Proof of initial activity approval
- The document of legal agreement showing a physical address of your company
- Attested and notarized Article of Association and Memorandum of Association
- Payment for the license
The Cost of Starting a Logistics Company in Dubai
The cost of starting a logistics company in Dubai possibly varies based on the type and nature of the setup, the amount of equipment and the technology you wish to utilize in your facility.
In addition, the other types of logistics activities that can also be licensed in Dubai include:
- Customs broker or custom house brokerages
- Freight broker
- Air and sea cargo transportation
- Shipping line agents
- Sea cargo
How Does a Logistics Company work in Dubai?
Logistics service providing companies specialize in dealing with numerous services ranging from keeping products stored, repackaging to delivering around the world. Thus, due to paramount importance, logistics in the region is at its peak, enhancing national and international trade relations among nations. Having such an ultimate role, it is worthwhile, as well as, sagacious to start a logistics company in Dubai.
A logistic company works around below mentioned roles:
- Customs Broker
- Freight Broker
- Warehouse Storage
- Land Cargo Transportation
- Sea and Air Cargo Transportation
Growth of Logistics in Dubai
Dubai is a tremendous spot for logistics and transportations, and one of the most viable choices of location to start a logistics company. Some of the favorable factors that help enhance the growth of logistics in Dubai are mentioned beneath:
- Simple legal formalities
- Favorable geographical location
- SAARC countries
- Inbuilt warehouse facilities
- No pointless restrictions
Hence, there are greater chances that your logistics startup business will be successful eventually.
Locations Suitable for Setting Up a Logistics Business in Dubai
Want to set up your own logistics company in Dubai? Don’t fret, as the most feasible and result-driven location for your logistics company perhaps be Dubai Mainland, Dubai Logistics City (DLC) and JAFZA.
How Avyanco Can Help You Opening Logistics Services?
If you still have any sort of queries pertaining to setting up a logistics company in Dubai, you must consult with us, at Avyanco. We are the leading consulting platform having credible connections with relevant authorities in Dubai. At Avyanco we aspire to help you successfully set up your business in Dubai.