If you have been searching “how to start a transport company in Dubai?”, your search ends here!
In this comprehensive article, we will walk you through the entire process of how to open transport business in Dubai, how to get a transport company license in Dubai, and everything that you must know to successfully set up your business.
Transport Business in Dubai
Being a hub for transportation companies, with many already establishing their operations in the city, Dubai has become a leading center for transportation services. Transportation companies provide a range of services, including storage and international shipping, to businesses of all sizes. They handle the storage of products, re-packaging, and worldwide delivery, among other tasks. As transport companies play a crucial role in the supply chain, it's important to get things right the first time.
The transportation industry plays a significant role in Dubai's economy and is one of its largest contributors. As businesses in Dubai continue to expand, there is an increasing demand for transportation services to help them succeed.
Types of Transport Services in Dubai
Broadly speaking, 3 types of transport services are permitted in Dubai, including Courier Companies, Freight Companies, and transport companies that offer transportation and storage of specific goods. Other kinds of transportation services allowed in Dubai that your transport business can specialize in include:
- Heavy-duty trucking
- Light truck transport
- Maritime freight service
- Equipment and machinery transportation and rental
- Car /Motorcycle/ Bicycle rental
- High-end car service
- Coach and bus rental
- Taxi and tour bus passenger service
- Specialized truck and transport rental
- Vehicle recovery and towing
- Specialized transport for delicate cargo such as fuel tanks, money, and valuable items
- Temperature-controlled transport
- Petroleum tanker transport
- Fleet management services
Starting A Transport Company in Dubai
The United Arab Emirates is widely regarded as the top business center in the Middle East and Africa, with convenient access to Europe. Moreover, Dubai's strategic location makes it an ideal hub for transportation services, as it is easily accessible to other countries in the Middle East and Africa, as well as Europe. Besides, its attractive business climate, low taxes, state-of-the-art infrastructure, world-class airports, and outstanding ports – all contribute to Dubai's status as a hub for commerce, attracting foreign investors and nationals from around the globe. Additionally, the tax incentives for foreign nationals and businesses owned by foreigners are among the key draws for living and working in the UAE.
Transport Company License in Dubai
By obtaining the transport company license in Dubai and approvals, you can legally operate your transport business in Dubai and meet the regulations set by the government. The transportation license, also referred to as an “operation card”, is issued by the Roads and Transport Authority (RTA).
To ensure the safe transport and storage of goods, a transport and storage contract, insurance coverage during transportation and storage, and an appropriate driver’s license are necessary. Additionally, the owner must fulfil the storage requirements set by the Ministry of Health in the UAE.
Obtaining an NOC from the RTA is a requirement for obtaining and renewing business permits in Dubai. Currently, there are 12,000 registered transportation and car rental companies in Dubai, with a total of 255,000 vehicles registered for transportation and rental purposes, according to the RTA.
Cost of Transport Company License in Dubai
The cost of a light vehicle transportation license for a company with 3 vehicles could range from AED 12 500 to AED 15 000, while a heavy vehicle transportation license for a company with 3 vehicles could cost between AED 12 500 To AED 15000. Therefore you have to pay RTA approval Fee which is AED 3 500.
|Fees Details||Cost AED|
|Initial Approval Fees||120|
|Trade Name Fees||620|
|Tasheel Local Service Agent fees||350|
|Tasheel Preapproval Fees||345|
|Transport License Fees||12500|
|Foreign Trade Fees||2000|
|Local Agent Fees||6 000|
|Total Transport License Cost||21 935 AED|
The cost of a transport company license in Dubai may vary based on the type of license, business activities, operational costs, government fees, location, and the size of your company. Some of the factors that can impact the cost of the license include the number of vehicles, the type of vehicles, and the type of goods being transported.
Note: These figures are only estimates and the actual cost can vary based on various factors. It is recommended to consult with Avyanco so that we can assist you with the exact cost of your transport license.
Benefits of Starting a Transport Company in Dubai
Starting a transport company in Dubai can provide numerous benefits, including:
- Tax benefits
- Benefits from operating in a free zone
- Low import duties
- Rapidly expanding economy with top-notch infrastructure
- Unlimited trading locations
- No minimum capital requirement
- Cooperation with government agencies
- No limit on visas
- Import and export opportunities
- Access to low-cost energy resources.
Steps to Open a Transport Business in Dubai
- Determine the Business Structure & Type of Transport Business
Decide on the type of business entity you want to set up, such as a sole proprietorship, partnership, limited liability company (LLC), or a branch of a foreign company.
When considering starting a transportation business in Dubai, consider the market you are willing to serve. You can choose the following options for establishing a transportation company:
- Passenger Transportation
- Car rental service
- Luxury vehicle services
- Motorcycle rentals service
- Refrigerated transport.
- Petroleum Transport
- Cargo transportation by large trucks
- Cargo transportation by light trucks
- Rental and transport of heavy machinery
- Water transport service
- Register Your Company Name
Register your trade name with the Department of Economic Development (DED) to ensure that it complies with Dubai's regulations. The Registry Office has strict regulations regarding the use of language in business names. It's forbidden to use offensive or blasphemy language, or any references to Islam or Allah. If you wish to include your name in the company's use it in its entirety, not just your last name or initials. The name must be checked for availability before registering it.
- Prepare & Notarize Documentation
After your company name has been processed and approved by the Registry Office, you can proceed with the next step. The Memorandum of Association (MOA) and Articles of Association (AOA) of the company must be notarized by the Department of Economic Development in Dubai (D-DED).
- Complete Application for License
Before you start a transport business in Dubai, make sure you have obtained a commercial license, which is separate from the transportation license. The commercial license can be obtained through the Dubai Department of Economic Development. Meanwhile, the transportation license will be granted by the Roads and Transport Authority (RTA).
When submitting your application, along with a completed form and business plan, you'll also need to provide the following documents:
- Copies of passports for all stakeholders
- A copy of the commercial license
- Personal information for all managers and stakeholders
- Proof of trade name reservation
- Approval of initial activity
- Notarized MOA
- Procure Visa
To operate your transportation business in the UAE, you will require both a trade license and a residency visa. The process of obtaining a residency visa involves several steps, including a biometric scan and a medical examination. If you hold a UAE business license, you can also assist others such as dependents and employees in obtaining their visas.
- Open a Bank Account
It is necessary to have a business bank account to conduct trade in the UAE. While foreign investors may face difficulties in obtaining banking services, Dubai provides opportunities for investors to open bank accounts for obtaining transportation company licenses. Usually, the bank account can be established within 15 business days.
Documents Required to Start a Transport Company
The required documents to set up a transport business in Dubai include:
- Business plan
- Passport copy of the owner/shareholder.
- Visa copy of the owner/shareholder
- Few name Choices for the company reservation.
- Lease Agreement – Actual office or Virtual office
How Avyanco Can Help You Setup Transport Services in Dubai
If you are looking to start a transport business in Dubai, now is the time to act. The transportation industry plays a significant role in the growth of Dubai's economy, making it a wise choice for those seeking a successful business venture.
It is recommended to seek guidance and support from a reputable business setup expert in Dubai such as Avyanco, to ensure a smooth and successful launch of your transportation company.
At Avyanco, our experienced and highly skilled personnel are happy to assist you throughout the process. We offer our clients tailored solutions that meet their budgets and exceed their expectations.
Contact us today to get started!
Jashvant Prajapati, founder and CEO of Avyanco Group of Companies; Business Setup Consultancy, Avyanco Tax and Accounting LLC, and Avyanco Auditing LLC. He keeps a varied portfolio with core expertise in investment management, corporate structuring, commercial law, business consultancy, lead management, business planning and market research. Aspire to help potential entrepreneurs and investors to come ahead and form their companies in highly emerging economies like UAE.