How to set up a shipping company in Dubai: Logistics License?
Dubai is a global hub for trade and commerce, offering strategic access to major markets in the Middle East, Africa, and Asia. Setting up a shipping company in Dubai can be a lucrative business opportunity due to the city’s location and logistics infrastructure. However, it is important to understand the process of setting up a shipping company in Dubai and the legal requirements involved. In this blog, we will guide you through the steps of setting up a shipping company in Dubai.
Shipping company in Dubai Registration Process:
Determine the Type of Shipping Company
Before starting the process of setting up a shipping company in Dubai, it is important to determine the type of shipping company you want to set up. Dubai offers several types of shipping companies, including freight forwarding, liner shipping, chartering, and more. Each type of shipping company has its own requirements and regulations, so it is important to choose the right type of company for your business needs.
Choose a Business Location
Choosing the right business location is critical when setting up a shipping company in Dubai UAE. Dubai offers several free zones, such as Jebel Ali Free Zone, Dubai Multi Commodities Centre (DMCC), and Dubai Airport Free Zone, which provide various incentives and benefits for businesses. These free zones offer 100% foreign ownership, no personal income tax, no corporate tax, and easy access to shipping ports and airports. However, if you want to operate your business outside a free zone, you will need to obtain a license from the Dubai Department of Economic Development (DED).
Register Your Business
Once you have determined the type of shipping company and chosen a business location, you will need to register your business with the relevant authorities in Dubai. The process of registering a business in Dubai involves several steps, including obtaining a trading name, obtaining initial approval, and obtaining a commercial license. The Department of Economic Development (DED) is the primary authority for business registration in Dubai.
Obtain the Necessary Licenses and Permits
Depending on the type of shipping company you are setting up, you may need to obtain additional licenses and permits from various authorities in Dubai. For example, if you are setting up a freight forwarding company, you will need to obtain a license from Dubai Customs. If you are setting up a shipping agency, you will need to obtain a license from the Dubai Maritime City Authority (DMCA). It is important to research the specific licenses and permits required for your business and obtain them before starting your operations.
Obtain Residency Visa
Once you have obtained the necessary licenses and permits, you can start hiring employees for your shipping company. Dubai offers a range of visas for employees, including work visas, residence visas, and investor visas. It is important to obtain the necessary visas for your employees to ensure they are legally allowed to work in Dubai.
Set Up Your Office and Infrastructure
Setting up your office and infrastructure is the final step in setting up a shipping company in Dubai UAE. Depending on the type of shipping company you are setting up, you may need to invest in shipping equipment, warehousing, and transportation vehicles. You will also need to set up your office with the necessary equipment and software, such as computers, printers, and shipping management software.
What is the cost to get a logistics license in Dubai?
The cost to get a logistics license in Dubai can vary depending on the type of license and the location of the business. The cost of obtaining a logistics license in Dubai can be broken down into several components, including:
License Fee: This is the fee charged by the Dubai Department of Economic Development (DED) for issuing a license. The license fee can range from AED 9,000 to AED 40,000 depending on the type of license and the location of the business.
Trade Name Reservation Fee: This is the fee charged by the DED for reserving a trade name. The fee would be between 700 to 800 AED. Check more info on trademark regulations in Dubai.
Immigration Card Fee: This is the fee charged by the General Directorate of Residency and Foreigners Affairs (GDRFA) for issuing an immigration card. The fee would be around 400 to 800 AED per person.
Chamber of Commerce Fee: This is the fee charged by the Dubai Chamber of Commerce and Industry for issuing a membership certificate.
Office Rent: This is the cost of renting an office space in Dubai. The cost of office rent can vary depending on the location and size of the office.
What is the scope of setting up a logistics company or shipping company in Dubai?
- The scope of setting up a logistics company in Dubai is vast due to its strategic location, world-class infrastructure, and advanced logistics network.
- The city serves as a gateway to the Middle East, Africa, and Asia, making it an ideal location for logistics companies to establish their operations. With a thriving economy and increasing demand for logistics services, there are ample opportunities for growth and expansion in this sector.
- Dubai’s supportive business environment and government initiatives further enhance the scope for logistics companies to succeed and thrive.
We understand that the process of obtaining a business license and setting up a logistics company in Dubai can be complex and time-consuming. That’s why our team of experts is dedicated to providing efficient and reliable services to ensure that your business is up and running as soon as possible. In addition to helping with the application process, we also offer services such as legal consulting and advisory, drafting commercial contracts, immigration residency visa services, and company restructuring services.
At Legal House, we pride ourselves on providing personalized and tailored services to meet the unique needs of each of our clients. We are committed to providing transparent and competitive pricing, so you know exactly what to expect before beginning the process. Whether you are a start-up or an established logistics company, we are here to help you navigate the legal and regulatory requirements of setting up a business in Dubai. Get in touch with us today to discover additional information about our services and find out how we can assist you in accomplishing your business objectives.
FAQ
the required documents are a passport copy, Trademark registration copy, memorandum of association, emirates id and local sponsor emirates ID, and passport copy if you have one.
Logistics business activities in Dubai include freight forwarding, transportation, warehousing, and distribution. Other permitted activities include cargo handling, packaging, custom brokers, and supply chain management. The Dubai government encourages logistics companies to establish their operations in the city by offering various incentives and support services.
A cargo license is a permit or authorization granted by the Dubai government authority to a business that wishes to engage in the transportation, storage, or distribution of goods or cargo.
There are several types of licenses available for a logistics company in Dubai, including a commercial license, industrial license, and professional license.
The requirements for obtaining a logistics license in Dubai vary depending on the type of license and the location of the business. Generally, the requirements include a business plan, a lease agreement for office space, passport copies of company shareholders and directors, and payment of necessary fees.
The challenges of setting up a shipping or logistics company in Dubai include competition from established players in the industry, compliance with local regulations and laws, obtaining necessary permits and approvals, and hiring qualified staff.
The risks associated with the transportation business in Dubai include operational risks such as delays in transportation, damage or loss of cargo, accidents, theft, and employee safety. Other risks include compliance with local laws and regulations, competition from established players in the industry, and economic and political instability.
Transportation businesses in Dubai can stay compliant with local laws and regulations by staying updated on changes in regulations, obtaining necessary permits and licenses, maintaining accurate records, and ensuring that all staff members are trained and knowledgeable about compliance requirements.
Non-compliance with local laws and regulations in Dubai can result in fines, penalties, legal action, and reputational damage. It can also result in the suspension or revocation of business licenses and permits.
To build vessels in Dubai, shipyards must obtain a license from the Dubai Maritime City Authority (DMCA). The validity of the license is for a period of one year, and it is possible to renew it every year. Shipyards must also comply with international regulations and standards, such as those set by the International Maritime Organization (IMO) and the Classification Societies.
