HOW TO START YOUR LOGISTICS BUSINESS IN THE UAE – BENEFITS, TYPES, AND PROCESS

Explore the benefits and processes of launching a logistics business in the UAE. Discover types, key advantages, and strategic insights for success.

In the heart of the Middle East, the United Arab Emirates (UAE), lies a golden opportunity for entrepreneurs looking to venture into the logistics market in UAE. The nation's prime locations, elegant infrastructure, and lenient taxation policies make it an ideal destination for establishing a logistics company in UAE. Moreover, the UAE also provides access to Asia, Europe and Western countries, making it a logistics hub that attracts businesses worldwide.

In this blog, we'll explore the benefits, types, and the process of starting a logistics business in the UAE.

Benefits of Starting a Logistics Business

According to the World Bank's Logistics Performance Index, the UAE consistently ranks high - showcasing its efficient logistics in UAE within the Gulf Cooperation Council (GCC). Therefore, starting a logistics business in this country can be a game-changer for entrepreneurs. Here are some of the benefits:

• Connectivity across land, sea, and air: The UAE provides a strategic advantage with access to three major transportation channels: land, sea, and air. This level of connectivity is unrivalled and can significantly streamline your logistics operations.
• Lenient taxation policies: The UAE also offers lenient taxation policies, ensuring that you can keep more of your hard-earned profits. The absence of corporate taxes and income taxes makes it an attractive destination for logistics companies in UAE.
• Low import duty: If your logistics business involves importing goods, you'll benefit from low import duties, making it more cost-effective to bring products into the country.
• Various optional business activities: The UAE allows logistics companies to specialise in niches such as e-commerce, warehouse logistics solutions in UAE, and international shipping.

Types of logistics businesses

It's essential to understand the different types of logistics businesses you can establish in the UAE. Each type caters to a specific niche and offers unique opportunities.

Freight forwarding business: Freight forwarders facilitate the movement of goods from one destination to another, often across international borders. They are intermediaries between shippers and carriers.

Warehousing and distribution: These warehousing companies in UAE manage the storage and efficient distribution of goods, serving as vital links in the supply chain.

E-commerce fulfilment: With the surge in e-commerce, establishing an e-commerce fulfilment business is a promising venture. This involves handling order processing, packaging, and timely delivery for online retailers.

Cold chain logistics: The UAE's thriving food industry and healthcare sector make cold chain logistics a lucrative niche. It focuses on the transportation of temperature-sensitive goods like pharmaceuticals and perishable foods.

Third-party logistics (3PL): 3PL companies in UAE offer comprehensive logistics solutions to businesses, including transportation, warehousing, and supply chain management.

Customs brokerage: Customs brokers help businesses navigate complex customs regulations, ensuring the smooth import and export of goods.

The process of setting up your logistics business

Now let’s understand the step-by-step process of setting up logistic company in the UAE:

1. Choose Your Business Activity
Select the logistics activity that best suits your business vision - because the UAE offers thousands of approved activities for you, so you're sure to find one that aligns with your business goals.

2. Company Naming & Trademark Registration
Naming your business is a crucial step. Ensure your desired name is available and adheres to naming rules and regulations, avoiding offensive terms and brand names – as well as legally register the trademark to ensure the copyrights.

3. License Application
Apply for your UAE trade license, which is issued by either DED for mainland businesses or the respective free zone for companies operating there.

4. Visa Application
To work in the UAE, you and your employees need a UAE residency visa. As a business owner, you can obtain an investor visa that allows you to sponsor family members and employees. The number of visas you can apply for depends on your business's size and activity.

5. Documents Required
Prepare the necessary documents, including passport copies of shareholders, visa copies, manager's passport copy and CV, proof of trade name reservation, proof of initial activity approval, legal agreement for a physical address in the UAE and license payment proof.

Start your logistics business with RAKEZ – Your success launchpad in the UAE

To facilitate the journey of aspiring entrepreneurs, Ras Al Khaimah Economic Zone (RAKEZ) offers a comprehensive package for setting up your logistics business in the UAE. As a leading investment hub, RAKEZ supports SMEs and startups, providing an ecosystem that fosters the growth of logistics companies in UAE.

Now is the best time to set up your logistics business. RAKEZ will take care of all the set-up complexities for you!

Reach us on:

Phone: +971 7 2041111
Email: info@rakez.com