Dubai’s reputation as a global trade and logistics hub has rocketed in the past few years. Thanks to ever-increasing investment in logistics infrastructure and capabilities, Dubai is now a major regional trade gateway and a hub between East and West.

For entrepreneurs looking to start or scale their logistics license in a new market, there has never been a better time to act. To help you take full advantage of every opportunity, Charles Ntumwa Services provides a wide range of fast and seamless company formation services.

This article explores how to set up a logistics company in Dubai. Feel free to reach out to our business advisors for further details and a bespoke quote tailored to your needs. We will discuss the following topics:

• Logistics license Dubai – what is it?
• When is a logistics license required?
• What are the types of logistics business activities available in Dubai, UAE?
• What are the benefits of opening a logistics company in Dubai?
• UAE governmental authorities required for special approvals
• How much does a logistics license cost in Dubai?
• How do I start a logistics company in Dubai?
• How can I get a cargo license in Dubai?
• Is a logistics business profitable in UAE?
• How Charles Ntumwa Services can help

Logistics license Dubai – what is it?

To legally operate a logistics business in the UAE, all businesses require a special permit known as a logistics license. This permit covers a wide range of logistics businesses, from land cargo to freight brokers. You cannot legally run your logistics business in Dubai without a valid license and could face serious penalties if you fail to obtain the correct clearance beforehand.

When is a logistics license required?

You will need to obtain a logistics license in Dubai if your company solely provides services to the logistics and supply chain industry. That means that you will also require a logistics license if you offer services in packaging for transportation, goods storage, goods transportation and port services. It’s important to note that your logistics license allows you to hold an inventory of physical products but does not allow you to purchase or sell goods. To do so requires a separate license.

What are the types of logistics business activities available in Dubai, UAE?

A wide range of logistics activities in Dubai require a logistics and cargo license. These include:

Air cargo transportation

Air cargo transportation includes sorting and packing airfreight, air fleet management and forward leasing.

Customs brokers

Customs brokers help prepare customs declarations and present these to the relevant authorities.

Fleet management

This covers businesses that manage fleets of ships, trains, aeroplanes and other transportation.

Freight brokers

Freight brokers provide brokerage for sea, land and air freight transportation while handling matters with insurance brokers and customs.

Land cargo transportation

Companies involved in land cargo transport freight overland by rail and road.

Leasing

Companies specialising in leasing lend or lease vessels, containers and other logistics equipment.

Logistics planning

Logistics planners ensure cargo gets to its destination smoothly.

Sea cargo transportation

Sea cargo transportation encompasses sorting and packing, containers, RORO, bulk and forward leasing.

Third-party logistics (3PL)

This covers any service contract that involves storing and shipping a commodity, including warehousing and transportation services. A 3PL company could offer a single service or inventory management, but might also provide a bundle of services that manage a client’s entire supply chain.

Warehouse and storage

Firms offering warehouse facilities manage, pack, load and receive goods.

What are the benefits of opening a logistics company in Dubai?

Dubai is a global trade and logistics hub offering a wide range of benefits for logistics and cargo professionals, including:

• A strategic location – Dubai enjoys global connectivity, being just four hours by air from one-third of the world’s population and eight hours from two-thirds of that potential market.

• World-class infrastructure – Dubai is easily accessible through two international airports, one of which is the busiest in the world. It’s also one of the top five shipping hubs in the world and home to the largest marine terminal in the Middle East.

• Pro-trade government – Dubai’s government is famously pro-market and has introduced a whole string of measures to make the region a competitive place to start a logistics company.

• Generous tax benefits – Logistics companies benefit from one of the most competitive tax regimes in the world, with 0% on corporate profits and personal income tax and just 5% VAT for most categories in the internal market. All business owners are entitled to apply for tax residency in the UAE too.

• Global trade agreements -The UAE has built an extensive network of international trade agreements with countries across the globe, which makes it easier for business owners to trade with partners from every corner of the globe.

 UAE governmental authorities required for special approvals

Given the diverse nature of logistics and cargo, you may find that you need to apply for special approvals from a dedicated government authority. A few key government authorities are outlined below:

• Aviation, maritime, roads and transport authorities provide permission for businesses to operate in their specific domain.

• Civil defence oversees the import and re-export of hazardous materials, substances and cargo.

• Customs approve clearance of imports and exports.

• Police approve security systems for warehouses and logistics companies.

• Food control provides accreditations for food stored in Dubai warehouses and foodstuff delivery.

• Ministry of Climate Change covers the import of agricultural goods, live animals, fertilisers and similar goods.

How much does a logistics license cost in Dubai?

You can obtain your logistics license for as little as AED 15,000 per year. However, keep in mind that there will be additional costs based on several factors. For instance, you will probably need to pay for warehouse or storage unit costs. Other factors include the number of business activities, additional visas and value-added services, such as bank account setup.

For a more accurate idea of how much setting up a logistics company in Dubai might cost you, get in touch with Charles Ntumwa Services. Our business advisors will be happy to provide a bespoke quote based on your specific needs and will be able to advise on the most cost-effective way to proceed.

 How do I start a logistics company in Dubai?

Starting a logistics company in Dubai is more straightforward than you might think, though you’ll need to ensure you have the right clearances and documents. You will then need to gain initial approval, register the business entity, submit your business plan for approval and incorporate your company.

How can I get a cargo license in Dubai?

To get a cargo license in Dubai, you must ensure all your customs, paperwork and documentation are in order. You will need to define your business activities, choose the jurisdiction and company name, submit your license application and apply for your visa.

Charles Ntumwa Services has helped countless business owners obtain their cargo licenses in Dubai and will guide you through the process from start to finish.

Is a logistics business profitable in UAE?

Yes, logistics businesses offer huge opportunities for business owners to boost their bottom line.

How Charles Ntumwa Services can help

Running a logistics business can open up lucrative opportunities for business owners in Dubai. Entrepreneurs can maximise profits with a competitive tax regime, pro-business legislation and easy access to the world’s busiest transport hubs.

However, setting up a business in a new country can be a daunting process, particularly for those with little knowledge of local laws and regulations. Charles Ntumwa Services are experts in business setup in the UAE. We’ve helped countless entrepreneurs turn their business dreams into reality by guiding them through the entire process, from applying for a license to opening a bank account.

For more information and a personalised quote, please visit Charles Ntumwa Services.

The post Logistics License Dubai – Cost and Requirements appeared first on WWF.

RAK International Corporate Centre or (RAKICC) is a Corporate Registry based in Ras Al Khaimah. Registering and incorporating International Business Companies (IBC), it also provides a full range of services for all IBC-related activities.

Adhering to the highest international standards, RAKICC offers a variety of solutions to IBCs around wealth management and asset protection. It enables IBCs to hold shares, assets in local or internationally registered companies, as well as owning properties and opening bank accounts.

If you’re currently concerned about travelling, there is another benefit as well. You no longer have to leave your office. At WWF we offer the service of travelling to you to complete your RAK ICC setup.

Facilitating this much easier setup process by minimising unnecessary travel, we’re able to work through the process with you remotely, and when an in-person meeting is required, we will come to you.

Redomicile companies from blacklisted jurisdictions to RAK ICC

There has never been a better time to move to RAK ICC. Due to Economic Substance Requirements, it makes sense to redomicile companies from blacklisted jurisdictions to RAK ICC. These re- domiciliation fees are set at US $3,250 for a limited period of time. There are discounts available for bulk re-domiciliation.

You can set up a number of different types of company in RAK ICC

Some of these options include:

• Company Limited by Shares
• Company Limited by Guarantee
• Special Purpose Vehicle
• Segregated Portfolio Company
• Unlimited Company
• Transfer of Domicile

Reasons to redomicile your company

There are several key developments here to consider, including:

• Traditional offshore jurisdictions are under pressure (competition, regulatory issues, and Substance)
• Finding a viable alternative to jurisdictions traditionally labelled as ‘offshore centres’ facing extreme scrutiny internationally
• Companies are increasingly concerned with the reputational risks associated with their choice of jurisdiction
• Urgent need to meet ESR

Major advantages of redomiciliation

Aside from addressing changes in the business landscape, redomiciliation also offers a number of notable benefits:

• Companies can maintain existing legal status
• Companies can preserve operational and banking history
• Access to common law courts
• Wills registration to protect the assets and shares in the name of the company

We have been offering company formation services for over 15 years and we are a trusted advisor to over 2,000 clients from more than 100 countries. We look forward to talking to you about your requirements.

Please contact us at ic@wwfl-uae.com for further details.

The post RAK ICC Business Setup: Without the Travel appeared first on WWF.