How To Start A Transport Business In Dubai

The United Arab Emirates is the prime economic hub of the Arab nation of the Middle East. This country's transition as one of the four leading commercial and investment centers is in major part owing to Dubai. Foreigners, investors, and businessmen from different parts of the world consider Dubai as their prime destination as it is a city with excellent location, impressive infrastructure, a rapidly growing economy, and business opportunities of various types. As a result of the government’s policy to exempt Corporate and Personal Income corporate taxation and liberal business visas, more than 20000 businesses are set up in the UAE per annum. About 8. Around 10 million inhabitants are found in the UAE out of which 5 million are of other nationalities.

The economic operations of the government are gradually changing from depending so much on oil business-related companies. This has led to promotional campaigns which are mainly undertaken by the government and target international investors and businessmen in the UAE. Their endeavors have already propelled the UAE’s economy among the fastest growing globally. They ranked this fine city in the top five of the overall list of the best cities to live and work in globally. As the economy of the Middle East is growing transportation becomes very vital in the expansion of the city of Dubai. They placed the economy on wheels literally. Indeed, the transportation segment belongs to one of the significant Dubai revenue-generating industries.

How to Start a Transport Business in Dubai

However, there is a set of procedures that one has to follow to acquire a transport company license in Dubai. Depending on the type of services you are providing, you can apply among three types of transport licenses in Dubai:

Logistics business

Dubai has a preferable reputation when it comes to logistics. There are also free zones in Dubai for logistics trading which are also several in number. Generally, the legal formalities to start a logistics company do not pose much of a challenge. Further, Dubai boasts of now complex and sophisticated logistic facilities & geographic factors to guarantee ease of running your logistics transport business. To begin with the transportation of goods in a free zone, one has to provide the relevant documents and a business plan.

Courier transport

Despite the transport company license in Dubai can be granted for different types of services, to obtain a license in courier services you have to register in the Emirates Post Group. Next, one should apply for a commercial license to proceed with the trade activity registration. In general, upon submission of the application, the courier services license is granted in 30 days. Such business people can be from any country and even send their online application together with the required documents.

Road Transport

As earlier discussed how to start a road transport business by entrepreneurs, they have to obtain a transport license from the National Transport Authority in the UAE. The vehicles within this fleet also have to be provided with safety gear. Before you can start your transport business in Dubai, then you will require a commercial license. It is obtained after paying a one-time fixed charge besides a charge made for the number of passenger seats or gross weight of the vehicles.

Starting a Transportation Company in Dubai

The transporting business is one of the most lucrative businesses that one can venture into in Dubai. As mentioned above, business in Dubai is growing, and that alone calls for a high demand for transport services for that business to be operative and (or) grow. Below are the procedures on how to Start a Transport Business in Dubai.?

Step 1: Choose the Business Structure for Your Transportation Company in the UAE

Dubai is famous all over the world for its truly special free zones. Free zones are economic zones set aside for certain forms of economic activities. This is because they offer international investors tax incentives and business facilitating services according to the sector. Each free zone also offers permits to investors and the magnificent infrastructure and several clients of logistics companies, a skilled workforce, and a large customer base requiring transportation services.

However, the procedure has been made very systematic and fast, yet for doing legal business in UAE, a commercial license is mandatory. Getting a license for your business in Dubai is very straightforward especially if your business is located in a free zone.

Step 2: Choosing and Reservation of the Company Name

Trade License Zone will help you decide what kind of a name will be suitable for your company. The Registry Office stated that no rude or vulgar words and no mention of the religion of Islam or any terms referring to God and Allah are allowed for identification in the business. Your name could be included in the name of your corporation in which case you have to use your full name, not your surname or initials. We will then see if the name is available to be registered;

Step 3: Make company documents

There shall be a necessity to apply for the notarization of your firm’s documents as we help in the processing of your company and visa papers. This can only begin after your company name has been decided on and the name has been registered with the Registry Office. For notarization, the company's Memorandum of Association (MOA) and Articles of Association (AOA) must be filed with the Dubai Department of Economic Development.

Step 4: Submit the Application for a Business License

As for the transport company, it is necessary to acquire the commercial license initially before applying for the transportation license in Dubai. These two processes are handled by distinct government agencies: the commercial license can be obtained by applying to the Dubai Department of Economic Development for a free zone license, and your transport company license, will be from the National Transport Authority.

In addition to your completed application form and business plan, you must also provide the following documentation:

• Passports of shareholders and directors in facsimile
• A photocopy of the Trade Name confirmation from the Registry Office
• Commercial license copy
• The authorization of the city management agencies for the first activity performing
• Memorandum of Association Notarized is also known as MOA.
• This is an essential requirement of the company’s Memorandum and Articles of Association Notarized (AOA).
• This is a copy of the lease or property agreement of the company’s physical address.
• Payment for trade license: Passenger vehicles rented by the company cost AED 100 plus AED 5 for every seat available in the car; for commercial products, vehicles will be charged AED 100 plus AED 10 for each ton of the vehicle’s gross weight.

Step 5: Getting a Business Licence.

Once completed, the National Transport Authority will issue your organization a business license. This process usually takes two weeks.

What Bizdaddy Can Offer to Assist You setup Transport Services in Dubai

The moment is now if you want to launch a transport company in Dubai. The transport sector is a smart choice for anyone looking to launch a profitable business because it contributes significantly to Dubai's economic growth.

It's advised to get advice and assistance from a trustworthy business setup specialist in Dubai, like Bizdaddy, to guarantee a seamless and prosperous debut of your transportation enterprise.

Our knowledgeable and talented staff at Bizdaddy will be pleased to help you every step of the way. Our customized solutions not only fit our client's needs but also go above and beyond their expectations.