Dubai, known as a global trade hub, offers immense opportunities for entrepreneurs looking to establish a logistics company in Dubai. With its strategic location, state-of-the-art ports, and business-friendly environment, Dubai attracts logistics and supply chain businesses from around the world. For investors and business owners, understanding how to start a logistics company in Dubai, including licensing requirements, costs, and operational strategies, is critical.
TAP Fiscal provides expert guidance to streamline your setup process and ensure full compliance with Dubai’s regulations.
Why Start a Logistics Company in Dubai?
Dubai’s logistics industry is one of the most advanced in the Middle East, driven by trade, e-commerce, and manufacturing sectors. Key reasons to start a logistics company in Dubai include:
- Strategic Location: Dubai serves as a gateway between Europe, Asia, and Africa, making it ideal for freight, warehousing, and transportation services.
- Advanced Infrastructure: Ports, airports, and Free Zones support efficient supply chain operations.
- Tax Advantages: The UAE introduced a federal Corporate Tax in 2023. While Mainland companies are subject to a 9% tax on profits above AED 375,000, Free Zone companies can still enjoy a 0% tax rate, provided they meet the strict criteria for a “Qualifying Free Zone Person (QFZP)”.
- High Demand: Growing e-commerce and manufacturing sectors require reliable logistics and supply chain solutions.
TAP Fiscal helps businesses identify profitable logistics niches and ensures smooth business registration.
Issuing Authorities for a Logistics License in Dubai
In Dubai, logistics licenses are issued by several key authorities depending on the business activity and location. The Dubai Department of Economy and Tourism (DET), formerly known as DED, is the main authority for mainland logistics companies. For businesses operating within free zones, such as JAFZA (Jebel Ali Free Zone), DWC (Dubai South), or Dubai Multi Commodities Centre (DMCC), the respective free zone authorities handle licensing. Additionally, companies engaged in transportation or freight forwarding may require approvals from the Roads and Transport Authority (RTA) and Dubai Customs. Each authority ensures compliance with trade, safety, and logistics regulations before granting licenses.
1. Department of Economy and Tourism (DET) – formerly DED
- For: Mainland logistics companies (freight forwarding, customs clearance, transport services, warehousing, etc.)
- License Type: Commercial License
- Authority Role: Issues the main trade license for businesses operating across the UAE mainland.
2. Free Zone Authorities (for Free Zone Logistics Companies)
If your logistics company operates within a free zone, the respective Free Zone Authority issues the license.
Examples include:
- Jebel Ali Free Zone Authority (JAFZA) – Ideal for international logistics and warehousing near Jebel Ali Port.
- Dubai South Free Zone (DWC) – Focused on air logistics, cargo, and transport near Al Maktoum Airport.
- Dubai Airport Free Zone (DAFZA) – For air freight and courier businesses.
- Dubai Multi Commodities Centre (DMCC) – For logistics supporting trade and supply chain services.
- Dubai Logistics City (part of Dubai South) – Specialized for integrated logistics and freight services.
Each free zone authority acts as the issuing and regulatory body for business licenses within its jurisdiction.
3. Roads and Transport Authority (RTA)
- For: Transport-related logistics activities (goods transport by road, cargo vehicles, delivery services).
- Role: Issues vehicle operation permits and transport activity approvals required in addition to the trade license.
4. Dubai Customs
- For: Businesses involved in import/export or customs brokerage.
- Role: Provides customs codes and registration required for international logistics operations.
5. Dubai Municipality
- For: Warehousing, storage, and distribution facilities.
- Role: Approves warehouse premises, ensures compliance with health, safety, and environmental regulations.
Summary Table
Type of Logistics Business | Issuing / Approving Authority |
Mainland logistics company | Department of Economy & Tourism (DET / DED) |
Free zone logistics company | Relevant Free Zone Authority (JAFZA, DWC, DAFZA, etc.) |
Transport services | Roads and Transport Authority (RTA) |
Import/export operations | Dubai Customs |
| Warehousing & storage | Dubai Municipality |
Types of Logistics Companies in Dubai
Before deciding how to start a logistics company in Dubai, it’s important to identify your business focus. Common types include:
- Freight Forwarding: Handling imports and exports for businesses.
- Warehousing and Storage: Offering storage and inventory management solutions.
- Courier and Delivery Services: Fast domestic or international parcel delivery.
- Cold Chain Logistics: Transporting perishable goods like food and pharmaceuticals.
- E-commerce Logistics: Solutions for online retailers and marketplaces.
TAP Fiscal advises on selecting the most profitable logistics model based on market demand and business goals.
Requirements for Logistics Company in Dubai
To operate a logistics company in Dubai, certain requirements must be fulfilled:
- Trade License: You must obtain a license for logistics company in Dubai from the Department of Economic Development (DED) or the relevant Free Zone authority.
- Office Space: A registered office is required; Free Zones offer flexi-desk or physical office options.
- Fleet or Warehouse: Depending on your business model, you may need vehicles, warehouses, or storage facilities.
- Staff: Skilled staff for operations, customs handling, and administration.
- Insurance and Compliance: Goods-in-transit insurance, safety certifications, and customs compliance are mandatory.
- Bank Account: A corporate bank account to manage operational transactions.
TAP Fiscal manages all documentation and approvals for setting up a fully compliant logistics company.
Step-by-Step Guide: How to Start a Logistics Company in Dubai
Step 1: Business Planning
Define your logistics services, target market, and business model. Conduct a feasibility study to assess demand and profitability.
TAP Fiscal offers market insights and feasibility analysis to ensure your logistic company in Dubai starts with a solid foundation.
Step 2: Select a Location
You can register your business in a Free Zone or mainland Dubai.
- Free Zone: Ideal for 100% foreign ownership, tax benefits, and simplified setup. Popular options include Jebel Ali Free Zone, Dubai Airport Free Zone, and Dubai South.
- Mainland: Allows servicing the UAE market directly and government contracts. Most logistics activities now permit 100% foreign ownership, removing the historical requirement for a local partner.
TAP Fiscal helps identify the most suitable logistics company in Dubai Free Zone for your business.
Step 3: Trade Name Reservation
Choose a unique trade name and get it approved by the relevant authority. Compliance with UAE naming rules is required.
TAP Fiscal handles trade name registration to avoid delays.
Step 4: Obtain a License
Apply for a license for logistics company in Dubai. Depending on your services, this may include freight forwarding, warehousing, or courier licenses. Approvals may also be needed from Dubai Customs and the RTA.
TAP Fiscal ensures accurate and timely license issuance.
Step 5: Office Setup and Facilities
Secure office space, warehouse, or fleet facilities based on business operations. Free Zones often provide ready-to-use infrastructure for logistics companies.
TAP Fiscal provides guidance on cost-effective and strategic facility selection.
Step 6: Hiring Staff
Hire skilled employees for logistics operations, customs clearance, administration, and IT support. Staff visas and labor contracts must comply with UAE laws.
TAP Fiscal assists with hiring and visa processing for your logistics business.
Step 7: Marketing and Client Acquisition
Promote your logistics company in Dubai to attract clients. Effective marketing strategies include:
- Online presence and social media campaigns
- Partnerships with e-commerce platforms and import/export businesses
- Networking in trade shows and industry events
- Corporate contracts and B2B outreach
TAP Fiscal supports strategic marketing planning to grow your logistics business efficiently.
Cost to Start a Logistics Company in Dubai
Understanding the cost to start a logistics company in Dubai requires separating the fixed administrative fees from the variable operational investment, which can range from AED 250,000 to over AED 1,000,000 in the first year.
The single largest cost variable is the physical facility (warehouse or large office). Note that the high-end rent figures below reflect dedicated warehousing, which is necessary for asset-heavy logistics.
| Cost Component | Range (AED) | Notes |
| Trade License & Registration | 15,000 – 30,000 | Initial fee for Mainland (DET) or Free Zone trade license. |
| Mandatory Approvals | 5,000 – 15,000+ | Includes RTA (Roads & Transport Authority) permits for transport and Dubai Customs registration code (for import/export). |
| Minimum Workspace (Flexi/Virtual) | 10,000 – 30,000 annually | Cost for a Flexi-desk in a Free Zone (only suitable for pure freight forwarding). |
| Warehouse/Facility Rent | 150,000 – 500,000+ annually | CRITICAL COST. This reflects actual warehouse leasing (e.g., 5,000 sq. ft. or more in areas like DIP, DIC, or DWC). The low range (AED 20k–100k) is not applicable here. |
| Fleet or Equipment | 100,000 – 500,000 | Capital investment for purchasing vehicles or heavy lifting equipment. |
| Staff Salaries & Visas | 5,000 – 15,000 monthly per employee | Covers wages, plus initial costs for visas, Emirates ID, and medical insurance. |
| Insurance & Compliance | 10,000 – 50,000 annually | Mandatory goods-in-transit, fleet insurance, and general liability coverage. |
TAP Fiscal provides a detailed budget plan to avoid unexpected expenses and ensure financial efficiency.
Advantages of Starting a Logistics Company in Dubai
I. Core Business Benefits (Scannable List)
- Strategic Hub: Provides unparalleled access to international trade routes, connecting Europe, Asia, and Africa.
- Growing Demand: Driven by the region’s increasing e-commerce, manufacturing, and trade volumes.
- Supportive Infrastructure: Access to world-class facilities, including state-of-the-art ports (Jebel Ali), airports (Al Maktoum), and specialized logistics parks.
- Ease of Ownership: Foreign investors can now own 100% of their company in most logistics activities in both Free Zones and the Mainland.
- Tax Incentives: Benefit from potential 0% Corporate Tax in Free Zones, or a favorable 9% rate on profits above the threshold on the Mainland.
II. Critical Detail: Navigating the UAE Corporate Tax for Logistics
Effective from 2023, all businesses in the UAE must adhere to the Corporate Tax Law. For logistics companies, the tax rate is 9% on taxable income exceeding AED 375,000.
- Mainland Logistics: These entities are subject to the standard 9% rate on taxable profit.
- Free Zone Logistics: To maintain the highly attractive 0% Corporate Tax rate, Free Zone logistics entities must qualify as a “Qualifying Free Zone Person (QFZP).” This requires meeting strict criteria, including deriving revenue from Qualifying Income (such as freight forwarding and warehousing) and maintaining adequate economic substance.
TAP Fiscal ensures you maximize these benefits while maintaining full compliance.
Key Challenges in Logistics Business
Operating a logistics company involves challenges such as:
- High startup costs for fleet and warehousing
- Regulatory compliance with customs and transport authorities
- Competitive market with well-established companies
- Operational risks, including delays, theft, and damage
- Seasonal fluctuations in demand
TAP Fiscal helps mitigate these challenges through strategic planning, insurance solutions, and compliance management.
Timeline for Setting Up a Logistics Company
The process typically takes 4–8 weeks:
- Consultation and business planning – 1 week
- Trade name approval – 3–5 days
- License application and approvals – 2–3 weeks
- Office and warehouse setup – 1–2 weeks
- Staff hiring and marketing – 1 week
TAP Fiscal ensures a seamless setup with minimum delays.
Conclusion
Starting a logistics company in Dubai presents a profitable opportunity due to Dubai’s strategic location, modern infrastructure, and thriving trade environment. Understanding how to start a logistics company in Dubai, meeting requirements, managing costs, and implementing strong marketing strategies are crucial to success.
With TAP Fiscal, you receive comprehensive support—from licensing to operations—ensuring your logistics business thrives in Dubai’s competitive market.
Frequently Asked Questions
Is Dubai a good place to start a logistics company?
Yes, Dubai is an ideal hub for a logistics company in Dubai due to its strategic location, modern infrastructure, and high demand for freight, e-commerce, and warehousing services. Free Zones and mainland options provide tax benefits, ease of ownership, and access to global trade networks. TAP Fiscal guides businesses efficiently.
What licenses are required for a logistics company?
To operate a logistics company in Dubai, you need a trade license and a specific license for a logistics company in Dubai. Depending on services, approvals may also be required from Dubai Customs, the RTA, or Free Zone authorities. TAP Fiscal manages all documentation for smooth license acquisition.
How much does it cost to open a logistics company in Dubai?
The cost to start a logistics company in Dubai depends on license fees, office or warehouse rent, fleet acquisition, staff salaries, and insurance. Typical investment ranges from AED 250,000 to over AED 1,000,000. TAP Fiscal provides a detailed financial plan to minimize costs and maximize profitability.
What are the steps to start a logistics business in Dubai?
Steps include business planning, trade name approval, license application, office or warehouse setup, hiring staff, and marketing. Choosing between mainland and Free Zone registration is key. TAP Fiscal guides entrepreneurs step-by-step on how to start a logistics company in Dubai with full compliance and operational readiness.
Which is better – mainland or Free Zone logistics setup?
The best choice depends on your target market, as both setups now permit 100% foreign ownership for most logistics activities. Free Zones (like JAFZA or DWC) are ideal if your focus is on international trade, re-export, or global supply chain management, offering 0% Corporate Tax on qualifying income for a Qualifying Free Zone Person. Conversely, the Mainland is better if your primary goal is to service the entire UAE domestic market, bid on government contracts, or handle local retail distribution, though mainland companies are subject to the standard 9% Corporate Tax on profits exceeding AED 375,000.
Can foreigners fully own a logistics company in Dubai?
Yes, foreigners can own 100% of a logistics company in Dubai. Recent reforms allow full foreign ownership for the vast majority of commercial activities on the Mainland as well as in all Free Zones.
How profitable is the logistics business in Dubai?
The logistics business in Dubai is highly profitable due to growing e-commerce, imports, exports, and trade activities. Profitability depends on niche selection, efficient operations, and marketing strategies. With proper planning, including guidance from TAP Fiscal, logistics companies can achieve high ROI and long-term business growth.
