How to Start a Transportation Business in Dubai?

How can You start a transport company in Dubai?

The United Arab Emirates is the undisputed leading business hub in the Middle East and Africa with easy access to Europe. The pleasant corporate environment, low taxes, world-class infrastructure, large international airports, splendid ports contributes to Dubai being a business hub and has attracted many foreign national, investors around the world.

The tax benefits for foreign nationals and foreigner-owned businesses are some of the appealing incentives to live and work in the UAE.

Starting a transport business is unquestionably lucrative. With business booming in the Middle East, transportation companies provide an essential solution to help continue this growth in Dubai. Dubai’s transportation industry is one of the most significant contributors to its economy. Business in Dubai is increasing and it creates an enormous demand for transportation services for those companies in Dubai to survive and thrive.

Many companies have started transport operations in Dubai turning it into a leading transportation hub. However, before getting into the transportation business in Dubai, it is necessary to get a transportation service license in Dubai.

There are three main type of Transportation Services allowed in Dubai:

  • Freight Companies,
  • Courier Companies,
  • Companies that transport and store specific goods.

You can choose any of the below activities of the above mentioned Services as per your business requirements:

  • Cargo transport by heavy trucks
  • Cargo transport by light trucks
  • Water transport service
  • Rental and transport of heavy machinery
  • Car rental service
  • Bus rental transport services
  • Passenger transport (taxi services transport and tour buses)
  • Special rental vehicles such as trucks and related transport
  • Motorcycles rentals service
  • Vehicles towing services and vehicle transport
  • Specialist transportation services such as gas tanks, money and valuables transport
  • Refrigerated transport
  • Petroleum transport
  • Bicycle rentals service
  • Vehicle Fleet Management services
  • Luxury vehicle services

How do You start your own Transportation Business in Dubai, Mainland?

Here are the necessary steps to start a transport business in Dubai.

  1. Decide on the trading activity & business structure: Choose an ideal transportation business activity to be operated in Mainland or Free zone.
  2. Choosing and Registering a Business Name: Select the right name for your business.
  3. Notarise your Company’s Documents: The documents required for notarization are the company’s Memorandum of Association (MOA) and Articles of Association (AOA) with the Department of Economic Development in Dubai (D-DED).
  4. Submit your Business Licence Application: For a transportation company in Dubai, you’ll need to apply for a commercial license before applying for your transportation license. These two steps are handled by different government agencies: the commercial license can be applied for through a free zone application with the Dubai Department of Economic Development, while the National Transport Authority will issue your transport company license.
  5. Pay the Fees and Collect the Licence: The National Transport Authority will issue your company with a business license.
  6. Select a business location: Select the office/shop/warehouse location and get an rent agreement for it.
  7. Apply for a bank account: to trade in the UAE as per your operations and transactions.

Following are the things you should bear in mind while establishing a transport business in Dubai:

  • You must obtain a transport license from the UAE National Transport Authority.
  • The transport vehicle should be equipped with safety gear, and all technical terms should be completed.
  • The applicant for a transport license should be a UAE citizen.
  • You need to obtain a commercial license prior to applying for a transport license in Dubai.
  • The transport license would be valid for three months and you have to renew for 30 days.
  • Passenger vehicles have to make payment of AED 100, plus AED 5 for every passenger seat to get a license.
  • Vehicles transporting commercial goods require to make payment of AED 100, plus AED 10 for every tone of the gross weight of the vehicle.

What are the Document Required to start a Transport Business in Dubai, Mainland?

The necessary document required to establish a transport business in Dubai are:

  • Passport copies of the stakeholders
  • Personal data sheet of all the managers and stakeholders
  • Proof of trade name reservation
  • Proof of initial activity approval
  • Notarized and valid Memorandum of Association and Article of Association
  • Attested and notarized power of attorney hiring a legal representative
  • Copy of the lease or property agreement of the company’s physical address
  • Payment for trade license

How much does it cost to start a Transportation business in Dubai, Mainland?

The cost of obtaining the transport business licence will depend on many factors based on your location, business activities, company size , activities chosen, government fee and other operational costs.

If you are looking to start an Transportation business in the UAE, it is recommended that you work with company formation professionals who have exceptional expertise in business set up formalities. They also have the necessary connections that help make the whole process smooth and effortless. Remember that the process is only easy and hassle-free when the business setup is done without any error.

Infographic on how to start your Transport Company in mainland Dubai

how to start your Transport Company in mainland Dubai
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