In this article we will explore how to start a cargo company in Dubai, a hub for logistics and cargo, strategic location and strong infrastructure. The cargo business is huge for UAE’s economy as it creates thousands of jobs and brings lots of money. The Jebel Ali Port in Dubai is one of the busiest ports in the world, and Dubai Airport manages a large amount of cargo everyday. The cargo sector is helping UAE to become less dependent on oil trade and build a diverse economy focusing on economical business practices.
According to a report, the value of UAE’s logistics market was approximately USD 62.08 billion in 2024 and expected to reach about USD 95 billion by 2033. Hence, Dubai has become the top choice of business owners to start their cargo business. Let us look at the process to start a cargo company, its rules and licenses involved.
Cargo Industry in Dubai
Dubai is a strategic location connecting businesses from east and west through its roads, ports and airports. Dubai offers businesses benefits of easy customs services, modern logistics systems and a huge demand for cargo services. All of the modern facilities make Dubai a perfect spot for anyone looking to start a cargo company.
A cargo and logistics business needs careful planning for expenses. These costs include license fee, staff salaries and their visa costs, registration and customs charges, office and warehouse rent, investing in vehicles and other equipment if you choose to run your own fleet. Moreover, there are costs of insurance and other safety compliance. Overall costs depend on the size of your company and the services you choose to provide.
What are the Types of Cargo Companies in Dubai?
When starting a cargo business in Dubai, you need to select the type of cargo business you want to run. Top options include:
Freight Forwarding Services
Handling the movement of goods through air sea or land and managing customs paperwork and warehousing and tracking shipments. Freight forwarders ensure smooth delivery to its destination, which makes them an essential link between transport providers and businesses.
Warehousing & Storage
Provides secure storage, management of inventory and distribution services. Some businesses in Dubai prefer outsourcing warehousing to service providers instead of investing in a facility.
Courier & Express Delivery
Handles smaller parcels, shipments and urgent deliveries. With the growth of e-commerce businesses in Dubai, the courier and express delivery model offers good opportunities and rapid growth.
Customs Clearance & Brokerage
Managing complex customs clearance documents and approvals to help clients move their goods in and out of the country. A customs brokerage requires expertise in local laws and getting registered with Dubai Customs.
Specialized Cargo Handling
Focused on niche markets like pharmaceuticals, perishable goods, hazardous materials and heavy machinery. This special cargo handling model requires specific licenses, approvals, facilities and safety measures but has a high profit margin due to less competition.
Integrated Logistics Services (3PL/4PL)
It combines freight forwarding, customs clearance and final mile delivery. An integrated logistics provider is suitable for large corporations handling their clients’ entire supply chains.
What are the Legal Requirements to Start a Cargo Company in Dubai?
Starting a cargo company in Dubai requires several necessary steps. Here is what you need to get started:
Select a Jurisdiction
Choose the right jurisdiction whether a free zone or Mainland to set up a company in UAE.
Mainland Setup
A mainland business setup allows to do business in all of UAE and internationally. You can apply for license at the Department of Economic Development (DED) in Dubai.
Free Zone
Allows 100% foreign ownership, modern logistics facilities and tax benefits. The most popular free zone dor cargo business are JAFZA, Dubai Airport Free Zone (DAFZA) and Dubai South.
Logistics License
If you have a mainland business setup , you can apply for a commercial license from the Dubai Department of Development (DED). You can apply for a license depending on the services including Logistics Service License, Cargo Transportation License or a Freight Forwarding License.
For a free zone business setup, you can apply for the license from the respective free zone authority.
Select a Business Name
Decide a business name for your cargo company complying with the naming regulations of UAE. Apply for name approval from the relevant authorities.
Additional Approvals
You may need additional approvals according to your type of cargo business such as:
- Dubai Civil Aviation Authority (DCAA). For air cargo services apply for a license from DCAA.
- Dubai Customs. For import/export services and customs clearance.
- Dubai Municipality or other Regulatory Authorities. For special cargo services like food, hazardous goods or pharmaceuticals.
Lease an Office
Secure a warehouse or a physical facility that meets the regulatory requirements of Dubai. Select a location near ports, airports or main highways to help cut transportation costs and make delivery efficient and fast.
Open a Bank Account
Open a business bank account for daily payments and business transactions. A bank account makes trade easier, keeps company’s funds separate from personal income and builds trust among clients and suppliers.
Documents Required to Start a Cargo Company in Dubai
Here is the list of documents required,
- Business Plan. A clear business plan such as future goals, operations and services.
- Passport Copies. Need to provide passport copies for owners and shareholders as identification and proof of registration.
- Visa Copies. Owners or shareholders visa copies for legal processing.
- Trade Name. Deciding a few trade name choices for your cargo company.
- Trade Name Reservation. A certificate to prove the officially reserved trade name.
- Lease Agreement. Lease an office space to run your cargo company.
- Details of Managers & Stakeholders. Personal information of the whole management of the company.
- Approval for Business Activities. Confirmation of approval of business activities from authorities.
- Memorandum of Association. A legal Memorandum of Association (MoA) showing ownership and structure of your cargo company in Dubai.
- Employee Visa. Visa documents for company’s workers and shareholders.
- NOC. Get a No Objection Certificate from the current sponsor (if applicable).
- Customs Registration Documents. A customs registration document is needed if you handle customs clearance or import/export.
What are the Costs Involved in Starting a Cargo Company in Dubai?
The cost to start a cargo company in Dubai varies based on the jurisdiction and type of activities. The main cost is a company trade license in Dubai. A mainland license costs between AED 15,000-30,000. While for a free zone, the cost is often lower, starting from AED 12,000-25,000.
Additionally, you’ll need security deposits for your office/warehouses, vehicle permits and registration if you are operating your own fleet, insurance coverage, and staff visas.
Why Start a Cargo Company in Dubai?
Dubai not only offers modern infrastructure, a growing economy and business-friendly policies, but numerous other advantages to logistics companies in both mainland and free zones. A few benefits include:
- Tax benefits.
- Perfect location for international trade.
- Access to big markets.
- Low import duty.
- Free zone benefits.
- Modern infrastructure and fast-growing economy.
- No unnecessary restrictions on trading locations.
- No restrictions in currency limitation.
- No minimum capital requirement.
- Lower insurance costs.
- Full repatriation of profits.
- Support from government institutions.
- No limitations on the number of visas.
- Support for import and export of goods.
- Commercial independence and flexibility.
- Low-cost energy resources.
- Various business activities to choose from.
Difference Between Logistics and Shipping Company in Dubai
To understand what is the difference between a logistics and a shipping company in Dubai, we need to understand their definitions.
Logistics Company
Logistics is the process of transferring goods from one place to another. A logistics company handles inventory, packaging, storing and delivering them to their designated destinations.
Shipping Company
Shipping means transporting or moving goods from one place to another. They may act as freight forwarders coordinating with other service providers or specialize in a specific mode of transport.
Hence the main difference between a shipping and cargo company is their scale and scope. Logistics companies handle operations on a larger scale than a shipping company. It manages, planes and controls all the steps involved for transportation and holds a high importance among the businesses.
Suitable Locations for a Cargo Business Setup in Dubai
The most suitable locations for your cargo company in Dubai are
- Dubai Mainland
- JAFZA
- Dubai logistics City (DLC)
Skills Required to Run a Successful Cargo Company in Dubai
Running a successful cargo business in Dubai require necessary skills and qualities, which are:
- Understanding the transportation sector.
- Experience in handling cargo shipments with other freight forwarders or enterprises in Dubai.
- Understanding the process of international trade such as, shipping containers, custom processes, handling of goods and tariff structures.
Summary
Ultimately, this blog answers your question on how to start a cargo company in Dubai? Dubai is the ultimate destination for a cargo business due to its easy trade policies, strong infrastructure and strategic location.
Let Al Riyady Help You Kick-start Your Business Journey
At Al Riyady, we help you get your trade license, approvals, arranging necessary documents and getting a perfect location to kick-start your cargo business in Dubai. With the growing demand for logistics services, you can easily grow your business and make it successful with careful planning. Our expert team can also help you with the following services:
- Golden Visa UAE
- Business setup in mainland and free zone.
- Opening a Bank Account
- Accounting, Bookkeeping Services and more.
