We know that Dubai is the preferred destination for business, and an efficient transportation service holds great value there. Transportation is considered the backbone of Dubai’s economy.
If you are going to start a transport business in Dubai, it is a wise decision as it offers a high profit margin. It is essential to have the necessary information and insights into the transport business to understand what it entails.
This article is going to provide you with a comprehensive understanding of the significance of the business, provide guidance on how to start a transportation business and provide tips. Give it a read to learn more details.
Importance of Transportation
It is hard to imagine a life without the ease of transportation. In today’s world, modern transportation has gained even more importance as we complete our tasks in hours that used to take days without it.
Especially in Dubai, where the majority of the population comprises expats, there is a rising demand for transportation services to complete daily tasks.
How To Start a Transportation Business?
With research, strategic planning, and careful implementation, any business can be started; the same is true in the case of the transport business in Dubai. If you are interested in the transportation business, you can choose any road transportation service to invest in. It includes
- Buses for public transport
- Water transport service
- Renting cars
- Renting motorcycles
- Special vehicles on rent, such as truck
- Tour Busses for tourist
- Taxi service for passenger transport
Approval from the Authorities
First of all, it is mandatory to have a permission letter or license from the government of Dubai and other relevant agencies. If the selected business activity is to use the vehicles on the roads of Dubai, then you should have a license issued by the Roads and Transport Authority (RTA).
For transportation service that involves transporting goods among different emirates and countries located in the Gulf region, you must have approval from the National Transport Authority (NTA).
The third approval is by the Dubai Municipality (DM) if the transportation of goods requires special conditions such as temperature. After getting these approvals, you can start your business legally, whether it involves the transport of goods or people.
The rules and regulations to be followed are based on the category of selected zone for transportation. If you are going to operate in Dubai and your friend has invested in the UAE Free Zone, then the rules will be different for both.
Register the Company Name
The next step is to select a suitable name for your transport company. The UAE naming conventions advise that it should be unique, simple, appropriate, and reflect the business type.
Avoid using universal and international words while choosing a name, and ensure that it is not already in use. Apply for its registration to the relevant authority.
Certify Documents
The most important documents for transport services in Dubai are the Memorandum of Association (MOA) and Articles of Association (AOA). These documents reflect rules, a road map, and other business strategies.
Approval from the Department of Economic Development (DED) for these two documents is mandatory for them to operate legally. DED ensures the company is real and rules are accurate.
Transport Business License Application
Any business that falls in the category of providing services in Dubai requires a Commercial License. This means that before getting a transport business license, you should have a commercial license issued by the three jurisdictions of the UAE chosen by the investor.
After receiving the commercial license, an investor can get a transport business license from the National Transport Authority (NTA). Documents required to be submitted along with the application are
- ID proofs of business partners
- Passport of the shareholders
- Copy of company name confirmation by the authority
- Notarized memorandum of Association (MOA)
- Notarized Articles of Association (AOA)
- Copy of Property agreement
- Copy of license of vehicles
- Company location lease
Fee Structure for Vehicles
The fees associated with vehicles vary and must be paid to operate transport services in Dubai. For vehicles to transport people, investors have to pay AED100 along with AED for each seat in the selected vehicle.
However, in the case of vehicles that transport goods, there is no passenger fee, and the additional fee is based on gross weight. Usually, it is around AED10 for one ton.
Get Your Visa
It is essential to get your visa so you can conduct business legally while residing in the UAE. Investors can apply for suitable visas depending on the nature of the transport business.
Open Bank Account
For any trading business, having a Bank Account in the UAE is essential. To operate the transportation business smoothly, the UAE allows investors to create account in any bank. Having a bank account will be helpful in trading activities, enhancing the credibility and efficiency of the business.
Bonded Transportation Services UAE
Providing bonded transportation services in the UAE can be highly beneficial. It involves the transport of goods from a specific location to another area under the supervision of customs control.
The main difference in bonded transportation is that it provides the opportunity to not pay duties and taxes on the spot. Goods can be stored in the bounded warehouse for unlimited time, and you can pay tax and customs charges when goods are moved for further processes or sale.
Bonded Transportation Services UAE is usually involved in goods transportation at the international level. However, you can also provide this service in different cities in the UAE and Dubai.
You can make good money after investing in bonded transportation and fulfilling the needs and demands of exporters and importers. Before starting a transport business, make sure you choose:
- Suitable location
- Quality services
- Timely deliveries
- Reliable vehicles
- Skilled drivers
- Safety protocols
Advantages of Starting Transport Services in Dubai
In Dubai, transportation plays a vital role in the growth of the economy in different ways. Starting transport services in Dubai is very beneficial due to the following points:
- Relaxation in paying tax
- Rapidly growing economy
- Suitable location for trading and thus high potential for transport services
- Better facilities for exporting and importing goods
- A favorable environment to maximize the profit
Conclusion
At the end of this article, we hope you now know how to start a transportation business and it has provided you with helpful insights into the transport services in Dubai.
Opening a transport business can be highly profitable as it is necessary in today’s world.The majority of the population relies on transportation for daily commutes to the workplace, outings, shopping, and more.
Moreover, Dubai offers several benefits to transport service providers, such as low-price fuel, visa flexibility, tax relaxation, and advanced infrastructure. Start your efficient and reliable transport business in Dubai and gain success.
