Dubai is making statements by being an economic hub for businesses and even startups. The dynamics of Dubai are an ever-favorable business climate that meets the needs of global investors. This has made company setup in Dubai easy for individuals who are looking to invest in the UAE. Among various opportunities for business setup in Dubai, the transport companies are reaching heights. To meet international shipping requirements, transport facilities play a crucial role in Dubai.
The outstanding numbers given by RTA (Road and Transport Authorities), depict how much of significant transport business is in Dubai.
We’ll read about the numerous perks and advantages of why Dubai company formation has potential growth especially when it is a transportation company.
Understand step-by-step how to establish a transport company in Dubai.
Starting a Transport Business in Dubai
- Determine the Transportation Type
There are various options for the transport business that vary from passenger transport to cargo transport and then heavy trucks. Your business activity should be listed under the Dubai Department of Economic Development (DED). So, it is important to ensure beforehand what kind of transportation service you are offering.
- Company Setup Plan
Always draft a proper, transportation and business idea for further implementation in the future. One of the major setups involves the consideration of free-zone areas in Dubai instead of mainland areas. This will help in tax breaks and can provide industry-specific support.
- Selecting a Company Name
Dubai company formation is undoubtedly incomplete without a company name. The UAE government has very strict rules and regulations in terms of choosing a name for your company. It does not allow you to go for any religious name for your business. If you desire to name your company on your own name, make sure there is no abbreviation used.
- Arrangement of Documents
Prepare your documents as per the guidelines provided by Dubai authorities. The documents should match the requirements approved by the Department of Economic Development (DED). Also, arrange the Articles of Association (AOA) and Memorandum of Association (MOA).
- Application of Business License
The process of Dubai company formation is incomplete without a company license. An individual needs to verify the documentation including all the necessary papers from passport to approved MOA and AOA.
- Apply for Visa
A residential Visa is required to work in the UAE. Generating a Visa is a complete process of giving medical tests and scans that will verify your identity. Obtaining a company license in Dubai can also facilitate visas for others also.
- Corporate Bank Account
It is a very smooth process to open a corporate bank account in Dubai after you have a trade license. Foreign investors can easily open accounts in generally 15 business days.
Advantages of Starting a Transportation Company in Dubai
- Economic Opportunity: Company formation in Dubai is not a difficult task if steps are followed wisely. Dubai has very diverse transportation facilities and opting for a business in it would be a great choice. The privileges of import and export that Dubai offers lead to its growth across the globe.
- Free-Zone Benefits: Dubai’s free-zone areas are beneficial for tax perks, business growth, and other important services as per the needs of the environment.
- Cheaper Energy Resources: There’s an availability of resources that are very affordable at rates and contribute to the overall cost efficiency of the business.
Registration of Transport Company license in Dubai
To facilitate a company setup in Dubai and execute transportation services, the entrepreneurs need to submit all the necessary documents demanded by the United Arab Emirates government. Three primary transportation services in Dubai are :
- Freight Companies that involve transportation of both heavy and light trucks, dealing with different capacities.
- Goods and Storage Companies involve the transportation of goods, with storage capacity activities also.
- Courier Services ensures the deliverability of packages in the given time frame.
Expansion of Transportation Business in Dubai
- Market Research: It is very important to research your niche, directly cater to your target audience, and analyze what competitors are doing to grow in the business. A good company setup in Dubai is only possible if better R&D is done properly.
- Hire Trained Drivers: To make a good impression in the transportation industry, there is a need to have skilled, trained, and experienced drivers. The drivers should also have a valid driving license as per UAE guidelines.
- Scope Digitally: Offline marketing is not enough to grow your business. For a good and established Dubai company formation, there is a need to market yourself through online channels also. Engage customers through your online website. Make your customers reach you by booking a service through your website.
Documentation Required to Start a Transport Company
The following list of documents is essential during company setup in Dubai.
- Commercial license obtained by the authorities
- Passport copies of the company’s shareholders and partners.
- Showcase the reserved trade name approved by the Dubai authorities.
- Initial approval proof from the authorities.
Activities Covered under Transport License in Dubai
- Cargo Transport: Cargo transport is referred to as goods being loaded onboard in a truck. These trucks can be heavy or light.
- Renting a Vehicle: This transportation activity involves renting a car, bicycle, or bus for some other activities.
- Water Transport: It involves the transportation of water across the areas.
- Passenger Transport: Dubai is the destination of tourists. Thus, providing a transportation facility such as taxi services and buses to conduct various tours is a good strategy.
- Petroleum and Heavy Machinery Transportation: Providing specialized transportation services such as heavy machinery and petroleum products across the locations.
Dubai is becoming the leading epicenter of opportunities for entrepreneurs. By following the given steps, the Transportation company setup in Dubai could be an easy and profitable task. Not only neighborhood destinations but worldwide delivery of goods has also become easy through the transportation business in Dubai.
Hope you’ll get a clear idea of how to initiate and excel in your Dubai company formation starting from the selection of transportation kind to trade license and documentation required.
