Benefits of Starting a Transportation Company in Dubai

#1: Strategic Location

Dubai is the most influential business hub of the Middle East and
Africa, with easy access to Europe. In fact, Dubai is the place where
East meets West. Iraq, Iran, Saudi Arabia, Oman, Yemen, Bahrain,
Qatar, Syria, Turkey, Kuwait, Jordan, and Egypt surround Dubai and
the UAE. As a logistics and retail business hub, Dubai is well-
connected to the rest of the world. Dubai’s retail industry is world
famous: travellers around the world visit Dubai specifically for
shopping. The way your company operates in the transportation
industry will be important: from international bus services transport
and road transportation, think of international firms that need freight
companies, freight forwarding, courier companies, sea freight logistics
support, and other value-added services for the UAE and nearby
countries.

#2: World-Leading Infrastructure

Dubai’s sea, road and air infrastructure are second to none. With its
world-leading road network, major sea ports, global shipping and
logistics business assets, airports, and all the basic services in Dubai
are high quality: it further adds to the allure of the UAE for foreign
investors looking to start a transportation company.

#3: Benefits of Dubai for Companies

The tax benefits for foreign nationals and foreigner-owned businesses

are some of the appealing incentives to live and work in the UAE. The
UAE recently changed its regulations regarding visas and updated its
company policies to allow foreigners to wholly own their businesses
heightened the attraction of Dubai as a destination for foreign
investment, entrepreneurs, and job seekers.

Another attractive reason to open a company in Dubai, such as a

transportation company, is that this government requires no minimum
capital investment. With free zones, of which they dedicated each to
single industries, the government can better support SMEs through
specialised support centres, business accelerators and incubators,
and more.

Types of Transportation Services Allowed in Dubai, UAE

There are many types of transportation services allowed in Dubai,
UAE. When you choose Dubai for your business activities, you can
specialise in:

 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

Steps to Start a Transportation Business in Dubai, UAE

Transportation is a profitable business in Dubai to start. As we’ve
mentioned, business in Dubai is increasing and it creates an enormous
demand for transportation services for those companies in Dubai to
survive and thrive. Here are the necessary steps to start a transport
business in Dubai.

Step 1: Partner with Trade License Zone

As we’ve mentioned, partnering with a local company setup agency is
the first step to opening any type of business. A transport company
must follow a strict business structure and formation regulations. Our
specialists at Trade License Zone will manage all aspects of your
company formation process, specialist transport operating licenses
and guide you on the various governmental and municipal trade
regulations for operating in the UAE.

Step 2: Choose a Business Structure for your Transportation Business in

UAE
Dubai is world famous for its innovative free zones. Free zones are
special economic zones set up for dedicated industries. These offer
tax benefits and business support services specific to each industry
for foreign investors. Each free zone also offers licenses to investors –
and of course access to stunning infrastructure, logistics business
clients, skilled workers, and a high volume of customers requiring
transportation services.
The process has been simplified and streamlined, but to trade legally
in the UAE a commercial license is required. Free zones make this
process easier to apply and get a license for your business in Dubai.

Step 3: Choosing and Registering a Business Name

Trade License Zone will help you select the right name for your
business. According to the Registry Office, the business name may not
include any offensive or blasphemous language, nor any references to
Islam or Allah. You can include your name in your company name, but
you must use it in full rather than just your surname or initials. We’ll
then check if the name is available to be registered.

Step 4: Notarise your Company’s Documents

While we’re helping to process your company and visa applications,
we’ll need to apply for the notarization of your company’s documents.
This can only begin once the Registry Office has processed and
approved your company name. 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 (DED).

Step 5: Submit your Business License 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.

Along with your completed application form and business plan, you’ll
also need to submit the following documentation:
  Proof of ID and address for directors and shareholders
 Passport copies for shareholders and directors

 Copy of trade name confirmation from the Registry Office

 Copy of commercial license

 Proof of initial activity approval from cities management

agencies

 Notarised Memorandum of Association (MOA)

 Notarised Articles of Association (AOA)

 Copy of the lease or property agreement of the company’s

physical address

 Payment for trade license: for each passenger vehicle to be used

by the company, a fee of AED 100 is required plus a fee of AED 5
for every passenger seat; They require vehicles transporting
commercial goods to make a payment of AED 100 plus AED 10 for
every ton of the vehicle’s gross weight

Step 6: Getting your Business License

Once complete, the National Transport Authority will issue your
company with a business license. This process usually takes 2 weeks,
but because of the limitations of COVID-19 restrictions, this may take
up to 4 weeks.

How to grow a transportation business in Dubai?

Growing a transportation business in Dubai can be a lucrative venture,
but it requires careful planning, execution, and adaptation to the
changing market conditions. Here are some steps you can take to
grow your transportation business in Dubai:

1. Research the market: Before starting any business, it is

essential to research the market and understand the
competition, target audience, and industry trends. In Dubai, the
transportation industry is highly competitive, so you need to
 identify your niche and develop a unique selling proposition
(USP).
2. Build a fleet: Depending on the type of transportation business
you want to operate, you may need to purchase or lease vehicles
such as taxis, buses, or limousines. Make sure to select vehicles
that meet the industry standards, are safe, and comfortable for
passengers.

3. Hire skilled drivers: Drivers are the backbone of your

transportation business, so it’s essential to hire experienced and
professional drivers who have a valid UAE driving license and
good knowledge of the city’s roads and traffic rules.

4. Build a strong online presence: In today’s digital age, having a

strong online presence is crucial for any business. Create a user-
friendly website that showcases your services and allows
customers to book rides online. Also, create social media profiles
and use digital marketing strategies to promote your business.

5. Offer exceptional customer service: Providing excellent

customer service is essential to building a loyal customer base.
Make sure to train your drivers to be polite and courteous, and
ensure that your vehicles are clean and well-maintained.

6. Expand your services: Once you have established your

transportation business, consider expanding your services to
cater to different market segments. For example, you could offer
airport transfers, chauffeur services, or corporate transport.

Conclusion
Starting a transportation business in Dubai is a profitable and
sustainable business. The company formation process and transport
company license process in the UAE have been designed with
simplicity in mind in navigating the legal requirements.

That said, it takes some hard work and in-depth knowledge of the
region, its markets, its many customs and regulations.
That’s why it’s always advisable to sign up for the services of a UAE
business setup company to guide you on your company’s license and
setup based on your needs and budget.

When you work with Trade License Zone’s professional consultants,

we’ll guide and manage the entire incorporation process for you, and
guide you through the latest government regulations regarding your
transportation license and businesses. Get in touch today for a
personalised quote and competitive advantage.

We’ll give you peace of mind that your license and visa applications
are free from errors and omissions – both of which can lead to delays
and rejection.

All you need to provide is some basic documentation and some

information about your company. Then, sit back and let the experts
take care of the rest – managing your license and visa applications,
communicating with all relevant government departments and
authorities, and reporting back when you’re ready to trade. It is that
simple.