How to Start a Transport Company License in Dubai?

how to get a transport company license in Dubai, and everything that you must know to successfully set
up your business.

Why Transport License in Dubai?

Being a hub for transportation companies, with many already establishing their operations in the city,
Dubai has become a leading center for transportation services. Transportation companies provide a
range of services, including storage and international shipping, to businesses of all sizes. They handle the
storage of products, re-packaging, and worldwide delivery, among other tasks. As transport companies
play a crucial role in the supply chain, it’s important to get things right the first time.

The transportation industry plays a significant role in Dubai’s economy and is one of its largest
contributors. As businesses in Dubai continue to expand, there is an increasing demand for
transportation services to help them succeed.

How to Get Transport License in Dubai?

By obtaining the transport company license in Dubai and approvals, you can legally operate your
transport business in Dubai and meet the regulations set by the government. The transportation license,
also referred to as an “operation card”, is issued by the Roads and Transport Authority (RTA).

To ensure the safe transport and storage of goods, a transport and storage contract, insurance coverage
during transportation and storage, and an appropriate driver’s license are necessary. Additionally, the
owner must fulfil the storage requirements set by the Ministry of Health in the UAE.

Obtaining an NOC from the RTA is a requirement for obtaining and renewing business permits in Dubai.
Currently, there are 12,000 registered transportation and car rental companies in Dubai, with a total of
255,000 vehicles registered for transportation and rental purposes, according to the RTA.

Steps to Start a Transport Company in Dubai

Determine the Business Structure & Type of Transport Business
Decide on the type of business entity you want to set up, such as a sole proprietorship, partnership,
limited liability company (LLC), or a branch of a foreign company.

When considering starting a transportation business in Dubai, consider the market you are willing to
serve. You can choose the following options for establishing a transportation company:

1. Passenger Transportation
2. Car rental service
3. Luxury vehicle services
4. Motorcycle rentals service
5. Refrigerated transport.
6. Petroleum Transport
7. Cargo transportation by large trucks
 8. Cargo transportation by light trucks
9. Rental and transport of heavy machinery
10. Water transport service
11. Register Your Company Name

Register your trade name with the Department of Economic Development (DED) to ensure that it
complies with Dubai’s regulations. The Registry Office has strict regulations regarding the use of
language in business names. It’s forbidden to use offensive or blasphemy language, or any references to
Islam or Allah. If you wish to include your name in the company’s use it in its entirety, not just your last
name or initials. The name must be checked for availability before registering it.

Prepare & Notarize Documentation

After your company name has been processed and approved by the Registry Office, you can proceed
with the next step. The Memorandum of Association (MOA) and Articles of Association (AOA) of the
company must be notarized by the Department of Economic Development in Dubai (D-DED).

Complete Application for License

Before you start a transport business in Dubai, make sure you have obtained a commercial license,
which is separate from the transportation license. The commercial license can be obtained through the
Dubai Department of Economic Development. Meanwhile, the transportation license will be granted by
the Roads and Transport Authority (RTA).

When submitting your application, along with a completed form and business plan, you’ll also need to
provide the following documents:

 Copies of passports for all stakeholders

 A copy of the commercial license
 Personal information for all managers and stakeholders
 Proof of trade name reservation
 Approval of initial activity
 Notarized MOA
 Procure Visa

To operate your transportation business in the UAE, you will require both a trade license and a residency
visa. The process of obtaining a residency visa involves several steps, including a biometric scan and a
medical examination. If you hold a UAE business license, you can also assist others such as dependents
and employees in obtaining their visas.

Open a Bank Account

It is necessary to have a business bank account to conduct trade in the UAE. While foreign investors may
face difficulties in obtaining banking services, Dubai provides opportunities for investors to open bank
accounts for obtaining transportation company licenses. Usually, the bank account can be established
within 15 business days.
Cost of Transport Company License in Dubai
The cost of a light vehicle transportation license for a company with 3 vehicles could range from AED 12
500 to AED 15 000, while a heavy vehicle transportation license for a company with 3 vehicles could cost
between AED 12 500 To AED 15000. Therefore you have to pay RTA approval Fee which is AED 3 500.
The cost of starting a transport company license in Dubai may vary based on the type of license,
business activities, operational costs, government fees, location, and the size of your company. Some of
the factors that can impact the cost of the license include the number of vehicles, the type of vehicles,
and the type of goods being transported.

FEE DETAILS COST AED

INITIAL APPROVAL FEE 120

TRADE NAME FEES 620

Tasheel Local Service Agent fees 350

Tasheel Preapproval Fees 345

Transport License Fees 12,500

Foreign Trade Fees 2,000

Local Agent Fees 6,000 AED

Total Transport License Cost 21,935 AED

Note: These figures are only estimates and the actual cost can vary based on various factors.

Benefits of Starting a Transport Company in Dubai

Starting a transport company in Dubai can provide numerous benefits, including

 Tax benefits
 Benefits from operating in a free zone
 Low import duties
 Rapidly expanding economy with top-notch infrastructure
 Unlimited trading locations
 No minimum capital requirement
 Cooperation with government agencies
 No limit on visas
 Import and export opportunities
 Access to low-cost energy resources.
 Determine the Business Structure & Type of Transport Business

Documents Required to Start a Transport Company

The required documents to set up a transport business in Dubai include:

 Business plan
 Passport copy of the owner/shareholder.
 Visa copy of the owner/shareholder
 Few name Choices for the company reservation.
 Lease Agreement – Actual office or Virtual office