Dubai is a hub for transport companies. While many have already established their operations in the Emirate, many are looking for opportunities to start a new one. With its range of services and facilities, the city has become a leading center for transportation services, which is why acquiring a Transport Company License in Dubai can be an unquestionably lucrative choice.
In this comprehensive article, we will walk you through the entire process of launching a transport company in Dubai, applying for a transport license, and other requirements for setting up a successful business.
Steps to Start a Transport Company in Dubai
Business owners need to go through the following steps to establish their company successfully in Dubai:-
Determine the business structure and type
Decide on the legal form of company that you want to set up in Dubai—for example, sole proprietorship, partnership, limited liability company (LLC), branch, etc. While choosing the structure, also consider the market you wish to serve. You can choose from the plethora of activities available for a transport business.
Register your business name
Select a company name and register it with the DED (Department of Economic Development)to make sure it is appropriate and complies with the regulations. As a better alternative, you can also seek the assistance of a corporate consultant like Bizinvestfirm to ensure the chosen name corresponds with the selected activity and structure. Moreover, they will also familiarize you with the strict regulations enforced by the UAE government for choosing business names.
Some of these rules include – Prohibition from the use of offensive or blasphemy language, or any references to religious gods and deities; Inclusion of full name while naming it after an individual’s name; Checking for the availability of the selected name before registration, and more.
Prepare & notarize documentation
Once the registry office processes and approves your trade name application, draft and notarize the Memorandum of Association (MOA) and Articles of Association (AOA) by the DED. Both documents are crucial for a business, and therefore, should be given careful consideration while preparing.
Apply for license
To start a transport business in Dubai, you have to obtain a commercial license, apart from a transport license. The Department of Economic Development is the regulatory authority for issuing commercial licenses, while the Roads and Transport Authority (RTA) grants the Transport Company License in Dubai.
The transport license application process includes the submission of a completed form along with a few supporting documents such as –
- Passport copies of associated shareholders
- Commercial license
- Personal information of all managers and shareholders
- Trade name reservation proof
- Initial approval
- Notarized MOA
Procure the required visas
A trade license and a residence visa are vital to operating a transportation business in the UAE. The process to obtain a visa includes a biometric scan and a medical examination. Furthermore, with a business license, you can also support your dependents and employees in obtaining their visas.
Secure a bank account
A business bank account helps in maintaining your professional records. However, foreign investors may face difficulties in procuring banking services in Dubai. The company formation experts at Bizinvestfirm help expats open a bank account in the UAE with a trusted institution and also assist with further corporate services.
Types of Licenses for transport business in Dubai
There are three types of transport licenses you can apply for depending on the services you will be providing –
Logistics business
The superior logistics business of Dubai is world-famous. In fact, several free zones in the Emirate are specifically designed to cater to logistics trading. Besides, the modern logistical facilities & geographic location ensure hassle-free operations for the transport business. Thus, to acquire a license for a logistics business, you will have to submit the necessary documents and a business plan to the respective authorities.
Courier transport
The Emirates Post Group oversees the administration of the transport company license in Dubai that specializes in courier services. Therefore, the business owner has to register with this authority and then apply for a commercial license and complete the registration process.
Road transport
The transport license for a road transport business is issued by the National Transport Authority in the UAE. However, to get this license, the business owner has to fulfill certain conditions. For example, equipment of safety gear in all vehicles, procurement of a commercial license, and payment of fees in accordance with the passenger seats or gross weight of the vehicles.
There might be some additional requirements to secure a Transport Company License in Dubai, and the business setup experts at Bizinvestfirm can acquaint you with the necessary information.
Cost of Transport Company License in Dubai
The Cost of a Transport Company License in Dubai starts from AED 28,000 to 50,000 in the Dubai Mainland may vary according to the type of license, business activities, operational costs, government fees, location, the size of the company, the number of vehicles, the type of vehicles, and the type of goods being transported. The basic inclusions in the overall cost may comprise the following overheads:-
- Initial Approval Fees
- Trade Name Fees
- Local Service Agent fees
- License Fees
- Foreign trade name fees
To get the exact figures and estimates, consult with Bizinvestfirm.
Activities covered under Transport Company License in Dubai
A Transport Company License covers several activities under it, such as –
- Cargo transport (heavy and light trucks)
- Refrigerated transport
- Car/bus/motorcycle/bicycle rentals
- Passenger transport such as taxi services and tour buses
- Vehicle towing/transport
- Petroleum transport
- Water transport
- Heavy machinery rental & transport
- Special rental vehicles
- Specialist transportation services such as gas tanks, money, and other valuables
- Vehicle fleet management
- Luxury vehicles
Grow your transport business in the UAE
Every business requires active planning and direction, and business owners can achieve this through systematic execution & constant adaptation according to changing markets. Similarly, to grow a transport business, the owner has to implement strategies and approaches that boost development and facilitate expansion. Here are some tips to attain the same:
Market research
Conduct comprehensive research of the market to identify your target audience and potential competitors. Tracking these factors will help you keep up with the industry trends, carve out your niche, and accordingly finalize the USP, eventually increasing the reach.
Arrange your fleet of vehicles
A well-maintained fleet of vehicles is necessary for a transport business. You can either rent or purchase the type of vehicle you want for your operations. Also, make sure to maintain them as per the industry standards, so that they are comfortable for passengers and accommodative for goods.
Employ skilled workers
Skilled drivers are the backbone a transport business. Therefore, make sure to hire experienced and professional drivers who have a valid UAE driving license and an in-depth knowledge of roads and traffic rules.
Enhance your presence on digital platforms
Nowadays, companies are investing a significant share of their capital in digital marketing. A fully functional website that displays all the services of your transport business can boost traffic and bring in more clients from across the country.
Provide quality customer service
A strong client base creates a robust business. Therefore, businesses must ensure the provision of exceptional customer service that will help retain old customers and bring in new ones.
Set up your Dubai transport business with Bizinvestfirm
Planning to start a transport business in Dubai? Now is the time to act and create a successful business venture. Seeking guidance and support from a reputable business setup expert like Bizinvestfirm can ensure a smooth and effective launch of your transportation company. Their experienced and highly skilled personnel will assist you throughout the process and offer you tailored solutions according to your budget and potential.
