How to Set Up a Logistics Company in Dubai: Licensing & Costs
A logistics company in Dubai needs a trade licence from either the Department of Economy and Tourism (mainland) or a free zone authority, plus activity-specific approvals on top. Freight and transport activities usually involve the Roads and Transport Authority (RTA), warehousing involves Dubai Municipality, and clearing shipments involves Dubai Customs. Licence fees alone are commonly reported at roughly AED 12,000 to AED 28,000 a year, but the real first-year bill depends far more on your fleet, warehouse and guarantees than on the licence itself.
That gap is where most founders get caught. Two businesses can both call themselves a logistics company in Dubai, yet one is a freight forwarder working from a flexi-desk and the other runs trucks out of a bonded warehouse. Their licences, approvals, visa needs and budgets have almost nothing in common.
This guide walks through what counts as a logistics company in Dubai, mainland versus free zone options, the step-by-step licensing process, the approvals each activity triggers, realistic cost ranges, tax considerations and the mistakes that delay launches.
What Counts as a Logistics Company in Dubai?
“Logistics” is an umbrella term, not a single licence. Your chosen business activity decides which approvals you need, so define the model before anything else. The most common models are:
- Freight forwarding – arranging the movement of goods by road, sea or air on behalf of clients, often without owning vehicles
- Customs clearance – acting for importers and exporters in customs procedures
- Warehousing and storage – general, temperature-controlled or bonded storage
- Transport and fleet operation – running trucks, vans or specialised vehicles
- Courier and last-mile delivery – parcel and e-commerce delivery
- Logistics consultancy – advising on supply chain, inventory and transport planning, with no physical cargo handling
Meydan Free Zone’s logistics activity guide illustrates the point: it lists freight and logistics services, logistics consultancy, warehousing and storage, and land transport as separate activities. It also notes that freight services require RTA approval after the licence is issued and warehousing requires Dubai Municipality approval, while consultancy needs neither. It also flags that some land transport activity codes are licensed for work outside the UAE, so a free zone licence does not automatically let you run trucks inside the country.
Always confirm the exact activity wording with the licensing authority before you pay.
Mainland vs Free Zone: Where Should a Logistics Company in Dubai Be Licensed?
This is the biggest structural decision. A mainland licence lets you trade across the UAE and bid for government contracts. A free zone licence offers streamlined setup, and, in logistics-focused zones, direct access to ports, airports and ready-built warehouses.
| Factor | Mainland (DET) | Logistics Free Zone (e.g. JAFZA, Dubai South, DAFZA) | Low-Cost Free Zone (e.g. IFZA, Meydan) |
|---|---|---|---|
| Best for | Fleet operators, last-mile delivery, local clients | Warehousing, bonded storage, port and airport-linked trade | Asset-light freight forwarding and consultancy |
| UAE market access | Unrestricted | Restrictions can apply outside the zone | Restrictions can apply outside the zone |
| Warehouse access | Leased and registered (Ejari) | Ready-built units, port or airport proximity | Usually flexi-desk, warehouse leased separately |
| Foreign ownership | Up to 100% for most activities | 100% | 100% |
| Typical timeline | Often longer | Often shorter | Often the fastest |
| Watch out for | Premises and visa quota linked to space | Zone rules on operating beyond the zone | Activity limits for transport and storage |
How to read this:
- JAFZA is built around Jebel Ali Port and suits sea-freight, bonded and warehouse-heavy operations
- Dubai South sits beside Al Maktoum International Airport and suits air-linked and e-commerce fulfilment models
- DAFZA sits near Dubai International Airport and suits air cargo and express handling
- Meydan and IFZA suit lean, asset-light models such as freight brokerage or logistics consulting, where you do not need a large facility
The UAE government’s free zone guide explains how to compare zones by sector and facilities. INFICO’s free zone company formation and mainland company formation teams compare both routes against your actual operating model, which is usually quicker than comparing brochures.
Step-by-Step: How to Set Up a Logistics Company in Dubai
- Define your logistics model. Decide whether you will own vehicles, lease a warehouse or stay asset-light. This drives every later cost.
- Choose your jurisdiction. Pick mainland or a specific free zone based on where your clients are and whether you need port, airport or warehouse access.
- Select the business activity. Match your activity wording to what you will actually do. Mismatches cause rejected approvals and costly amendments.
- Reserve a trade name. Names follow UAE naming conventions and are checked through the licensing authority.
- Obtain initial approval. The authority confirms your activity is permitted and flags any external approvals.
- Secure premises. Mainland companies generally need a registered tenancy (Ejari); free zone companies need at least a flexi-desk. Warehouse activities need facility approvals.
- Sign incorporation documents and pay fees. LLC structures involve a Memorandum of Association.
- Receive your trade licence.
- Complete activity approvals. Apply for RTA, Dubai Municipality, Civil Defence or other permits that your activity requires.
- Register with Dubai Customs if you clear shipments. A customs code is needed for import and export clearance.
- Apply for the establishment card and visas. This covers entry permits, medicals, Emirates ID and stamping.
- Open a corporate bank account, register for VAT if required, and arrange insurance.
INFICO’s PRO services team handles many of these government-facing steps, which matters because approvals often run in parallel rather than one after another.
Approvals a Logistics Company in Dubai May Need
The trade licence is only the first permission. Depending on your model, expect some combination of the following. Requirements change, so confirm the current position with each authority.
| Authority | Typically relevant for | What it covers |
|---|---|---|
| Department of Economy and Tourism (DET) or free zone authority | All logistics businesses | Trade licence and activity approval |
| Roads and Transport Authority (RTA) | Freight, transport, fleet and delivery | Operator permits, vehicle registration, driver and vehicle requirements |
| Dubai Customs | Companies clearing shipments | Customs code registration and electronic declarations |
| Dubai Municipality | Warehousing, food and hazardous goods | Warehouse and facility approvals |
| Civil Defence | Warehouses and storage | Fire safety and safety clearance |
| Federal Tax Authority | Companies above the VAT threshold | VAT registration |
Specialised cargo adds more layers. Pharmaceuticals, food, perishables and dangerous goods involve additional regulators and typically higher compliance costs, so state your cargo type at the start of the licensing conversation.
Documents Required
Exact lists vary by authority and activity, but most applications include:
- Passport copies for all shareholders and the manager
- Proof of residential address
- Passport-sized photographs
- A No Objection Certificate (NOC) if a shareholder holds a visa sponsored elsewhere
- Corporate documents, where a company is a shareholder (certificate of incorporation, board resolution, memorandum of association)
- A tenancy contract or flexi-desk agreement
- Activity-specific documents, such as vehicle details for RTA permits or warehouse plans for municipality approval
- Insurance evidence, where required for freight or transport activities
Logistics Company in Dubai: Licensing and Setup Costs
Cost is where published figures disagree most. Different providers include different things, and the figures below are indicative market ranges rather than official fee schedules.
| Cost item | Indicative range (AED) | Notes |
|---|---|---|
| Trade name reservation | 620 – 1,000 | One-time |
| DET mainland trade licence | 12,000 – 25,000 per year | Rises with activity codes |
| Free zone licence (logistics zones such as JAFZA) | 16,000 – 28,000 per year | Varies by zone and package |
| Free zone licence (Meydan, IFZA and similar) | 11,500 – 18,900 per year | Often with a flexi-desk |
| RTA operator permit and vehicle registration | Several thousand per permit, plus per-vehicle fees | Depends on fleet size |
| Commercial vehicle insurance | 3,000 – 8,000 per vehicle per year | Varies by vehicle type |
| Customs code registration | Low hundreds to a few thousand | Varies by route and zone |
| Warehouse lease | Quoted per square foot or metre | Location and specification drive the price |
| Employee or driver visa | Roughly 4,000 – 9,500 per person | Varies by jurisdiction |
Customs clearance activities may also require a bank guarantee. The amount depends on the activity and should be confirmed with Dubai Customs, not assumed.
Why total estimates vary so widely. Published first-year totals range from tens of thousands of dirhams for asset-light freight set-ups to several hundred thousand or more for fleet-based operations. The difference comes down to what is included. Vehicles, warehouse fit-out, guarantees and working capital often sit outside “licence cost” figures, yet they dominate the real budget.
A useful way to plan:
- Asset-light (consultancy or freight brokerage): licence, flexi-desk, one or two visas, insurance, plus accounting
- Fleet-based (courier or transport): all of the above, plus vehicles, RTA permits, per-vehicle registration, insurance, drivers and GPS or tracking requirements
- Warehouse-based (3PL or storage): all of the above, plus lease, fit-out, facility approvals, Civil Defence clearance and staffing
Request a written, itemised quotation that separates government fees, premises, permits and recurring costs. If you want to understand how licence costs behave across free zones, our guide to the cost to start a business in Dubai breaks down the same categories.
How Long Does Setup Take?
Timelines depend on jurisdiction, activity and how quickly approvals are processed. As a general planning guide:
- Free zone licence: often within a few working days to a few weeks
- Mainland licence: often a few weeks, longer when external approvals are involved
- RTA permits and customs registration: typically additional weeks, sometimes running in parallel
- Visas and Emirates ID: typically two to six weeks
- Corporate bank account: commonly two to four weeks, longer for activities that attract extra due diligence
Treat these as planning ranges, not promises. Incomplete documents are the single biggest cause of delay.
Visas, Staffing and Warehouse Rules
Mainland visa allocation is generally linked to the size of your registered premises, so a larger warehouse typically supports more visas, while a flexi-desk supports only a few. Free zones allocate visas by package tier. Drivers, warehouse operatives and customs coordinators each need residence visas, and some roles carry licensing or permit requirements of their own.
Depending on headcount and sector, Emiratisation requirements may also apply, so confirm the current rules with the Ministry of Human Resources and Emiratisation. INFICO’s visa and licensing and HR and recruitment services help plan headcount, visa quotas and hiring together.
For warehouses, expect Dubai Municipality approval and Civil Defence clearance for the premises, and a registered tenancy on the mainland. Virtual offices are generally not accepted for activities that involve physical storage or operations.
Tax and Compliance for a Logistics Company in Dubai
VAT. The UAE applies VAT at 5%. Businesses must register once taxable supplies pass the mandatory threshold set by the Federal Tax Authority, and voluntary registration is possible below it. Freight and international transport can carry specific VAT treatment, and goods moving through designated zones can be treated differently from goods moving through the mainland, so structure your invoicing with an adviser.
Corporate tax. Under Federal Decree-Law No. 47 of 2022, mainland companies are taxable at the standard 9% rate above the applicable threshold. Free zone companies that meet the Qualifying Free Zone Person conditions can benefit from a 0% rate on qualifying income, while other income is taxed at 9%. The Ministry of Finance corporate tax overview confirms the 0% rate applies to qualifying income only. Logistics services can fall within qualifying activities in some cases, but the conditions, including substance and the treatment of mainland income, are detailed. Treat QFZP status as something to verify, not assume.
Accounting and ongoing compliance. Bookkeeping, VAT returns, corporate tax filings and licence renewals recur every year. INFICO’s accounting and financial services and compliance and regulatory services teams keep those obligations predictable from day one.
Three Practical Scenarios
Scenario 1: Asset-light freight forwarder. A founder arranging sea and air freight for importers, with no vehicles or warehouse. A free zone licence with a flexi-desk may be enough, plus an RTA approval where the activity requires it and a customs code if clearing shipments. The main costs are licence, visas, insurance and compliance.
Scenario 2: Last-mile delivery company. A business running a fleet of vans for e-commerce clients across Dubai. A mainland licence usually fits better because the work is local. Budget for RTA permits, per-vehicle registration, insurance, drivers’ visas and tracking requirements. The fleet, not the licence, dominates cost.
Scenario 3: Warehousing and 3PL operator. A company storing and fulfilling goods for online sellers. A logistics free zone such as Dubai South or JAFZA may suit, with Dubai Municipality and Civil Defence approvals for the facility. Warehouse lease and fit-out are the largest line items.
EXPERT INSIGHTS
Common mistake 1: Choosing the licence before the operating model. Founders pick a jurisdiction on price, then discover their activity needs RTA approval or a facility their free zone cannot provide.
Common mistake 2: Treating the licence fee as the budget. Vehicles, premises, guarantees, insurance and working capital often cost several times more than the licence.
Common mistake 3: Assuming a free zone licence allows UAE-wide trucking. Free zone activity limits can restrict land transport and local delivery. Check this before you sign.
Common mistake 4: Skipping customs registration planning. If you intend to clear shipments, add customs code registration and any guarantee to the timeline early.
Common mistake 5: Underestimating renewals. Licence, permits, vehicle registration, insurance and visas all renew annually.
Best practice: Get one itemised quotation covering licence, approvals, premises, visas and recurring costs, then compare jurisdictions like for like.
Emerging trend: Founders increasingly weigh Corporate Tax position alongside setup cost, especially when a free zone company expects meaningful mainland revenue.
UAE REGULATORY AND MARKET CONSIDERATIONS
Dubai’s logistics sector benefits from Jebel Ali Port, Al Maktoum International Airport and Dubai International Airport, which is why logistics-focused free zones cluster around them. That infrastructure advantage is real, but it also means your location choice affects client perception, access to bonded storage and the practicality of last-mile coverage.
Regulations around transport permits, customs procedures, VAT and Corporate Tax continue to evolve. The Dubai government business setup page is a useful starting point for the mainland route, and the relevant authority’s current guidance should always override any published summary, including this one.
Banks apply full KYC and source-of-funds checks to logistics companies, as they do to all new businesses, so prepare contracts, client evidence and ownership documents before applying for a corporate account.
KEY TAKEAWAYS
- A logistics company in Dubai needs a trade licence plus activity approvals, usually from the RTA, Dubai Municipality or Dubai Customs depending on the model
- Define your operating model first: freight forwarding, warehousing, transport and courier each carry different approvals and costs
- Licence fees are commonly reported around AED 12,000 to AED 28,000 a year, but vehicles, premises, guarantees and working capital drive the real budget
- Mainland suits local fleet and delivery operations; logistics free zones suit port, airport and warehouse models; low-cost free zones suit asset-light businesses
- Free zone activity limits can restrict local trucking and storage, so verify them before registering
- VAT and Corporate Tax apply, and free zone 0% treatment depends on meeting Qualifying Free Zone Person conditions
- Request an itemised written quotation rather than relying on headline licence prices
FREQUENTLY ASKED QUESTIONS
1. How much does it cost to start a logistics company in Dubai?
Licence fees are commonly reported from around AED 12,000 to AED 28,000 a year, but the total depends on your model. Asset-light businesses cost far less than those with fleets or warehouses, so request an itemised quotation.
2. Which licence do I need for a logistics company in Dubai?
You need a trade licence with a logistics-related activity, from the Department of Economy and Tourism on the mainland or from a free zone authority, plus any activity approvals such as RTA or Dubai Municipality permits.
3. Can I start a logistics company in a free zone?
Yes. Free zones such as JAFZA, Dubai South, DAFZA, Meydan and IFZA support logistics activities, though some restrict operating in the wider UAE market or limit land transport activity.
4. Do I need RTA approval for a logistics company?
Freight, transport and fleet activities commonly require RTA approval or permits. Consultancy-only businesses generally do not. Confirm with the licensing authority for your exact activity.
5. Do I need a customs code?
If you clear import or export shipments, you generally need to register with Dubai Customs. Companies that do not handle customs clearance may not.
6. Can a foreigner own 100% of a logistics company in Dubai?
Yes, 100% foreign ownership is available in free zones and for most mainland activities. Some activities carry specific conditions, so confirm yours.
7. How long does it take to set up a logistics company in Dubai?
A free zone licence can be issued within days to weeks, a mainland licence usually takes longer, and RTA permits, customs registration and visas add further time. Complete documentation is the biggest factor.
8. Do I need a warehouse?
Only if your model involves storage. Freight brokers and consultancies can often operate from a flexi-desk, while warehousing needs approved facilities and municipal and Civil Defence clearance.
Setting up a logistics company in Dubai is less about the licence fee and more about matching jurisdiction, approvals and premises to how you will actually operate. A freight broker, a courier fleet and a bonded warehouse need three very different set-ups, with very different budgets.
Because fees, permits and tax rules change, treat this guide as a planning framework and verify current requirements with the relevant UAE authority or a licensed adviser before committing.
If you want an itemised breakdown for your logistics model, covering licensing route, approvals, visas and tax, INFICO’s advisers can map it out with you before you pay for anything.
Get in touch with Infico UAE:
Email: info@infico.ae
Phone: +971 508786023