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Business

A Step-by-Step Guide to Starting a Warehouse Business Setup in Dubai

Dubai is home to a myriad of business operations, large and small. Investors worldwide invest in the region to start firms, conduct business, and take advantage of various investment opportunities. Among the many business setup options available in Dubai, warehousing is a fantastic business setup in Dubai activity expected to skyrocket in the coming years. 

If you’re looking to start a warehouse business in Dubai, you’ve come to the perfect place. Here is a step-by-step manual for starting a warehouse business in Dubai below.

Let’s get started: 

Why start a warehouse business setup in Dubai – benefits:

There are numerous advantages to starting any type of company in Dubai.

  • 0% tax rate on corporate and personal income
  • Low entrance obstacles
  • Welcoming business environment 

The country’s strategic trading location, great transportation links, and significant demand for such services are all major advantages when it comes to warehousing and storage businesses. 

Let’s now learn about the process and documentation required for a warehouse business setup in Dubai. 

Documentation: 

The prerequisites are usually a completed application form for a Dubai business license, a photocopy of your passport, and color pictures of the owner and shareholders.

Keep the following documents ready:

  • A legal document attesting to the physical address of the corporation.
  • Passport copies for shareholders.
  • Articles of Association and Memorandum of Association.
  • Proof of a reserved trade name.
  • Personal information about the stockholders and managers.
  • Proof of approval of the initial activity.

Process: 

  • Name the company

You must follow the UAE’s company naming conventions in addition to selecting a catchy name that matches your firm.

Avoid using offensive or blasphemous language. Avoid well-known corporate names and acronyms if you want to name your company after yourself. You must also make certain that the name you wish to use is available for registration.

  • Apply for a business license 

Now it’s time you can apply for your trade license. This procedure varies slightly based on where you set up shop. If you intend to run a warehouse or storage facility on the mainland, you must submit an application to the Dubai Department of Economic Development (DED).

If you intend to operate in a free zone, you must submit an application to the zone’s managing authority. In both circumstances, however, it is always advantageous to collaborate with a professional business consultancy in the UAE

Your warehouse license allows you to hold items under Customs supervision for a set length of time without paying customs duty. Licenses are typically given within seven business days.

  • Location

When setting up a warehouse and storage business in Dubai, it is crucial you choose a viable location for your clients. You can choose between a mainland or free zone economic zone.

Setting up on the mainland:

Warehouse businesses on the mainland are a popular option due to the numerous benefits provided by the government. These advantages include easy access to local markets and ease of product distribution. Those who want complete control over their business and the ability to sell both locally produced and imported items should consider setting up on the mainland.

Setting up in a free zone: 

In Dubai, warehouse businesses can operate in a number of free zones. Because some economic zones are specifically designed for the warehousing industry, you can expect significant revenue from the free zone. Free zones, like the mainland, have good infrastructure and strategic locations, and are well-connected by roads, water canals, and airplanes, making doing business there simple and convenient.

Before deciding to open a business in a Dubai-free zone, you should be aware of the following restrictions:

You are unable to work with clients whose economic zones do not fall within the scope of your free zone license.
Certain jurisdictional limits may apply when working with governmental organizations, significant locals, or mainland companies.

  • Apply for visas 

A visa is also required to run a warehouse or storage facility in Dubai. This process takes anywhere from four to twelve weeks.

  • Request an entrance permit.
  • Status modification
  • Medical and fitness examination
  • Visa stamping for Emirates ID registration

You should also apply for visas for your personnel at this point. In addition, you can sponsor your dependents for visas. Children, a spouse, and domestic workers may be included.

The maximum number of visas you can apply for is determined by the size of your firm, the configuration you choose, and, in the case of dependant visas, your personal earnings.

To ensure you are up to date with the current visa rules, you can hire expert PRO services in Dubai for the process. 

  • Corporate bank account

You are on the last leg now. It’s time to open a corporate bank account for your new business setup in Dubai. This can be a tedious process for entrepreneurs from outside the GCC. However, company formation specialists can make this easier for you. 

Business activities covered in a warehouse business: 

  • Contracts for Third-Party Logistics Services 

 Including shipping, storage, and merchandise.

  • Transportation Brokerage

Customs, insurance brokerage, and air, land, and sea freight will all be included.

  • Storage in a Warehouse

This commercial operation includes warehousing, loading, unloading, sorting, and packaging.

  • Customs Brokerage

A customs broker drafts customs statements and represents declarants before customs authorities.

  • Cargo Transport

Cargo transportation comprises the handling of cargo transport via cars, planes, and container ships on land, air, and water.

The following are the four main commercial districts in Dubai where one can open a warehouse:

South Free Zone of Dubai

Dubai Airport Free Zone

Dubai Logistics City (DLC)

Jebel Ali Free Zone (JAFZA)

Conclusion 

This article has demonstrated that establishing a storage and warehousing firm in Dubai can be easy if you have the correct information.

It does necessitate some prior knowledge of the procedure. Furthermore, it is crucial to note that the application process is only simple if your business license application is complete and error-free at the time of submission.

When forming a new company in the UAE, it’s a good idea to engage with a company formation specialist to guarantee you a smooth and effortless business setup.

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