A logistics business is a company that provides various distribution, transportation and warehousing services to help move goods from one location to another. The goal of a logistics business is to ensure that products are delivered efficiently, safely, and on time.

Logistics businesses typically provide a range of services, including transportation (e.g., air, sea, or road), warehousing, inventory management, customs clearance, and order fulfilment. Some logistics businesses specialise in specific types of products or industries, such as healthcare or food, and may have specialised equipment or facilities to handle these products.

The specific services offered by a logistics business may vary depending on the needs of their clients. For example, a company may hire a logistics business to handle the entire supply chain process, from sourcing materials to delivering finished products to customers. Alternatively, a company may only need assistance with a specific part of the process, such as warehousing or distribution.

With a trade license, you would be authorised to carry out commercial activities related to your logistics business in Dubai. This could include providing transportation services, warehousing and distribution, freight forwarding, customs clearance, and other logistics-related services. To navigate the regulatory landscape and set up a logistics business in Dubai, get in touch with Meydan Free Zone.

5229.91 - Logistics  Services.

This business activity involves the transportation and logistics industry, which includes the forwarding of freight and the organisation of transport operations by rail, road, sea, or air. It also encompasses the coordination of group and individual consignments, including pickup and delivery of goods and grouping of consignments. 

Logistics activities such as planning, designing, and supporting operations of transportation, warehousing, and distribution are included in this activity. The issue and procurement of transport documents and waybills, as well as activities of customs agents, sea-freight forwarders, and air-cargo agents are also part of this business activity. 

Other services offered include brokerage for ship and aircraft space, goods-handling operations, temporary crating, uncrating, sampling, and weighing of goods. Furthermore, crating and packing services for transport, as well as packaging activities incidental to transport, are also included.

Exclusions

Excluded services include courier activities, as well as the provision of motor, marine, aviation, and transport insurance. Furthermore, the activities of travel agencies, tour operators, and tourist assistance activities are not included in this business activity.

Third Party Approvals - Post License

To conduct business and provide Logistics and Freight Services, third-party approval from the Roads and Transport Authority (RTA) is required post-issuance of the business license. This ensures that the service provider meets the standards and regulations set by the RTA to ensure the safety and security of the goods being transported.

In addition, the Logistics and Freight Services activity must only be combined with other activities under the RTA-Group A and other activities not related to transport (if allowed by other authorities).

RTA-Group A Activities

7020.15 - Logistics Consultancy

This business activity involves the provision of management consultancy services to businesses and other organisations. This includes the provision of advice, guidance, and operational assistance on a range of management issues, such as strategic and organisational planning, financial decision-making, marketing objectives and policies, human resource policies, practices and planning, and production scheduling and control planning. 

In addition to these services, it also includes the activities of management consultants, which may involve the design of accounting systems, cost accounting programs, and budgetary control procedures. Cost accounting programs, also known as cost management software or cost tracking software, is an application that helps businesses track and analyse their costs of production, inventory, and other expenses.

This provision of business services may also include advice and guidance on public relations and communication, as well as lobbying activities. It may also provide advice and assistance to businesses and public services in areas such as planning, organisation, efficiency, and control, as well as management information. 

Exclusions

Excluded services include the design of computer software for accounting systems, legal advice and representation, accounting, bookkeeping and auditing activities, as well as tax consulting. 

It also excludes architectural, engineering, and other technical advisory activities, advertising activities, market research, and public opinion polling. 

Additionally, executive placement, search consulting services and educational consulting activities are excluded from this business activity.

Third Party Approvals

No third party approvals are required for this business activity.

How to Apply for Your Customs Clearance

Customs clearing, also known as customs clearance, is the process of getting approval from a government authority to import or export goods across international borders. 

Forwarding, in the context of logistics and transportation, refers to the process of arranging and coordinating the shipment of goods from one location to another. This includes handling all aspects of the transportation process, such as booking cargo space, preparing shipping documents, arranging for customs clearance, and arranging for the transportation of the goods by land, sea, or air.

Get in touch with our team to apply for customs clearance in Dubai.

Import/Export Code

You must apply for an import/export code, which is mandatory for businesses engaged in importing or exporting goods in Dubai. Without the code, businesses cannot clear their goods through customs, and their shipment may be delayed or confiscated. The code serves as a unique identification number for the business and is necessary for all customs-related procedures, including clearing goods, filing customs declarations, and paying duties and taxes. 

Meydan Plus offers you the convenience of meeting all your business needs in a single platform. With our business setup platform, you can open your bank account, schedule document pickups and drop-offs, book medical biometrics or Emirates ID registration, reserve meeting rooms, work from a Flexi-desk, or request any corporate letter. The platform enables you to initiate any business transaction and make immediate payments, eliminating the need for lengthy queues and paperwork.

AML

Designated Non-Financial Businesses And Professions are obligated to adhere to anti-money laundering legislation, prevent the financing of terrorism and illegal organisations, and implement Ministry of Economy regulations. An existing licensee has already registered for goAML after the awareness campaign ended on April 30th, 2021. 

Failure to meet the requirements before the campaign's deadline will result in fines imposed by the Ministry of Economy. To avoid potential fines, new licensees must comply with the requirements after receiving their license. 

Business activities 5229.91 and 7020.15 are not subject to AML regulations.