Setting Up a Logistics Company in Dubai: Setup and Requirements

In 2026, Dubai handles over 16 million TEUs of container traffic annually, making it the Middle East's dominant logistics gateway (DP World, 2026). The UAE ranked 13th globally in the World Bank Logistics Performance Index (World Bank, 2023). A free zone logistics license starts at AED 12,500. The license is issued in 1 business day. VAT registration triggers at AED 375,000 in taxable supplies (Federal Tax Authority, 2026). Corporate tax late registration carries a flat AED 10,000 penalty (Ministry of Finance, 2026). Demand for licensed freight, transport, and supply chain operators keeps outpacing supply, and this guide covers everything you need to move from idea to licensed company without guesswork.

Here's a structured summary of what you need to know before you apply:

1. A Free Zone License Starts at AED 12,500. Setting up a logistics company in Dubai through Dubai South Business Hub Free Zone starts at AED 12,500 for the 0 Visa Package. The license is issued in 1 business day. No minimum share capital is required.

2. Logistics Is a Regulated Activity Requiring Two Approvals. Dubai South Business Hub Free Zone licenses the logistics entity. Depending on your exact operations, freight forwarding, customs clearance, or road transport, a named regulator such as the Roads and Transport Authority or Dubai Trade approves the activity separately.

3. VAT Registration Triggers at AED 375,000. VAT registration becomes compulsory once taxable supplies cross AED 375,000 (Federal Tax Authority, 2026). Late VAT registration carries an AED 10,000 penalty. Corporate tax late registration also carries a one-time flat AED 10,000 penalty.

4. Free Zone Goods Are Duty-Suspended, Not Duty-Exempt. Goods stored or handled within a free zone are duty-suspended while they remain inside. Duties apply when goods enter the UAE mainland market. Founders moving inventory between the free zone and mainland must account for this in their pricing model.

5. Maximum Two Visa Allocations Per License. The 1 Visa Package (AED 16,350) and 2 Visa Package (AED 18,200) each include a visa allocation, the investor or partner visa, plus an establishment card. Visa processing fees for the entry permit, medical, Emirates ID, and stamping are quoted separately.

6. Setup Follows Five Structured Steps. From choosing your business activities to receiving your license, the process is defined. The license itself is issued in 1 business day once documents are submitted. Post-license steps, bank account, visa processing, regulatory approvals, run in parallel.

What Is a Logistics License in Dubai and Why It Matters

A logistics license in Dubai authorizes a company to provide freight forwarding, transport, warehousing, or supply chain services. It is issued by a free zone authority or the mainland DET. Regulated sub-activities, such as customs clearance, also require separate approval from the relevant UAE regulator.

How Dubai Defines Logistics as a Business Activity

Setting up logistics dubai starts with understanding exactly what the license covers. Logistics is not a single activity, it's a cluster of distinct, separately licensable operations. The activities you can list include:

• Freight forwarding

• Cargo handling

• Last-mile delivery

• Warehousing and storage

• Supply chain management and consultancy

Under ISIC Revision 4, these activities fall under Section H (Transportation and Storage), divisions 49 to 53, the internationally recognised classification for productive transport and logistics activities. You must select every activity you intend to perform before submitting your application. Activities not listed on the license cannot be performed legally. A founder wanting to run both a freight forwarding desk and a last-mile courier service must list both activities on the same license at the point of application. Check the full business activities list at Dubai South Business Hub Free Zone to confirm which logistics codes are available before you apply.

Why Setting Up Logistics Dubai Requires a Dual-Approval Approach

The free zone license and the regulatory approval are two separate things. Dubai South Business Hub Free Zone issues the commercial license, this is the entity formation step. But certain logistics activities require a second, independent approval from a named regulator before you can legally operate.

• Customs clearance: registration with Dubai Trade is mandatory

• Road freight transport: Roads and Transport Authority (RTA) approval required

• Freight forwarding: confirm the specific regulatory pathway with the relevant authority before selecting this activity

Both approvals must be in place before the company can operate in that activity. A customs clearance company, for example, receives its free zone license from Dubai South Business Hub Free Zone and then registers separately with Dubai Trade before filing any customs declarations. The free zone license alone is not sufficient for regulated logistics activities.

Requirements for Setting Up a Logistics Company in Dubai

To set up a logistics company in Dubai you need a valid passport, a completed application form, a selected business activity, a company name that clears availability checks, and Articles of Association. Regulated activities such as customs clearance also require secondary approval from the relevant UAE regulatory authority.

Document Requirements Before You Apply

The document pack for setting up logistics dubai is straightforward. A sole founder with a single passport can complete it in under an hour if the company name has been pre-checked for availability. Here's what you need:

• Valid passport copy for each shareholder and director (minimum 6 months validity recommended)

• Completed free zone application form with declared business activities

• Proposed company name, cleared via a trade name availability search before submission

• No minimum share capital, none required at Dubai South Business Hub Free Zone

• Articles of Association and share register, prepared and included in every package

Regulatory Requirements for Logistics-Specific Activities

Beyond the standard document pack, regulated logistics activities each have a named regulator that must approve the activity separately from the free zone license. Both steps are non-negotiable. Confirm the specific regulatory pathway for your chosen activity before you select it on the application form.

Dubai South Business Hub Free Zone Logistics License Package Comparison

The activity-to-regulator mapping for common logistics operations:

Costs of Setting Up a Logistics Company in Dubai

Setting up a logistics company in Dubai at Dubai South Business Hub Free Zone starts at AED 12,500 for the 0 Visa Package. The 1 Visa Package is AED 16,350 and the 2 Visa Package is AED 18,200. All packages include the license, Articles of Association, share register, flexi-desk space, and lease agreement.

License Package Pricing Breakdown

The setting up dubai cost is fixed and transparent. There are no promotional prices and no was-prices. A husband-and-wife founding team wanting residency for both partners should select the 2 Visa Package at AED 18,200, the maximum allocation available per license.

• 0 Visa Package: AED 12,500, License, Articles of Association, share register, flexi-desk space, lease agreement

• 1 Visa Package: AED 16,350, All 0 Visa inclusions, plus one investor or partner visa allocation and establishment card

• 2 Visa Package: AED 18,200, All 0 Visa inclusions, plus two investor or partner visa allocations and establishment card

The visa allocation is the investor or partner visa entitlement, not two separate visas. Visa processing (entry permit, status change, medical examination, Emirates ID, and stamping) is always quoted separately from the package price for all three options.

Additional Costs to Budget Separately

The package price is your starting point, not your total. Use the cost of setting up a company in Dubai calculator to model your full spend before committing. Here's what sits outside the package:

• Visa processing fees, entry permit, status change, medical, Emirates ID, stamping, quoted separately for every package

• VAT registration, compulsory once taxable supplies exceed AED 375,000; late registration penalty is AED 10,000 (Federal Tax Authority, 2026)

• Corporate tax late registration, one-time flat penalty of AED 10,000 (Ministry of Finance, 2026)

• Regulatory approval fees, Dubai Trade and RTA set their own fees; these are not included in any free zone package

A founder who delays VAT registration after crossing AED 375,000 in taxable supplies faces an immediate AED 10,000 penalty, a cost that dwarfs the price difference between packages. Budget for it from day one.

Step-by-Step Guide to Setting Up a Logistics Company in Dubai

Setting up a logistics company in Dubai involves five steps: select your business activities, clear your company name, choose a visa package, submit documents and receive your license in 1 business day, then complete post-license steps including visa processing, bank account opening, and any required regulatory approvals.

Step 1: Choose Your Business Activities and Company Name

1. Confirm which logistics activities you want licensed: freight forwarding, cargo handling, last-mile delivery, warehousing, supply chain consultancy, or a combination.

2. Run a company name availability check before proceeding, names must comply with UAE naming conventions (no offensive terms, no references to external governments or religions).

3. Lock in your activity list at this stage. Adding activities later requires a license amendment, which adds time and cost.

A founder planning to offer both warehousing and road freight distribution should list both activities now. Amending the license post-issuance is avoidable with proper planning at step one.

Step 2: Select Your Package and Submit Documents

1. Choose the 0, 1, or 2 Visa Package based on how many investor or partner visas you need.

2. Prepare your passport copy, completed application form, and any additional shareholder documents.

3. Submit to Dubai South Business Hub Free Zone. The license is issued in 1 business day.

A solo founder with no immediate visa need selects the 0 Visa Package at AED 12,500 and receives the license the following business day. Every package includes the license, Articles of Association, share register, flexi-desk space, and lease agreement.

Step 3: Complete Post-License Requirements

1. Visa processing: Submit your entry permit application, complete status change, medical examination, Emirates ID application, and visa stamping. Entry permits are managed by ICP. Fees are separate from the package price.

2. Bank account: Open a UAE corporate bank account. Most banks require the trade license, Articles of Association, and shareholder passport copies as a minimum. Explore bank account opening in the UAE through Dubai South Business Hub's support services.

3. Regulatory approvals: Submit to Dubai Trade for customs clearance or RTA for road transport as applicable. Do not begin regulated operations before approval is confirmed, a freight forwarding company that starts customs declarations before receiving Dubai Trade approval risks license suspension.

4. VAT registration: Register with the Federal Tax Authority before taxable supplies reach AED 375,000.

Key Benefits of Setting Up Logistics Dubai Through a Free Zone

Setting up logistics dubai through a free zone gives founders 100% foreign ownership, no requirement for a local sponsor, a license issued in 1 business day, duty-suspended handling of goods within the zone, and access to one of the world's busiest air and sea cargo ecosystems.

Ownership, Sponsorship, and Operating Structure

The free zone structure removes two of the biggest barriers for overseas operators. You get 100% foreign ownership with no local sponsor or local partner required. There's also no minimum share capital at Dubai South Business Hub Free Zone.

• Flexi-desk space and lease agreement included in every package, satisfies the registered

References

Editorial sources available on request. Full citation list is being compiled.

References

1. DP World

2. World Bank

3. Federal Tax Authority

4. Ministry of Finance

5. Dubai Trade