Two decades ago, Dubai was known to the world for its oil reserves. Dubai’s economy was an oil-based economy. However, now it has turned into a business hub. The pleasant corporate environment, low taxes, world-class infrastructure, large international airports, splendid ports contributes to Dubai being a business hub. Moreover, the geographical location has helped international trade. Logistics is at its peak here. There is scope for the logistics business in Dubai. Many companies have started transport operations in Dubai turning it into a leading transportation hub. However, before getting into the transportation business in Dubai, it is necessary to get a transportation service license in Dubai.
Laws relating to storing and transportation business
Laws related to transportation and storing business are implemented by the National Transport Authority. Transport regulations apply to maritime companies, rules that apply to road transportation, and Federal Law No. 9 is related to road transportation.
Registration of transportation service license in Dubai
For registering a transportation business, the owner has to prepare and submit the documents mentioned in the Commercial Law. There are three types of transportation service:
- Freight Companies,
- Courier Companies,
- Companies that transport and store specific goods.
Some of the activities under them are following:
- Cargo transport by heavy trucks,
- Cargo transport by light trucks,
- Water transport,
- Rental of heavy machinery, lifting and loading machines,
- Car rental services,
- Passenger transport license,
- Luxury Vehicle Service,
- International Bus Service,
- Management of Vehicle Fleet, etc.
How to get Transportation Service License in Dubai?
The National Transport Authority issues the transportation license that is also known as an operation card. Moreover, all goods must have a transport and storage contract. Goods must be insured during transportation and when stored. Besides, the drivers must add specific categories to their driving licenses. Also, the owner must comply with the storage requirements of the Ministry of Health in the UAE.
An NOC from RTA is a prerequisite for issuance and renewal of business permits in Dubai. According to RTA, around 12000 transportation and car rental companies are registered in Dubai, and approximately 255000 vehicles are registered for transportation and rental.
How to set up a transportation business?
A transportation business may be a Logistics business, Courier services, Road transport business.
Dubai Logistics City (DLC) is the fastest growing Free Zones designed for logistics. Legal formalities to set up a logistics are simple. Also, most modern logistics facilities and geographic locations assist the smooth running of the business. To set up a logistics business in Free Zone, firstly the owner has to apply along with necessary documents and a detailed business plan. The Free Zone Authority issues the license after payment of a stipulated fee.
For setting up a courier service, the owner has to register with Emirates Post Group. After that, the owner has to get a commercial license and trade activity registration. Emirates Post Group issues the license in 20 days. The owner can be of any nationality and he has to submit an online application with relevant documents.
Road transport Service
To set up a road transport business, the owner needs a transport license from the National Transport Authority UAE. The vehicle must have safety gear. The owner must get a commercial license before getting a transport license. The transport license is issued for three months and renewed within 30 days. The owner gets a license after payment of a fixed fee and additional payment according to the passenger seats or gross weight of vehicles.
In short, Logistics, Courier, road transport are the types of transportation services. The law, rules and regulations, business environment, and infrastructure assist the growth of the transportation business in Dubai. There is scope for the transportation business in Dubai. However, the procedures to set up each type of transportation business are different. The owner has to get a transportation service license, to start a business in Dubai. We at Beyond View help you to set up a transportation business easily.