Establishing a shipping company in Dubai represents an important strategic step in the world of international business and trade. Dubai is considered one of the strategic locations for sea and air freight in the Gulf region, making it one of the most important logistical and commercial centers globally.

Dubai is home to modern and advanced seaports, in addition to large international airports, which facilitates efficient and rapid shipping and distribution operations to various parts of the world. Thanks to the advanced infrastructure and available logistical facilities, Dubai attracts international shipping and transportation companies to invest in Dubai and establish companies in this sector.

Establishing a shipping company in Dubai opens wide opportunities for expansion and growth to investors, as sea, air and land shipping services can be provided, in addition to transportation, warehousing and distribution services. As the global economy moves towards increasing e-commerce and international trade, the demand for shipping and logistics services in Dubai increases, which enhances the chances of success and profitability for shipping companies.

In this article, we will talk about the importance of establishing a company in Dubai and the promising opportunities offered by this industry, focusing on the main factors that should be considered when starting this type of business in the emirate.

Establishing a shipping company in Dubai

Establishing a shipping company in Dubai

It could be an exciting opportunity to capitalize on Dubai’s distinguished position as a trade and shipping hub in the Middle East. Here are some basic steps for establishing a company in Dubai :

1. Determine the type of company: Determine the type of company you wish to establish, such as a joint-stock company or a limited liability company. You may consult a legal expert to guide you based on your specific needs and requirements.
2. Choosing a company name: Choose an appropriate name for the company and make sure that it complies with the laws and regulations of Dubai. The name must be unique and not similar to other existing company names.
3. Employing a local agent: You may need to appoint an accredited local agent in Dubai to assist in the establishment procedures and represent the company before the official authorities.
4. Preparing the required documents: Prepare the documents required to establish the company, such as contracts, agreements, financial forms, and personal documents for shareholders and managers.
5. Submit a license application: Apply for a company license from the relevant authorities in Dubai, such as the Department of Economic Development (DED) or Dubai Ports and Customs Authority (DP World), depending on the shipping activity you wish to introduce.
6. Obtaining the necessary permits: You may need to obtain additional permits and licenses such as a shipping permit, business permit, and advertising permits.
7. Open a bank account: Open a bank account in the company’s name to manage financial and commercial operations.
8. Visa Secure: Secure the necessary visas for foreign managers and employees who will work in the company.
9. Compliance with legal and tax requirements: Ensure compliance with all local legal and tax requirements in Dubai and submit necessary financial reports.

Licenses required to establish a company in Dubai

To operate it legally, the necessary licenses and permits must be obtained from the competent authorities. Here is a list of the most important licenses and permits you need:

1. Shipping and Customs Clearance License: Shipping service providers need a license from the Federal Customs and Excise Authority to operate as customs agents and provide customs clearance services.
2. Transport and Logistics License: Freight service operators need a license from the Dubai Department of Transport to operate and manage transport and logistics services.
3. Commercial activity permit: The company must be registered and a commercial activity permit must be obtained from the Department of Economic Development in Dubai.
4. Profession license: If you plan to employ employees, you must obtain a profession license from the Department of Economic Development to operate them legally.
5. Occupational safety and health licenses: Occupational safety and health licenses must be obtained from the relevant authorities to ensure the safety and health of employees and customers.
6. Work Permits: All foreign employees must obtain valid work permits from the Dubai Labor Department to work legally.
7. Facility license: The place where the company will operate must be registered and a facility license must be obtained from the local authorities.
8. Special transportation and shipping licenses: If you intend to use company vehicles or transportation, you may need special licenses for this purpose.

This is a general list and laws and requirements may vary based on the type of company and its specific activity, so it is best to consult with Itqan Business to ensure full compliance and obtain appropriate advice for your company.

Documents required to submit an application to establish a company in Dubai

Moreover, submitting all necessary documents and information correctly in accordance with local laws and regulations. To apply for establishing a company in Dubai , this usually requires submitting a variety of documents and information. Here is a general list of required documents:

1. Incorporation application form: First and foremost, the incorporation application form must be filled out with the personal information of the founders and company details such as name, address, and type of activity.
2. Copy of passport: A copy of the passport must also be provided to the founders and partners (if they are foreigners).
3. Personal photo: Then recent personal photos of the founders must be submitted.
4. Articles of Association or Collective Agreement: If the company is a joint-stock company, the Articles of Association must be submitted. If it is a limited liability company, the collective agreement must be submitted.
5. Business Plan: Therefore, a detailed business plan must be prepared that includes the objectives, strategy, and administrative and financial organization of the company.
6. Details of partners and shareholders: Details of partners and shareholders and their percentage in the company must also be provided.
7. Permit issued by the competent authorities: Then the necessary permits must be submitted from the competent authorities such as the Federal Customs and Tax Authority and the Department of Transport.
8. Proof of address: Therefore, proof of the official address of the company’s headquarters must be submitted.
9. Financial Reports: Concerned authorities may also request detailed financial reports showing the company’s ability to operate the business properly.
10. Authorization forms for agents (if there are): Then if there are agents representing the company in some matters, the relevant authorities may require signed authorization forms.

Please note that this is a general list and requirements may vary based on the type of company and services you provide. It is necessary to refer to our company and consult with Itqan Company to ensure that all necessary documents and information are submitted correctly in accordance with local laws and regulations.

Common types of companies that characterize Dubai

Dubai is considered a major business destination globally, and is home to a diverse group of companies and industries. Here are some common types of companies that Dubai has to offer:

• Real estate and construction companies: Dubai is considered one of the largest real estate markets in the world, and includes a large group of companies working in the fields of real estate development, construction, and architectural design.
• Financial and investment companies: Dubai offers an ideal environment for financial and investment companies, including banks, investment companies, investment funds, and financial brokerage.
• Commercial and distribution companies: Commercial and distribution companies constitute a large portion of economic activity in Dubai, with a wide range of companies operating in the areas of general trade, distribution, and e-commerce.
• Hospitality and Tourism: The hospitality and tourism industry is considered one of the most important economic sectors in Dubai, and includes a variety of hotels, restaurants, travel agencies, and tourism companies.
• Technology and Innovation: Technology companies and innovation companies are developing innovative technology solutions in areas such as financial technologies, artificial intelligence, big analytics, and e-commerce.
• Creative and entertainment industries: Dubai includes a variety of companies operating in the creative and entertainment industries, such as film and television production, music, visual arts, and the gaming industry.
• Consulting and professional services: Dubai provides an ideal environment for consulting and professional services companies, including legal, accounting, management consulting, and marketing companies.

Expected costs of establishing a company in Dubai

Also, the costs of establishing a company in Dubai vary based on several factors such as the type of company, size of operations, required licenses and permits, and services provided. Here is a general estimate of expected costs:

1. Licenses and permits costs: The costs of obtaining the necessary licenses and permits can also range depending on the type of company and services provided.
2. Incorporation and registration fees: The incorporation and registration fees vary according to the type of company and the size of the registered capital.
3. Office and infrastructure costs: It also includes office rental costs, monthly bills, and the infrastructure necessary to operate the company.
4. Staff costs: Therefore, employees must be employed to manage and run operations, and wage and benefit costs vary based on the number of employees and tasks required.
5. Marketing and advertising costs: Then Dubai must invest in marketing and advertising campaigns to attract new customers and market shipping services, and these costs may vary greatly depending on the strategy followed.
6. Insurance costs and guarantees: Then the necessary insurances for the company and shipments must be purchased,
7. Software and technology costs: You may also need to invest in shipping and logistics management systems and the technology required to run operations, and these costs vary based on the company’s needs.

Establishing a company in Dubai

Taxes applied to companies in Dubai

In Dubai, there are several types of taxes that can apply to companies. Among these taxes:

• Value Added Tax (VAT): A 5% VAT applies to most goods and services in Dubai.
• Income tax: Corporations are subject to income tax at a certain rate on their profits, but in many cases, local companies are exempt from this tax.
• Government Fees: Certain government fees are imposed on some business operations such as renewing licenses and permits.
• Real estate tax: A real estate tax is applied to companies that own real estate in Dubai, and the rate varies based on the value of the property.
• Customs duties: Customs duties are applied to imported and exported goods in accordance with customs tariffs issued by the competent authorities.
• Municipal fees: Municipal fees are imposed on some services and commercial activities provided by companies.

Characteristics of establishing a company in Dubai

Establishing a company in Dubai includes several characteristics and features that one must be aware of, and among these characteristics are:

• Economic Diversity: Dubai is an ideal place to establish companies thanks to the diversity of its economy, as it has diverse sectors such as tourism, hospitality, trade, real estate, financial services, and technology.
• Advanced Infrastructure: Dubai’s advanced infrastructure ensures easy access to essential services such as large international airports, advanced seaports, modern roads, and excellent health and educational facilities.
• Flexible laws: Dubai is characterized by flexible commercial laws and an effective judicial system, which makes the process of establishing companies easier and faster.
• Government support: The Dubai government provides strong support to entrepreneurs through financing programs and government facilities, and assistance in providing land and offices for startups.
• Distinctive geographical location: Dubai is strategically located on the east-west trend line, making it an important commercial and commercial center for global trade.
• Cultural Diversity: Dubai’s cultural diversity adds additional appeal to businesses, as they can target a diverse audience of locals, residents and tourists.
• Orientation towards innovation and technology: The Dubai government encourages innovation and the application of technology across all sectors, providing great opportunities for startups and leading companies in areas such as clean technology, artificial intelligence and social innovation.

At the conclusion of this article, it can be said that establishing a shipping company in Dubai represents a strategic and important step towards success in the global transportation and logistics sector. Dubai has a developed infrastructure and a distinctive strategic location that makes it a major center for global shipping and trade. In addition, the flexible business environment and clear laws provide strong support to entrepreneurs and investors in this sector.

With the increasing demand for sea, air and land freight services, Dubai provides great opportunities for startups to provide innovative and efficient shipping services. The Dubai Government also encourages technological development and innovation in the logistics sector, creating countless opportunities for new companies to develop innovative technological solutions that better meet customer needs.

In addition, Dubai is characterized by a multicultural and diverse business environment, making it an ideal place for international cooperation and partnerships in the shipping and logistics sector. Thus, it can be said that establishing a company in Dubai represents a favorable and rewarding option for investors and entrepreneurs seeking success and expansion in the thriving global transportation market.

Frequently asked questions about establishing a shipping company in Dubai