Driven by the growth in the eCommerce business sector, warehousing is a lucrative business opportunity that large and small distributors, logistic service providers, traders can take advantage of.

Ecommerce Sector growth and Requirement of Warehouse

The increasing popularity of e-commerce and global trading requirements are adding more warehousing space to the UAE market.

The high internet penetration, high purchasing power per capita, and large consumer spending are creating a favorable market for eCommerce companies.

To power the eCommerce business there is a growing requirement for the right logistics support, distribution network, and warehouse for managing the deliveries effectively.

Warehouse License Categories in Dubai

In UAE mainly warehouse license is available from two major business jurisdictions – The Mainland of UAE and the Free Zones. The rates for the warehouse have been highly competitive in the UAE with a wide range of options available.

Cost of Warehouse License in UAE

Warehouses License in UAE are an integral part of the Free Zones and Mainland business ecosystem. Depending on the specifications, location, and type, the price varies. The cost of a warehouse license in Hamriyah Free Zone starts at AED 85,500 for a 307 Sq.m Warehouse.

The warehouses are an essential business requirement for all businesses that require storage space or a light manufacturing and assembling unit. The cost of the Warehouse depends on various factors such as size, power consumption, customization for cold storage, manufacturing unit, assembling, etc.

The Warehouse License cost of a 125 Sq.m warehouse in the Sharjah Airport Free Zone is AED 48,000 / year ( Special Discount rate). SAIF Zone has a wide variety of Warehouse units for lease ranging from 100 sq.m, 125 sq.m, 400 sq,m, and more customized offers available for the investors.

The warehouse rental cost is a recurring yearly payment to continue the operations to the next year. Similarly, the Warehouse License and Trade License of the company must be renewed on a yearly basis.

Choosing the Right Warehouse and Business Jurisdiction

Most of the Free Zones have warehouse facilities for their investors at the Free Zone premises. It provides the right storage infrastructure for trading companies and light manufacturing units.

Also, there are warehouses available in the Mainland of UAE operated by private businesses that can be rented as per requirement.

UAE as a whole provides top-class warehouse, storage, transport, and logistics support services to the businesses operating in the region to easily conduct daily trade operations locally and internationally.

Warehouse Choices in Free Zones and Mainland of UAE

An investor can apply for a general trading license from any of the Free Zones in UAE or the mainland of UAE by opening a Limited Liability Company.

The Free Zones offer Customized Warehouses for investors at affordable rates and enormous business benefits. Similarly, for an LLC Company, there are private warehouses around the UAE where the goods can be stored and managed accordingly.

All the goods imported to the UAE must follow the Customs guidelines and clear the required checks to be legally sold or distributed in the UAE.

Also, for the goods stored in the Free Zones, there are in-house Customs checkpoints in most of the Gated Free Zones in UAE. Any exchange of goods to and from the Free Zone must pass through the Customs.

Free Zones with Warehousing Facility

Free Zones in UAE with warehousing facilities offer the perfect infrastructure for trading companies to store the goods, facilitate imports/export, and distribute in the UAE and GCC region.

Top Free Zones with Custom Build Warehouse Facilities

1. Dubai Airport Free Zone

2. Sharjah Airport International Free Zone

3. Hamriyah Free Zone

4. Dubai South

5. Jebel Ali Free Zone

Benefits of Setting Up an Export House in UAE

Investors can get into long term lease contracts and use the space for storage, distribution, packaging, and assembling. Free Zones in UAE offer customized warehouse facilities that can be used as light manufacturing units for the manufacturing of certain permissible items.

To get more details about warehouses license in UAE and light manufacturing units offered by various Free Zones in the UAE, connect with our team right away!

The key benefits of setting up an export house or a logistics business in UAE are the following:

1. Enjoy the Tax-Free Environment in UAE

UAE has a Zero Taxation policy for business, the only tax in UAE is a 5% Value-Added-Tax. In the Free Zones, there is a benefit of Zero percent import duty on imports to Free Zones.

However, the goods going out of the Free Zone to the mainland will be subjected to the normal VAT.

Also, the foreign investors who are setting up an export or trading company in the UAE can benefit from the Double Taxation Avoidance Agreement (DTAA) and save tax in the home country.

A Tax Residence Certificate can be applied in the UAE that will act as proof of residence for tax savings in the investor’s home country.

2. Ease of Doing Business

UAE has a robust e-Governance and simplified Company Setup options across the various Free Zones and the mainland of UAE.

Compared to the European region and other countries in Asia, UAE has one of the most streamlined and quick companies formation and ease of doing business.

To support business growth UAE has all the necessary infrastructure and Government support.

Business Consultants will assist investors in preparing the required documents and guide through the company formation process ensuring a hassle-free company setup in UAE.

3. Enormous Market Opportunities

Setting up a company in UAE opens up a large market opportunity for the investors. The strategic location of the UAE makes it a perfect trade hub and business center.

The logistics and transport infrastructure (road transport, shipping network, air transport) connects UAE with more than 190 countries including the whole of GCC Countries and the rest of the Middle East and Africa region.

Hence, for local traders and business investors in the UAE, there is immense scope for easy expansion to global markets and target more customers for their business by setting up a company in the UAE.

4. Low Cost- High Revenue Generating Business

The Business Setup Cost in UAE is comparatively lower than other European Countries and provides world-class infrastructure facilities to support the business.

Also, businesses in the UAE have a huge potential to grow and scale-up generating higher revenue due to an expanding market and trade ecosystem.

5. Flexible Warehouse Options

The vast availability of customized Warehouses in the UAE makes it a perfect location for general trading companies and export houses.

Trading Companies can set up their distribution unit and branches / new companies in UAE and facilitate global trade operations by making UAE the central warehouse location.

The well-established logistics connectivity and storage spaces for specific purposes (Food Storage, Cold Storage, Medical Products, etc.) as well as storage facilities for general goods make the general traders easily import and export goods to and from UAE.

To know more about Warehouse Facility Requirements in UAE for your company, connect with our team right away!

Contact: Aurion Business Consultants

The post What are the Factors Driving Demand for Warehouse Licenses in UAE? appeared first on AURION.

Why is the UAE the Right Choice for Setting Up a Logistics Company?

The strategic location of UAE coupled with Government support and initiatives towards promoting trade locally and internationally has transformed the region into a trade hub of the world.

UAE is an international transit hub and an intermediary stop point for international trade across the world. It has a robust logistics support system, warehouse facilities, a dedicated zone for handling large cargos, and many more.

How to Start a Logistics Company in UAE?

UAE is home to a bunch of international trading companies as well as numerous local entrepreneurs in the field of Logistics and trade operations. As a new business venture in the trade and logistics segment, the company must be bringing in innovation or an advanced business model to strive through the intense competition in the segment.

However, despite the competition, there is a vast opportunity in the field of logistics and distribution. Often large companies in the logistics segment only work with higher quantity and premium service fee, low cost providers might lack in customer service and technology-driven strategic implementations.

Entrepreneurs with a fair knowledge of the UAE market segment and customer preference will succeed in launching their business venture easily in UAE

Ideal Free Zones for opening a Logistics Company in UAE

Each Free Zone in UAE has distinct benefits and based on investor requirements the right Free Zone Business Setup Package is to be chosen. Aurion will assist you in picking the right choice for your business by assessing your precise business requirements.

Note: The list of Free Zones included below is not an exhaustive list, there are more than 45 Free Zones in UAE and most of the Free Zones offer business License for the activities under the Logistics sector.

The below list of Free Zones is curated based on the business benefits for the investors of a logistics company by setting up their business in the below Free Zones.

1. Dubai Airport Free Zone

Dubai Airport Free Zone is the world’s top Free Zone offering attractive company formation packages to the global investors. Dubai Airport Free Zone is the ideal choice for setting up a logistics company due to the enormous business benefits offered by the Free Zone.

Dubai Airport Free Zone – Key Highlights

The proximity to one of the world’s busiest airport makes it easy for trading and logistics companies to handle the Air Cargo Shipments at reduced transportation cost and handling fees.

The Free Zone offers custom-build warehousing facilities and light manufacturing & assembling units starting from 350Sq.m onwards with an office space and 30 employee visas.

The 0% import duty on all imports to Free Zone, Zero Taxation policies, and 100% foreign ownership are the highlights for foreign companies considering this Free Zone as the final choice.

Also, the easy company setup, UAE residence visa processing, bank account opening, and the prestigious Dubai Address is the additional benefits for the entrepreneurs.

2. Sharjah Airport International Free Zone

The Sharjah Airport International Free Zone is a reputed Free Zone in the emirates of Sharjah. The proximity to the Sharjah International Airport and the Khalid Sea Port makes this Free Zone the right Launchpad for logistics and trading companies aiming at local, GCC, and International Markets.

The company formation in SAIF Zone is relatively easy with minimum paperwork. The Free Zone also offers custom-build warehouses, land of warehouse/manufacturing units, as well as customized office spaces.

To know more about the warehouse specifications in the Sharjah Airport Free Zone, enquire with our experts!

3. Dubai South Free Zone

Dubai South Free Zone is the fastest growing Free Trade Zone and a preferred logistics hub in Dubai.

Dubai South specifically caters to logistics and trading companies by offering state of the art warehouses of customizable sizes to suit a wide range of requirements from the entrepreneurs.

With easy access to the Jebel Ali Port through a special logistics corridor and the Al Maktoum International Airport (DWC), the Free Zone is transforming the logistics and distribution network in UAE.

How to Setup a Logistics Company in Dubai South?

The Dubai South Free Zone offers numerous business setup packages for investors by following simple steps. Taking the assistance of expert Business Consultants will make the company registration process hassle-free.

Steps in Setting Up a Logistics Company in Dubai South Free Zone

• Prepare the application form for the initial approval
• Choose the right trade name and get the approval
• Choose the right business setup package (License type, office space, office type) – Aurion will assist you here in choosing the right company setup package)
• Prepare the documentation (shareholder resolution, passport copy, business plan) and submit the relevant documents for the company registration
• Pay the required fee and obtain the business license post-approval of the documents
• Also, obtain the company documents such as the incorporation certificate, special approvals (if any)
• Proceed to apply the UAE Residence Visa and Bank Account opening

So, in a nutshell, UAE is the perfect location for establishing a logistics company and easily scale up by tapping into the growing business opportunities in the region.

Here are few more choices of Free Zones for Setting up a Logistics Company in UAE, watch the full video!

There are numerous small and big trading companies and a growing consumer base in UAE. Logistics and distribution companies are the means to connect these suppliers/manufacturers with the end-consumer.

Those companies that provide exceptional service will get positive customer feedback and will be able to scale up easily with a growing number of order fulfilments.

To know more about Starting a Logistics Company in UAE, talk to our Expert Team right away!

Read more about “Tips for Setting up a Trading, Logistics, or Supply Chain Company in Dubai” and Import export licenses in UAE.

The post How to open a Logistics Company in UAE? appeared first on AURION.