How to Start a Logistics Business with Meydan Free Zone

Anisha Sagar

Anisha Sagar

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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 and Freight 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

CategorySub CategoryActivity CodeActivity Nameالنشاط
BusinessUtilities3700.96Sewage & Draining Servicesخدمات الصرف الصحي وسحب المياه
BusinessUtilities3811.96Garbage Disposal Servicesخدمات جمع القمامة وازالتها ونقلها
BusinessUtilities3811.97Construction & Demolition waste collection & Transportation Services (3811.99)خدمات جمع ونقل مخلفات البناء والهدم
BusinessTrading4520.99Mobile Auto Repair Servicesخدمات الصيانة المتحركة للمركبات
BusinessTrading4690.93Vehicles Numbers Trading (4690.99)تجارة ارقام المركبات
BusinessTrading4799.99Sale of goods by vehicleبيع البضائع بواسطة المركبة
BusinessTransportation4922.89Transport Services by Electronic Media & Smart Appsخدمة نقل الركاب عن طيق الاتصال أو المنصات الالكترونية أو التطبيقات الذكية
BusinessTransportation4922.9School transportationالنقل المدرسي
BusinessTransportation4922.92Passenger Transport for non-emergency casesخدمات نقل المرضى وكبار السن في غير الحالات الطارئة
BusinessTransportation4922.94Transport By Tour Busesنقل الركاب بالحافلات السياحية
BusinessTransportation4922.95Passengers Transport by Rented Busesنقل الركاب بالحافلات المؤجرة
BusinessTransportation4922.99International Buses Serviceنقل الركاب بالحافلات على خطوط دولية
BusinessTransportation4923.86Motor Vehicles Transportationنقل المركبات
BusinessTransportation4923.87Transport by Specialized Trucksالنقل بالمركبات ذات الاغراض المتخصصة
BusinessTransportation4923.88Animals Transportنقل الحيوانات
BusinessTransportation4923.9Transport goods by light trucksنقل البضائع بالشاحنات الخفيفة
BusinessTransportation4923.91Transport goods by heavy trucksنقل البضائع بالشاحنات الثقيلة
BusinessTransportation4923.93Fodder & Animal Feed Transportنقل الاعلاف والاغذية الحيوانية
BusinessTransportation4923.94Freight Transport within Open Markets & Designated Areasنقل البضائع داخل الأسواق المفتوحة والمناطق المحددة_
BusinessTransportation4923.95Transport by Refrigerator Trucksالنقل بالمركبات المخصصة للتبريد
BusinessTransportation4923.96Water Transportنقل المياه
BusinessTransportation4923.98New and Used Furniture Removalنقل الاثاث الجديد والمستعمل
BusinessTransportation5222.96Boats Transport and Towingنقل وقطر القوارب
BusinessTransportation5222.97Motorcycle Towing Servicesنقل وقطر الدراجات النارية المعطلة
BusinessTransportation5222.99Vehicles Recoveryنقل وقطر المركبات المعطلة
BusinessTransportation5229.91Logistics and Freight Servicesالخدمات اللوجستية
BusinessTransportation5221.94Transportation and Delivery Orders by Electronic Media and Smart Appsادارة طلبات النقل والتوصيل من خلال المنصات الالكترونية والتطبيقات الذكية
BusinessTransportation5320.95Documents Deliveryنقل الوثائق والمستندات
BusinessTransportation5320.96Letters & Post Items Deliveryنقل بعائث بريد الرسائل
BusinessTransportation5320.97Delivery Servicesخدمات توصيل الطلبات
BusinessTransportation5320.98Parcels Deliveryنقل الطرود
BusinessICT6312.99Vehicles Auctions Organizing by Electronic Media & Smart Appsتنظيم مزادات المركبات من خلال المنصات الالكترونية والتطبيقات الذكية او الوسائل الاخرى
BusinessAdministrative7710.84Motor Vehicles Transport Trucks Rentalتاجير مركبات نقل المركبات
BusinessAdministrative7710.85Car Rentalتاجير السيارات
BusinessAdministrative7710.86Using electronic media smart applications, or any other means of renting vehiclesاستخدام المنصات الإلكترونية والتطبيقات الذكية أو أي وسيلة أخرى في تأجير المركبات
BusinessAdministrative7710.87Wastewater Disposal Vehicles Rentalتأجير الصهاريج المعدة لنقل مياه الصرف الصحي وسحب المياه
BusinessAdministrative7710.89Garbage Trucks Rentalتاجير المركبات المعدة لجمع القمامة وازالتها ونقلها
BusinessAdministrative7710.9Refrigerator Trucks Rentalتاجير المركبات المخصصة للتبريد
BusinessAdministrative7710.91Transportation Vehicles Rentalتاجير الشاحنات العامة
BusinessAdministrative7710.92Specialized Vehicles Rentalتاجير المركبات ذات الاغراض المتخصصة
BusinessAdministrative7710.94Racing Cars Rentalتاجير سيارات السباق
BusinessAdministrative7710.95Driving Test Vehicles Rentalتاجير مركبات فحص السواقة
BusinessAdministrative7710.96Buses Rentalتاجير الحافلات
BusinessAdministrative7721.99Bicycles Rentalتاجير الدراجات الهوائية
BusinessAdministrative7730.61Mobile Vans Rentalتأجير سيارات (عربات) متنقلة
BusinessAdministrative7730.93Electric Scooters Rentalتاجير السكوتر الكهربائي
BusinessAdministrative7730.95Trikke Scooters Rentalتاجير الدراجات الكهربائية
BusinessAdministrative7730.96Caravans Rentalتاجير البيوت المقطورة
BusinessAdministrative7730.97Handling Loading Lifting Equipment Rentalتاجير معدات والات الرفع والتحميل والتشييد والبناء المتحركة بواسطة عجلات ومحرك ميكانيكي
BusinessAdministrative7730.99Motorcycles Rentalتاجير الدراجات النارية
BusinessAdministrative8010.99Money & Valuables Transport Servicesنقل الاموال والمواد الثمينة
BusinessAdministrative8299.99Vehicles Auctions Organizingتنظيم مزادات المركبات
BusinessEducation8549.97Transport Services Training-8549.97التدريب على خدمات النقل
BusinessArt9311.99Recreational Course Operatorمشغل الحلبة الترفيهية
BusinessServices9609.75Services provision via Mobile trucks-9609.99تقديم الخدمات بواسطة المركبة

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.

ESR

The Economic Substance Test (EST) mandates certain types of enterprises to operate or be directed from within the UAE, maintain an adequate number of full-time employees in the UAE, generate the majority of their income within the UAE, possess sufficient assets, and have adequate operational expenses within the UAE. The EST is evaluated and reported through the submission of the ESR, which is required to be submitted within one year of the end of the fiscal year. 

Companies with a fiscal year that began on or after January 1, 2019 and ended on or before December 31, 2019, for example, are required to file the notification, and even newly formed companies need to submit an Economic Substance Return in the following year if the activity requires ESR. 

Business activities 5229.91 and 7020.15 are exempt from requiring ESR.

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.

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