If you want to know the process of how to start a trucking business in the UAE? You are in the right place. Starting a trucking company can be very profitable in the UAE due to its global importance and facilities. The transport sector plays an important role in the growth of the economy because of the use of transportation in every industry.
Dubai is the top leading commercial center that manages a prosperous transport sector which contributes to the growth of the country’s economic success. Additionally, with the increase in e-commerce and online shopping the need for transport services is also increasing.
Due to this, opening a transport company is the best option for you. Let us look at the steps involved in starting a trucking company in the UAE and its rules and regulations.
Trucking Industry in the UAE
Dubai is known for its strong economic position in the region and has seen transformation from a dominant logistics center to a supply chain nexus. Many goods are transported through roads, which requires good quality transportation companies and efficient infrastructure.
Benefits of Starting a Trucking Company
Here are some of the benefits that come with a transport company,
Strategic Position
The transport businesses in Dubai play an important role in the operations of companies in Dubai and its surrounding areas, whether by use of international buses, road transport, courier service, or freight business. Dubai is the central point that combines East and West, providing easy trade ways to global organizations.
Dubai is surrounded by different countries like Iraq, Saudi Arabia, Iran, Bahrain, Oman, and others, making it a central trade and logistics point. Due to Dubai’s fame as a retail trade sector, customers are attracted worldwide.
Modern Infrastructure
Dubai is known for its eye-catching infrastructure, which is within a class of its own. Its impressive road network, spacious seaports, famous logistics and shipping areas, modern airports, and other public facilities are the main reasons that attract foreign investors to start their transport business.
Benefits for Companies
The government of UAE offers tax benefits for foreign entrepreneurs and individuals, making it an attractive option to stay and work.
The number of foreign investors is increasing because of the easy immigration process and business regulations, allowing foreigners to own their businesses fully.
If you are starting a transport company in the UAE, you do not have to invest a specific minimum capital. Alternatively, there is the option of free zones, which are exclusively made for different industries. A free zone is the best option for small and medium businesses because there are various support areas, incubators, and other services.
Process to Start a Trucking Company in Dubai
There are some necessary steps you need to follow for starting a trucking company in Dubai.
Selecting a Business Structure
Dubai has different free zones designated for different business sectors. There are many benefits for foreign entrepreneurs in free zones, such as an easy business start up process, government laws and full ownership of your business.
Additionally, they have modern infrastructure, licensing authorities, and associations with logistics companies and customers who need good transportation services. To lawfully run your trucking business, getting a trade license in the UAE is important.
Choosing a Company Name
Choose a suitable name for your business and register it with the regulatory authorities in the UAE. While choosing a name, it is important to remember the name must not be offensive or blasphemous. Instead, you can use your name for your company. After that, checking if it’s available for registration is necessary.
Submit Required Documents
After registering your company’s name, submit the required documents to make your business legal and easy to run in the country. Submit articles of association and a memorandum for the company to the Department of Economic Development.
Submit License Application
After getting your commercial license, it is important to get your transportation license. The National Transport Authority provides the transportation license for transportation/trucking companies in the UAE.
This license ensures that the company is complying with necessary regulations and providing safe transportation services to the customers. The first important step is getting a Commercial License from the Department of Economic Development UAE and applying for a transport license from the National Transport Authority.
Along with the application form and business plan of your company, you’ll need to submit the following documents;
- Attested Memorandum of Association
- Attested Articles of Association
- Photocopy of commercial license
- Photocopy of the company’s lease agreement
- Photocopies of shareholders’ passports
- Photocopy of name registration document
- Authorization proof from the city management department
Getting your Business License
After completing the application process by the National Transport Authority, you’ll be issued a commercial license for your company. The application can take two weeks to be approved by the authorities.
How Much Does it Cost to Start a Trucking Company in Dubai?
If you’re starting a trucking company in Dubai, it costs between AED 30,000 and AED 40,000. This cost can be different according to your business type, location and other factors. Make sure to plan your budget while starting a new company in order to avoid extra costs.
Legal Formalities for Starting a Trucking Company in Dubai
Trucking companies need to keep some legal laws in mind while starting a new business in the UAE. These formalities are as follows
Trade License and Registration
Trucking businesses must get a trade license to run their company legally in the UAE. If you want to set up your business on the mainland, you’ll need a local sponsor who will own the majority of your company’s shares.
On the other hand, if you choose a Free Zone, you’ll get many advantages, such as a simple company formation process, tax-free policies, and other initiatives for business support. It is necessary to write in detail about your business activities and your license application form to avoid fines.
Traffic Rules for Trucking
Trucking companies must follow the traffic laws set by the National Transport Authority in the UAE. Following the rules of the Roads and Transport Authority is also crucial for the legal and safe movement of trucks in Dubai. The trucking company must follow other laws, such as weight limits, safety equipment, route restrictions, etc.
Trucks in the UAE are issued an “Operation Card,” which confirms that the company has fulfilled legal requirements. It is necessary to go through vehicle inspection regularly and follow safety rules to avoid fines and penalties.
Fulfilling Environmental Regulations
Trucking companies must comply with environmental regulations in the Emirates. There are strict rules to protect the environment, reduce pollution, and endorse sustainability. They must adopt eco-friendly technology, such as electric trucks, to comply with the UAE’s objective of protecting the environment. A company may face hefty fines and penalties if it does not comply with these laws.
Permitted Transportation Services in Dubai
The UAE allows different types of transportation services to choose from. For new business startups, the following are the options.
- Luxury transportation
- Motorbike rental service
- Freight transport through light trucks
- Cargo transport through large trucks
- Renting and transporting heavy machinery
- Vehicle recovery services
- Transport of petroleum
- Car rentals
- Vehicle fleet management
- Passenger transport
- Bicycle rentals
- Water transport
- Refrigerated goods transportation
- Special transport services for carrying money, assets, and petrol
- Special automobile rentals such as transport and trucks
Marketing Strategies for Transport Company
Even though the transport business is highly profitable, it still needs careful planning, marketing strategies, and adjustments to meet the market’s changing needs. Below are suggestions for the growth of your trucking company in the UAE.
Branding your Business
You must create a unique brand identity to make your business stand out in the market. The brand you create should have an impressive logo that shows the values of your business.
The customer must be able to connect with you and trust you. You can show your values through promotional events, good quality customer service, and the livery of your transportation.
Marketing Strategies
Different marketing tools must be used to promote your business and attract customers to make your company stand out in the transport market and become successful. You can use social media, websites, optimization tools, and email marketing. You can share valuable content, guidelines, and special offers to build the trust of your customers.
Establishing Customer Relationships
You must build good relationships with your customers for a successful transportation business. It can be done by listening to your customers’ needs, addressing them, and communicating well.
Develop Your Fleet
Trucking companies must manage and keep their vehicle fleet according to your industry’s standards and be accommodating and comfortable.
Growing Your Transport Business
Expanding and growing your transport business by investing in new and modern technology and using creative practices is necessary. Explore new services and management tools to increase the effective operations of your company.
Final Words!
In the end, we can say that you completely understand the importance of starting a trucking company. Starting a trucking company in the UAE is a challenging process that requires navigational skills and an understanding of the needs of your business. To make your business successful, comply with regulations, make business strategies, and stay committed to efficiency and sustainability.
Al-Riyady is a well-known consultant company that deals with company formation in the UAE. Our expert team is here to help you set up your transportation business in the UAE without trouble. Contact Our Experienced Consultants today and get a consultation on all your business-related questions. We also provide accounting and auditing services, tax consultancy, Business Valuation, and more.
