Dubai is one of the world’s foremost trading locations with thriving businesses across all sectors. From auto parts and clothes to technology and building materials, all manner of goods are imported, exported, sold and stored in our emirate.
And that last one is more significant than you may think. Thanks to its unique trading location, many businesses in the UAE buy stock in bulk from overseas, which is then stored and sold in the UAE. Equally, many businesses also manufacture goods here, which are then stored before export around the world.
For the companies that can provide storage and warehousing facilities, there is much business to be done. If you’d like to stake a claim to a part of this vast market, you’ll need a trade license. But with the help of Business Incorporation Zone (BIZ), doing so can be fast, efficient, and straightforward.
Keep reading to find out more about the license application process and how to secure your visa and UAE corporate bank account.
What are the benefits of starting a storage and warehousing company in Dubai?
First things first, there are many benefits of forming a company of any nature in Dubai. By this, I mean the country’s 0% tax rate on corporate and personal income, its low barriers to entry, and its welcoming business community.
When it comes to warehousing and storage specifically, there are the added benefits of the country’s strategic trading location, its excellent transport links, and high demand for such services.
Steps to start a storage and warehousing company in Dubai
Follow the simple steps below, and you will be up and running in no time.
Step 1: Work with BIZ
With the help of a company formation expert such as BIZ, the license application process can be quick and easy. We’ll help you make all of the decisions below and manage your license, visa, and bank account applications on your behalf.
Step 2: Company name
As well as choosing a catchy name that suits your business, you’ll also need to abide by the UAE’s company naming conventions.
In short, you should avoid any offensive or blasphemous language. Avoid names of well-known organisations and avoid abbreviations if naming your company after yourself – i.e., Dave Mann Consulting, rather than D Mann Consulting. You must also check that your chosen name is available to register.
Step 3: Apply for your license
With these decisions made, you can apply for your trade license. This process differs slightly depending on where you set up. If you plan to operate a warehouse or storage facility in the mainland, you should apply to the Dubai Department of Economic Development (DED).
If you are planning on operating in a free zone, your application should be made to the managing authority of that zone. In both cases, however, it always pays to partner with BIZ.
Your warehouse license permits you to store goods under the supervision of Customs for a specified period without paying customs duty. Licenses are usually issued within seven working days.
Step 4: Visa applications
You will also need a visa to operate a warehouse or storage facility in Dubai. This involves a five-step process spanning four to twelve weeks.
- Apply for an entry permit
- Status adjustment
- Medical and fitness test
- Emirates ID registration
- Visa stamping
At this stage, you should also apply for visas for your employees. And you can also sponsor your dependants for their visas too. This may include children, a spouse, and domestic staff.
The maximum number of visas you can apply for will depend on the size of your company, your chosen setup and, for dependant visas, your personal earnings.
Step 5: Bank account application
Finally, you can apply to open your UAE corporate bank account. This can be a complicated process for entrepreneurs from outside the GCC.
However, BIZ can once again handle this process for you, liaising with relevant authorities on your behalf.
Documents required to open a storage and warehousing company in Dubai
You will need to provide several pieces of documentation to apply for a warehousing license. As well as identification and proof of address details, you will also need to submit:
- Cash or bank guarantee
- Trade license copy
- Insurance policy copy
- Civil defence certificate copy
- Ownership/Lease verification certificate copy
- Warehouse plan
- List of commodities to be stored
- Details of inventory system
How much does it cost to open a storage company in Dubai, UAE
A public warehouse license, which allows you to store goods for other companies for profit, costs in the region of AED 150,000.
On top of this, you’ll need to consider the cost of buying or leasing storage space, plus staff and equipment costs and other standard overheads.
You are also required to show proof of funds of AED 1,500,000 to obtain a public warehouse license.
Are you ready to start your storage business in Dubai?
Hopefully, this guide has made clear that if you’re armed with the right knowledge, setting up a storage and warehousing company in Dubai doesn’t have to be overly complex.
That being said, it does require a level of prior knowledge of the process. What’s more, it is important to note that the application process is only straightforward if your license application is complete at the time of submission and free from errors.
To help you ensure that this is the case, it’s a good idea to work with a company formation specialist such as Business Incorporation Zone when establishing a new company in the UAE.
We are a team of company registration professionals who are passionate about bringing the dreams of aspiring entrepreneurs and SMEs to life.
As well as handling your license application, BIZ can also assist with the opening of corporate bank accounts and advise on the most appropriate financial institution to suit your specific needs.
We also offer visa and immigration services and can handle all government formalities, permissions, work permits, and visa applications required to trade in the UAE.
In short, our experts can establish your company on your behalf, make your license and visa applications, and take care of all the necessary admin – leaving you free to get on with running your business.