Company Setup in Dubai Logistics City (DLC)
Dubai Logistics City sits inside Dubai South near Al Maktoum International Airport. The zone links air, sea, and road routes in one connected platform. The location supports fast cargo moves with reliable services. Companies use DLC to run freight, warehousing, e-commerce fulfillment, value-added services, and returns. The authority offers clear rules and digital portals. The system helps founders start fast with less friction.
This guide explains how you set up a business in Dubai Logistics City. It shows legal forms, license options, space choices, documents, steps, and timelines. It covers banking, visas, customs, and compliance. It also shares practical tips that cut errors and delays. The language stays simple and direct. Mubarak Al Ketbi (MAK) Auditing supports each stage with checklists, trackers, and bank-ready files.
Why DLC Works for Supply Chain Growth
DLC connects your operation with major markets in the Middle East, Africa, and South Asia. The highway network links the zone with Jebel Ali Port and the rest of the UAE. The airport nearby supports express freight and charter needs. This mix reduces transit time and improves schedule control.
Key advantages include:
- 100% foreign ownership: Free-zone structures allow full foreign ownership for eligible activities.
- Capital mobility: Current policy allows repatriation of capital and profits.
- Duty efficiency: In-bond flows and re-exports can move with customs benefits under set rules.
- Tax framework: UAE corporate tax applies. A free-zone entity may enjoy a 0% rate on qualifying income only if it meets Qualifying Free Zone Person (QFZP) conditions and substance tests; non-qualifying income can be taxed at the standard rate.
- Facility range: Offices, flexi-desks, ready warehouses, and build-to-suit plots scale with demand.
- Integrated logistics: Cargo villages and dedicated corridors support smooth hand-offs.
- Digital services: Online portals handle applications, amendments, and renewals.
- Talent access: The city hosts logistics professionals, drivers, planners, and technologists.
These features help startups gain speed and help mature firms consolidate networks.
Activities That Fit Best in the Zone
The authority approves a wide set of logistics and trade activities. You can mix scopes within license rules.
- International freight forwarding and multimodal transport
- Air cargo handling and ground services under permitted scopes
- Contract logistics and 3PL warehousing
- E-commerce fulfillment and last-mile staging
- Temperature-controlled storage and distribution
- Spare-parts kitting and light value-added services
- Customs brokerage and documentation services (where permitted)
- Supply chain consulting and control-tower services
- Trading of specified goods with compliant HS codes
- MRO support logistics and AOG spares staging
A precise activity list protects you during renewals and inspections.
License Choices You Can Use in DLC
Activity drives the license type. DLC groups licenses into clear classes:
- Logistics License: You perform freight forwarding, storage, distribution, and related logistics services.
- Trading License: You buy, sell, import, export, and re-export specified goods.
- Service License: You provide professional services linked to supply chains, such as consulting, planning, and IT support.
- Warehousing License: You operate storage and distribution with defined SOPs and HSE controls.
Some scopes need extra consents, such as pharmaceuticals, dangerous goods, food, or high-value items. The authority lists these during pre-approval.
Legal Forms and Governance Basics
You choose a legal form that matches control and risk:
- Free Zone Limited Liability Company (FZ-LLC): One or multiple shareholders own the entity; liability stays limited.
- Branch of a Foreign Company: A parent company opens a branch; the parent remains liable.
- Branch of a UAE Company: A local parent expands into the free zone.
Boards appoint a manager. The entity keeps proper books and a company seal. The entity renews the license each year and updates registers after changes.
Legal Forms and Governance Basics
You choose a legal form that matches control and risk:
- Free Zone Limited Liability Company (FZ-LLC): One or multiple shareholders own the entity; liability stays limited.
- Branch of a Foreign Company: A parent company opens a branch; the parent remains liable.
- Branch of a UAE Company: A local parent expands into the free zone.
Boards appoint a manager. The entity keeps proper books and a company seal. The entity renews the license each year and updates registers after changes.
Step-by-Step: How You Register in DLC
A structured path reduces rework and saves time. Follow these steps:
- Define activities: You write services and product lines in plain words with HS codes where relevant.
- Pick the legal form: You select FZ-LLC or a branch structure.
- Reserve a trade name: You submit two or three compliant options.
- Prepare initial documents: You collect IDs, address proofs, and a short project plan.
- Choose the facility: You select desk, office, warehouse, or plot that meets license minimums.
- Submit the application: You upload forms and pay initial fees through the portal.
- Sign constitutional papers: You sign MOA/AOA or branch undertakings.
- Lease and e-agreements: You sign the premises contract and utility forms.
- Receive the trade license: You obtain the license and the company number.
- Apply for establishment card: You enable immigration and visa processing.
- Open the bank account: You present the KYC pack to your chosen bank.
- Process visas: You file entry permits, medicals, biometrics, and Emirates IDs.
- Launch operations: You install racking, hire staff, and issue invoices.
Mubarak Al Ketbi (MAK) Auditing sequences these tasks on a Gantt plan and runs bank KYC in parallel with licensing to compress the calendar.
Documents You Should Prepare Early
Clean files move faster through reviews and banking:
- Passport copies and proof of address for shareholders and managers
- Colored photos with white background
- Shareholder structure and UBO chart
- Business plan or project summary with lanes, volumes, and clients
- Board Resolution and Power of Attorney where required
- MOA/AOA for new entities; parent documents for branches
- Sample contracts, SLAs, or LOIs from anchor customers (if available)
- Facility specs, fire drawings, and racking layout for warehouse scopes
Foreign papers may need notarization and UAE legalization. Begin attestations early to avoid delays.
Warehouse Design, HSE, and Cold-Chain Controls
Safe sites protect people and uptime:
- Fire protection: Sprinklers, alarms, extinguishers, and clear exit routes.
- Zoning: Mark pedestrian walkways, forklift aisles, and staging bays.
- Racking: Use certified systems; keep load signage and inspection logs.
- Material handling: Train operators and document pre-shift checks.
- Dangerous goods: Segregate by class with spill kits and SDS access.
- Cold chain: Use calibrated probes, temperature logs, and alarmed doors.
- Permits: Apply permit-to-work for hot work and high-risk tasks.
Keep toolbox talks, near-miss logs, and evacuation drills on a set calendar.
Customs, VAT, and Inventory Integrity
DLC supports bonded flows and re-exports under customs rules. Mainland clearance triggers duty and VAT where applicable. Your team should:
- Map HS codes and valuation methods.
- Reconcile movement logs with WMS and gate passes weekly.
- Keep supplier invoices, airway bills, and bills of lading matched to receipts.
- Separate bonded stock from domestic stock in the WMS and on the floor.
- Record value-added services that change tariff or origin where relevant.
Mubarak Al Ketbi (MAK) Auditing sets stock ledgers, VAT mappings, and landed-cost models that tie to financial accounts.
Banking and KYC for Logistics Firms
Banks want clarity on ownership, trade routes, and compliance. Prepare a concise KYC deck:
- Trade license, lease, and establishment card
- UBO chart and IDs of key persons
- Business model with lanes, INCOTERMS, and top counterparties
- Expected volumes, currencies, and average ticket sizes
- Sample SLAs, MSAs, or freight contracts
- Site photos and utility bills after activation
- Auditor engagement or bookkeeping letter
Some banks require minimum balances or initial deposits. A clean deck reduces questions and speeds onboarding.
Corporate Tax, Substance, and Ongoing Compliance
The federal corporate tax regime applies across the UAE. A free-zone firm may secure 0% on qualifying income only when it meets QFZP rules, holds adequate substance inside the zone, and keeps separate audited accounts. Non-qualifying income may be taxed at the standard rate. Keep monthly closes, aging reports, and reconciliations on a strict schedule. Renew licenses, visas, and establishment cards on time.
Mubarak Al Ketbi (MAK) Auditing designs your chart of accounts for freight, warehousing, and value-added lines. The team prepares returns and audit files with clear schedules.
Digital Tools That Improve Throughput
Simple tools lift performance:
- WMS with RF scanning: Improves accuracy and speeds counts.
- TMS with slot-booking: Cuts yard waits and improves on-time departures.
- Control-tower dashboards: Track OTIF, dwell, and damage rates.
- E-invoicing from WMS/TMS: Reduces disputes and days sales outstanding.
- Temperature and shock sensors: Protect cold chain and fragile goods.
Set user roles and MFA. Log every change to master data.
Cost Drivers You Should Budget
Total cost depends on license type, facility size, visas, and service scope. Key lines include:
- Registration and license fees
- Lease rent for office, warehouse, or plot
- Establishment card and visa processing per person
- Racking, MHE, and safety equipment
- WMS/TMS software and handhelds
- Insurance for property, cargo, and liability
- Utilities, fit-out, and maintenance
- Document attestation and translations
- Professional fees for incorporation, accounting, and audit
Plan a three-month working capital buffer for the first operating quarter.
Common Mistakes and How to Avoid Them
- Picking activity codes that don’t match real operations
- Leasing a warehouse that fails license or HSE minimums
- Skipping attestations for foreign papers
- Delaying bank KYC until after license issuance
- Weak HS code mapping and bonded stock control
- Missing renewal windows for license, lease, visas, or insurances
A one-page checklist prevents most errors. Train your team on the checklist during onboarding.
Practical Timeline and Launch Tips
Straightforward service files can move in a short window after complete submission. Industrial or specialized cargo scopes may take longer due to external approvals. You keep momentum when you:
- Pre-clear activity scopes with the authority
- Reserve the name before drafting MOA/AOA
- Pick a facility that meets license minimums, power, and fire-safety needs
- Prepare the bank KYC pack in parallel
- Lock an accounting calendar with monthly cut-offs and a renewal tracker
Hold a weekly stand-up until the first invoice posts.
Expansion Paths After Year One
You can scale in several ways:
- Add a general trading line for accessories and spare parts
- Lease a larger unit or a cross-dock to handle peak seasons
- Add cold-chain rooms, battery charging rooms, or hazmat zones
- Launch a value-added pack station for e-commerce
- Open a control-tower service for regional clients
- Pursue ISO 9001, 14001, and 45001 for tenders
Track KPIs weekly: OTIF, dwell time, pick accuracy, damage rate, and DSO.
What Can Help — Mubarak Al Ketbi (MAK) Auditing
Mubarak Al Ketbi (MAK) Auditing guides your Company Formation in Dubai Logistics City from plan to go-live. The team maps activity codes and drafts MOA/AOA. The team manages attestations, filings, and leases. The team builds bank KYC packs, opens accounts, and sets books and tax calendars. With this support, you avoid penalties, control cash, and grow with confidence—because a stitch in time saves nine.
For More Information
- Visit our office: Saraya Avenue Building – Office M-06, Block/A, Al Garhoud – Dubai – United Arab Emirates
- Contact / WhatsApp: +971 50 276 2132
