Dubai Logistics City - Business Setup

Dubai Logistics City (DLC) Free Zone is a leading business hub designed to support the logistics, trading, and supply chain industries in the UAE. Strategically located within Dubai South, near Jebel Ali Port and Al Maktoum International Airport, DLC provides seamless connectivity via air, sea, and road, making it an ideal gateway for global trade.   This article explores the business setup process, available licenses, benefits, and facilities in Dubai Logistics City, helping you establish a successful Business in the UAE.

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About Dubai Logistics City

For investors looking to establish a business in the UAE's logistics and trading sector, Dubai Logistics City (DLC) is an ideal choice.

Located within Dubai South, DLC is a dedicated free zone designed to support the logistics industry. Strategically positioned near the Jebel Ali Sea Port, this ambitious project was developed to enhance trading opportunities in the region.

Dubai Logistics City provides a comprehensive ecosystem tailored to the needs of logistics and trade businesses. With seamless access to air, sea, and road transport, it serves as a perfect hub for international supply chain operations, ensuring efficient connectivity and smooth business operations.

Benefits of Setting Up a Business in Dubai Logistics City (DLC)

Establishing a business in DLC provides a range of advantages, making it a prime location for logistics and trade operations.

• 100% Foreign Ownership: Investors have full control over their business without the need for a local sponsor.
• State-of-the-Art Logistics Facilities: DLC offers cutting-edge infrastructure designed to support seamless supply chain and logistics operations.
• 100% Corporate and Personal Income Tax Exemption: Businesses benefit from a tax-free environment, ensuring higher profitability.
• VAT Designated Zone: As a VAT-free zone, businesses operating in DLC enjoy exemptions on value-added tax under specific conditions.
• 100% Capital Repatriation: Investors can repatriate their profits and capital without any restrictions.
• Strategic Connectivity: DLC directly links to Jebel Ali Port and Al Maktoum International Airport, ensuring efficient global trade and logistics operations.
• Advanced Infrastructure: The free zone provides pre-built warehouses, custom-built units for freight forwarders, and dedicated lanes for heavy vehicles, optimising transportation efficiency.
• Strong Distribution Network: DLC is strategically positioned for seamless distribution to Africa, Southeast Europe, the Middle East, and Asia, enhancing trade access.
• Secure and Transparent Legal Environment: Businesses operate in a well-regulated, legally secure free zone with clear and transparent regulations to ensure smooth operations.

By leveraging these benefits, companies in Dubai Logistics City can achieve greater operational efficiency, cost savings, and global market access, making it a top destination for logistics and trading businesses.

Which Licenses Are Available at Dubai Logistics City (DLC Freezone?

Dubai Logistics City (DLC) Freezone offers a variety of licenses tailored to different business activities. These licenses enable businesses to operate efficiently while complying with regulatory requirements.

• Logistics License: Issued to businesses providing logistics services such as forwarding, sorting, storage, distribution, and transportation within the UAE.
• Industrial License: Granted to businesses involved in manufacturing activities that use labor or machinery for production processes.
• Trading License: Allows businesses to store, distribute, import, export, and sell specific products within the UAE market.
• Service License: Designed for businesses that offer training, insurance, consulting, catering, and other professional services.
• Education License: Issued to businesses involved in educational operations and consultancy, supporting academic and training institutions.

The wide range of licenses available at DLC Freezone reflects its commitment to fostering a business-friendly environment. By offering specialised permits, DLC facilitates smooth operations and encourages growth in the logistics and related sectors in Dubai.

Types of Company Formation in Dubai Logistics City (DLC) Free Zone

Dubai Logistics City offers two primary legal structures for company formation:

Free Zone – Limited Liability Company (FZ-LLC)

• A separate legal entity with limited liability for shareholders.
• Requires shareholders, directors, a company secretary, and a general manager.
• Minimum capital requirement: AED 300,000, with a minimum share value of AED 1.
• Provides full ownership and legal protection for investors.

Also, read about the Limited Liability Company

Branch Office

• Acts as an extension of an existing business outside the free zone.
• Must have the same name and activities as the parent company, with “Branch” included in the name.
• Requires a general manager but does not need a board of directors or a company secretary.
• Enables foreign companies to establish a presence in DLC without creating a new legal entity.

Facilities Offered in Dubai Logistics City Free Zone

Dubai Logistics City (DLC) Free Zone provides world-class infrastructure and services to support businesses in the logistics and trading sectors. The key facilities available include:

• Pre-built Warehouses & Custom-Built Units: Ready-to-use and tailor-made warehouse solutions for seamless logistics operations.
• Cutting-Edge Logistics Facilities: Advanced technology and infrastructure to enhance supply chain efficiency.
• State-of-the-Art Aviation Services: Direct connectivity to Al Maktoum International Airport for streamlined air cargo operations.
• Modern Business Support Services: Administrative, financial, and corporate support to facilitate smooth operations.
• Dedicated Office Spaces: Well-equipped office spaces designed to support business growth and operational efficiency.
• Value-Added Services: These include freight forwarding, storage, labeling, and light assembly to enhance business operations.
• Dedicated Bonded and Non-Bonded Areas: Specialized zones for handling goods with different customs and tax requirements.

These facilities make DLC Free Zone a strategic hub for logistics and trade businesses, offering a comprehensive ecosystem for growth and expansion.

Process to Start a Company in Dubai Logistics City (DLC) Free Zone

Setting up a business in the DLC Free Zone involves a structured process to ensure compliance with regulatory requirements. Below are the key steps:

Step 1 - Apply for Initial Approval

Begin by applying for the necessary initial approvals from the DLC Free Zone Authority to proceed with company formation.

Step 2 - Choose Your Business Activity

Select the appropriate business activity that aligns with your company's objectives and falls within the permitted categories in DLC.

Step 3 - Choose an Appropriate Business Structure

Decide on the legal structure of your business—whether it will be a Free Zone Limited Liability Company (FZ-LLC) or a Branch Office—based on your expansion plans.

Step 4 - Submit Required Documents

Prepare and submit the required documents in accordance with the DLC Free Zone Authority guidelines. These may include:

• Business plan outlining your company’s strategy
• Feasibility study (if required)
• Copies of passports and visas for shareholders and directors
• Proof of address for shareholders and directors
• No Objection Certificate (NOC) from your home country (if applicable)
• Power of Attorney (if appointing a local representative)

Step 5 - Make Payment

Pay the required processing and licensing fees to the free zone authority to proceed with business registration.

Step 6 - Obtain Business License

Once the application is approved, you will receive your business license, allowing you to legally operate in Dubai Logistics City.

Step 7 - Open a Corporate Bank Account

A corporate bank account is essential for managing business transactions and financial operations. Choose a UAE-based bank that suits your business needs.

Step 8 - Secure Employee Visas (if required)

If you plan to hire employees from outside the UAE, you must apply for their work visas to comply with immigration laws.

By following these steps, you can efficiently establish your company in Dubai Logistics City Free Zone, benefiting from its strategic location, tax advantages, and world-class logistics infrastructure.

Certificates Issued After Company Incorporation in DLC

Once your company is successfully registered in the Dubai Logistics City (DLC) Free Zone, the authorities issue essential certificates based on your chosen business structure.

Certificates for a Free Zone Limited Liability Company (FZ-LLC)

Businesses registered as an FZ-LLC will receive the following documents:

• Company Incorporation Certificate – Officially recognizes the formation of the company.
• Articles of Incorporation – Defines the company’s structure, purpose, and operational framework.
• Memorandum of Association (MoA) – Outlines shareholder agreements, company objectives, and governance rules.
• Share Certificate – Issued to each shareholder, confirming ownership in the company.

Certificates for a Branch Office

Companies registered as a Branch will receive:

• Registration Certificate – Confirms the legal existence of the branch under the parent company’s name.

These certificates serve as proof of incorporation and are essential for conducting business activities, opening a corporate bank account, and complying with legal and regulatory requirements in the DLC Free Zone.

Cost of Starting a Business in Dubai Logistics City (DLC) Free Zone

The cost of setting up a business in Dubai Logistics City (DLC) Free Zone depends on several factors, including the type of license, office space, visa requirements, and additional permits.

While pricing may vary, investors can expect costs related to:

• Business license fees (Logistics, Trading, Service, or Industrial)
• Office or warehouse rental fees
• Visa processing and employee sponsorship costs
• Company registration and documentation charges

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Conclusion

Dubai Logistics City (DLC) Free Zone stands out as a premier hub for businesses in the logistics, trading, and supply chain sectors, offering strategic connectivity, world-class infrastructure, and tax-free benefits. Whether you're looking to establish a logistics company, trading business, or service-based enterprise, DLC provides a business-friendly environment with a streamlined setup process and comprehensive support services.

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FAQs: Dubai Logistics City (DLC) Business Setup

What is Dubai Logistics City (DLC) Free Zone?

Dubai Logistics City (DLC) is a dedicated free zone within Dubai South, designed to support logistics, trade, and supply chain businesses. It provides world-class infrastructure, strategic connectivity to Jebel Ali Port and Al Maktoum International Airport, and tax-free benefits for companies.

What types of businesses can be set up in Dubai Logistics City  Free Zone?

DLC Free Zone is ideal for businesses in logistics, freight forwarding, warehousing, distribution, e-commerce, trading, consultancy, manufacturing, and education.

What types of licenses are available in DLC Free Zone?

Dubai Logistics City  Free Zone offers the following licenses:

• Logistics License – For warehousing, distribution, storage, and freight forwarding
• Trading License – For importing, exporting, and selling goods in the UAE
• Industrial License – For manufacturing and production activities
• Service License – For businesses offering training, consulting, and insurance
• Education License – For educational institutions and consultancies

What are the types of company formations in DLC Free Zone?

Businesses can be set up as:

• Free Zone Limited Liability Company (FZ-LLC) – A separate legal entity with limited liability.
• Branch Office – An extension of an existing company outside the free zone.

How long does it take to set up a company in Dubai Logistics City?

The business setup process typically takes 1 to 3 weeks, depending on the type of business and documentation submitted.

Can foreign investors own 100% of their business in DLC Free Zone?

Yes, foreign investors can own 100% of their business in DLC Free Zone without needing a local sponsor.

Does DLC Free Zone provide warehouse and office facilities?

Yes, DLC offers pre-built warehouses, custom-built storage units, dedicated office spaces, and bonded/non-bonded zones to support logistics and trading businesses.

Can an existing company open a branch in DLC Free Zone?

Yes, existing companies can open a branch office in DLC Free Zone, provided it has the same name and business activities as the parent company.