Logistics company in the UAE: what are the benefits and features of opening

Antwort Law, an international law firm, has been helping entrepreneurs from all over the world resolve legal, tax and banking issues for over 8 years. We are ready to provide you with comprehensive support in opening a logistics company in the United Arab Emirates (UAE), given its advantages as one of the most promising jurisdictions for business.

A logistics company faces a number of challenges such as supply chain management, customs procedures and cargo transportation. The UAE provides unique conditions for doing business, especially for companies operating in the field of logistics and international trade.

Why is the UAE a great place for a logistics company?

• Customs procedures are simplified, which speeds up the movement of goods across borders
• There are specialized logistics zones with access to ports, airports and warehouses
• The UAE is a transport and logistics hub, providing access to both Asian and European markets. Its geographical location allows for the optimization of routes between Asia, Europe and Africa.

The UAE also provides tax benefits for a logistics company

• No income tax on turnover up to 3 million dirhams (~755,000 euros)
• Income tax of 9% applies only to income exceeding the specified threshold (calculated as income minus expenses)
• No tax on dividends paid within the UAE
• There is no VAT on the export of services, which makes operations outside the country especially profitable.

and a simple document flow system:

• Simplified registration of companies in free zones
• Minimization of bureaucratic procedures when doing business.
• The most convenient solution for a logistics company is registration in a free zone, which makes it possible to minimize taxes, simplify the process of profit distribution and simplify accounting and reporting.

Also, opening a company in the UAE requires careful tax planning. Antwort Law provides its clients with a comprehensive calculation of the effective tax rate (ETR) taking into account the residency of the founder, the peculiarities of taxation in other countries and the application of international tax agreements. We analyze their impact on your business in detail and develop optimal solutions to minimize the tax burden, ensuring sustainable and long-term growth of your company.

Other requirements for registering a logistics company in the UAE:

• Residency visa: the founder must obtain a residence visa (Emirates ID), which is valid for 2 years and must be confirmed once every 6 months by entering the country (including transit)
• VAT registration: mandatory for turnover over 375,000 dirhams; the rate is 5% and quarterly accounting is mandatory
• Office space: in the free zone, you must rent an office (for example, a desk office, which is included in the standard package of services).

In terms of time, registering a company, obtaining a license and a residence visa takes on average up to 15 days in total.

By contacting Antwort Law to register a company in the UAE, you will receive the following benefits:

• Selection of the optimal license in accordance with your type of activity.
• A detailed description of the company's structure, including office requirements, reporting procedures, taxes and accounting.
• Analysis of the tax burden on founders, taking into account their tax residency.
• Support for the first transaction, including contract preparation, payments and prompt responses to questions.

Opening a logistics company in the UAE is a strategic decision that will allow you to take advantage of the tax climate, convenient infrastructure and favorable geographic location. We are ready to help you at every stage, from company registration to tax planning and support for the first transactions.

If you have any questions or want to discuss the details of cooperation, write to us - we are always ready to help.

Lidia Ivanova

International lawyer
Antwort Law