Dubai is one of the most prosperous and developed emirates in the Middle East. The city has been focused on tourist, commercial, trade and transport sectors since long ago. But it truly became a landmark when it was given a new concept named as Dubai LLCs at Sharjah International Airport (the first in the world). If you had an idea of moving to Dubai but did not have enough money to start your own business there, now is the time to get things going.
Dubai has been known for many things including its skyscrapers, beaches and lifestyle. Also known as a business-friendly destination, there are various opportunities in this region to start your own business. One of these opportunities is how to start a transport business in Dubai.
Types of Transport Business in Dubai
Following are multiple transport activities, you can choose one of these to start your own transport business.
- Cargo transport by heavy trucks
- Cargo transport by light trucks
- Water transport service
- Rental and transport of heavy machinery
- Car rental service
- Bus rental transport services
- Passenger transport (taxi services transport and tour buses)
- Special rental vehicles such as trucks and related transport
- Motorcycles rentals service
- Vehicles towing services and vehicle transport
- Specialist transportation services such as gas tanks, money and valuables transport
- Refrigerated transport
- Petroleum transport
- Bicycle rentals service
- Vehicle Fleet Management services
- Luxury vehicle services
Is Transport Business profitable in Dubai?
Dubai is a city of dreams. It is a city that promises you the best of everything and more than you could ever dream to ask for. But this doesn’t mean that people will not be able to find their own interests and hobbies in the city. If you are an entrepreneur looking for a business idea, then this article is just right for you!
If you are looking for a profitable business idea, then Dubai transport business is one of the best options available. The reason behind this is simple: Dubai has a lot of people who travel from all over the world to visit this place. This means that there are many people who will have to move around in order to get their work done and they need some form of transportation service while doing so.
This means that if your business is successful, then it will be able to provide services in the transportation industry which can provide jobs to thousands of people across Dubai and even beyond. As long as there is demand for these services, then there will always be a market for them and thus it can be considered as one of the most profitable businesses available in Dubai today!
Requirements to Start a Transport Business in Dubai
If you have decided to start a transport business in Dubai, there are some basic requirements that you should comply with.
- You will need to register your business at the Dubai Chamber of Commerce and Industry by filling an Application Form. The application form can be obtained from the Chamber.
- You will also need to get a license from the concerned Department of Transport in Dubai. This can be done by paying a fee of AED 20,000/- and providing proof of insurance cover for personal accident and liability.
- You will also need to get a Vehicle License from the concerned Department of Motor Vehicles. This can be done by paying a fee of AED 3,000/- and providing proof of insurance coverage for personal accident and liability.
- A letter of confirmation from an authorized firm stating that all vehicles will be registered with their name on the vehicle’s license plates and that these plates are not for illegal activity or for personal use only.
Approximate cost to Start a Transport Business in Dubai
These are the approximate costs to start a transport business in Dubai:
Deposits: 1 Month’s Pay + 2 Months Deposit.
Vehicles: 40% of the value of the vehicle. (For example, if you want to buy a used car worth AED 10,000 then you need to deposit AED 4,000)
Registration: 5% of the total value of vehicle registration fee.
Insurance: 15% of the total value of your insurance policy on all vehicles. (For example, if your insurance policy is for AED 3,000 then it will cost you AED 150 for insurance).
Over all the approximate cost to start a transport business in Dubai is 257,114.55 AED.
Process to Start a Transport Business in Dubai
The process to start a transport business in Dubai is as follows:
- Decide your business plan and financial requirements.
It is essential that you have a business plan before starting your transport business. A business plan will help you to determine the following:
- Your target market and how to reach them;
- The product or service that you want to offer, as well as the type of packaging and delivery service required;
- How much money you need to get started;
- How long it will take for you to become profitable; and
- How much risk there is in your business?
- Find a suitable location for your transport business.
Setting up a transport business in Dubai can be a lucrative opportunity, but it’s crucial that the right location is chosen.
The location of your transport business will depend on what type of vehicle you want to use for transporting goods and people. If you’re planning on using trucks or buses, it’s best to choose a location that has good road access for deliveries and pick-ups. If you plan on hiring cars or vans for your business, then look for a place with plenty of parking spaces and easy access from major roads.
- Arrange the necessary permits and licenses.
A transport business is a type of business that involves the transportation of goods and services. Transport businesses are usually organized as limited liability companies (LLCs) or partnerships, and they may be owned by individuals or other companies.
In Dubai, there are many opportunities for aspiring entrepreneurs who wish to start their own transport business. However, before you start your new venture, it is important that you first obtain all the necessary permits and licenses. Here are some tips on how to get them:
- Obtain a license from the Ministry of Finance
- Apply for a permit from the Ministry of Environment & Climate Change
- Apply for an inspection certificate from Dubai Customs Authority (DCA)
- Register your company with Dubai Chamber of Commerce & Industry.
- Register as a business entity with the Dubai Department of Economic Development (DED).
Register as a business entity with the Dubai Department of Economic Development (DED). The DED is the department responsible for issuing licenses and permits for all businesses operating within the UAE. You can register your transport business in Dubai by completing a form at the DED website. You will be required to provide details about your business and the type of vehicles that you plan to use for transportation services. The DED will then issue you with a license number and any other relevant documents related to your operation.
- Set up your bank account for receiving deposits, making payments and issuing receipts.
You can open a bank account with any local bank in the UAE as long as you have an ID card that is valid for at least 6 months.
Open an account with the bank of your choice and get the account number and MICR code printed on your new ATM card.
Make sure that the account is linked to your own name, address and date of birth. You can do this by logging into your online banking account or by contacting customer care at the bank.
- Obtain insurance policies for all vehicles used in your business.
Insurance is compulsory for all businesses that operate in the UAE. It is important to take out comprehensive insurance cover for your vehicle that you use to transport goods and passengers. This will ensure that your vehicle is insured against any damage or loss during transit or while being stored at the point of destination.
You should also consider adding theft cover to your policy as some vehicles may get stolen when they are involved in armed robbery or theft incidents while they are being transported.
Start your Transport Business with AIG
AIG is a leading business consultancy firm that helps individuals and companies to Start a Business in Dubai. We provide complete advisory services for every step of your business from planning, growth, to exit strategies. Our expertise in the transport industry will help you grow your transportation business by providing you with the right partners and resources to take your business to new heights.
Please contact us for further information:
Finally, if you want to start a transport business but do not have any experience with vehicles or shipping containers, there are other options available to you. For example, some people hire out their own vans or trucks and then charge customers based on how much they need transported per day or week (or month).
The process of starting a transport business in Dubai takes time. You will need to make sure that you are meeting all of the legal requirements and that you have gone through the permits as well. Once you have all of these, it will be possible for you to start your own transport business.