Dubai Logistics City (DLC) Free Zone

Dubai Logistics City (DLC) Free Zone

Dubai Logistics City (DLC) also referred to as Dubai World Central is indeed the world’s first platform dedicated to the logistics industry’s growth and development. Dubai World Central created DLC to develop and improve the UAE’s logistical and trade infrastructures. Dubai Logistics is the globe’s first purpose-built aerotropolis, and it is a government endeavor.

DLC is constructed in the Jebel Ali Sea Port’s adjacent territory, which spans 140 square kilometers. This Dubai free zone is the administration’s largest and most significant project to expand the Emirate’s trading options; it also includes other business communities such as restaurants, stores, leisure facilities, and other businesses in a beautiful setting. Logistics-driven companies have a lot of room to grow in DLC because all of the facilities and perks are solely critical for the growth of the UAE’s logistics and commerce sector.

The businesses in Dubai Logistics City are spread across a large area, with an annual air freight turnover of about 12 million tonnes. With the construction of the Al Maktoum International Airport, DLC is treasured. It will pave the way for many additional initiatives in the free zone, such as air freight terminals, business parks, labour villages, and other facilities. DLC has risen to the pinnacle of logistical activities in the UAE, thanks to its support from the Jebel Ali Sea Port and its methodical supply and service fit-out.

Benefits of Business Setup in Dubai Logistics City Free Zone

As the world’s largest logistics platform, DLC offers various advantages to organizations looking to enter the field. The following are the top advantages of launching a business in DLC:

• It’s a niche market created to meet the enormous need for logistics.
• The free zone allows for 100 percent foreign ownership, free capital transfers, and income tax exemption.
• DLC is a separate passageway that connects DLC to Jebel Ali Port.
• The landscape encompasses a large area and is home to approximately 7000 businesses, including many Fortune 500.

• A pre-built warehouse, custom-built facilities for freight forwarders, and a dedicated lane for heavy vehicle operations are available.
• DLC has entered into yet another comprehensive tax agreement with the UAE, Africa, and North Asia.
• It has possibly the best distribution network that serves African, Southeast European, Middle Eastern, and SAARC (South Asian Association of Regional Cooperation) countries.
• Visa requirements are lax, and the labor force is readily available, with visa services for labor, transportation, and other functions accessible.

Licensing Options Available in Dubai Logistics City

Logistics companies in Dubai gain from DLC in various ways, and the availability of favorable licensing choices contributes to their success. Companies who open up shop in DLC can choose from one of the following license types:

1. Logistics Permit

A logistics license holder can manage commodities and logistics services inside the UAE, including storage, distribution, inventory management and transportation, order management, forwarding, sorting, and clearing, but does not sell products.

2. Industrial License

An industrial license allows the holder to engage in light manufacturing activities such as blending, purifying, repacking, mixing, wrapping, and assembling items using quiet machinery or personnel.

3. Trading Permit

A trade license authorizes the storage, distribution, importation, exportation, and sale of the products listed on the license. Only a licensed local distributor or agent is permitted to sell completed goods or products inside the UAE.

4. Service Permit

A service license allows a person or a company to engage in training, insurance, advising, and catering.

5. Education Permit

The bearer of this license can conduct business in education, educational consulting, and social services.

Legal Entities in DLC Dubai

Businesses can choose to be one of the following legal entities and register as such:

1. Limited Liability Company (LLC) - Free Zone

1. It’s a separate legal entity that has its own set of rules.
2. A shareholder’s liability in a Limited Liability Company (LLC) is restricted to the value of the shares they own.
3. Shareholders, directors, a company secretary, and a general manager are all required for a Free Zone-LLC.
4. A Free Zone-LLC must have a minimum capital of AED 300,000 and a minimum share value of AED 1.

2. Branch of a foreign or local (UAE) company

1. A branch is an out-of-zone representative office of a current legal body.
2. Dubai Logistics City does not permit the Board members or a company secretary in a branch office.
3. A branch should have a general manager who has been in charge of the company’s operations.
4. A branch’s name should be the same as its parent company’s name and must include the descriptor, such as “branch.”

Procedure for Businesses Setup in Dubai Logistics City

For logistics firms in Dubai, establishing a business at Dubai Logistics City has been simplified. The following are the steps that a company must take to begin operations in Dubai Logistics City:

1. The first stage is filling out the application form and receiving initial permission from the free zone authority.

2. After receiving initial clearance, the next step is to complete the business registration process. The officials will review the documents requested and provide the necessary documents. The average time it takes to review a paper is 15 days.

3. The business plan must be presented to the authorities, along with several other documents.

4. Following the submission of the documents, the very next step is to obtain a company license.

5. The free zone authority must receive the required non-refundable charge.
6. The Registrar of Companies will generate the host of certificates, depending on the legal form of the business, upon submission of the paperwork & its validation after the payment of the fees.

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Following certificates are required: 1. Incorporation certificate 2. Each shareholder gets one’s share certificate 3. Memorandum of Association of the company 4. Articles of Incorporation of the company For setting up a branch following certificate is required 1. The registration certificate of the company
Dubai Logistics City is ideal for logistics-based businesses that benefit a country’s import-export trade. DLC is the world’s first integrated logistics platform. So there is no bigger site in the world for enterprises engaged in logistics and commerce to launch their operations than the Dubai free zone.