Dubai, a commercial hub, could be an ideal destination for a courier delivery business. The tremendous growth in online enterprises resulted in the requirement to transport goods securely and quickly with exceptional competence. Customers opt for competent online retailers that offer instant delivery of products. Subsequently, transit logistics and local courier delivery are a necessity now.
There continues to be future scope for courier business in the UAE with the adaptation of digital transformations into logistics. With the exponential growth in online marketplaces, opportunities for local logistics businesses have increased dramatically, offering expansion opportunities.
Delivery partners have been in competence to incorporate the latest technology into the delivery system. Recently, the introduction of drone delivery expects to offer faster delivery of products.
Before starting forward with the application, there are the fundamentals one must understand that will assist in launching a courier business successfully.
To start a courier business in Dubai, initially apply for a professional courier trading licence under DET (Dubai Economy and Tourism). In addition to the trading licence, there is approval required from Emirates Post. Please note that to outsource or own delivery vans, one may need further permission from authorities.
Other requirements include approval from the Dubai Roads and Transport Authority (RTA) for the delivery vehicles. Some regulations vary with the geographical coverage of your couriers' services.
Delivery services encompass various kinds of business activities.
Different Business Activities under Courier Services Licence in Dubai
Generally, there are various courier business activities that you can undertake once you get a UAE courier license.
1. Delivery for online retailers
With the e-commerce sector booming, there are always high-end requirements for delivery in online ventures. As individuals or established retail businesses, the need for courier services has a shot.
2. Door-to-door delivery
Many companies tend to assist other SMEs in delivering goods to respective destinations through domestic door-to-door delivery.
3. Intercity Delivery
Some companies offer delivery between different Emirates in the UAE. Intercity couriers allow you to transport goods to any part of the UAE. However, it requires special permits from the RTA of various Emirates.
4. Logistics services
Logistics company in Dubai involves activities ranging from warehouse management to material handling and delivery. As a courier business, you can support the logistics company operations with the delivery of goods. Transit logistics is also a profitable option for the courier business.
Documents Required to apply for Courier Licence
1. Three company names for approval
2. Copy of the initial approval by authorities
3. Passport copies of shareholders and managers
4. Copy of visa (if available)
Role of Emirates Post in Courier Business
If you want to operate a courier or delivery business in Dubai, you should know a few things about Emirates Post Group. Emirates Post Group, an entity under the UAE government, grants a postal licence to individuals who want to start a postal or courier business in Dubai. You must comply with the regulations of the authorities and the UAE Post Group.
As per the Federal Law No.3 of 2013, all private courier companies must get a licence from Emirates Post to operate. The approval from Emirates Post might take roughly one month.
How to Apply for Emirates Post Courier Licence?
You must register the business activity under DET and get a commercial licence.
- Apply for the Emirates Post licence online with relevant documents through the Emirates Post portal.
- Pay the deposit fee of almost AED100,000 for each licence.
- It usually takes 20 working days to get a licence.
Document Required to Apply for an Emirates Post Licence in Dubai
1. Passport copy of the shareholders and owner
2. Initial approval copy
3. Copy of commercial licence and trade registration certificate
4. Lease contract (if any)
5. Copy of trade name reservation
How can Ascent Partners help?
Ascent Partners is a boutique consultancy providing bespoke, end-to-end solutions from company formation to VAT Consultancy, Accounting, and Bookkeeping services for entrepreneurs looking to set up their next venture in the UAE. We work alongside you to strategise, startup, and scale your business in Dubai.
*As published in dubainews.tv