What is a logistics license?
The type of licence you require to operate in Jafza will depend upon the activity your business intends to engage in. Jafza is a hub for the logistics industry and logistics is a thriving industry within Jebel Ali Free Zone. This particular sector has a number of activities that have given rise to a new type of license that is available within Jafza. With over 430 companies operating in Jafza that provide services for logistics and supply chain, this special license provides an added benefit and advantage to logistics companies.
The logistics license allows a number of specific logistic services (e.g. storage, transportation, distribution, sorting, forwarding and clearing activities, order management, inventory management, etc.) to be executed by companies. With its proximity to the port of Jebel Ali, this license type is a popular choice for companies who would choose to conduct business specifically related to clearing and forwarding activities.
How much does a logistics license cost?
The cost of a logistics license at Jafza is AED 15,000 per year irrespective of the number of activities and groups selected. **
** All mentioned costs are subject to change and a change in such cost will be communicated by Jafza.
When is a logistics license required?
- When the only activity of the company is to provide services to the logistics and supply chain industry.
- When the business provides services that are related to port operations, clearance of goods, transportation of goods, packaging for the purpose of transportation, storage of goods on behalf of a customer and providing all 3PL services.
As part of this license, you may hold inventory of physical products – however, you may not be involved in the purchase or sale of such goods and products. You may also not conduct manufacturing processes or conduct activities of packaging or production of products and goods for the purpose of sale. Packaging is limited to the need for transportation only.
It is essential to note that the issuance of a logistics license requires clearance and verification of certain documents before processing the request to issue this license.
Steps to get started with a logistics license
The creation of a company with a logistics license requires the following steps:
- You must complete the Jafza Application Form and the EHS Undertaking Form in their entirety and submit all required documents.
- You must select the type of company formation you would want to incorporate under. Refer to the company formation section on our website for more information.
- You must provide the necessary documentation to Jafza to verify your company as a logistics service provider. This may or may not include registration certification from approved government entities such as Dubai Customs.
- Once you have completed the steps of registration of your company based on the formation, you will be asked to select the license type – this is where you need to select Logistics License
Speak to our business development and sales team if you need help regarding your logistics license requirements. You can schedule a call or visit us at our sales centre in Jebel Ali Free Zone.