In 2002, officials from the Emirates Post met with representatives from foreign courier businesses to discuss the licensing structure that would allow them to operate in the United Arab Emirates (UAE). The officials also addressed questions raised by the representatives about the then-new system, stating that it would continue to support the service business for its smooth operation, and that, as expected and promised, the courier delivery service has been a boon for the companies, the country, and the general public. Anyone prefers delivery services in today’s changing and fast-paced environment, which presents an opportunity for people who want to start a courier delivery service in Dubai.
Different Types of Courier Services in Dubai
The Covid-19 pandemic presented a new challenge for us and governments all over the world had to take introduce measures such as lockdown, social distancing, etc. to slow it down. Subsequently, we saw a jump in online transactions in the United Arab Emirates of 15% in May 2020 and by the end of last year a total increase of 30%. The pandemic presented new challenges and opportunities. As a result, for many enterprises, obtaining a delivery service license has become a popular and favored option. The following are the type of courier services that companies can provide.
Food delivery from the restaurants: The food delivery business was rising in popularity even because of the pandemic but because of the lockdowns eating outdoors was prohibited and all the restaurants have to deliver food to stay in business. This provides courier service companies an opportunity, and capitalize on it using their existing setup to fill the void.
- Intercity courier delivery: Companies can offer to deliver couriers to and from different cities within UAE.
- Door-to-Door domestic delivery: With this type of service, companies can help existing businesses as well as new home-based businesses which cannot afford to deliver by themselves.
- Delivery of packages from online marketplaces: As people are forced to shop online the demand for courier delivery services is increasing and online marketplaces need specialized service providers to help make the deliveries timely and efficiently.
- Logistics services: With so many courier delivery operations on going the logistics services help the execution and facilitate the courier business operations.
Simply put, transit logistics and courier delivery services have become a highly impactful service and made people live extremely easy and less stressful especially in the middle of a pandemic. The increased demand in Dubai for such services clearly shows how it is a necessity now.
Steps to Apply for Courier Business in Dubai
Firstly, new companies that want to operate in Dubai need to apply for a license from the Emirates Post Group. The company or the owner of the business must register for a trading activity or commercial license.
Emirates Post Group has an application process period that can take up to 20 working days after which they will issue the license. The company will be to pay a licensing fee of around AED 100,000.
Emirates Post Group allows you to apply for the license online through their portal where you can submit all the relevant documents. The license is offered to both, UAE nationals and foreigners.
You need to submit passport photocopies of the business owner and if there are any partners or shareholders in the company, you will have to submit their passport photocopies as well.
You need to submit a copy of the initial approval. In addition to that, you have to submit a reservation copy of the company/trade name.
Alongside that, you have to provide a copy of the commercial license and trading registration certificate. If there is any lease contract involved, you have to provide a copy of it as well.
Points to Keep in Mind before Starting a Courier Delivery Service
Here are a few tips for new companies that are set up to do business in this sector. These pointers will help your business be more efficient and productive in the long term.
- Packaging: The packaging of the goods will be considered as a reflection of the quality of your company. And protection of the goods is of high importance. Customers and retailers can be irritated by broken or marked merchandise, sour relationships, and tarnish your company’s brand. All of your things are kept safe in logistics packing, ensuring that they reach their destination in pristine shape.
- Courier Tracking System: You can optimize the best routes available for the specific delivery with the help of a good tracking system. This allows the consumer to track the actual location of the order as well as the delivery crew, allowing them to estimate the exact time of delivery.
- Insurance: Make sure your company is insured from liabilities as damage to goods and loss of goods is unavoidable in this business.
- Custom Duty: It is essential to have a solid understanding of the types of customs duties your courier can be subjected to. So, you should hire a professional to guide you in the department.
- Shipping: your shipment system defines how efficient your business is. So, make sure your organization has a solid and quick transportation system in place to go to and from wherever the order is being placed.
- Express Delivery: The fastest mode of shipment is express delivery, having an option to offer express delivery to your customers is a bonus for your company. A lot of customers pay an extra shipping cost for this type of delivery, as the shipment will get transported.
A lot of companies and brands start their online e-commerce business by just taking an easy attitude to shop, but to set themselves apart from their competitors, most businesses adopt strategic shipping alternatives.
Riz & Mona Consultancy
Whether you’re looking to start a new business in Dubai or you need services for your existing business. It’s always recommended to consult with a reputable consultancy firm like Riz & Mona to avoid any mistakes or legal issues.
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