Cold Chain Logistics License Dubai: Your 2025 Guide to Setup

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Dubai’s position as a global crossroads for trade is undisputed. But beyond the vast container ships and sprawling airport terminals lies a more specialized, high-stakes industry: cold chain logistics. As the demand for fresh food, life-saving pharmaceuticals, and other temperature-sensitive goods skyrockets, the need for sophisticated, reliable cold storage and transportation has never been greater. For savvy entrepreneurs and investors, this presents a monumental opportunity. The key to unlocking this lucrative market is securing a Cold Chain Logistics License in Dubai.

This comprehensive guide is your roadmap for 2025. We will navigate the entire process, from understanding the license’s scope and choosing the right jurisdiction to a detailed, step-by-step setup plan. We’ll break down the costs, outline the required documents, and explain how to ensure your facility meets Dubai’s world-class standards, positioning you for success in this dynamic sector.

Understanding the Cold Chain Logistics License

A cold chain logistics license is a specialized trade license that authorizes a company to handle, store, and transport goods that require a consistent, controlled temperature. This is far more than a standard logistics permit; it signifies that your business adheres to stringent health, safety, and quality control protocols mandated by UAE authorities.

The activities covered under this license are diverse and critical to the modern economy:

  • Temperature-Controlled Storage: Operating warehouses and storage facilities with refrigerated (chilled) and frozen sections.
  • Perishable Goods Transportation: Transporting fresh and frozen foods, including fruits, vegetables, dairy, and meat, in refrigerated vehicles.
  • Pharmaceutical Logistics: Handling and distributing vaccines, medicines, and other biomedical products that require precise temperature management.
  • Floral and Chemical Logistics: Transporting flowers, certain chemicals, and other non-food items that are temperature-sensitive.

A specialized license is non-negotiable. Authorities like the Dubai Municipality have strict regulations to prevent spoilage, contamination, and loss of efficacy in sensitive products. Compliance isn’t just about a license; it’s about public health and safety. The market opportunity is immense. With the UAE’s focus on food security and its growing status as a pharmaceutical hub, businesses with a robust cold chain infrastructure can expect a significant return on investment.

Choosing Your Jurisdiction: Mainland vs. Free Zone

One of the first and most critical decisions you’ll make is where to establish your company. In Dubai, you have two primary options: the Mainland or one of the many specialized Free Zones. Each offers distinct advantages tailored to different business models.

Dubai Mainland Setup

Setting up on the Dubai Mainland, under the jurisdiction of the Dubai Department of Economy and Tourism (DET), offers the ultimate flexibility for market access.

Key Advantages:

  • Unrestricted Market Access: The primary benefit of a mainland license is the freedom to trade directly with any customer across the entire UAE market without restrictions.
  • Government Contracts: Mainland companies are eligible to bid on lucrative government and semi-government tenders, a significant market for logistics services.
  • Geographic Flexibility: You can rent a warehouse and office anywhere in Dubai, allowing you to choose a location based on strategic value rather than being confined to a specific zone.

Considerations:

Historically, a mainland LLC required a UAE national to hold 51% of the shares. However, recent legal reforms now permit 100% foreign ownership for most commercial and industrial activities, including logistics. For some professional service licenses, a Local Service Agent (LSA) may still be required, but they hold no shares in the company. Our experts can help you navigate the specifics for your business activity.

A mainland setup is ideal for companies whose primary business model involves extensive distribution within the UAE and direct engagement with the local market. For a deeper dive into this option, explore our guide on Dubai Mainland Company Formation.

Dubai Free Zone Setup

Dubai’s free zones are globally renowned economic areas offering exceptional benefits for international businesses. For logistics, several zones are purpose-built to facilitate seamless import, export, and transit operations.

Key Advantages:

  • 100% Foreign Ownership: This is a cornerstone benefit of all free zones.
  • Tax Exemptions: Companies enjoy 0% corporate and personal income tax (subject to certain conditions under the new UAE Corporate Tax law) and can repatriate 100% of profits and capital.
  • Streamlined Customs: Free zones have their own customs authorities, leading to faster and more efficient clearance processes, which is vital for time-sensitive cold chain goods.
  • World-Class Infrastructure: These zones provide state-of-the-art warehouses, pre-built facilities, and direct access to major logistical hubs.

Top Free Zones for Cold Chain Logistics:

  1. Jebel Ali Free Zone (JAFZA): The undisputed leader. JAFZA is built around the Jebel Ali Port, one of the busiest ports in the world. Its sea-air logistics corridor is perfect for multimodal transport, and it offers extensive plots and pre-built warehouses suitable for cold storage.
  2. Dubai South: Home to Al Maktoum International Airport (DWC), Dubai South is an emerging logistics powerhouse. Its “Logistics District” is specifically designed for contract logistics, offering unparalleled air connectivity and massive, scalable infrastructure.
  3. Dubai Airport Freezone (DAFZA): Located adjacent to Dubai International Airport (DXB), DAFZA is the premier choice for businesses relying on rapid air freight. It’s ideal for high-value, low-volume goods like pharmaceuticals and express perishables.

While these are the top logistics-focused zones, Dubai’s ecosystem is vast. Other zones like DMCC showcase the emirate’s commitment to creating premier business environments. A free zone setup is perfect for businesses focused on import, re-export, and regional distribution. Learn more about the benefits in our guide to Free Zone Business Setup.

Step-by-Step Guide to Obtaining Your Cold Chain Logistics License

Navigating the setup process requires precision and attention to detail. Here is a clear, step-by-step guide to acquiring your Cold Chain Logistics License in Dubai in 2025.

Step 1: Define Business Activities & Select Legal Structure

Before any paperwork is filed, you must have a clear vision.

  • Business Activities: Be specific. Your license will list the exact activities you are permitted to conduct. Examples include “Cold Storage,” “Refrigerated Goods Transport,” “Storage of Frozen & Cold Goods,” and “Pharmaceuticals and Medical Drugs Storing.” The activities you choose will determine the external approvals you need.
  • Legal Structure: The most common and recommended legal form for a logistics company is the Limited Liability Company (LLC). An LLC protects your personal assets by creating a separate legal entity for the business. Other options like a Sole Establishment or a Branch of a Foreign Company exist, and a consultant can advise on the best fit for your circumstances.

Step 2: Trade Name Reservation & Initial Approval

Your company needs a name and preliminary permission to operate.

  • Trade Name Reservation: You must choose a unique name that complies with UAE naming conventions (e.g., no offensive language, no religious references unless permitted). The name is reserved with either the DET for a mainland company or the respective free zone authority.
  • Initial Approval: This is a crucial milestone. The relevant authority will review your proposed business activity, shareholders’ details, and required documents. Securing the Initial Approval certificate means the government has no objection to you starting the business, allowing you to proceed with other formalities like leasing a warehouse.

This step formalizes your company’s structure and ownership.

  • Memorandum of Association (MOA): For an LLC, the MOA is a mandatory legal document. It outlines the business objectives, share capital, ownership structure, and responsibilities of each partner. The MOA must be drafted in both English and Arabic.
  • Local Service Agent (LSA) Agreement: If your mainland setup requires an LSA, a formal agreement must be drafted and signed.
  • Notarization: The MOA must be signed by all shareholders in front of a public notary. In Dubai, this process is often managed through the Dubai Courts or accredited notary services.

Step 4: Secure a Physical Warehouse/Facility

For a logistics license, your physical facility is part of the application. You cannot get a license without a suitable, approved warehouse. This is especially critical for cold chain operations.

Key Warehouse Requirements (as per Dubai Municipality):

  • Temperature Integrity: The facility must have distinct, insulated zones for frozen (typically -18°C to -25°C) and chilled (typically 2°C to 8°C) goods.
  • Monitoring Systems: You must install calibrated, 24/7 temperature and humidity monitoring systems with data loggers and alarm systems to alert staff of any deviations.
  • Hygiene and Safety: The facility must have smooth, non-porous, and easy-to-clean walls, floors, and ceilings. A comprehensive pest control plan is mandatory.
  • Layout and Design: The layout must prevent cross-contamination, with separate areas for receiving, storing, and dispatching goods. Proper drainage and ventilation systems are also required.
  • **HACCP Certification