How to start a business in Dubai Auto Zone?

How to start a business in Dubai Auto Zone?
April 26, 2024

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The Dubai Auto Zone (DAZ) is a marketplace for vehicle industry catering to traders, buyers, sellers, service providers, and dealers. Formerly known as the Dubai Car and Automotive Zone (DUCAMZ), it has access to Middle Eastern, Asian, and African markets. Entrepreneurs having an interest in the automobile sector want to start a business in Dubai Auto Zone in 2024.

Its strategic location makes DAZ conveniently accessible to all the airports and seaports of the Gulf region. Since its launch in the year 2000, DUCAMZ is exporting cars to the Middle Eastern, Asian, and African markets. Dubai Auto Zone (under supervision of JAFZA) enables automotive businesses to quickly load vehicles to transport throughout the MENA region.

The new networks of freeways have made possible the export of automobiles to three continents. Especially, these freeways are connecting all the neighboring countries in the Middle Eastern peninsula. Going beyond, they satisfy the ever-growing demand of luxury cars in customers residing in Asia, Africa, and Europe.

Procedure of registering a business in Dubai Auto Zone

What is process to register business in Dubai Auto Zone?

The steps to start a business in Dubai auto zone are as follows.

  • Pick a trading name of your automobile business for reservation
  • Apply for initial approval with regulatory authority
  • Draft the Memorandum of Association (MOA) and Articles of Association (AOA)
  • Sign the automotive showroom or workshop lease agreement
  • Prepare the organization sponsorship contract
  • Submit the application form with necessary legal documents
  • Pay the applicable license fee
  • Transfer the share capital
  • Receive the Certificate of Incorporation and Business License after approval

Documentation to open automotive business in Dubai

Which documents you need to form auto business in Dubai?

This is the obligatory legal paperwork to start a business in Dubai auto zone.

  • Automotive business plan
  • Copies of passport, visa, resume of shareholders, managers, and directors
  • Proof of UAE residency
  • Bank reference letter or bank statement
  • Notarization of the AOA and MOA agreements of the automotive company
  • Personnel information sheets of each stockholder and manager

Advantages of setting up business in Dubai Auto Zone

What are benefits of business setup in Dubai Auto Zone?

These are the rewards that automobile companies in Dubai Auto Zone provide to business owners.

  • No corporate or personal income tax
  • 100% foreign ownership
  • No restrictions on the usage of foreign currencies
  • Total repatriation of profits earned and capital invested
  • No import or export duties
  • Top class logistics and infrastructure in Dubai
  • No restraints on retaining foreign employees in your company
  • You can hire foreign citizens, as there are no limitations in this matter
  • No limit on the number of cars imports

Characteristics of automobile businesses in Dubai

Which are features of businesses in Dubai Auto Zone?

The main attributes of automotive companies in Dubai Auto Zone are the following.

  • Permissible business structures for automotive businesses are free zone company, free zone entity, branch office, subsidiary, and joint venture.
  • The most popular business activity in Dubai Auto Zone is trading of automobiles.
  • However, trading in spare parts of automobiles is strictly prohibited.
  • Businesses have to renew the license on an annual basis.
  • The director of the company can be an individual only.
  • Companies don’t have to tender the audit report to the free zone authorities.

Regulations for automotive trade in Dubai

What regulations apply on automobile trade in Dubai?

The following regulations influence the businesses conducting automotive trade in Dubai Auto Zone.

  • Dubai Ports Documentation
  • Customs Operations
  • Shipping Agencies
  • Customs Inspections

Authority supervising automobile trade in Dubai

Which authority supervises automotive trade in Dubai Auto Zone?

Business incorporation in Dubai Auto Zone is under the supervision of Jebel Ali free zone authority (JAFZA). It manages the licensing of automobile trade in this free zone. The authority encourages investment in the automotive industry in the free trade zone with clear procedural guidelines.

JAFZA makes automobile business registration in Dubai Auto Zone. Depending on the availability, automotive businesses can choose from a variety of spaces. Lease options include corporate office space, vehicle warehouses, service workshops, car showrooms, etc.

Conclusion

Dubai Auto Zone exhibits an array of famous Emirati and foreign automotive dealership, and automobile repair brands. For example, Al Tayer Motors, Al Habib Motors, Al Meezan Motors, Luxury Motors Limited, etc. By grouping relevant auto businesses in one area — DAZ offers plenty of opportunities for networking, collaboration, and cooperation.

Service providers for the automotive industry are making it very straightforward for businesses to get proper assistance. New entrepreneurs can launch business in the UAE mainland or suitable free zones with the help of a professional consultancy. Also, they can avail the best business support services like procurement of business license, bank account opening, accounting and bookkeeping, etc.

Do you want to start a business in Dubai Auto Zone with ease? We at KWS Middle East are a premier business consultancy, available to hold your back during your automobile company formation. Connect with our business advisors today to kick-off your new automotive business in the UAE.

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