Everyone knows that the entire UAE and specifically Dubai is home to some of the most expensive and luxurious automobiles in the world. From Rolls Royce to Bugatti and Ferrari, there is no single luxury or supercar brand that you won’t find in the UAE.
To enrich the UAE market with some of the renowned automobiles, the UAE government came up with the idea to set up dedicated Free Zones jurisdictions in the UAE. These Free Zones are named Auto Zones that allow local and foreign investors to operate a highly lucrative business of imported cars in the UAE. Among all these Auto Zones, Dubai Auto Zone has grown in prominence due to its remarkable business ecosystem and features.
New networks of freeways connecting all the neighboring nations in the Middle Eastern peninsula and beyond make it easier to load and unload cars to all parts of the continent in order to reach and meet the continuously increasing demand for luxury cars from customers living in Asia and Africa.
The market is still growing at a rapid pace as more and more people are choosing UAE as their dream living and business destination.
In this blog post, we are going to discuss how you can create a business setup in Dubai Auto Zone and leverage the privileges of this remarkable Free Zone. Let’s get into more details.
Since DAZ is one of the many Free Zones in the UAE, it shares the same registration processes as other Free Zone jurisdictions. Therefore, the process to set up a business in Dubai Auto Zone aligns with that of setting up a business in other Free Zones.
The first step to creating a business setup in Dubai Auto Zone is to choose your business activity allowed in the Dubai Auto Zone. You can choose from a range of business activities linked with the automobile industry but business activities linked with the import or export of auto spare parts is strictly prohibited in the Free Zone.
Your business activity involves all your operations as well as economic and financial activities that you will perform thorough your business duration in the Free Zone. Choosing the right business activity is crucial to avoid any delay or denial in the trade license approval process.
Choose a trade or business name that aligns with the mission, vision, business activities, and target audience of your business setup in Dubai Auto Zone. Once you decide on your trade name or need assistance in finding the right tradename for your business, get in touch with Airzone. Airzone will help you connect with the right company formation service providers to help you find and register your trade name seamlessly.
Keep in mind, if your trade name fails to align with the moral and religious norms and legal foundations of the UAE or state laws of Dubai, you may face rejection. To save your time and effort, it is recommended to partner with experienced business consultancy services.
Before jumping on a bandwagon to start your journey for company formation in Dubai Auto Zone, hold on for a moment and go through the legal structure and prerequisites as notified by the UAE’s corporate legislature. The initial steps and documents required to register your business setup in Dubai Auto Zone include:
For company formation in Dubai Auto Zone, the most crucial step is to open your business bank account. Some of the prerequisites mandatory to open a Free Zone bank account for your business setup in Dubai Auto Zone include:
Below is the list of documents required for opening a business bank account in the UAE:
For your business setup in Dubai Auto Zone, you can buy or rent office spaces, warehouses, and well-equipped garages. The needs of automobile businesses especially those linked with the import and export of cars are different and greater than those of mainstream businesses. Therefore, the warehouse and garage options in Dubai Auto Zone are specifically designed to fulfill the needs of automobile businesses with instant access to nearby ports and motorways
Also, you can choose from a wide range of office space, warehouses, workshops, garages, and automobile showrooms available for lease in the JAFZA-authorized Dubai Auto Zone.
The breakdown of license costs and options in Dubai Auto Zone includes:
All fees charged by the government and associated authorities are simply estimates. The precise government fees will be decided at the time the applications are submitted.
The registration charge is AED 10,000 once, and the license fee is AED 5,500 annually. Regarding the comprehensive breakdown, we already told you about it in our blog.
Being a Free Zone, some of the greatest perks DAZ offers for the investors looking forward to company formation in Dubai Auto Zone include:
Some of the salient features and facilities offered by Dubai Auto Zone include:
The most profitable businesses in the Dubai Auto Zone include:
The business activities allowed in Dubai Auto Zone are related to the automotive industry including trading (import/export of automobiles), insurance, maintenance, etc. But it is strictly prohibited to involve in the import or export of any sort of automobile spare parts in the Free Zone.
You don’t need any local partner or sponsor for your business setup in Dubai Auto Zone as it comes under the jurisdiction of the Jabel Ali Free Zone Authority. Being a Free Zone, Dubai Auto Zone offers you 100% ownership of your business.
It takes around 2 to 4 weeks until you have your trade license to start your business activities in Dubai Auto Zone without any further prerequisites or procedures.
You need assistance from local business formation services at each step of your Dubai Auto Zone company formation journey including:
To spare your time and efforts, Airzone offers a valuable knowledge base and a rich portfolio of business formation guides. Our business formation partners and consultancy providers help you set up a business in Dubai Auto Zone and other Free Zones as well as Mainland Jurisdictions in the UAE. Our partnered service providers have proven experience in serving a great number of clients linked with the automobile industry. Get in touch with Airzone now and leverage the privilege of having a dedicated entity in UAE that can arrange resourceful partners at each stage of your Dubai Auto Zone company formation drive.
We hope you found this guide useful. If you want to learn more about how to set up a business in Dubai, we suggest you read our step-by-step guide. We also have comprehensive articles on various free zones in UAE if you need more information regarding that.