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Dubai Auto Zone

Dubai Auto Zone

The Dubai Cars and Automotive Zone in Dubai was established in 2000 with the main purpose of exporting cars to the Asian and African markets. One of the greatest advantages of the Dubai Auto Zone is its location that offers easy access to airports and seaports. The Dubai Auto Zone is also one of the most comprehensive marketplaces for companies in the auto industry in the world. The Auto Zone is a very attractive Dubai free zone for foreign investors in the auto industry and contains an economic zone for the GCC (Gulf Cooperation Council) market and another retail zone for local markets.

The main activities completed in Dubai Auto Zone are related to the sale and export of used cars to the Middle East and North Africa.

Below, we invite you to discover the main types of companies and benefits in Dubai Auto Zone.

With vast experience in Dubai company formation procedures, our local consultants can help you set up a business in Dubai Auto Zone.

What are the incentives and services available in the Dubai Auto Zone?

The Auto Zone in Dubai provides both local and foreign investors with many incentives when establishing a company in Dubai. Among these are:

  • office and storage spaces,
  • full foreign ownership of the company,
  • no corporate tax under specific requirements,
  • full repatriation of capital and profits,
  • no restrictions on currency,
  • no restrictions if hiring foreign employees in the Dubai company,
  • no import or export duties,
  • no restrictions on the number of cars imported.

Moreover, all authorities involved in auto trade have a physical presence in the Dubai Auto Zone:

  • Customs Inspections,
  • Customs Operations,
  • shipping agencies,
  • the Dubai Ports Documentation.

The only activities allowed in the Dubai Auto Zone are related to the automotive industry and involve trading, insurance and maintenance.

If you want to open a company in Dubai, including a free zone company, our local agents can help you.

The free zone company in Dubai Auto Zone

The main type of company that can be set up in Dubai Auto Zone is the free zone company (FZC). This business form can have at least two shareholders, however, it is possible for a greater number of shareholders who can be natural persons or companies. It is also possible to have a combination of natural persons and corporations in the shareholding structure of the business, however, the number of shareholders cannot exceed five. The ownership in a Dubai Auto Zone company can be fully foreign. The minimum share capital required to set up a free zone company in Dubai Cars and Automotive Zone is 100,000 AED (around 30,000 USD).

If you need help in setting up a business in Dubai Auto Zone, our company formation specialists in Dubai can assist you.

Company registration requirements in Dubai Auto Zone

Those who want to set up free zone companies in Dubai Auto Zone must complete the same formalities as when starting a business in mainland Dubai. Among these, investors must:

  1. reserve a trading name with the free zone authority and sign a lease contract for the legal address;
  2. initial approval from the free zone authority must also be obtained before starting the incorporation procedure;
  3. information about the shareholders must be prepared (the information depends on whether the shareholders are natural persons or corporations);
  4. information about the directors and managers in the company must also be prepared.

It will also be necessary to set up a bank account in which the share capital will be deposited. The bank statement proving the deposit of the share capital will be requested by the free zone authority.

Other important aspects to consider when deciding to operate in Dubai Auto Zone are that foreign companies can set up branch offices here and for this purpose, a resolution passed by the Board Directors will be required. The resolution must provide for the decision of opening a business in Dubai Auto Free Zone. The parent company will be requested to submit its Memorandum and Articles of Association (a notarized copy is required).

In the case of natural persons, passport copies will need to be submitted. The manager will also be required to provide copies of their passports alongside their CVs.

It is important to note that Dubai Cars and Automotive Zone falls under the supervision of the Jebel Ali Free Zone Authority (JAFZA). The same authority is in charge of the company registration and licensing of free zone companies in Dubai Auto Zone.

Our company registration agents in Dubai can guide you through the procedure of incorporating a business in Dubai Auto Free Zone.

Please watch our video on the Dubai Auto Zone:

What are the required documents when opening a company in the Dubai Auto Zone?

In order to register a company in the Dubai Auto Zone, the following documents are required:

  • an application form,
  • the company’s name,
  • the articles of association of the company that can be drafted by our company incorporation agents in Dubai.

Additionally, the founder or founders of the company must also submit documents regarding their identity, such as passport copies, a bank reference letter and a recent utility bill as proof of residence. All these documents must be submitted with the Dubai Companies Registrar.

Corporate applicants wanting to set up a subsidiary or a branch office in the Dubai Auto Zone are required to submit the articles of association of the parent company and personal information about the shareholders and the company’s managers.

Licensing requirements in Dubai Auto Zone

Just like any other company, free zone businesses located in Dubai Auto Zone will need to obtain an operating license. Given the fact that the activities that can be completed here are related to motor vehicles and imply trading and selling, therefore a trading license is required to operate here.

Other activities are also permitted, among which insurance, maintenance and repair of auto vehicles.

An important aspect to consider starting with 2019 is that companies operating in the UAE, including in Dubai and its free zones are required to register for VAT. This has become a mandatory step in company formation in Dubai Auto Zone too. The procedure is not complicated and can be completed by our agents at the same time the business is registered with JAFZA.

The Dubai Auto Zone company will be issued a VAT number based on which it will be able to file VAT returns but also to obtain VAT refunds.

Our Dubai company formation specialists can offer more information on the VAT requirements applicable in the UAE.

From an economic point of view, Dubai Cars and Automotive Zone:

  • overs access to a market of more than 2 billion consumers in the Middle East and Africa;
  •  the size of the free zone is around 1 million square meters hosting more than 400 companies;
  • alongside the 50 years corporate tax exemption, Dubai Auto Zone also offers a renewable 15-year guarantee;
  • the trade license for a newly incorporated company is issued in 2 to 4 weeks.

You can contact us for trading licensing requirements.