The United Arab Emirates holds the second-largest automobile market in the GCC (Gulf Cooperation Council). This feature thus excites entrepreneurs and investors from all around the world to start an Automobile business in Dubai and operate in different markets.
As the demand for automotive services is expected to remain strong in Dubai considering certain factors such as increased competition, population growth, and desired improvement in automobile sales, establishing a business in a similar field would be definitely worth your time and money.
In this article, you will learn how you can start an Automobile business in Dubai, how much it would cost to Indian investors, what are the business benefits and the easy methods to set up a store in the UAE.
Benefits of Automobile Business Setup in Dubai
If you are a businessman looking to establish a retail business in Dubai’s automotive industry, then you must definitely consider your choice. Dubai is a perfect platform to expand your business both domestically as well as internationally. Hence, if you start an Automobile business in Dubai, you can avail the following advantages –
1. Favourable Free Zones
The business setup conditions in Dubai Free Zones are favorable for investors. For instance, they can own their automobile company 100%. In addition, they get to fully repatriate their profits and capital. Hence, anyone aiming to promptly establish an automobile store in the UAE can consider setting it up within the Dubai free zone.
2. Advanced manufacturing sector
The people of Dubai are fascinated with expensive vehicles and cars. They enjoy customizing their vehicles and making them more ornate. People want their vehicles to perform better and have a unique appearance, which is why there is a huge demand for automotive modification services.
Thus, given the sector’s greater level of development, investors can avail the best opportunities to conduct business in the area of automobiles and spare parts.
3. Government support
The Dubai government encourages the development and growth of the automotive industry by drawing in more and more foreign capital to the country’s economy. Moreover, it guarantees original auto part production through OEMs (Original Equipment Manufacturers).
This helps in lowering costs and increasing sales of auto parts across the nation. Moreover, the well-established logistics and international transportation hubs in Dubai are a benefit for businessmen who want to start an automobile business there.
4. Amazing place to work and live
One can afford a luxurious lifestyle by living in one of the finest cities in the world. Working anywhere in Dubai can be a fantastic and life-changing experience as the city offers low taxes, a great standard of living, an amazing lifestyle, and rapid growth compared to other rapidly industrializing nations. Thus, you can live the life you want with the first-rate products and facilities available in Dubai.
Procedure to start Automobile business in Dubai
Here’s a detailed guide to setting up an automobile business in Dubai –
1. Define the scope of the automobile business setup
First and foremost, determine the range of operations your company will undertake in the region. For instance, will you be merely trading auto components or offering on-call services? Are you designing an online platform for wholesale transactions? Compile a comprehensive list of business activities you wish to include in your operations.
Each activity has different regulations, and some may even necessitate separate licenses. Therefore, you must consider answering the above queries and understand your enterprise before proceeding with the legal formalities.
2. Register the business name
Next, select a trading name for your automobile company contemplating your day-to-day business activities. However, make sure the selected name avoids religious, sentimental, offensive, or misleading terms. Also, if you are going for a personal name, use the full name rather than the initials or the half name.
3. Choose an ideal location
The choice of location for your business is pivotal as it depends on factors like operational needs, team size, networking, etc. Establishing a Mainland LLC business would require you to partner with a local sponsor holding 51% ownership. On the other hand, launching your enterprise in a free zone would grant you 100% ownership.
You can consider Dubai Cars and Automotive Zone (DUCAMZ) as it is a recommended hub for diverse automobile-related business activities. Launched in 2000, DUCAMZ is the only free zone dedicated to the automobile industry.
4. Secure a pre-approval certificate
Submit the requisite documentation to the relevant authority and get the pre-approval certificate. This is a crucial document as it will be further needed to obtain the trading license and also required by other governing bodies.
Partnering with Bizinvestfirm will streamline the process, thereby facilitating a one-stop procurement of the pre-approval certificate for your business.
5. Obtain a valid license
A trade license in Dubai can either be a professional license or a commercial license. The specific license you would require for your automobile business will depend on your business activities and any necessary special approvals. The authorities will methodically review your submitted documents and accordingly approve the paperwork to grant you your license.
The requested documents for this process include the following:-
- Application form
- Project summary
- Passport copies of the company executives and shareholders
- Personal Information Form
- Bank statement for the last three months (company or personal)
- NOC from the sponsor (applicable for UAE Resident applicants)
6. Handle the visa procedures
If you are planning to conduct business activities and reside in Dubai with your family, then you need to apply for the necessary visas for all family members. Additionally, you can also seek visas for your employees, colleagues, partners, etc. Once you successfully complete all these steps, you can successfully navigate through all the other essential legal processes.
7. Set up a bank account
To establish a trading company like an automobile business, you need to have a business bank account. You can choose from a variety of local and global banks situated in Dubai. Nevertheless, identifying the most suitable financial institution as per the business needs can be a real challenge for foreign investors, especially one that provides exceptional corporate banking services.
Bizinvestfirm professionals can provide you with a comprehensive understanding of various financial entities in Dubai and also help you in selecting the one that best fits your business requirements.
Once you are done with all the above steps, you can finally concentrate on generating revenue and fostering the growth of your automobile company.
Activities covered in the Automobile business in Dubai
Entrepreneurs have various options of activities to choose from based on their interests and expertise. The major ones include the following:
- Maintenance and Repair of Motor Vehicles
- Fitting or Replacement
- Installation of Parts and Accessories
- Car Washing & Cleaning
- Anti-Rust Treatment or Auto Rust Proofing Services
- Vehicles Upholstery Services
- Car Polish Services
Conclusion
Although the landscape of automobile business setup in Dubai offers great benefits for foreign investors, the licensing process may appear complex considering the various steps that navigate the challenges of identifying a legal structure, choosing an activity, and drafting legal documents correctly.
Bizinvestfirm helps businesses resolve such issues by offering tailored business setup services in Dubai. They are one of the leading business setup consultants in the UAE, trusted by startups, SMEs, and MNCs. Their advisors are well-versed in UAE laws and labor policies which enables them to simplify the process of incorporation.
