Business setup in Dubai Auto Zone

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October 10, 2023


The Dubai auto zone (Dubai Cars and Automotive Zone), established in 2000, serves as a strategic hub for exporting automobiles to the Asian and African markets. Its prime location provides convenient access to airports and seaports, making it a highly desirable destination for businesses in the automotive industry worldwide.

Benefits of Dubai Auto Zone

  1. Office and Storage Facilities
    Dubai Auto Zone provides suitable office and storage spaces for companies in the automotive industry.
  2. Full Foreign Ownership
    Foreign investors can have complete ownership of their companies without the need for local partners.
  3. Tax Benefits
    Companies can benefit from no corporate tax under specific conditions.
  4. Repatriation of Capital and Profits
    Investors have the freedom to repatriate their capital and profits without restrictions.
  5. Currency Flexibility
    There are no currency restrictions, allowing for easy financial transactions.
  6. Hiring Flexibility
    Companies can hire foreign employees without limitations.
  7. Import and Export Duties
    There are no import or export duties imposed on automotive-related activities.
  8. No Restrictions on Car Imports
    There are no restrictions on the number of cars that can be imported.

Additionally, the Dubai Auto Zone houses all necessary authorities related to auto trade, including customs inspections, customs operations, shipping agencies, and the Dubai Ports Documentation.

The activities allowed within the Dubai Auto Zone are exclusively related to the automotive industry, encompassing trading, insurance, and maintenance.

When establishing a business in the Dubai Auto Zone, the primary company type is the Free Zone Company (FZC). FZCs can have a minimum of two shareholders, which can include natural persons or companies. The ownership structure may also comprise a combination of individuals and corporations, but the total number of shareholders cannot exceed five. Full foreign ownership is permitted, and a minimum share capital of 100,000 AED (approximately 30,000 USD) is required.

Steps to setup a Auto Zone company

  1. Reserving a trading name and signing a lease contract for the legal address with the free zone authority.
  2. Obtaining initial approval from the free zone authority before commencing the incorporation process.
  3. Obtaining initial approval from the free zone authority before commencing the incorporation process.
  4. Preparing information about the directors and managers of the company.
  5. Opening a bank account for depositing the share capital, with the bank statement serving as proof of deposit.

Foreign companies seeking to establish branch offices in the Dubai Auto Zone must obtain a resolution from their Board of Directors authorizing this expansion. The parent company will be required to submit a notarized copy of its Memorandum and Articles of Association. For individual shareholders, passport copies and CVs will be necessary.

It’s worth noting that the Dubai Cars and Automotive Zone falls under the jurisdiction of the Jebel Ali Free Zone Authority (JAFZA), responsible for company registration and licensing within the Dubai Auto Zone. If you require assistance with setting up a business in this zone, our Dubai-based company formation specialists can provide guidance and support.

Also read: Business Setup in DUQE Free Zone

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