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Set up a Business for Sale of Motor Vehicles in Dubai

Set up a Business for Sale of Motor Vehicles in Dubai

Updated on Tuesday 30th January 2018

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Set-up-a-Business-for-Sale-of-Motor-Vehicles-in-Dubai.jpgUnder a short overview of the automotive industry in the UAE, the country places second among the Gulf Cooperation Countries that are dealing not only with car sales but also with accessories, trucks, transportation vehicles, trailers, and semi-trailers. Considering the solid position and the vast opportunities in this important field, entrepreneurs can successfully set up businesses for selling motor vehicles in Dubai. The legal aspects related to this sector can be explained by our Dubai lawyers as soon as you start the incorporation procedure.
 

Opening a branch to sell cars in Dubai

 
In most cases, selling vehicles and accessories in Dubai may involve opening a branch of a well-known car brand or act as a representative of a wide range of cars for trading purposes. A branch in Dubai is a simple business form which allows foreigners to have 100% ownership. Moreover, setting up a business for sale of motor vehicles can be done in Dubai Auto Zone, a free trade zone which has a favorable tax structure. The only thing to consider in this sense is that in Dubai Auto Zone (DAZ) you can only sell motor vehicle and no spare parts. Besides opening a branch in Dubai Auto Zone, one can operate under joint ventures, or free zone companies to sell vehicles.
 
If you want to know the tax regime in this sector, we suggest you address to our attorneys in Dubai who can also help you with the legal issues at company registration.
 

License to operate a business for sale of motor vehicles in Dubai

 
Because the legislation mentions this, business persons must bear in mind that the registration procedure of your company is subject to a special license which is granted by the authorities overseeing the Dubai Automotive Zone activities. The trading license is available for one year and must be renewed before expiration within a couple of days. The company’s documents should be sufficient when applying for a trading license in DAZ. For a successful business in the automotive sector in Dubai, it is suggested to create a website and present your company and the car collection for selling purposes. A marketing strategy is also recommended.
 
For complete legal assistance and support when opening a business for sale of motor vehicles in Dubai please contact our law firm in Dubai.

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