Under 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
our law firm in Dubai