The contribution of the automobile industry towards the growth and development of the UAE is huge. Dubai Auto Zone (DAZ) was initiated in the year 2000, to target the Asian and African markets for re-exporting of used cars. It allowed companies to carry out trade activities at an international level, free of taxes. Located in Al Ramool area of Dubai, it is accessible by both air and seaport. It holds a strong network as it links the Middle East, African and Asian market. The infrastructure has been built targeting entrepreneurs, new linkages, and modern road network.
Business licenses in the Dubai Cars and Automotive Zone
The only activities allowed for businesses operating in the Free Zone of Dubai Cars and Automotive City are linked to cars trading and selling. Other operations such as insurance, banking, vehicle repair, and maintenance are also allowed. A company must apply for a trading license to operate within the DUCAMZ within four or five working days and must be renewed annually
BENEFITS OF BUSINESS SETUP IN DUCAMZ
- Exemption from import duty taxes
- 100% ownership
- 100% repatriation of profits
- Skilled workforce
- Entry to international markets with a strong network
- High administrative support
- Zero restriction in hiring foreign employees
- Zero restriction in the number of cars imported
- No individual or corporate tax
Types of company formation within DUCAMZ:
- Free Zone Company (FZCO):
- The company can have multi-shareholders companies;
- Minimum 2 shareholders, maximum 5;
- No local partner required;
- Minimum capital requirement 100,000 AED.
