Forming a Company in Dubai Car & Automotive Zone

Dubai Cars and Automotive Zone (DUCAMZ) is located in Ras Al Khor, Dubai. It is one of the largest freezones in Dubai and the largest in the world dedicated to automotive industry. It was established in the year 2000 with the objective of re-exporting used cars and offers unique benefits for entrepreneurs in the used cars industry. It offers easy access to sea and airway transportation for relocating car within UAE and abroad.

The vehicles sold in DUCAMZ are divided into 2 categories as below

1. 1. Left hand drive vehicles have to be exported to the local market and fall under the UAE regulations
   2. Right hand driven vehicles are exported to African countries mostly

JAFZA is in charge of managing DUCAMZ. It is responsible to provide all assistance required for companies, who want to establish themselves over there, which includes licensing, administration services, customs, clearing etc.

Types of company formation within DUCAMZ

1. 1. • Free Zone Company (FZCO)
      • Minimum 2 shareholders, maximum 5
      • No local partner required
      • Minimum capital requirement 100,000 AED

Business benefits of setting up a company within DUCAMZ

1. 1. • 100% ownership
      • No restriction on currency
      • Affordable freight charges
      • No corporate taxes for 50 years and it is a renewable concession
      • No restrictions on maximum import of automobiles
      • Clearance from Police (RTA), Customs, Port and Bank hassle free
      • Excellent support services from Dubai Ports Authority & Other services like shipping, insurance, banking, automobile workshops & restaurants
      • No import/export duties
      • Easy transfer of ownership within the zone

Business License in DUCAMZ

The only activity permitted in this entity should be related to trading and selling of vehicles. Other activities like insurance, banking, repairing and maintenance of vehicles are also permitted. Facilities available: office spaces, warehouses, showrooms and workshops.

Steps to register a company in DUCAMZ

1. 1. 1. Submission of application form with trade name and shareholder details
      2. Drafting the Articles of Association (AOA)
      3. Submission of the partner’s identification documents, bank details and residence proof in Dubai Registrar Office
      4. For registering a branch, the partner’s details and AOA of the parent company have to be submitted

Documents required for the setup in DUCAMZ

1. 1. 1. Passport copies for individual shareholders
      2. Managers must provide their passport copies and CVs
      3. Personal information sheets must be completed for each individual shareholder and manager
      4. Suitable space for the business must be leased, and document provided

The automobile industry is expanding and is expected to grow even faster in the near future. DUCAMZ free zone is the right option if you are planning to create an enterprise in the automobile industry which allows companies to get into re-exporting, including buyers, sellers, traders, and more. This blog is written by Ms. Nirmala, Business Advisor at Flyingcolour Business Setup, VAT and Accounting Services, Dubai. If you have any query related to automobile business setup in DUCAMZ free zone or anywhere across UAE, then feel free to call +971 4 4542366 today for a quality consultation or please send inquiry to info[at]flyingcolour[dot]com.