Business Setup in Dubai Cars and Automotive Free Zone (DUCAMZ)

Business Setup in Dubai Cars and Automotive Free Zone

What is Dubai Cars and Automotive?

The Dubai Cars and Automotive Free Zone (DUCAMZ) is the worlds largest free zone dedicated to the automotive industry. The free zone was established in 2000 as a center for re-exporting used cars to Asian and African markets. Located within Dubai it has easy access to airports and seaports where automobiles can be loaded onto vessels bound for world markets or trucks for transport to local markets. A modern network of highways links Dubai Cars and Automotive Zone to all neighboring countries. Businesses in all automotive industry segments are welcomed. Operators such as buyers, sellers, service providers, principals and traders are doing business in DUCAMZ.

With related businesses clustered together in one area the opportunities for networking, cooperation and collaboration abound. Service providers for the automotive industry are close at hand making it very easy for businesses to obtain services they may need. The proximity of service providers also make services more flexible and more immediately responsive to customer needs. DUCAMZ invests in infrastructure designed around the automotive industry and related businesses. Dubai Cars and Automotive is devoted to the growth of all segments of the automotive industry.

Allowed Activities in Dubai Cars and Automotive Free Zone

Business activities in DUCAMZ are limited to automotive trading, sales and related services. Services include banking, insurance, repair and maintenance related to the automotive industry. The majority of companies in the free zone are involved in import and export of automobiles. There are three major groups of vehicles processed through DUCAMZ. Right-hand-drive vehicles are exported mainly to India, Afghanistan, Pakistan and Yemen. Left-hand-drive used vehicles are sold in local markets and are subject to UAE regulations. The third group of vehicles is heavy vehicles, agriculture machinery, bikes, recreational vehicles and jet skis. Companies in DUCAMZ may import vehicles and sell to local markets and export to Middle-East and Africa where the market continues strong growth..

Starting a business in Dubai Cars and Automotive Free Zone

Jebel Ali Free Zone Authority (JAFZA) administers the Dubai Cars and Automotive Free Zone and regulates business formation and licensing in the zone. JAFZA makes business formation painless by putting administrative offices in a central location. The intention of the authority is to promote investment and business formation in the zone with simplified procedural matters. In one central location entrepreneurs can access Dubai Customs Operations; Dubai Customs Inspection; Dubai Ports Documentation; Shipping Agencies; Bank services and money exchange; and insurance. Depending on current availability, DUCAMZ has office space, warehouses, workshops and showroom space for lease. Some advantages of doing business in the Dubai Cars and Automotive Free Zone are:

• Complete foreign ownership
• No corporate tax for 50 years
• Complete repatriation of capital and profits
• No currency restrictions
• No import/export duties
• No restrictions on maximum import of automobiles
• Easy hiring of foreign employees
• Proven strategic location
• Easy to over 2 billion consumers
• A commonality of business interests
• Transfer of ownership inside the zone
• Modern world-class communication systems
• Competitive freight charges
• Supportive government services: police (traffic department), customs, port and bank
• Business-friendly environment at Dubai Ports Authority
• Ideal working environment
• No restrictions on maximum import of automobiles

New businesses in DUCAMZ can be structured in one of three ways. A Free Zone Establishment (FZE) is an independent business with only one owner/shareholder. The shareholder may be a real person or a corporate entity. A Free Zone Company (FZCO) is a business with two or more (up to five) shareholders. These shareholders may be individuals or corporate entities. A Branch Office is a representative of an existing company. Branch offices do business in the name of a parent company and business activities are specified in the business license. The parent company can be a foreign company or an existing UAE establishment. The documents and capital requirements are different for establishing these business structures.

Documents required for a Free Zone Establishment with a real person applicant:

• A trade name must be registered and proof presented. Our firm (Push Digits) can manage this for you.
• Before starting business formation activities the applicant must receive initial approval. We* can arrange this for you.
• The owner/shareholder must provide a passport copy
• If a manger is designated, the manager must provide a passport copy and C.V. (resume).
• Personal Information Sheets must be completed for the owner/shareholder and manger. We* can provide a template.
• Suitable space for the business must be leased and document provided. We* can arrange a lease on appropriate space and provide documentation.
• If a Local Agent (Push Digits) is utilized, that agent must have a notarized Power of Attorney

The authority may require additional documents. A FZE must have AED 1,000,000 (US$ 273,972) capital on deposit. The license fee is AED 5,500 (US$ 1,506) per year and the one-time Registration fee is AED 10,000 (US$ 2,739).

Documents required for a Free Zone Establishment with a corporate owner/applicant:

• A trade name must be registered and proof presented. Our firm (Push Digits) can manage this for you.
• Before starting business formation activities the applicant must receive initial approval. We* can arrange this for you.
• A Memorandum of Association and/or Articles of Association for the corporate applicant must be provided. This must be notarized by the UAE Embassy in the country of origin.
• A resolution from the Board of Directors of the corporate applicant indicating the intent to establish a new business in Dubai. This must be notarized by the UAE Embassy in the country of origin.
• A certificate of registration for the Corporate applicant from the registrar of companies in the origin country. This must be notarized by the UAE Embassy in the country of origin.
• The shareholders must provide a passport copies.
• Manager must provide a passport copy and C.V. (resume).
• The physical address of the Corporate applicant must be provided.
• Personal Information Sheets must be completed for the each shareholder and manager. We* can provide a template.
• Suitable space for the business must be leased and document provided. We* can arrange a lease on appropriate space and provide documentation.
• If a Local Agent (Push Digits) is utilized, that agent must have a notarized Power of Attorney

Documents required for a Free Zone Company (FZCO):

• A trade name must be registered and proof presented. Our firm (Push Digits) can manage this for you.
• Before starting business formation activities the applicant must receive initial approval. We* can arrange this for you.
• A Memorandum of Association and/or Articles of Association for corporate shareholder/applicants must be provided. This must be notarized by the UAE Embassy in the country of origin.
• A resolution from the Boards of Directors of corporate shareholder/applicants indicating the intent to establish a new business in Dubai. This must be notarized by the UAE Embassy in the country of origin.
• Certificates of registration for the corporate shareholder/applicants from the registrar of companies in the origin country. This must be notarized by the UAE Embassy in the country of origin.
• The individual shareholders must provide a passport copies.
• Managers must provide a passport copies and C. V.s (resumes).
• The physical address of each Corporate shareholder/applicant must be provided.
• Personal Information Sheets must be completed for the each individual shareholder and manager. We* can provide a template.
• Suitable space for the business must be leased and document provided. We* can arrange a lease on appropriate space and provide documentation.
• If a Local Agent (Push Digits) is utilized, that agent must have a notarized Power of Attorney

The authority may require additional documents. A FZCO must have AED 100,000 (US$ 27,397) capital on deposit. The license fee is AED 5,500 (US$ 1,506) per year and the one-time Registration fee is AED 15,000 (US$ 4,109).

Requirements for a branch of a foreign company with an individual applicant

Additional documents may be requested by the authority at the time of registration. There is no capital requirement for a branch office. The license fee is AED 5,500 (US$ 1,506) per year. There is a one time registration fee of AED 5,000 (US$ 1,369). There may be additional related fees.

Requirements for a branch of a foreign company with a corporate applicant

• A trade name must be registered for the new branch and proof of registration provided. Our firm (Push Digits) can arrange this for you.
• There must be initial approval from the authority before business formation activities begin. We* can help you apply for the initial approval and get the required document.
• Passport copies for the shareholders
• Managers must provide passport copies and C.V. (resume). The managers must have a university degree.
• A Personal Information Sheet must be completed for each shareholder and manager. We* can provide a template.
• A Memorandum of Association for the parent company (main branch) notarized by the UAE Embassy in the origin country.
• Articles of Association for the parent company (main branch) notarized by the UAE Embassy in the origin country.
• A resolution from the board of directors of the parent company indicating the intent to establish a branch office in Dubai notarized by the UAE Embassy in the origin country.
• A valid certificate of registration or trade license for the parent company from the appropriate authority in the origin country.
• A valid Chamber of Commerce certificate for the parent company
• A company profile of the parent company
• A suitable business/office space must be leased and proof of the lease provided with the application. We* will locate suitable space for your branch office and provide the required documents.
• Document establishing a physical address for the parent business.
• If you use a local agent (our firm*) to assist you with the process, the local agent must have a notarized Power of Attorney.

Required Documents for a Branch Office of an existing UAE Company:

• Each shareholder must provide a passport copy
• The designated manager must provide a passport copy and a C.V.(resume) and have a university degree
• A Personal Information Sheet for each shareholder and manager. We* can provide a template.
• A trade name for the new branch must be registered and proof of registration submitted. We* can get this done for you.
• Before starting branch office formation activities you must obtain initial approval. We* can arrange this initial approval for you.
• The parent company must provide a Memorandum of Association and/or Articles of Association notarized by the UAE Notary Public.
• You must have a lease document specifying a suitable minimum office space for your new branch. We* can locate suitable office space and obtain required lease documents
• If you utilize the services of a local agent* to help you, that agent must have a notarized power of attorney
• A certificate of registration or trade license for the parent company. This must be notarized by the UAE Notary Public.
• A valid Chamber of Commerce certificate for the parent company.
• A company profile for the parent company. We* can help with this
• Physical address of the parent company

How Push Digits Will Help You

This list of required documents may look intimidating but Push Digits can help remove the intimidation factor and make the process as painless as possible. We will make sure all the documents are ready for submission and all the local regulations are met. We have the skills and experience as well as the local connections to get your company setup quickly and smoothly.
In addition to our complete Company Formation Services we provide following services after the new business is operating:

• Complete accounting services with highest quality standards at affordable prices per month (full or part time)
• Financial services on an hourly basis
• Financial projections based on our in-depth financial accounting and analytical skills
• Feasibility studies for new businesses or new expansion
• Internal audits
• External audit preparation

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