Dubai Cars and Automotive City (DUCAMZ) Company Formation

DUCAMZ (Dubai Cars and Automotive City)

Dubai Cars and Automotive City was founded in April 2000 with the intention of re-exporting used vehicles to African and Asian regions. It is also recognized as DUCAMZ and is situated in Ras Al Khor. It has convenient access to local airports and seaports, including Dubai International Airport and the Jebel Ali Terminal, and also modern highways that connect Middle Eastern countries. The total area of this free zone is 8 million square feet, making it the biggest of its kind. They have robust facilities to meet the high needs of the automotive sector, including professional highway accessibility and enhancements to all mod cons needed to relocate cars inside and outside the country.

With related companies congregating together in one region the networking opportunities, cooperation and collaboration are abound. Support suppliers for the automobile sector are readily available, rendering it very simple for companies to access the facilities they need. The close proximity of service providers also renders networks more versatile and attentive to consumer needs. DUCAMZ specializes in technology that is tailored to the car sector and related industries. Dubai Cars and Automotive is committed to the expansion of all sectors of the automotive sector.
DUCAMZ’s vehicles are classified into two types:
  • Left-hand drive vehicles which are to be exported to the domestic markets & fall under the UAE regulations.
  • Right-hand drive vehicles dedicated to mostly African countries

Advantages Of Business Setup in Dubai Cars and Automotive City:

Jebel Ali Free Zone Authority (JAFZA) oversees the Dubai Cars and Automotive Free Zone and governs company creation and licensing in the area. JAFZA facilitates market creation by locating administration offices in a single place. The authority’s aim is to encourage investment and market development in the region by simplifying procedural issues.

Start-ups can access Dubai Customs Operations, Dubai Customs Inspection, Dubai Ports Documentation, Shipping Agencies, Bank facilities & money exchange, and insurance from a single venue. DUCAMZ has office rooms, warehouses, studios, and showroom space available for sale, depending on availability.

The policies for establishing a company in the UAE vary from those of other countries. In the goal of being a developing economy, the Federal Government has established policies to assist international investors in registering their businesses, obtaining a swift license, and obtaining all necessary approvals and departmental clearances.

• 100% foreign ownership
• 100% repatriation of capital and profits
• No restriction on the number of imported cars
• Economical freight charges
• Availability of skilled workforce
• No personal income and corporate tax for 50 years
• No currency restrictions
• Proven strategic location
• Complete administrative assistance
• No restriction in recruiting foreign employees
• Appealing work environment
• Easy clearance from Police (traffic department), Customs, Port and Bank
• Great support services from Dubai Ports Authority and other service institutions such as Shipping, Insurance, Banking, Automobile Workshops and Restaurants

The establishment of a corporation in the Dubai Cars and Automotive free zone offers great infrastructure, not only in terms of mobility, but also in lieu of connecting with other vehicle sectors. They have national and foreign firms established in the free zone, giving buyers who are engaged in the same area an edge. DUCAMZ features a number of well-known brands, including Al Tayer Motors, Luxury Motors Limited, Heewad Motors, Al Habib Motors, Al Meezan Motors, and others.

They also have other services in addition to the above advantages, such as:
– Offices spaces
– Warehouses
– Showrooms
– Workshops

List of Activities Permitted At DUCAMZ

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 bulk of DUCAMZ-based corporations’ commercial operations include the manufacture and exporting of vehicles to and from the United Arab Emirates. Automobile trade, distribution, and different services such as lending, insurance, and car maintenance and repair are all authorized corporate practices at DUCAMZ. DUCAMZ’s activities are limited to the re-exportation of vehicles to specific markets.
Automobiles fall into the following categories:

– Vehicles with right-hand drive, which are mostly shipped to India, Pakistan, Yemen, Afghanistan, and other African countries.
– The sale of used automobiles, farm equipment, heavy trucks, bicycles, jet skis, and other recreational vehicles.
– Left-hand drive used automobiles which are primarily outsourced to local markets and which are subject to local UAE regulations.

Types of company formation within Dubai Cars and Automotive City

– Free Zone Company (FZCO):
– The company can be a multi-shareholders company;
– Minimum 2 shareholders, maximum 5;
– No local partner required;
– Minimum capital requirement 100,000 AED.

How to Set Up a Business in DUCAMZ?

The operations permissible for businesses based in the Dubai Cars and Automotive City Free Zone are linked with trading and selling automobiles. To start a company in the DUCAMZ free zone, one has to have a legal permit, which must be obtained by applying to the authorities. A legal trade license in the DUCAMZ free zone is a trade license that is granted within 2-4 weeks. There is a specific process for applying to the authority for a trade license, as follows:
The Dubai Car and Automotive City Free Zone is controlled by the Jebel Ali free zone officials. By locating the administrative office in a single area, they also simplified the enrolment process. The authority’s aim is to encourage investment and market creation in the zone through a streamlined process.

– Fill out the form and submit your application for preliminary approval.
– Submit the legal documentation for the company’s registration.
– Sign and return client confirmation letter, and make payment
– Sign the Memorandum and Articles of Association (MAA)
– Deposit the share capital
– Sign the lease and staff sponsorship agreement

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Documents required to Set Up a Business in DUCAMZ

  1.  A trade name must be registered and proof must be presented
  2.  Before starting business formation activities, the applicant must receive initial approval
  3. 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
  4. A resolution from the Board of Directors of corporate shareholder/applicants indicating the intent to establish a new business in Dubai
  5. Certificates of registration for the corporate shareholder/applicants from the Registrar of Companies in the origin country.
  6. The individual shareholders must provide passport copies
  7.  Managers must provide their passport copies and CVs
  8. The physical address of each corporate shareholder/applicant must be provided
  9. Personal Information Sheets must be completed for each individual shareholder and manager
  10. Suitable space for the business must be leased, and document for the same should be provided.

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Dubai Cars and Automotive City (DUCAMZ) : FAQs

If you want to start a company in Dubai, the Cars and Automotive Free Zone has a fantastic network, not only in respect to transportation but also in terms of interfacing with other vehicle businesses. They have national and international enterprises set up in the free zone, giving investors in the same field an advantage.
To create a business in the DUCAMZ free zone, you’ll need a legal licence, which you may receive by submitting an application to the authorities.

Speed up your automobile business in DUCAMZ with Business Setup HQ