Dubai Cars and Automotive Zone (DUCAMZ) is the first and only free zone in the UAE dedicated to the re-export of used cars. DUCAMZ was launched in April 2000 to boost the re-export of used cars to Asian and African markets. The process of business setup in DUCAMZ is highly recommended for investors engaged in the used cars industry for a variety of reasons. The free zone offers excellent connectivity to all major trading hubs with its strategic location in Ras Al Khor, Dubai.

DUCAMZ offers easy access to Dubai Airport, Jebel Ali Port and major highways linking to lucrative Middle East markets. Excellent connectivity through air, sea and land makes the process of re-exports more agile and smooth. The free zone also provides foreign investors with a world-class infrastructure and straightforward licensing procedure. Investors also benefit from the robust regulatory regime of DUCAMZ as the free zone is managed by DP World and licenses are issued by Jebel Ali Free Zone.

Furthermore, the assistance of business setup consultants in Dubai makes the licensing process easier. Read ahead for more insights on company formation in DUCAMZ Free Zone.

Key Features of Dubai Cars and Automotive Zone 

DUCAMZ is spread across an area of around 8 million square feet, which makes it the world’s No 1 free zone dedicated to the automotive industry. Cars and other vehicles being sold in the free zone are categorised into two major segments. They are:

  • Left-handed driven vehicles and cars to be sold in the local market
  • Right-handed driven vehicles and cars to be exported to African and Asian countries

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    Types of Legal Entities in Dubai Cars and Automotive Zone 

    Foreign investors should first decide on the type of legal structure ideal for their proposed company. Factors like the number of shareholders and the nature of the business must be taken into consideration to determine an appropriate legal structure. Stated below are the types of legal entities permitted in DUCAMZ:

    Free Zone Establishment 

    A Free Zone Establishment (FZE) is an independent legal entity that can be formed with a single shareholder. Business setup consultants in Dubai can advise investors on how to set up an FZE.

    Free Zone Company 

    A Free Zone Company (FZCO) is an independent legal entity formed with multiple shareholders. An FZCO in DUCAMZ should have at least two shareholders but a maximum of five.  The shareholders can be individuals, corporate entities or a combination of both.

    Branch of a Foreign Company 

    Companies registered in foreign countries can open a branch office in DUCAMZ. However, the activities of the branch should match that of the parent company.

    Branch of a UAE Company 

    Local companies incorporated within the UAE are allowed to open a branch office within DUCAMZ. However, branch offices in DUCAMZ must carry out all or some of the activities of the parent entity.

    Process of Business Setup in Dubai Cars and Automotive Zone 

    The process of business setup in DUCAMZ is fairly straightforward and flexible. Foreign investors need not face any complicated steps or bureaucratic hurdles. Furthermore, business setup consultants in Dubai will assist entrepreneurs to resolve any likely obstacles. The entire process of company formation in DUCAMZ can be summarised into the following steps:

    1. Select a business activity
    2. Choose a company structure
    3. Reserve a tradename
    4. Present the application to free zine authority
    5. Sign the lease agreement
    6. Submit all the documents
    7. Receive the trade license
    8. Apply for UAE Residence visas
    9. Open a corporate bank account

    Documents Required to Set Up FZE & FZCO 

    As per the rule of business setup in Dubai, applicants should submit relevant documents to obtain a trade license. The regulations of business setup in DUCAMZ demand the submission of certain legal documents. Even though the general requirements are the same, there may be some variation depending on the type of legal structure. Investors with access to the best business setup services in Dubai can easily navigate the challenge of documentation. The following documents are required to open FZE & FZCO companies in DUCAMZ:

    • Application form
    • Project summary
    • Passport copy of manager & shareholders/directors/secretary
    • Personal Information Form
    • Three months bank statement (company or personal)
    • NOC from the sponsor for UAE Resident applicants

    Additional documents required if SHAREHOLDER/S is a Company 

    For legal structures such as FZE & FZCO, the shareholders can be individuals, companies or a mix of both. In such cases, the following additional requirements must be met:

    • Certificate of Registration ( To be attested by UAE Embassy)
    • Memorandum and Article of Association ( To be attested by UAE Embassy)
    • Board Resolution- (To be attested by UAE Embassy)
    • Managers Passport Copy
    • Specimen of Signature of Manager (Must be attested)
    • Original FZE/FZCO application form

    Documents Required to Open Branch of a UAE Company 

    Locally registered companies must submit the following documents to open a branch office in DUCAMZ:

    • Application form
    • License copy
    • Copy of Memorandum of Association
    • Copy of share certificate
    • Copy of Chamber of commerce certificate
    • Original board resolution
    • Passport copy of Manager
    • Letter from the parent company to open a branch office in DUCAMZ
    • Specimen signature of the manager

    Documents Required for Foreign Company Branches 

    Foreign companies wishing to open a DUCAMZ branch are required to submit the following documents:

    • Application form
    • Certificate of Registration ( must be duly notarized and attested by the UAE Embassy)
    • Memorandum and Article of Association ( must be duly notarized and Attested by UAE Embassy)
    • Board Resolution (must be duly notarized and attested by the UAE Embassy)
    • Specimen of signature of the manager( to be attested)
    • Passport copy of Manager and legal representative

    Benefits of Business Setup in Dubai Cars and Automotive Zone 

    Incorporating a company in DUCAMZ offers a wide array of benefits for foreign investors. Entrepreneurs are entitled to the following benefits when they set up a business in DUCAMZ:

    • 100% foreign ownership
    • Strategic location
    • 100% repatriation of profits and capital
    • No corporate tax for 50 years (a renewable concession)
    • Zero personal income tax
    • Easy access to a market of over 2 billion people
    • Smooth working environment
    • World-class infrastructure & efficient communications systems
    • No restriction on currencies
    • No import/export duties
    • Freight charges are highly competitive
    • No restrictions on maximum import of automobiles
    • Hassle-free clearance from Police, Customs, Port and Bank
    • Excellent support services from Dubai Ports Authority
    • Ability to transfer ownership within the free zone

    Compliance Requirements in Dubai Cars and Automotive Zone 

    Companies licensed by the DUCAMZ authority must meet compliance obligations such as Economic Substance Regulations (ESR), Ultimate Beneficial Ownership (UBO) and Anti-Money Laundering and Combatting Financing of Terrorism (AML-CFT).  Companies going through liquidation in DUCAMZ are also required to meet the compliance requirements. Non-compliance will attract severe consequences including hefty administrative penalties, suspension of trade license or exchange of information with foreign competent authorities. Business set-up consultants in Dubai can assist investors to ensure compliance with the ESR, UBO and AML-CFT regulations.

    Choose Bespoke Business Setup Services in Dubai, UAE 

    The landscape of business setup in DUCAMZ offers great benefits for foreign investors in the field of automobile production and trading. However, the licensing process may appear complex to foreign investors as they have to navigate the challenges of identifying a legal structure, choosing an activity and properly drafting legal documents. Jitendra Business Consultants (JBC) helps entrepreneurs to resolve such issues by offering bespoke business setup services in Dubai.

    JBC is one of the leading business setup consultants in Dubai, trusted by startups, SMEs and MNCs. Our business setup advisers are well-versed in UAE immigration laws and labour laws which enables them to simplify the process of company formation in Dubai. Our consultants will guide investors about complex procedures such as visa processing, bank account opening etc. Our business setup services in Dubai also encompass ESR, UBO, VAT & AML-CFT. JBC ensures a fast and hassle-free company registration for all types of companies.

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