Company Formation in Dubai Car and Automotive City Free Zone

by Zaara 05, Dec 2019

Company Formation in Dubai Car and Automotive City Free Zone

Established in the year 2000, the Dubai Car and Automotive Free Zone (DUCAMZ) is located in Ras Al Khor and offers easy access to the Dubai International Airport and Jebel Ali Port to all the companies operating within the free zone. It is one of the largest free zones in Dubai and the largest one dedicated to the automotive industry in the world. The companies operating in Automotive Free Zone can sell vehicles in the local market and re-export cars to the Middle-East and Africa.

The vehicles sold by businesses in DUCAMZ is divided into two main categories, namely

  1. Left-hand drive vehicles to be exported to the local markets and fall under the regulation of the United Arab Emirates
  2. Right-hand drive vehicles dedicated to mostly African countries

DUCAMZ offers easy access to sea and airway transportation, competent and well-connected highway routes, and all mod cons that are essential for relocating cars outside and within the region. The free zone displays a wide range of popular cars like Al Tayers Motors, Luxury Motors Ltd, Al Meezan Motors, Heewad Motors, and Al Habib Motors, including other associated enterprises.

Activities Permitted in DUCAMZ Dubai

  • Automotive trading
  • Sale and related services
  • Banking, repair, insurance, and maintenance related to the automotive industry
  • Import and export of automobiles

Apart from the two groups mentioned above, there is a third group of vehicles that includes- heavy vehicles, agriculture machinery, bikes, recreational vehicles, and jet skis.

Benefits of Business Setup in DUCAMZ

  • Complete foreign ownership
  • No corporate tax for 50 years
  • Complete repatriation of profits and capital
  • No currency restrictions
  • No import/export duties
  • No restrictions on maximum import of automobiles
  • Proven strategic location
  • Transfer of ownership inside the zone
  • Supportive government services- police, customs, port and bank
  • Ideal working environment
  • No restrictions on maximum import of automobiles

Business Facilities by DUCAMZ

  • Office spaces
  • Warehouses
  • Showrooms
  • Workshops

Types of Corporate Entities in DUCAMZ

A free zone company can be established in DUCAMBZ, which can have multiple shareholders with a minimum of two and a maximum of five as a limit. The maximum capital requirement is AED 100,000. No local partner is required.

Procedure to Start a Business in DUCAMZ

DUCAMZ regulates the business formation and licensing in the zone. JAFZA administers the business setup process, and they make it painless by putting administrative offices in an accessible location. The authority intends to promote investment and business incorporation in the zone with simplified procedure 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.

The procedure to business setup in DUCAMZ are as under,

  1. Register your trade name with the free zone authorities
  2. Fill in an application form and submit for an initial approval
  3. Submit the legal documents for registering your company
  4. Sign and return the Customer Confirmation Letter and pay the fees
  5. Deposit the share capital
  6. Sign the lease and personnel sponsorship agreement

The documents required to submit to the free zone authorities are as follows,

  • Certificate of trade name registration
  • Application for business registration
  • Memorandum and Articles of Association
  • A resolution of Board of Directors of corporate shareholders/applicants indicating the intent to establish a business in Dubai
  • Passport copies of individual shareholders, managers, and director
  • The physical address of each shareholder/applicant must be provided

Why Start a Business in DUCAMZ?

Business people who are into the automotive sector can benefit from establishing their business in Dubai Car and Automotive City Free Zone. It provides humongous opportunities to the investors with a wide range of benefits as listed earlier. Since the majority of DUCAMZ based companies business activities are trading and involve export and import of automobiles to and from the UAE, an investor will surely have a profitable venture.

So, what are you waiting for? Register your business today in DUCAMZ and get all the benefits. If you are looking for a business consultant to can help you in business registration, then we at Commitbiz are here for you. Apart from business setup services, we help entrepreneurs like you make distinctive, lasting, and substantial improvements to the performance of their organizations. Contact us today and avail our services.


What is the difference between Freezone Establishment and Freezone Company?

FZE has a single shareholder who is either a person or a company wherein FZC generally requires 2 or more shareholders and can have a maximum of 5.

What are the documents required for opening a freezone bank account?

  • A corporate account opening form
  • A board of directors’ resolution sanctioning the opening of the account and the signatories to the account.
  • A copy of your company’s certificate of incorporation
  • A copy of your share certificate
  • A copy of the company’s Memorandum and Articles of Association (MAA)
  • Copies of passports for all partners in the company

Is it possible to obtain a tax residency certificate for a freezone company?

Yes, it is possible.

How long does it take to obtain DUCAMSZ license?

Approximately 3 to 6 business days.

Does liquidation of the company in Dubai Car and Automotive City Freezone require the physical presence of the owner?

No, not necessary.

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