The first thing that comes to mind about Dubai is its lifestyle. While we talk about lifestyle Dubai is one of the cities with the most supercars in the world. There's no doubt that Dubai has the lowest fuel prices and is tax-free, which makes the number credible. Above all, the nation has a freezone for cars and automobiles named DUCMAZ.
Let’s Know about DUCMAZ
Dubai Cars and Automotive City were established in April 2000 to re-export used cars to the Asian and African markets. Also known as DUCAMZ, it is located in Ras Al Khor. It has easy access to the regional airport and seaport, including Dubai International Airport and the Jebel Ali Port, as well as modern highways which link the Middle East countries.
The vehicles sold by DUCAMZ are divided into two categories:
- Left-hand drive vehicles to be exported to the local markets and fall under the regulations of the UAE
- Right-hand drive vehicles dedicated to African countries, mostly
The total size of this free zone is 8 million sq. ft, making DUCAMZ free zone the most extensive free zone of its kind. They offer comprehensive infrastructure to meet the high demands in the automotive industry, providing competent highway connectivity and boosting all mod cons necessary to relocate cars within and outside the region.
The free zone displays many popular cars like Al Tayer Motors, Luxury Motors Ltd, Al Meezan Motors, Al Habib Motors, and other associated enterprises. 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.
Activities Permitted in DUCAMZ Dubai
DUCAMZ allows the below activities
- Automotive trading
- Sale and related services
- Banking, repair, insurance, and maintenance related to the automotive industry
- Import and export automobiles
- Apart from the two groups mentioned above, the third group of vehicles includes heavy vehicles, agriculture machinery, bikes, recreational vehicles, and jet skis.
Business Facilities by DUCAMZ
The free zone holds the below facilities
- Office spaces
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 the 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
Procedure to Set Up a Business in DUCMAZ
DUCAMZ regulates business formation and licensing in the zone. JAFZA administers the business setup process, making 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.
Like any other Dubai freezone company formation, DUCAMZ follows a regulated procedure.
Trade Name Registration
Decide the business activity you wish to do and register your trade name with the free zone authorities. Before choosing a trading name, remember to abide by certain regulations.
Fill in the application form and submit it to the authorities for initial approval.
Submit all the necessary legal documents for registering your company. The records required to incorporate a company in this free zone are mentioned above.
You will be given the customer confirmation letter. Sign and return the letter to the authorities and pay the required fees simultaneously.
Deposit the required share capital.
Acknowledge the registration by signing the lease and personnel sponsorship agreement and getting your company registered.
Automobile Industry is growing at a massive pace every day and will expand even faster in the future. DUCAMZ will attract even more investors in the coming year, which would be the right time for you to invest.
We here at Commitbiz deal with international clients daily and are one of the most experienced in the automobile sector. Now the next step is to join hands with the pioneer and make your dreams come true if you need any help or have any queries regarding the same, feel free to contact us today.
What license does it require to set up a DUCAMZ freezone company?
To incorporate a business in this freezone, one requires a trading license.
How long does it take to obtain a DUCAMZ license?
Approximately 3 to 6 business days.
What is the cost of a trading license in the DUCAMZ freezone?
It costs around AED 14,000
What is the minimum share capital for DUCAMZ business set-up?
It requires a minimum of AED 100000 to be deposited as share capital.
What are the activities allowed in DUCAMZ free zone?
Apart from trading cars, insurance, maintenance and banking are the only activities permitted within the zone.