Business Setup in Dubai Car and Automotive City Free Zone

Business Setup in Dubai Car and Automotive City Free Zone

Free zones are select areas in the UAE. They offer advanced infrastructure and facilities that encourage foreign investment and company formation in the UAE. These specialty zones provide economic benefits to specific types of businesses.

Apart from this, the Free zones also offer benefits like 100% foreign ownership and no taxation.

Every trade zone is tailored to fulfill particular business setup requirements.

The Dubai Car and Automotive Free Zone (DUCAMZ), established in 2000, is one of the biggest free zones in the UAE. The DUCAMZ proffers benefits for entrepreneurs and business owners in the used car industry.

It is situated in Ras Al Khor, Dubai, merely 10 kilometers away from Dubai International Airport. Besides that, it has easy access to the Jebel Ali Port.

This economic zone was made to aid the re-exporting of used cars to the Asian and African markets. 

Moreover, the companies choosing to establish their company here are free to sell the vehicles to the local markets, unlike other Free Trade Zones, where this practice is strictly forbidden.

DUCAMZ gives startups assistance with aspects such as licensing attainment, administrative services, customs, and clearing.

DUCAMZ types of vehicles sold based on driving modes

The types of vehicles that are sold by the businesses in this zone are divided into two categories:

  • Left-hand drive cars to be supplied to the local markets as they are the only kind of vehicles that are allowed under the UAE’s law.
  • Right-hand drive vehicles meant for export only.


DUCAMZ offers a comprehensive infrastructure purpose-built to meet the high demands of the automotive industry. In addition to that, it has easy access to air, sea, and excellent highway connectivity, which is essential to relocate cars within and outside the confines of the region with extreme ease.

 DUCAMZ is an attractive starting point for budding entrepreneurs as it is the home to a wide variety of renowned brands, namely, Al Meezan Motors, Luxury Motors Limited and others. Thus, giving them an even playing field to compete with these giants.And is a prime spot for your business setup in Dubai.

Benefits of starting a business in DUCAMZ

As mentioned earlier, DUCAMZ is an enticing piece of land that holds the world of business opportunities in its hands. 

Some of the notable points are listed below:

  • Complete foreign ownership;
  • No corporate taxes or personal taxes for 50 years – a renewable concession;
  • No import-export duties;
  • Access to a market of over 2.5 billion people;
  • State of the art modes of transport and communication;
  • Excellent and ideal working environment;
  • No currency restriction;
  • Competitive freight charges;
  • No limits on the maximum import of automobiles;
  • A supportive government that creates policies that are conducive to conducting business;
  • Transfer of ownership within the zone.

Related: How to Obtain an Import-Export License in Dubai 2020? 

Types of amenities offered by DUCAMZ

The DUCAMZ provides several facilities to aid the business operating in the area.

  • Office spaces
  • Warehouses
  • Showrooms
  • Workshops
  • Easy availability of labor especially car mechanics.

Types of business entities permitted in DUCAMZ:

The DUCAMZ allows the formation of a free zone company(FFZCO). It must have the following features:

  • Multiple shareholders (minimum two and maximum 5 number of shareholders.)
  • The maximum capital required is AED 100,000 and
  • Absolutely no Local partner or sponsor is needed for setting up a business in DUCAMZ.

How to set up a business in Dubai Car and Automotive City Free Zone?

To start a business in DUCAMZ, you must understand the intricacies of business formation. In this free zone, things are done a little differently. Here, the licensing body and the agency responsible for business setup are entirely different.

  • DUCAMZ regulates the licensing and other administrative services.
  • The JAFZA, on the other hand, manages the business incorporation services.

Even though these two regulatory authorities are separate from each other, they still try their best to make the entire process as painless as possible by putting administrative offices with friendly staff in a convenient location. 

Furthermore, business owners and entrepreneurs can reach Dubai Customs Operations, Dubai Ports Documentation, Dubai Customs Inspection, Bank services, Shipping Agencies, and money exchange and insurance at one central location.

The government of the UAE is striving to improve its policies to increase and promote investment and business opportunities in this zone specifically.


The process of company formation in DUCAMZ is as follows:

  • Trade name registration with the concerned regulatory authorities. The name must observe the Dubai Economic Development (DED) naming conventions.
  • A duly filled application form must be submitted for initial approval
  • Submit the required legal documents for registering your company.
  • Sign and submit the Customer Confirmation Letter and pay the requisite dues.
  • Acquire an office space and sign its lease as it is mandatory to have a valid office address to apply for a trade license in Dubai.
  • Apply for a Trade license.
  • Deposit the share capital as soon as you get the needed approvals.
  • Sign the personnel sponsorship agreement.

The required documents:

The documents needed for business setup in DUCAMZ is written below:

  • Approval of trade name registration
  • Application for business registration
  • Memorandum and Articles of Association (MOA and AOA)
  • A resolution of the Board of Directors of corporate stockholders indicating the intent to establish a business in Dubai
  • Passport copies of individual shareholders, managers, and directors of the company.
  • A valid address of each shareholder must be provided.

After you have successfully completed all the steps detailed above, you will be a proud owner of your very own business setup in Dubai.

Primarily, if your specialty is selling and purchasing automobiles by registering your business in DUCAMZ, you are guaranteed to give your venture the best chance to flourish and take-off.

If you are willing to enjoy the benefits of Dubai Car and Automotive City Free Zone, then start a business here posthaste. And if you are confused about the business registration process, then don’t worry. 

Business setup consultants in the UAE are here to assist you. We at Business Setup Consultant Dubai are here for you. 

We provide top-tier business setup services and give expert advice to entrepreneurs like yourself. With our help and guidance, you will be able to have a smooth business incorporation process.

Contact us today– We will be happy to be of your assistance!

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