Under a brief description of the automotive industry in the UAE, the country ranks second among the Gulf Cooperation countries that deal not only with the sale of cars but also with accessories, trucks, transport vehicles, trailers and semitrailers. Considering the solid position and the vast opportunities in this important field, entrepreneurs can successfully establish businesses to sell motor vehicles in Dubai. Our business setup consultants in Dubai can explain the legal aspects related to this sector as soon as the incorporation procedure begins.
Open a branch to sell cars in Dubai
In most cases, selling vehicles and accessories in Dubai may involve opening a branch of a well-known car brand or acting as a representative of a wide range of cars for commercial purposes. A branch in Dubai is a simple form of business that allows foreigners to have 100% ownership. In addition, the creation of business for the sale of motor vehicles can be done in Dubai Auto Zone, a free trade area that has a favourable tax structure. The only thing to keep in mind in this regard is that in Dubai Auto Zone (DAZ) you can only sell motor vehicles and not spare parts. In addition to opening a branch in the Dubai Auto Zone, one can operate under joint ventures or free zone companies to sell vehicles.
If you want to know the tax regime in this sector, we suggest that you contact our business setup consultants in Dubai, who can also help you with legal problems in the company registration.
License to operate a business selling motor vehicles in Dubai
Because the legislation mentions this, business people should keep in mind that the registration procedure of their company is subject to a special license granted by the authorities that oversee the activities of Dubai Automotive Zone. The commercial license is available for one year and must be renewed before expiration within a couple of days. Company documents should be enough when applying for a commercial license in DAZ. For a successful business in the automotive sector in Dubai, it is suggested to create a website and present your company and car collection for sale. A marketing strategy is also recommended.
Now, when everything is ready, you can enter the market as a car dealer. Now you should concentrate on advertising your business. There are several sources of advertising and you can use them all or some according to your choice. Posting the ad online can be free and can reach many people at once. Apart from that, you can print your business cards and brochures to distribute them, you can also give an ad in the newspapers or you can get help from billboards and billboards. It is not important how much you spend to advertise your business, but it is important that it becomes popular in the car dealership market. Give your buyers the best and they will make your publicity among others.