Overview:

In the United Arab Emirates, cars are a symbol of status and progress, reflecting the country’s rapid modernization. The motor vehicle trading business in Dubai is a dynamic and flourishing sector, driven by the nation’s strong economy, strategic location, and increasing demand for automobiles. With a growing population, a high standard of living, and a shift towards electric vehicles (EVs), Dubai offers a robust market for both local and international car dealers. The UAE’s free trade zones further support import, export, and re-export activities, making it a hub for global manufacturers and investors.
Dubai’s automotive industry is diverse, ranging from luxury car dealerships to more budget-friendly options. With a growing number of cars on the road and the rapid expansion of the vehicle market, Dubai offers tremendous opportunities for businesses to thrive in motor vehicle trading.

Download our Business Guides

Get free expert insights and strategies to grow your business

+
Download guide

Download now

Kindly fill out the form below with the requested details, then check your email to receive a copy of the Guide.

* Mandatory fields
A closer look:

Benefits of Starting a Motor Vehicle Trading Business in Dubai

Starting a motor vehicle trading business in Dubai offers several key advantages for entrepreneurs:

  • High Demand

    With a growing population and a robust economy, the demand for new and used vehicles in Dubai continues to rise, providing substantial opportunities for car traders.

  • Strategic Location

    Dubai’s prime location between Asia, Europe, and Africa facilitates easy import and export activities, providing a gateway for international trade.

  • Access to Free Zones

    Dubai’s free zones offer favourable business conditions, including tax benefits, 100% foreign ownership, and reduced customs duties, making it easier for traders to operate.

  • Luxury Car Market

    Dubai has a well-established market for high-end luxury vehicles, offering a profitable niche for dealerships and traders catering to affluent consumers.

  • EV Growth

    As the UAE shifts toward sustainability, there is increasing demand for electric vehicles (EVs), creating new opportunities for dealers to enter the green car market.

Easy Business Setup in Dubai with IFZA

Are you ready to setup your
Motor Vehicles Trading License?

Contact us now

Activities Under a Motor Vehicle Trading Business License in Dubai

A Motor Vehicle Trading Business License in Dubai allows companies to engage in a variety of activities, including:

  • 01.

    Reselling New & Used Vehicles for personal use

  • 02.

    Reselling Power Generation & Storage Batteries for cars, boats, motorcycles, and other machinery

  • 03.

    Reselling Motorcycle Parts & Accessories, including helmets and parts for repair or replacement

  • 04.

    Reselling Spare Parts & Components for motor vehicles, such as body parts, mirrors, brakes, suspension, steering, engine and drivetrain, and exterior/interior accessories

  • 05.

    Reselling Specialized Motor Vehicles, including ambulances, fire engines, garbage collectors, street sweepers, truck-mounted cranes, and truck mixers

How to Start a Motor Vehicle Trading Business in Dubai

Here are some steps to obtaining a Motor Vehicle Trading Business license:

  • 01.

    Choosing a legal structure for your business

    You can set up your business as sole proprietorship, a partnership, a limited liability company (LLC), a Free Zone company (FZCO) or a branch of a foreign company.

  • 02.

    Choosing the right Free Zone

    Choosing the right freezone for your business activity is important. It is crucial to determine the specific trading activities to define the business scope and then select the right freezone.

  • 03.

    Selecting a trade name

    It is important to ensure that your business name should not be offensive or violate any trademarks or intellectual property rights and must comply with the guidelines set by the Department of Economy and Tourism (DET). An initial approval will be required from DET, after which you can reserve your trade name.

  • 04.

    Preparing and signing the Memorandum of Association (MOA)

    If you are setting up an LLC, you will need to prepare and sign the MOA.

  • 05.

    Obtaining necessary approvals and licenses

    Depending on your business activities, you may need to obtain additional approvals and licenses from various government authorities.

  • 06.

    Licence Issuance

    A soft copy is sent via email, and the original licence is available for collection from the office upon request.

Contact IFZA Dubai to setup your Business

How Can IFZA Help?

IFZA Dubai provides easy access to global markets and fosters economic growth. With efficient company registration, IFZA attracts investment and enables businesses to thrive in a dynamic environment. IFZA provide numerous Free Zone company establishment benefits such as:

  • 100% Ownership of commercial enterprises
  • 100% Repatriation of capital and profit
  • Enjoy low taxes for business operations
  • 99% Processes executed remotely
  • Transparent pricing with competitive rates
  • Multicultural and multilingual advisory team

Contact Us Today

* Mandatory field

Frequently asked questions

  • What are the requirements for starting a motor vehicle trading business in Dubai?

    To start a motor vehicle trading business, you need a valid business license, a legal structure (LLC, Free Zone, etc.), office space, and necessary approvals from relevant authorities.

  • Can I import and export cars through Dubai?

    Yes, Dubai's strategic location and free trade zones facilitate seamless import, export, and re-export activities for cars and related products.

  • Do I need a physical office to set up a motor vehicle trading business in Dubai?

    Under some Free Zone setups like IFZA, no physical office is required, provided the business has a visa allocation.

  • Is there a market for electric vehicles (EVs) in Dubai?

    Yes, the demand for EVs is growing as Dubai and the UAE push towards sustainability and green energy solutions.

  • What types of vehicles can I trade in Dubai?

    You can trade a wide range of vehicles, including new and used cars, motorcycles, specialized motor vehicles (e.g., ambulances, fire engines), and spare parts.

×

Chat with us

×