Tyres & Accessories Trading License in Dubai, UAE

About Tyres & Accessories Trading License

In today’s dynamic automotive industry, the demand for tyres and related accessories continues to surge, presenting lucrative opportunities for businesses to thrive.

The UAE’s automotive aftermarket is projected to reach a staggering AED 33 billion by 2025, fuelled by a growing number of vehicles on the road. Did you know the UAE boasts an impressive 293 cars per 1,000 people, and this number is expected to keep climbing! This translates to a massive and ever-growing demand for high-quality tyres and accessories.

Whether you’re a seasoned entrepreneur or an aspiring trader, understanding the ins and outs of obtaining and operating under a Tyres & Accessories Trading License is crucial for success in this competitive market.

A Closer Look:

Activities Tyres & Accessories Trading License

Activities You Can Do Under a Tyres & Accessories Trading License

A tyres & accessories trading license in Dubai allows a company to engage in a wide range of trading activities. These activities may include:

Offering a range of tyre brands and sizes to cater to different vehicles, including cars, trucks, motorcycles, and bicycles.
Providing accessories related to tyres, such as tyre valves, tyre pressure gauges, tyre repair kits, and tyre inflators.
Offering services such as tyre fitting, balancing, and alignment.
Supplying specialty tyres for specific purposes, such as off-road driving, racing, or industrial applications.
Partnering with automotive workshops, dealerships, and retailers to supply tyres and accessories.

Benefits Of Tyres & Accessories Trading License

Setting up a tyres & accessories trading company gives businesses access to a host of benefits:

Wide Customer Base: This license allows you to cater to a wider customer base. You can focus on attracting both everyday drivers seeking essential replacements like tyres as well as car enthusiasts who are looking for the latest performance upgrades and customization options.
Attract International Customers: Dubai’s reach as a trade hub opens doors to various international customers. There are major automotive events held which attract car enthusiasts worldwide, presenting an opportunity to showcase your products and expand your clientele.
Build a Strong Brand Reputation: By offering high-quality products and exceptional customer service, you can establish a strong brand reputation within the city’s vibrant automotive community. This can help attract loyal customers while driving long-term business success.
Contribute to Road Safety in the UAE: By providing high-quality tyres and accessories, trading companies play a crucial role in promoting road safety. Ensuring that vehicles are equipped with properly maintained tyres and accessories contributes to accident prevention and overall road safety standards.
Scalability and Growth Potential: As you establish yourself in the market and build your reputation for quality products and services, you can scale up your operations and expand your market reach. Whether targeting local customers or exploring international markets, the scalability of a trading company allows for substantial growth opportunities.

How To Get a Tyres & Accessories Trading License:

Here are some steps to obtaining a tyres & accessories trading license.

Choose 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.
Choosing the right freezone for your business activity is very important. It is crucial to determine the specific trading activities to define the business scope and then select the right freezone.
Select 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.
Prepare and sign the Memorandum of Association (MOA). If you are setting up an LLC, you will need to prepare and sign the MOA.
Obtain necessary approvals and licenses. Depending on your business activities, you may need to obtain additional approvals and licenses from various government authorities.
Obtain the General Trading license. Once you have completed all the above steps, you can apply for the General Trading license from the DET.

What Are the Documents Needed for a Tyres & Accessories Trading License?

Here are some documents that one might need:

Application form: A completed application form from the Department of Economy and Tourism (DET).
Passport copies: Passport copies of all shareholders, managers, and directors of the company.
UAE residence visa copies: Copies of UAE residence visas of all shareholders, managers, and directors of the company.
Emirates ID copies: Copies of Emirates IDs of all shareholders, managers, and directors of the company.
No-Objection Certificate (NOC): A No-Objection Certificate from the sponsor or current employer of the UAE resident shareholders, managers, and directors (depending on the jurisdiction).
Memorandum of Association (MOA): The MOA is a legal document that outlines the company’s objectives and the responsibilities of its shareholders. It must be signed by all shareholders and notarized by a public notary in Dubai.
Trade name reservation certificate: A certificate proving that the trade name of the company has been approved and reserved by the DET.
Lease agreement: A copy of the lease agreement for the office space where the company will operate from.
Bank reference letter: A reference letter from the bank stating the shareholders’ financial standing.
Business plan: A detailed business plan outlining the nature of the company’s activities and how it plans to generate revenue.

How can IFZA help?

IFZA creates easy access for companies to establish their business and enables Dubai as a global hub to drive future growth of the economy as well as attract investment.

IFZA Dubai provides fast and easy Free Zone company establishment with world class access to global markets.

IFZA provide numerous Free Zone company establishment benefits such as:

100% ownership of commercial enterprises
100% repatriation of capital and profit
Low taxes
No physical presence of the business owners is required during the company set up(incorporation) process
No mandatory office requirement under 4 visa allocation
All processes executed remotely (except medical test and Emirates ID biometrics)
IFZA offers a multicultural and multilingual team who can advise on business activities
It offers transparent and competitive pricing
Professional and Commercial activities can be combined under one IFZA license
IFZA offers a competitive General Trading License
IFZA does not publicly disclose shareholders of licensed companies

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Frequently asked questions

01. How long can tyres be used in the UAE?

Tyres in the UAE should be sold within two years of production. They should be changed after every five years, as the hot weather in the UAE makes them wear out faster.

02. What are the tyre rules in Dubai according to RTA

RTA Dubai recommends changing tyres every 5 years. If the tread depth is less than 1.6 mm or if there's any damage, like cracks or cuts, it's time for new tyres.

03. Is a tyre business profitable?

Yes, it can be profitable if you have a good plan and choose the right tyres for your customers.

04. How can I market my tyre business

Make sure people can find you online, you can use social media to tell people about your business. Another great way is to pay for online ad and focus on showing up in local searches.