Dubai Auto Zone (DAZ) Company Formation

Launch your business in Dubai Auto Zone with the help of our experts, as we guide you every step of the way.

It is no secret that Dubai is home to some of the most luxurious automobiles in the world. From high-end supercars like Rolls Royce, Bugatti, and McLaren, to daily use cars like Toyota, there is not a car brand that you won’t find in the UAE.

That brings us to the dedicated area for the automotive industry in Dubai – DAZ. Dubai Auto Zone (DAZ) is a specialized free zone dedicated to the automotive industry, offering a strategic location and state-of-the-art facilities for businesses. Located in the heart of Dubai, DAZ free zone provides an ideal environment for automotive businesses to thrive, thanks to its comprehensive infrastructure and business-friendly policies.

Formerly known as Dubai Cars and Automotive Zone (DUCAMZ), Dubai Auto Zone is part of DP World UAE and is managed by JAFZA. DAZ is the center for all automotive activities such as manufacturing, assembly, import/ export, and design.

Setting up a business in DAZ offers numerous advantages. The zone’s strategic location within Dubai provides easy access to major markets in the Middle East, Africa, and Asia. This, coupled with Dubai’s world-class logistics infrastructure, ensures efficient supply chain management and distribution. DAZ also offers a business-friendly regulatory framework, providing companies with the flexibility to operate smoothly and grow their operations.

Another key advantage is the specialized focus on the automotive sector. DAZ caters specifically to the needs of automotive businesses, offering tailored facilities and services. From warehousing to showrooms, the zone is designed to support the unique requirements of automotive enterprises. Additionally, businesses in DAZ benefit from attractive tax incentives, 100% foreign ownership, and the ability to repatriate profits and capital.

  • 100% foreign ownership 
  • Tax-friendly environment
  • Global connectivity
  • No currency restrictions 
  • No import/ export duties
  • Directly under JAFZA
  • Full repatriation of capital and profits
  • No import obligations
  • Close to Dubai seaports & airports
  • Easy work visa laws
  • Great amenities
  • Access to the open sea

Types of Legal Entities in DAZ Free Zone

When setting up a company in DAZ, you can choose from the following options:

  • Free Zone Enterprise: Ideal for small and medium-sized businesses, providing flexibility and ease of setup.
  • Free Zone Company: Suitable for larger enterprises, offering a more robust corporate structure.
  • Branch of a Foreign or Local Company: Allows existing businesses to expand their operations into DAZ without establishing a new entity.
  • Joint Venture: Enables collaboration between multiple companies to leverage combined expertise and resources.
dubai auto zone

DAZ supports a diverse range of business activities related to automotive and other sectors, including:

  • Vehicle trading
  • Automotive Sales
  • Import Exoport of vehicles
  • Maintenance, Repairs
  • Automotive-related banking
  • Insurance services
  • Retail

Keep in mind that import and export of auto spare parts in the free zone is strictly prohibited in DAZ.

Facilities Offered at Dubai Auto Zone

DAZ offers a lot of facilities that facilitates new business owners in the area. Here are some of the perks offered by Dubai Auto Zone:

  • Office Spaces: Modern and fully-equipped office spaces designed to meet the needs of automotive businesses, providing a professional environment for daily operations.
  • Automotive Warehouses: Spacious and secure warehouses tailored for the storage and distribution of automotive parts and vehicles, ensuring efficient logistics management.
  • Automotive Showrooms: State-of-the-art showrooms offering a premium space to display and sell vehicles, enhancing the customer experience.
  • Automotive Workshops: Fully-equipped workshops designed to support automotive repair and maintenance services, ensuring high-quality service delivery.
  • Freehold Land Lots: Available for businesses looking to construct custom facilities, offering long-term investment opportunities and strategic development options.

Dubai Auto Zone Licenses

Dubai Auto Zone is regulated by JAFZA. Therefore, you must obtain the business license for setting up a company in DAZ from JAFZA. You can choose between trading and service license types, depending on your business activity.

The Trading License has 2 types:

  1. Type 1: Combine up to 7 activities from the same group.
  2. Type 2: Combine up to 12 activities from two groups.

How to Set Up a Company in Dubai Auto Zone (Steps)

Choose your Business Activity

The first step is to choose a business activity that you want to undertake in DAZ. You can choose from a range of business activities allowed in the free zone.

Select a License Type and Trade Name

Choose the appropriate license based on your business activity. Also choose a trade name for your company and register it with the free zone authority.

Submit Application

Complete and submit the business setup application form to JAZFA. Provide all necessary documents including passport copies, business plan, and other relevant paperwork.

Get Initial Approval and Register Your Company

Once you get the initial approval from the free zone authority, complete the business registration process.

Open a Bank Account

Open a corporate bank account and deposit the minimum required capital according to your legal entity.

Office Lease

Sign the lease agreement for office space or industrial units. You need a physical office in the DAZ for the business license and registration.

Receive Your License

Once all formalities are completed, receive your business license and commence operations.

Are you ready to launch your successful business in Dubai Auto Zone? Contact us today and let us build a roadmap for you.

At Solutions FZCO, we specialize in helping investors/ entrepreneurs establish their businesses in the UAE. Our team of experts provides comprehensive support throughout the company formation process, from selecting the appropriate license and legal structure to securing the necessary approvals and permits.

We offer ongoing administrative and compliance support, making sure your business remains compliant with the local regulations. We have strong local contacts to help expedite your trade license without rejections.

Contact Solutions FZCO today to take advantage of the opportunities DAZ has to offer and achieve your business goals in the automotive sector.

dubai automotive free zone

Frequently Asked Questions

DAZ is a free zone spread around 8 million sq feet, making it world’s 1st free zone dedicated to the automotive industry.

No, DAZ Free Zone allows 100% foreign ownership, eliminating the need for a local Emirati sponsor.

The processing time for a business license in Dubai Auto Zone is around 1-2 weeks, depending on your business activity and legal entity.