Dubai Auto Zone (DAZ) Company Formation

License cost from AED 14,020

Residence visas for 2 years

Company formation from 5 to 6 weeks

Bank account Guaranteed

Emirabiz experts’ opinion

DAZ authorized partner

Is DAZ suitable for your business?

— Yes,

• if your business is related to cars and car-adjacent business activities, as DAZ is the world’s largest free zone catering exclusively to the car industry providing unparalleled business opportunities in this field.
• if you are looking for a business setup solution in Dubai with access to major logistic hubs, as DAZ is run under the management of JAFZA (Jebel Ali Free Zone) and enjoys the same logistical advantages such as close proximity to Dubai seaports and air harbors.
• If you prefer a free zone with all-around infrastructure, services, and amenities, including in-house customs, retail zones, and showrooms.
• if you’re looking for a reputable free zone to set up in, as DAZ is part of DP World, a global-scale logistics and port operator highly recognized by banks, allowing for easier bank-related operations and excellent networking.

— No,

• if your planned business activities have nothing to do with the car industry. If you’re planning to engage in business activities focused on heavy industry or logistics, we would recommend applying to JAFZA, while IFZA would fit those focused on trading, consulting, and services.
• if you prefer remote business setup, as company formation in DAZ requires personal presence.
• If you’re looking for a business setup outside of Dubai.

DAZ company formation process

The procedure of setting up a business in DAZ is also administered by JAFZA. The process can be launched without your personal presence, but you will need to visit the free zone once your company’s documents are generated.

The process for registering a license in DAZ starts with obtaining a space within the free-zone, as it is assumed that a space is required for car storage and/or display. Spaces in DAZ are not frequently available, so you have to initially register your interest, indicating the type and size of the space required. Once the space is available, the freezone will give a the go-ahead to commence the license registration process.

The estimated timeframe of Dubai Auto Zone company formation can vary from 5 to 6 weeks – this includes securing a license from the free zone authorities and company registration. Obtaining an immigration card and a visa may each take additional 7-10 workdays.

Company registration procedure in DAZ

Step 1. Choose your business activities and license type.

Determine the business activities of your future company and the corresponding license type. This aspect is vital for a successful business setup, as choosing the wrong activity and license can cause errors during company registration, leading to problems with opening a bank account or obtaining residency visas for yourself and your employees.

Step 2. Determine the legal entity of your business.

Specify the legal status of your business. DAZ offers several available formation types for establishing a business depending on the preferred number of shareholders and business activities:

• FZE (Free Zone Establishment) – an LLC with a single shareholder who can be either an individual or non-individual (company).
• FZCO (Free Zone Company) – a free zone LLC formed by multiple shareholders which may include both individuals and non-individuals (companies).
• Branch - a branch opened by a parent company within DAZ with 100% ownership by the parent company and subject to its name and activities. Parent companies can be both foreign and UAE-based.

These company formation options are not subject to any restrictions on foreign ownership.

Step 3. Prepare and file the required documentation.

Prepare and submit the necessary documents together with the application form. The list of necessary documents for Dubai Auto Zone company registration will vary depending on the company type, license, and business activities you choose, so it is advisable to consult with specialists in this field to guide you through this process. The basic requirements are as follows:

• Application form
• Project summary
• Passport copy of manager & shareholders/directors/secretary in case of FZE/FZCO
• Passport copy of manager in case of branch of overseas company
• Personal information form
• 3 months mank statement (company or personal)
• Parent company’s profile. (In case of branch formation)
• NOC from sponsor for UAE resident applicants

If a shareholder of your future FZE/FZCO is a company, you will be required to provide additional documents:

• Certificate of registration - attested by the UAE embassy
• Memorandum and Article of Association - attested by the UAE embassy
• Board resolution - attested by the UAE embassy
• Manager’s passport copy
• Specimen of manager’s signature (can be attested by DAZ)
• Original FZE/FZCO application form - typed

Also, this step involves paying all the registration and processing fees. In DAZ, the application processing fee is AED 545 and is non-refundable.

Step 4. Collect the license and registration documents.

Secure the license and registration documents for the company, including:

• Certificate of Incorporation
• Business license
• Memorandum and Articles of Association
• Share certificate
• Lease agreement

Step 5. Secure your Establishment Card.

Receive the Establishment Card containing information about your company and visa quotes.

Step 6. Apply for an entry permit.

Apply for an entry permit. If you’re outside of the UAE during the processing of the entry permit, you will need to come to the country when the document is issued within 60 days to complete the medical test and biometrics for your visa. If you’re in the UAE when the entry permit is issued, a status change will be done from your previous UAE tourist/residency visa to the new one.

Step 7. Take a medical test and submit visa documents.

Undergo a medical checkup and submit documents for a residence visa and an Emirates ID. Different registration packages may provide for a varying number of visas available for owners and employees of the company.

Step 8. Collect your Emirates ID.

Once your visa is issued, secure your Emirates ID card.

Step 9. Open a bank account.

Apply to a UAE bank to open a corporate bank account. Once you receive your account details, you are free to start running your business.

DAZ license costs

Dubai Auto Zone offers quite reasonable setup costs, which is very beneficial with regard to the number of advantages it provides to automobile-focused entrepreneurs and investors.

The cost of DAZ licenses is similar to those of JAFZA and is quite reasonable compared to other free zones.

Additional costs included in a typical setup package apart from the license fee:

• Registration fee
• Establishment Card
• Lease cost
• Visa-related fees
• Medical checkup
• Emirates ID

DAZ licenses and business activities

As the name suggests, Dubai Auto Zone is a car-focused free zone, so the list of available business activities mainly falls under this category. However, it also includes other adjacent services. The activity list includes:

• Trading
• Car export/import
• Banking
• Insurance
• Sales
• Repairs
• Maintenance

As Dubai Auto Zone operates under JAFZA, the license for running a company in DAZ must be obtained from the JAFZA authorities. Depending on the type of your business setup and the preferred business activity, you can choose between the Trading and Service license types.

Below you can find the list of business licenses supported by DAZ and their descriptions.

When it comes to vehicles traded in DAZ, they are divided into 3 groups:

1. Left hand drive vehicles intended for sale in the local market and subject to UAE regulations.
2. Right hand drive vehicles intended for export to African and Asian countries.
3. The third category includes heavy vehicles, agriculture machinery, bikes, motorcycles, recreational vehicles, and jet skis.

DAZ facilities

Dubai Auto Zone covers an area of approximately 100 hectares. It features an array of customizable facilities for all types of car-related activities for sale and rent.

All the premises are available in various sizes and layouts. For example, warehouse options include 3,000 sq. ft, 6,000 sq. ft, or even an 11,500 sq. ft combination of a warehouse and a land lot.

Facility options available in Dubai Auto Zone include:

Dubai Auto Zone hosts branches of government agencies such as Dubai Customs and Dubai Ports Authority. In addition, DAZ offers a range of services including insurance, banking, logistics, car maintenance, and dining.

DAZ residence visas

Similar to other Dubai free zones, Dubai Auto Zone provides your business with eligibility for resident visas. Their number is based on your company type and the size of premises you have selected.

DAZ visa costs (AED):

The visas are valid for 2 years.

Health insurance is required in this free zone. The cheapest package you can get is 600-800 AED. Health insurance needs to be renewed annually.

DAZ company license renewal

Companies based in Dubai Auto Zone must be renewed on a yearly basis. The procedure includes the renewal of the license and office lease. In order to execute company renewal, you need to pay:

• License fees
• Office (facility) fees
• Establishment card costs

The renewal of a Dubai Auto Zone license costs the same as DAZ company registration.

To renew your business license, submit an application form with the required documents to the free zone authorities, sign the renewed lease agreement, pay the renewal fees, and wait for your license to be renewed. 

The company renewal can be done without your personal visit to Dubai Auto Zone.

You need to provide your company’s audit report at the time of company renewal. The audit can be done through any UAE-licensed and accredited auditing company.

DAZ company amendments and regulations

DAZ allows your company to be amended at any time. The most frequently requested amendments include the following changes:

• Shareholders/managers
• Company name
• Business activity
• Office facility

Personal presence of the shareholder or manager is required for the application for the amendments.

DAZ company liquidation

The liquidation procedure requires the personal presence of the owner or it can be done by the Power of Attorney holder.

Dubai Auto Zone will request you to return the original documents and pay the liquidation fee.

To liquidate a company registered in Dubai Auto Zone, its shareholders must first provide notice for company termination and appoint a liquidator for cancellation of the company (typically an auditing firm).

The liquidation procedure consists of the following steps:

1. Provide the following mandatory documents:

• Board resolution signed by the shareholders and stating the reason for the company liquidation
• Deregistration documentation
• Business license and all other company incorporation documents
• Auditor Liquidation Certificate
• Audit report

2. Pay cancellation fees and settle other payments. Once this is done, the liquidation process is initiated.

3. All residence visas and other immigration-related documents issued under the company need to be canceled as well.

4. Once the liquidation is complete, you will be notified and receive the corresponding documents.

The company liquidation process will take approximately 1 month. The DAZ company register will provide you with a certificate of liquidation upon completion of the procedure.

About DAZ

Dubai Auto Zone (DAZ) is an automobile industry hub established in 2000 with the goal of facilitating the export of used vehicles to Asia and Africa – particularly to the Middle East and North Africa regions. This free zone serves as a marketplace and accommodates the needs of all the parties of the car import/export business, from car manufacturers and their authorized representatives to those engaged in the purchase and sale of cars, as well as logistics, trading, maintenance, and other services.

Formerly known as Dubai Cars & Automotive Zone (DUCAMZ), Dubai Auto Zone is part of DP World UAE, which is the Dubai-based headquarter division of DP World, a global-scale logistics and port operator. DAZ is run under the management of JAFZA (Jebel Ali Free Zone), DP World’s flagship free zone, and enjoys the same logistical advantages such as close proximity to Dubai seaports and air harbors.

DAZ is located in Ras Al Khor, Dubai. It is the world’s largest free zone catering exclusively to the car industry. Its territory is divided into several market-specific sections, such as the GCC (Gulf Cooperation Council) zone, a retail zone dedicated to the local market, and a special section aimed at attracting Foreign Direct Investments (FDI).

There are over 400 international companies operating in Dubai Auto Zone, including Boeing International Corporation, Emirates Post, and Aramex. The free zone features world-known automobile brands and provides the full spectrum of car-related services, from licensing and customs clearance to retail and shipping.

Naturally, Dubai Auto Zone can be recommended to those seeking to establish a car-related business in Dubai. The free zone’s location is strategic, and its direct adherence to JAFZA allows for excellent logistics and networking options. As the world's top free zone dedicated to the automotive industry, DAZ and its hosted companies boast numerous capabilities due to the ever-growing car markets of African and Asian countries. It is a unique free zone with unique opportunities for business in the face of the rapidly expanding car industry and markets.