Dubai · UAE — GST +4
Free Zone Index · Dubai

Dubai Auto Zone

Car trading, parts and re-export — the licensing arm of the used-vehicle trade flowing through Dubai to Africa and CIS markets.

The numbers

Licence fromAED 15,000
Visa quotascales with office size
Activitiesautomotive
Officerequired (showroom/warehouse)
Setup time10–14 business days

LAST VERIFIED: 21 JUL 2026 · The authority publishes no public tariff — figure is a market-indicative estimate, confirmed in writing on application.

Who Dubai Auto Zone actually fits

Dubai Auto Zone is a single-purpose free zone. Its licence covers automotive activity — new and used vehicle trading, spare parts, accessories and re-export — and little else. That narrowness is the point: the zone sits inside the Ras Al Khor motor cluster, so a plate here puts your showroom or parts counter next to the buyers, shippers and inspection agents who already move stock through Dubai toward Africa and CIS markets.

It fits a dealer or parts trader who needs a physical shopfront and a customs-registered entity in the right postcode. It does not fit a consultancy, a holding company or an online-only seller — those would pay for a showroom or warehouse they never use. If what you want is a cheap flexi-desk licence with no physical space, a general-trade zone such as IFZA or Meydan is the cheaper answer and this zone is not for you.

What the AED 15,000 does and does not cover

The AED 15,000 in the spec table is the licence fee alone. In a real automotive setup it is the smallest line. On top sit the showroom or warehouse lease — mandatory here, there is no paperless option — plus fit-out, the immigration establishment card, and per-visa costs for you and any staff. An entity that actually imports and re-exports also needs a customs client code and, in practice, working capital tied up in stock and shipping.

Office, visa and substance mechanics

Substance here is literal. You lease real showroom or warehouse space, so the economic-substance and tax-residency story is easy to defend — there is no thin flexi-desk to explain. Visa allocation is not a fixed desk quota; it scales with the size of the facility you lease, which is why the spec table shows no set number. A small parts unit supports a handful of visas, a large showroom supports more.

Import and re-export run on a customs code linked to the entity. Whether your sales count as qualifying free-zone income or fall to the standard rate depends on where the cars actually go — re-export abroad and sales into the UAE mainland are treated differently, so map the flow against corporate tax and VAT rules before you price your first shipment.

DAZ vs the broader industrial zones

The obvious alternatives are wider industrial zones. JAFZA is the heavyweight — cheaper headline licence, port-adjacent, built for scale — but you take on a much larger facility and a less automotive-specific address. Dubai Industrial City is for manufacturing plots, not trading showrooms. Choose Dubai Auto Zone only when the motor-cluster location and showroom format are the actual value.

ZoneBest forHeadline licencePhysical space
Dubai Auto ZoneCar / parts trade, re-exportAED 15,000Showroom or warehouse required
JAFZALarge-scale trading, logisticsAED 5,000 (licence only)Per facility
Dubai Industrial CityActual manufacturingAED 15,000Plot / warehouse

Setting up in Dubai Auto Zone

01

Activity & name

Pick licensed activities and reserve a trade name. Activity choice drives approvals, banking and whether your income can be QFZP-qualifying.

02

Documents & KYC

Passports, application forms and a clean source-of-funds story. No local sponsor is needed — free zone companies are 100% foreign-owned.

03

Licence & establishment card

The zone issues your licence (typically 10–14 business days), then the immigration establishment card that unlocks visa processing.

04

Visas & bank account

Entry permit, medical, Emirates ID for each visa holder; corporate account opening runs in parallel — this is usually the slowest step.

Straight answers

Can I register a car-trading company in Dubai Auto Zone without a physical showroom?
No. A showroom or warehouse lease is required here — there is no flexi-desk or paperless option. The zone is built around physical automotive premises in the Ras Al Khor cluster, so plan for real space from day one.
How much does a Dubai Auto Zone setup really cost beyond the AED 15,000 licence?
The AED 15,000 is the licence fee only. Add the showroom or warehouse lease (usually the biggest cost), fit-out, the immigration establishment card, per-visa fees and a customs code. Model the full figure on the setup-cost calculator before committing.
Can a Dubai Auto Zone company sell cars in the UAE mainland market?
Selling directly into the mainland typically needs a mainland distributor or dual-licence arrangement and changes your customs and tax treatment. Re-export abroad and mainland sales are treated differently for corporate tax, so confirm the structure before your first shipment.
How many visas can I get with a Dubai Auto Zone licence?
There is no fixed visa quota. Allocation scales with the size of the showroom or warehouse you lease — a small parts unit supports a few visas, a larger showroom more. Confirm the exact ratio for your specific unit at application.
Is the “from AED 15,000” price real?
It is the official entry-tier licence figure (re-verified against the zone tariff before every update) — without visas, establishment card or add-ons. Our estimate above shows a realistic first-year floor; anything quoted below it usually hides a fee.
Can this company do business on the UAE mainland?
A free zone licence covers business inside the zone and abroad. Selling onshore generally needs a mainland distributor, a branch, or a dual-licence arrangement where offered — we flag which applies before you commit.
Does 0% corporate tax apply here?
Free zone companies pay 0% only on qualifying income under the QFZP regime — substance, audited accounts and de-minimis limits included. Otherwise the standard 9% above AED 375k applies. We model this in the corporate tax calculator.

Tell us what you're building.

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Step 3 of 4
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