Dubai is the gateway to the Middle East and a hub for international trade and commerce. The city’s economic growth has led to an increase in demand for Automotive Transportation services in Dubai.
The business setup process for Automotive Transportation services in Dubai :
In the UAE, you can start an auto transportation company by registering with the Dubai Municipality Department of Transport. The registration process is simple and requires a few documents. However, it’s important to note that you need to follow the business registration guidelines carefully or else you may face penalties.
The first step is to create a business plan that includes all the details about your business and its operations. This should include information on how many vehicles you will have, their number plates, drivers and their salaries, etc. You can also get assistance from our consultants who will help you with the entire process of setting up an auto transport company in Dubai. Here are the simple steps of business setup in the Dubai process.
- Choose business activity
- Decide the company’s legal structure
- Choose the location you want to operate your business
- Register Trade name
- Apply for initial approval
- Legal Documentation
- Submit Documents
- Fee payment
- Get license
what are the main 4 Steps To Start An Automotive transportation service in Dubai are :
- Register Trade name
- License Approval
- Legal Documentation
- License Fee payment
Choose business activity: Every business is different, so the first step to starting your own business is deciding what type of business you want to run.
Automotive Transportation business activities in Dubai :
- Auto rentals
- Auto spare parts and accessories
- Automobile
- Transport services
- New Motor Vehicles Trading
- Buses & Trucks Trading (Outside UAE)
- Specialized Vehicles Trading
- Used Automobile Trading
- Used Vehicles Trading (Outside UAE)
- Electric Cars Trading
- Racing Cars Trading
- Safe Transport Specialized Vehicles Trading
- Auto Spare Parts & Components Trading
- Auto Accessories Trading
- Tires & Rims Trading
- Batteries Trading
- Motorcycles Trading
- Trikke Scooters Trading
- Motorcycles Spare Parts & Accessories Trading
- Car Rental By Electronic Media & Smart Apps
- Trains Spare Parts & Components Trading
- Passengers are Transport by Rented Buses
- Luxury Motor Vehicles Services
- Money & Valuables Transport Services
- Motorcycles Rental
- Car Rental business
- Buses Rental
- Specialized Vehicles Rental
- Racing Cars Rental
- Bicycles Rental
- Road Motorcycles Rental
- Electric Bicycles Rental
- physical
- Rental shop
Decide the company’s legal structure
Before you start your business, you’ll need to decide on the company’s legal structure. Here are some of the most common forms of business:
Sole proprietorship: A sole proprietorship is owned by one person and isn’t separate from that person’s personal finances. This form of business has no legal existence apart from its owner.
Partnership: Partnerships combine two or more owners to create a separate legal entity with its own liability. Each partner can be involved in making management decisions, but they must agree on major issues like selling the company.
Corporations: Corporations are formed by filing articles of incorporation with the state and then issuing stock certificates to investors. The corporation has its own legal existence apart from any shareholders or officers who may come and go over time. Corporations pay taxes separately from their owners but provide limited liability for those who invest in them.
Limited Liability Company (LLC): LLCs combine aspects of partnerships and corporations into one hybrid entity that offers limited personal liability protection for owners while offering pass-through taxation status similar to partnerships and corporations.
Choose the location :
Dubai is considered one of the top business destinations in the world, with many multinational companies operating there. However, before you sign on the dotted line, it’s important to know all about Dubai’s different areas and how each one will affect your business. The best option for your business depends on a number of factors, including the type of business you are starting up, the size and nature of your staff, and whether you want to operate in the emirate’s free zones or offshore. There are pros and cons to each location, so let’s take a look at all three options:
Dubai mainland
If you have an idea for a business but don’t yet have any customers or suppliers here in Dubai, then it makes sense to start out on the main island itself. This is where most new businesses begin because it’s so easy to get started – there are plenty of resources available online and plenty of support from government bodies like DED and Dubai Holding who offer advice and workshops on how to make it work.
Free zones
Free zones are designated areas within Dubai that have been set aside for foreign investors who want to conduct their operations outside the confines of UAE law. And where there are no customs duties on goods imported into free zones and no VAT charged on sales made within these zones.
Offshore
Offshore companies are those that exist outside of the jurisdiction of any country. They can be incorporated under whichever legal system best suits their needs. An offshore company exists only as long as it needs a physical presence – after which it can be dissolved without incurring any further obligations or taxes.
Trade name registration:
Registering a trading name is not just a legal requirement but it also helps you to build trust among your customers as well as investors. In case of any legal disputes, it will be easy for you to prove that the entity was established under a particular name by showing relevant documents such as a deed of association or resolution passed by shareholders. It will also help your business grow faster since you will be able to claim exclusive rights over the chosen business name.
You have to select the available and suitable trade name before going for registration .then you have to register in the Trade Name Registration Office, which is situated at the Dubai Chamber of Commerce & Industry (DCCI). The cost of registering a business name depends on how long you want to retain it. You can retain a trading name for as long as 10 years or more if you want to pay more money. However, if you are just starting up your business then it is better that you should choose a shorter duration because it will save you money as well as time.
Initial Approval:
After registration of the trade name, you need to apply for initial approval in DED. This is a legal document that confirms that the name you have registered does not belong to another person or entity, and it is unique. The application can be made at any time, but the earlier the better.
Legal Documentation and document submission:
After getting initial approval, you need to submit the necessary documents with attestation along with the fee. The legal documentation or commercial contracts involve drafting a memorandum of associations, power of attorneys, other agreements, attestation notary public, and translations.
The Memorandum of Association is a document that establishes the company and its objectives. This document should be signed by all shareholders and directors of the company.
Power of attorney is another document that authorizes someone to act on behalf of another person. In this case, it is the company that appoints an agent to represent it.
The other agreements include partnership agreements, shareholders agreements, director’s agreements,s and shareholder’s resolutions, local sponsor or local service agent agreements.
Attestation is a process where documents are verified by officers who have the authority to do so. A notary public is one such officer who can validate documents and attest them as genuine. Translations are needed if any document is not in English or Arabic language as these are our official languages in UAE.
Get License:
You have completed the first step towards setting up your business. Now it is time to get final approval and license. After successful document verification, the Dubai Economic Department DED will give the license by considering your business activity. the common issuing license for general trading is a commercial license, if you want to start manufacturing then it will give you an industrial license. After getting this license, you can start your business. The second step requires you to register your company with the General Directorate of Residency and Foreigners Affairs (GDRFA). This is important as it allows you to work in Dubai for a period of 5 years. The third step involves applying for tax registration with the Dubai Taxation Department. After this registration, you will be required to pay 20% income tax on all profits made from your business. You also need to pay a 7% value-added tax on all products sold by your company or imported into Dubai.
Get a Business bank account: Once you have obtained your license, you can open a business bank account with any of the banks in Dubai. Most of these banks offer easy services and facilities to their customers, especially if they are new businesses.
At Business Setup Dubai, We have the best experience to do it quickly, easily, and with the best service in Dubai. You can get your automotive Transportation Service In Dubai business license easily from our Professional team. It seems like a long process, but actually, it doesn’t. The process of getting a business license takes about 2 days, which is faster than any other way of obtaining a license. It doesn’t matter if you need to open a new office or if you want to expand your existing company; we will help you obtain your license in no time!
