Dubai Auto Zone (DAZ) is a dedicated automotive free zone created to support businesses in the vehicle trade, auto parts supply, and automobile services sector. Located in the heart of Dubai, it offers everything you need to start, scale, and manage your automotive business, whether you’re trading new cars, used cars, auto accessories, or setting up a car repair workshop.
What Is Dubai Auto Zone Freezone?
Dubai Auto Zone Freezone is a specialized business zone tailored for the automotive industry. It supports entrepreneurs, dealers, and service providers in establishing a solid footprint in Dubai. With 100% foreign ownership, zero corporate tax, and customs exemptions, DAZ gives you access to a growing market for vehicles and related services across the UAE and GCC.
Why Start a Business in Dubai Auto Zone (DAZ)?
Setting up your company in DAZ brings several major advantages. It offers:
- Full foreign ownership rights
- No personal or corporate income tax
- No import/export duties
- Easy access to global shipping routes
- Modern infrastructure for warehousing and showrooms
- Automotive logistics hubs and testing centers
These features make DAZ a top choice for those entering the automotive trade and logistics business in the UAE.
Steps to Form a Company in DAZ
Starting a company in DAZ is smooth and efficient. Here’s how it works.
Choose Your Business Activity
Start by selecting a business activity such as vehicle trading, spare parts distribution, automotive repair, fleet maintenance, or auto-related e-commerce.
Pick a Legal Structure
You can register as a Free Zone LLC, sole establishment, or a branch of an existing company. Your legal structure affects documentation and licensing.
Reserve Your Trade Name
Pick a business name that matches your activity. The name must be unique and must follow the UAE’s naming guidelines.
Submit Documents
Provide necessary documents like passport copies, business plan, license application, and initial approvals depending on your activity.
Lease Office or Warehouse Space
DAZ requires physical space for operations. You can choose from offices, workshops, or warehouses, depending on your license.
Pay Fees and Collect License
Once approved, pay your registration and license fee. The process usually takes 3 to 5 weeks.
Licensing Options in DAZ
DAZ offers several license types to match your business needs:
- Trading License – for new and used car trading
- Service License – for auto repair, detailing, or maintenance
- Industrial License – for auto parts manufacturing or assembly
- E-commerce License – for online auto accessory sales
Each license gives you access to operate fully within the Dubai Auto Zone Freezone.
Business Activities You Can Do in DAZ
Dubai Auto Zone (DAZ) supports a wide range of automotive business activities. You can trade new and used vehicles, operate an auto repair workshop, sell spare parts and accessories, manage vehicle logistics, or even launch an e-commerce auto store. It’s a full-service hub for all car-related businesses in Dubai.
New & Used Car Trading
DAZ is ideal for importing and exporting cars, selling them locally or to other GCC countries.
Auto Repair & Maintenance
Set up a car service center, workshop, or detailing business. DAZ offers workshops with built-in drainage and heavy equipment support.
Spare Parts & Accessories Trading
The free zone supports spare parts distribution, wholesale supply, and retail accessory stores.
Logistics & Warehousing
DAZ offers bonded warehouses, customs facilities, and fleet management centers – perfect for auto logistics businesses.
Benefits of Starting a Business in DAZ
Here’s why businesses prefer Dubai Auto Zone:
- No customs duty on re-exported vehicles
- 100% capital repatriation
- Visa eligibility for investors and employees
- Quick company setup
- Flexible office and warehouse options
- Well-connected location near ports and airports
Cost of Setting Up in Dubai Auto Zone
The cost depends on your business size and license type. On average:
- License Fee: Starts from AED 12,000 per year
- Registration Fee: Around AED 5,000 to AED 10,000
- Office/Warehouse Rent: Based on space selected
- Visa Package: Extra per visa (investor or employee)
DAZ offers custom packages for startups and growing businesses.
Facilities Available in DAZ
You get access to:
- Showrooms
- Warehouses
- Workshops
- Testing centers
- Car parking and storage yards
- Fuel stations
- Customs and port clearance support
All facilities are ready-to-use, saving you setup time and investment.
How to Get a Visa with Your DAZ Company
When you set up in DAZ, you’re eligible for residence visas for yourself and your employees. Visa slots depend on office space size. Each visa is valid for 2–3 years and can be renewed easily.
Bank Account Setup with DAZ License
One of the best features of DAZ is that once your company is approved, opening a business bank account in Dubai becomes straightforward. Local and international banks accept DAZ licenses with minimal documentation.
Who Should Consider Setting Up in DAZ?
- Vehicle Importers/Exporters
- Used Car Dealers
- Auto Workshop Owners
- Auto Parts Suppliers
- Fleet Operators
- Car Auction Companies
- Auto E-commerce Entrepreneurs
If your work relates to vehicles, DAZ is the ideal location for your operations.
DAZ vs Other Free Zones in Dubai
DAZ is not a general free zone. It is industry-specific, which gives it several advantages over others:
- Tailored infrastructure for cars
- Closer customs processes for auto goods
- Cheaper warehouse space
- Fewer restrictions on used car exports
Support Services You Get in DAZ
DAZ provides:
- Company registration support
- Legal assistance
- Customs clearance
- Translation and PRO services
- Audit and accounting services
- Marketing and branding support
This one-stop solution makes the entire business setup journey simple and fast.
Renewal and Compliance in DAZ
DAZ companies must renew licenses yearly, keep updated trade documents, and renew employee visas as required. Financial audits are not mandatory unless requested for banking or expansion purposes.
Conclusion
DAZ – Dubai Auto Zone is a goldmine for entrepreneurs looking to step into the automotive industry in Dubai. It offers unmatched benefits like 100% ownership, zero tax, and access to the GCC auto market. Whether you’re starting a small auto repair shop or an international trading firm, DAZ is built to help your business thrive.
FAQs
Can foreigners fully own a company in DAZ?
Yes, 100% foreign ownership is allowed in DAZ.
What is the minimum cost of setting up in DAZ?
Company setup can start around AED 20,000 depending on license type and office requirements.
Do I need a warehouse to start?
It depends on your activity. Trading and industrial licenses may require physical space.
Can I sponsor employees with my DAZ license?
Yes, you can get residence visas for staff and dependents.
How long does it take to get a license?
Company registration and license issuance usually take 3 to 5 weeks.
Can I trade used cars from DAZ?
Yes, used car export and retail are both allowed.
Do I get access to banking with a DAZ company?
Yes, banks in Dubai accept DAZ company licenses for opening business bank accounts.
