Dubai Cars and Automotive City Free Zone (DUCAMZ) is a dedicated automotive hub located in Ras Al Khor, Dubai. Established in 2000, it specializes in the re-export of used vehicles to global markets and offers strategic access to Dubai International Airport and Jebel Ali Port. Spanning 8 million square feet, DUCAMZ provides facilities for vehicle import, warehousing, and re-export, making it ideal for automotive trade and logistics operations.

If you’re exploring other opportunities, Dubai Industrial City (DIC) is suited for logistics and manufacturing ventures, while Dubai Silicon Oasis (DSO) supports innovation-led technology businesses.

At RIZ & MONA Consultancy, we assist investors in setting up their companies in DUCAMZ and other leading UAE free zones with complete business setup support.

Benefits of Doing Business in Dubai Cars and Automotive City Free Zone

Strategic Location

100% Foreign Ownership

Automotive Focus

Business Flexibility

Africa Access

Quick Setup

Full Profit Repatriation

Tax Exemptions

Available Business Licenses in DUCAMZ

Industrial License

This license is offered to companies engaged in assembling, modifying, or producing automotive parts and accessories within the free zone.

Freelance License

This license is designed for individuals delivering specialized automotive services such as consultancy, inspection, repair, or marketing.

Trading License

This license is issued to companies involved in importing, exporting, and re-exporting new or used vehicles, including global wholesale and distribution operations.

Service License

This license is granted to businesses providing automotive repairs, maintenance, and parts services through workshops or service centers.

Types of Permitted Business Activities in DUCAMZ

  • Automotive Trading:
    This activity covers importing, exporting, and re-exporting new and used vehicles such as cars, trucks, and bikes to major markets in Asia and Africa.
  • Automotive Sales:
    This activity allows companies to operate vehicle showrooms and retail sales for export or regional buyers in full compliance with UAE regulations.
  • Automotive Services:
    This activity includes maintenance, repair, and parts servicing, enabling workshops to inspect, modify, and prepare vehicles for resale or export.
  • Banking & Finance:
    This activity provides financial support for car traders through vehicle loans, letters of credit, and other trade-related payment services.
  • Insurance Services:
    This activity offers vehicle and marine insurance, export coverage, and extended warranty plans for cars in storage or during transit.

Regulatory Framework in DUCAMZ Free Zone

Governing Authority

DUCAMZ operates under JAFZA’s administration and UAE free zone laws. Businesses must maintain a physical office in the zone, as virtual offices are not permitted.

Operational Regulations

DUCAMZ focuses on automotive trade, allowing RHD exports and LHD local sales. Customs and Traffic Police on-site ensure quick vehicle clearance and documentation.

Company Compliance

Companies must maintain records, conduct annual audits, and meet a minimum capital of AED 100,000, ensuring adherence to approved activities and legal standards.

Regulatory Flexibility

From 2025, DUCAMZ companies can open mainland branches or obtain special permits while continuing to enjoy full free zone advantages.

Steps to Set Up a Business in DUCAMZ Free Zone

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Choose a Company Name and Legal Structure:

Decide on the legal entity (FZE, FZCO, or Branch) and choose a company name that meets UAE regulations. Reserve the name and obtain a name reservation certificate.

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Apply for Initial Approval:

Submit an application to JAFZA for initial approval, including basic company details and documents like shareholder passport copies. Approval typically takes 1-2 weeks.

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Submit Legal Documents for Registration:

Provide all required documents, such as shareholder IDs, corporate documents, and a business plan. Documents must be notarized and, for foreign companies, attested by the UAE embassy.

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Payment of Fees and Lease Agreement:

Once documents are approved, pay initial setup fees and sign a lease for office or showroom space. The lease agreement must be submitted as proof of compliance.

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Capital Deposit (for FZE/FZCO):

A minimum capital of AED 100,000 is required for FZE/FZCO entities. The capital must be deposited in a UAE bank, and proof must be submitted to JAFZA.

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Sign Incorporation Documents:

Sign the incorporation papers, including the Memorandum & Articles of Association, and any required resolutions.

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Licensing and Registration Completion:

Once all steps are completed, JAFZA issues the trade license, which is valid for one year. This process typically takes 2-4 weeks, depending on documentation and facility setup.

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Post-Licensing (Immigration and Visas):

Apply for the Establishment Card and residence visas for owners and employees. This process takes an additional 2-3 weeks.

Start your business in DUCAMZ Free Zone today!

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Costs for Business Setup in Dubai Industrial City Free Zone

Cost Item Amount (AED) Frequency
Company Registration Fee ~10,000 – 15,000 One-time (setup)
Trade License Fee ~14,000 Annual
Office/Showroom Rent Varies (~20,000+) Annual lease
Share Capital 100,000 One-time (deposit)
Visa Fees (per visa) ~3,000 – 6,000 Every 3 years
Audit and Accounting ~5,000+ Annual

 

Note: Initial setup cost ranges between AED 50,000 – 70,000 (excluding share capital), while annual running costs include license renewal (~AED 14,000), office rent, and visa renewals

Required Documents for Business Setup in DUCAMZ

  • Trade name reservation
  • Passport copies of all shareholders
  • Proof of address for shareholders
  • No Objection Certificate (if applicable)
  • Memorandum & Articles of Association
  • Business Plan (if needed)
  • Parent company documents (for branches)
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Business Setup Consultants in the DUCAMZ Free Zone

How Riz & Mona Consultancy Can Help?

Riz & Mona Consultancy is renowned as one of the top business setup consultants in Dubai, with over 15 years of experience facilitating a wide range of businesses throughout the UAE. Our deep connections with government officials and key authorities, combined with our extensive expertise in consultancy, streamline the process of establishing your business in Dubai. Additionally, we offer comprehensive financial, legal, and corporate services to support our clients throughout their business endeavors.

We are here to provide comprehensive support for your Start a Business in Dubai Cars and Automotive City Free Zone, from preparing your documents to completing the process. Connect with us now to begin your journey with a FREE consultation!

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FAQs (Frequently Asked Questions)

Is a physical office required in DUCAMZ?

Yes, every business must have a physical presence in the automotive zone. This can be in the form of an office, showroom, or warehouse, depending on your business type. Virtual offices are not allowed.
In general, businesses in DUCAMZ focus on re-exporting vehicles. Left-hand-drive (LHD) vehicles may be sold in the UAE if they comply with local regulations. Right-hand-drive (RHD) vehicles are primarily for export.
For FZE/FZCO (Free Zone Establishment/Company) entities, the minimum share capital is AED 100,000, which must be deposited in a UAE bank. This is not a fee but remains the company’s funds and can be used for business expenses after incorporation.
Company setup in DUCAMZ typically takes 2-4 weeks, depending on the complexity of documentation and facility selection. In some cases, it may take 5-6 weeks.
Yes, businesses in DUCAMZ benefit from tax exemptions, including no corporate tax, no import duties on vehicles, and full profit repatriation. However, they must comply with UAE VAT regulations if revenue exceeds AED 375,000 annually.
Yes, from 2025, businesses in DUCAMZ can extend their operations to the mainland Dubai by opening a branch or obtaining special permits, though specific activities and compliance must be approved.
Visa costs typically range from AED 3,000 to AED 6,000 per visa, valid for 3 years. The company can sponsor visas for employees once the Establishment Card is issued.
Yes, all companies in DUCAMZ are required to submit an audited financial report annually for license renewal. Audit fees typically start from AED 5,000, depending on company size.
Some free zones, including DUCAMZ, may require a refundable security deposit for employee visas. The deposit amount typically ranges from AED 2,000 per visa and is returned when the visa is canceled.