What Is the Ducamz License?

The Dubai Cars and Automotive Free Zone (DUCAMZ) is the world's largest automobile economic zone. In the year 2000, the free zone was formed as a hub for re-exporting old cars to Asian and African markets. It’s located within Dubai, with convenient access to airports and seaports where vehicles may be transported onto ships heading for international markets or conveyed to local markets through trucks. You need to apply for a DUCAMZ license to launch your venture in this free zone.

Dubai Cars and Automotive Zone is connected to all surrounding nations by a modern motorway network. Businesses from all parts of the automobile industry are encouraged to participate. DUCAMZ is a marketplace where buyers, vendors, service providers, proprietors, and traders conduct business. Opportunities for communication, cooperation, and engagement abound when comparable enterprises are concentrated together in one location.

Automotive service providers are readily available, making it simple for enterprises to receive the services they require. Service providers are also more adaptable and responsive to consumer needs because they are closer together. DUCAMZ specializes in infrastructure that caters to the automobile and allied industries. Dubai Cars and Automotive is committed to the development of the whole automotive industry. 

How to Secure a DUCAMZ License in the UAE?

All you need to do is follow the steps outlined below to secure a DUCAMZ UAE license in a quick time: 

1. Finalize the Activities

All entrepreneurs must finalize their commercial activities in DUCAMZ to open their dream venture in the region. It's imperative to learn about the zone's legal framework before choosing your company’s structure. Note that you have the flexibility to apply for external approvals in case any of the required business activities aren’t covered under your initially issued free zone license.

In addition, finalizing your company's legal form in Dubai is crucial. It might be an LLC, a joint venture, a sole proprietorship, or something else entirely, based on your needs and those of your shareholders. Once you've made a list of all your operational activities, you can share it with the relevant jurisdiction for their scrutiny. 

2. Decide a Trading Name

When picking a business name for your DUCAMZ firm in the free zone jurisdiction, you must comply with all naming guidelines. Moreover, your corporation's name should portray its products and services without coming across like a gimmick of another brand.

You should also refrain from using remarks or phrases that offend someone's faith or sensitivities. This is a critical stage in procuring the initial approval required for enterprise registration in DUCAMZ. 

3. Procure Office Space

All corporations must have a designated workspace in DUCAMZ where it’s located. Only your official workplace address gets official papers and formal letters. It’s better to rent office space rather than purchasing real estate property as it’s more pocket-friendly.

The best part about DUCAMZ is that if you're operating on a limited budget, you don't have to purchase an actual office location. All you have to do is get a flexi desk or virtual office for your corporation by completing a sustainability agreement with Shuraa to set up your firm remotely. 

4. Get the DUCAMZ License

You can apply for the DUCAMZ license to procure legal confirmation from the associated free zone jurisdiction that you’re legitimized to conduct all the approved business operations. Note that you must renew your trading license regularly. In addition, if you don't have a valid DUCAMZ business license at any time, the free zone's council can blacklist or dissolve your corporation.

Therefore, it’s better to renew the DUCAMZ license at least one month before its expiry. Entrepreneurs can get additional approvals to gain exclusive free zone privileges in the Dubai Cars and Automotive Free Zone. 

5. Open a Business Bank Account

You can open a free zone bank account at any local or international bank in the United Arab Emirates once you've accomplished all of the processes discussed above. Select a reputable corporate bank to experience stress-free governance of all your financial operations and A-grade banking amenities.

Shuraa's financial counselors shortlist the ideal banks for your DUCAMZ venture after assessing your requirements. You can open a DUCAMZ bank account with any of the banks we suggest without having to worry about their amenities or credibility.

Read Also: What Is Fujairah Creative City Free Zone?

Permissible Activities Under a DUCAMZ License 

DUCAMZ's operations are restricted to vehicle trading, marketing, and related services. The list of permissible activities include accounting, insurance, car repair, and maintenance. Moreover, the bulk of businesses in the free zone deals with vehicle import and export. In addition, DUCAMZ caters to three major classes of automobiles. India, Afghanistan, Pakistan, and Yemen are the main markets for right-hand-drive automobiles.

In addition, the UAE’s administration governs the marketing of Used vehicles with left-hand drive. Moreover, heavy vehicles, agricultural machinery, bicycles, leisure vehicles, and jet skis make up the third category of vehicles. Corporations in DUCAMZ can import cars, sell them locally, and export them to the Middle East and Africa, where the market is still booming. 

Why Should You Secure the DUCAMZ License? 

The foundation of a firm in the Dubai Cars and Automotive Free Zone offers an outstanding network, not only in terms of mobility but also in terms of channeling with other automotive businesses. They have national and international enterprises set up in the free zone, giving entrepreneurs in the same field an edge.

The lucrative marketplace in DUCAMZ represents Al Tayer Motors, Luxury Motors Limited, and other associated businesses. Furthermore, they also give extra services in addition to the aforementioned advantages, such as:

• Showrooms 
• Workspaces
• Warehouses 
• Workshops

Dubai Car and Automotive City's main goal is to induce a variety of automobile manufacturers, including buyers, dealers, traders, and others, to participate in re-exporting. Thus, if you want to start a business in the automobile sector, the DUCAMZ free zone is the best place to start.

However, before taking any steps to open a business in the Dubai free zone, you must always contact a company setup specialist who can assist you through every stage of the procedure, ensuring that the entire process takes no more than a few hours. 

Paperwork Required for Company Formation in DUCAMZ 

• Trade name reservation document 
• Colored photographs of the applicant 
• NOC from the local service agent
• Registration certificate and contract of association 
• Passport copies of all business partners 
• Business plan and personal information sheet 
• Lease agreement document 
• External approvals based on your business’s nature and legal structure 

Secure the DUCAMZ License!

Company formation in the DUCAMZ free zone is stress-free but requires a lot of verification to ensure that all the business aspirants in the Emirates can carry out their business without risk. When you work with Shuraa Business Setup, you don't have to worry about any of these aspects as we offer end-to-end assistance.