How to Start a Car Trade Business in the Dubai, UAE?

The car trade business in the Dubai, UAE is a dynamic and thriving sector fueled by the nation’s robust economy, strategic location, and high demand for automobiles. With a burgeoning population and affluent consumer base, the UAE serves as a hub for both domestic and international car trade. Major cities like Abu Dhabi, Sharjah, and Dubai host a wide range of dealerships, showrooms, and auctions offering a wide range of vehicles, from luxury cars to budget-friendly options. The UAE’s free trade zones further facilitate import, export, and re-export activities, attracting global manufacturers and investors.

Car trading in the Dubai, UAE, involves a plethora of services:

1. Car Rental Services

Traditional Rental Agencies: These companies rent out vehicles for short-term use, typically on a daily, weekly, or monthly basis. Some of the most popular car rent companies in the UAE are:

• Hertz.
• Thrifty Car Rental.
• Avis Rent a Car.
• Europcar.

Peer-to-Peer Car Rental: Also known as car sharing, platforms EKARM, UDRIVE, and FriendyCar allow individuals to rent out their vehicles to others for short periods.

Luxury Car Rentals: Some agencies specialize in renting out high-end or exotic vehicles for special occasions or events.

2. Car Dealerships:

New Car Dealerships: These businesses sell new vehicles from specific manufacturers, often offering financing and warranty services.

Used Car Dealerships: These businesses buy and sell pre-owned vehicles, typically offering a range of makes and models.

Specialty Dealerships: Some dealerships focus on specific types of vehicles, such as trucks, SUVs, sports cars, etc.

3. Online Car Marketplaces:

These platforms allow individuals to buy and sell vehicles online. You can access details of the listed cars, such as the brand, model, year, condition, mileage, and other technical information, to verify the car’s condition and make informed purchasing decisions.

Some of the top websites for buying and selling cars in the UAE:

• Dubizzle.
• Dubaicars.
• YallaMotor.
• Carswitch.
• Cars24UAE.

4. Car Auctions:

Businesses that facilitate auctions where both dealers and the public can buy and sell vehicles.

Some of the top car auctions in the UAE are:

• Emirates Auction.
• Sharjah Auto Auction.
• Copart Middle East.
• Marhaba Cars Auction.

5. Leasing Companies:

These companies lease vehicles to individuals or businesses for fixed periods, usually several years. At the end of the lease, the lessee may have the option to purchase the vehicle.

6. Car Subscription Services:

Car subscription services in UAE, like MOOV, eZhire, and others offer customers the ability to access a fleet of vehicles for a monthly fee, often including insurance, maintenance, and roadside assistance.

If you want to start your car business in the UAE, you must obtain a relevant business license. In this article, we guide you on the business activities that go under your license.

The business activities that fall under car rental, selling, and buying services are:

4791.02 – Retail sale of any kind of product over the internet

The retail sale of any product over the Internet refers to the business activity of selling goods directly to consumers through online platforms. It involves listing products on websites or online marketplaces, where customers can browse, select, and purchase items remotely. This model eliminates the need for physical storefronts, allowing businesses to reach a wider audience and operate with lower overhead costs. Retailers typically manage online transactions, shipping, and customer service to provide a seamless shopping experience. With the rise of e-commerce, this business activity has become increasingly prevalent, offering convenience and accessibility to consumers worldwide.

Other requirements:

• Third-party approval: This business activity doesn’t require any third-party approval before acquiring the business license.
• Filing of Economic Substance Return: This business activity is exempt from this requirement.
• Anti-money laundering compliance: This business activity is exempt from this requirement.

4690.01 – Wholesale of a variety of goods without any specialization

Wholesale of a variety of goods without specialization involves the distribution of diverse products in bulk to retailers, businesses, or other wholesalers. This business activity entails sourcing goods from multiple suppliers across different industries and selling them to a broad customer base. Unlike specialized wholesalers who focus on specific products or industries, this model offers a wide range of items, catering to various consumer needs. It requires efficient logistics, inventory management, and market understanding to meet demand effectively.

Other requirements:

• Third-party approval: This business activity requires no third-party approval before acquiring the business license.
• Filing of Economic Substance Return: This business activity is exempt from this requirement.
• Anti-money laundering compliance: This business activity is exempt from this requirement.

9000.17 – Hospitality services

Hospitality services encompass a broad range of businesses dedicated to accommodating and satisfying customers’ needs in the hospitality industry. This sector includes hotels, restaurants, resorts, and other establishments offering lodging, dining, entertainment, and related amenities. From luxurious resorts to quaint bed and breakfasts, hospitality services strive to create memorable experiences for guests, emphasizing comfort, convenience, and exceptional service. Key aspects include hospitality management, guest relations, culinary expertise, and facility maintenance.

Other requirements:

• Third-party approval: This business activity requires no third-party approval before acquiring the business license.
• Filing of Economic Substance Return: This business activity is exempt from this requirement.
• Anti-money laundering compliance: This business activity is exempt from this requirement.

7020.17 – Hospitality management consultancy

Hospitality management consultancy involves providing expert advice, guidance, and solutions to businesses within the hospitality industry to improve operations, enhance efficiency, and optimize performance. Consultants offer strategic insights and practical recommendations tailored to the unique needs of hotels, restaurants, resorts, and other hospitality establishments. Services may include financial analysis, marketing strategies, operational efficiency assessments, staff training, and technology integration. Consultants leverage their industry expertise to address challenges, capitalize on opportunities, and drive profitability. Their goal is to assist clients in achieving their objectives, maintaining competitiveness, and delivering exceptional guest experiences in a dynamic and ever-evolving market landscape.

Other requirements:

• Third-party approval: This business activity requires no third-party approval before acquiring the business license.
• Filing of Economic Substance Return: This business activity is exempt from this requirement.
• Anti-money laundering compliance: This business activity is exempt from this requirement.

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