The DUCAMZ was founded in the year 2000. This Free zone was established with the intention of exporting used vehicles to the local, African, Middle Eastern, and Asian markets. DUCAMZ, also known as Dubai Cars and Automotive City Free zone, is located in the Ras Al Khor area of Dubai. The local sea port and airport are easily accessible via this free zone. Businesses operating in the free zone benefit from Jebel Ali Port’s and Dubai International Airport’s close proximity. The size of DUCAMZ, which is over 8 million square feet, makes it the largest free zone in the world devoted to the auto industry. The free zone provides all necessary physical and administrative frameworks to meet the requirements of the contemporary auto sector.
Which types of companies are allowed to setup business in Dubai Cars and Automotive Free zone (DUCAMZ)?
Dubai Cars and Automotive City Free zone (DUCAMZ) offers business licenses to the following types of companies
- Free Zone Enterprise (FZCO)
- Free Zone company (FZE)
- Branches of an UAE Company
- Foreign company branches
How long does it take for the company registration to be completed in Dubai Cars and Automotive Free zone (DUCAMZ)?
It takes less than a week to get your license to start your business in DUCAMZ free zone
Which type of businesses can be set up in Dubai Cars and Automotive Free zone (DUCAMZ)?
DUCAMZ’s businesses which should be related to the automotive industry are limited to the following –
What are the various office options available at Dubai Cars and Automotive Free zone (DUCAMZ)?
There are different types of office options but not limited to –
- Offices spaces
Documents Required to Setup Company in Dubai Cars and Automotive Free zone (DUCAMZ)?
Following documents are required for the company setup process:
- Passport copies – Of all shareholders or applicants or managers
- Address proof – Of all shareholders or applicants or managers
- Information pertaining to each individual must be provided upon request
- A trade name
- A Memorandum of Association and Articles of Association
- And other documents
Why setup your business in Dubai Cars and Automotive Free zone (DUCAMZ)?
Company formation in Dubai Cars and Automotive Free Zone City provides an incredible network with the automobile industries. It has an array of major brands and other related enterprises. The major reason for function in this free zone is to get into a re-exporting business.
- 100% foreign ownership
- 100% repatriation of capital and profits
- No restriction on the number of imported cars
- Economical freight charges
- Availability of skilled workforce
- No personal income and corporate tax for 50 years
- No currency restrictions
- Proven strategic location
- Complete administrative assistance
- No restriction in recruiting foreign employees
- Hassle-free clearance from Dubai police and customs report
Corporate tax applicability to the companies in Dubai Cars and Automotive City Free zone:
Corporate tax law is going to be applicable for all the companies registered in UAE including the free zones in UAE. The UAE Corporate tax is going to be effective for the financial year beginning on or after 1 June 2023 for the businesses in UAE. Corporate tax will be levied at zero percent on the taxable income (adjusted net profit) of the businesses in the free zones as long as they comply with all the regulations of the respective free zone and do not do any business with the mainland companies, otherwise there is a possibility of levying 9% corporate tax on the taxable income (adjusted net profit) in excess of AED 375,000. Hence companies in the Free Zones need to make sure that they are complying with all the regulations of the free zone and do not do any business with the mainland entities to enjoy the benefit of zero percentage of UAE corporate tax.
[NOTE: Kindly note that the authenticity of this article is limited to the day of publishing this blog. As policies and rules pertaining to each free zone keeps changing from time to time based on the necessity of the respective authority, it is hereby advised you to check the website of the concerned free zone directly to get the latest update on the same. We do not assume any liability if you have taken any decision based on the information provided in the article. We have ensured that the presented information to the visitor is legible to the maximum extent possible so that all the information is available in one page, at one go. Thank you.]
How can Spectrum help you set up a business in Dubai Cars and Automotive Free Zone (DUCAMZ)?
Spectrum provides an easy and simple start-up process for companies seeking to set up offices in Dubai Cars and Automotive Free Zone (DUCAMZ). Spectrum’s dedicated team will guide you through the process, answer your questions, provide the necessary forms, and serve as your primary point of contact to support you through the whole process.
Spectrum is an expert firm in the Company Formation and Company Liquidation process. Our passion and heart lie in serving the clients and we aim at the utmost client’s satisfaction. We are registered Auditors under the Ministry of Economy UAE and also registered Tax Agent from Federal Tax Agency UAE, providing dedicated Auditing Services in Dubai and across UAE, Accounting Services, VAT consultancy services, apart from being one of the top accounting firms in Dubai along with providing various Business Advisory Services complying regulatory requirements in the UAE.
Call us today for any kind of assistance at +971 4 2699329 or email us at [email protected] to get all your queries addressed. Spectrum is your partner in your success.