The Auto Spare Parts sector in UAE is a growing industry with significant demand for automobile spare parts from customers in UAE. So, for an entrepreneur to start an Auto Spare parts shop, they have to obtain an Auto Spare Parts Trading License in UAE.
Depending on the size of the business, the investor can either take a small Auto Spare parts shop in any residential area or take a warehouse plus a shop in any of the industrial areas of UAE.
Table of contents
There is a huge demand for automobile parts in the UAE market due to the increasing number of automobile brands selling their vehicles in the region. Additionally, there is a booming second-hand car market sector that boosts the demand for auto spare parts in the UAE.
Also, by obtaining an import-export license and customs code, the Auto Spare Parts company can conduct import-export of Auto Spare Parts to various countries in the world easily. So, there is a huge market potential for the Autos Spare Part company in UAE.
Why Get an Auto Spare Parts Trading License in UAE?
Auto Spare Parts Trading license allows the investors to trade in automobile spare parts to workshops, end-customers, petrol stations, etc. An Auto Spare part License in UAE will cost AED 24,000 in mainland of Dubai.
Taking an Auto Spare Parts Trading License from UAE paves the way for a lucrative business opportunity. Furthermore, there are numerous vehicle brands available in UAE. Hence, there is a constant requirement for automobile spare parts for various vehicles during their repairs or servicing.
Where to Obtain Auto Spare Parts Trading License in UAE?
The Auto Spare Parts Trading License in UAE is available from the Free Trade Zones as well as the Mainland of UAE. The process of obtaining the Auto Spare Parts Trading License in both business jurisdictions varies due to the business governing guidelines.
Depending on the nature of the business, the specific business jurisdiction can be chosen by the investor. For example, if the business is mainly focused on the import and export of automobile spares, the business license can be obtained from the respective Free Zone.
Similarly, for opening a workshop and an Auto spare parts company the ideal choice would be the mainland of UAE. Auto Spare Trading includes selling automobile spare parts, engine oils, filters, sensors, and numerous other parts.
Steps to Get an Auto Spare Parts Trading License in UAE
There are certain steps to follow for the investor to obtain the Auto Spare Parts Trading License in UAE. The business activity falls under the Trading License category. The Trading License can be obtained from the Dubai Economy or the Free Trade Zones of Dubai.
To obtain the Auto Spare Parts Trading License in UAE in the most hassle-free way, the investor can seek the assistance of an experienced Business Consultant like AURION.
The team will handle the process of applying for the trading license effectively and ensure that it is obtained at the earliest.
1. Choose a Trade Name for the Auto Spare Parts Company
For the Auto Spare parts company, the investor must choose a trading name. There is a provision to suggest 3 names and finalize 1 based on availability. Once the name is final, the trade name approval has to be obtained by making a fee payment for the same.
2. Select the List of Activities and Business Jurisdiction
The next step is selecting the list of business activities under the Auto Spare Parts License. All business activities that the company is intending to conduct trade in must be included in the trade license.
3. Submit the Shareholder Details
The passport-size photograph and passport copy must be provided to the authorities for verification. Few Free Zones might request a CV of the investors and a brief business plan to know more about the business activities.
4. Look for an Office or Warehouse for the Company
There is a requirement for an office space or a warehousing facility for an Auto Spare Parts Trader. A warehouse or storage space is needed to facilitate the import-export of spare parts to and from the UAE. It also helps the trader to act as a distributor to the UAE markets and the rest of the GCC areas.
Similarly, to successfully process invoices, attend customers, conduct meetings with clients, etc., there is a requirement of having a physical office space for the Auto Spare Parts Trader in UAE.
So, the investor must prepare a tenancy contract and take the office space as per their specific business requirement.
5. Make the fee payment & Obtain the license
Once, the business activity and tenancy contract are in place, the investor can make the final payment for obtaining the auto spare parts license in UAE. It can be obtained from Dubai Economy or any major Free Zones in UAE.
What is the business opportunity for Auto Spare Parts Trading?
Auto Spare Parts Trading License in UAE is a popular business license category in the region. There is a growing demand for auto spare parts from the used car market, workshops, etc.
Also, there is demand from African and Asia countries for spare parts for a variety of vehicles. So, overall the sector is expected to grow in the coming years as more number of vehicles are getting registered in UAE every year.
It is ideal for a small auto spare parts trader to set up a shop in the residential areas where employees and their families reside. It will help them get repeat sales. Consequently, industrial areas and Free Trade Zones are ideal for large-scale Auto Spare parts trading.
The large warehouses in Free Zones enable companies to manage import-export and storage of spare parts and items on a large scale. It is ideal for distributors and large auto-spare parts traders with workshop units.
To know more about obtaining an Auto Spare Parts License in UAE, connect with our Business Setup Consultants right away!
