When it comes to starting a car dealership in the UAE, there are a few required documents that you need to have and complete. EasyCars has put together the complete list of essential documentation that you need to start and operate a car dealership in the UAE.
Let’s get into it!
1. Business Plan
The first and arguably most important document that you need to have to start a car dealership in the UAE is a Business Plan. Your Car Dealership Business Plan will be the foundation of your dealership, all of your dealerships decisions should be based on the strategies outlined in your business plan.
What should be included in your Car Dealership Business Plan? Your car dealership business plan should include a mission and vision statement, market analysis, competitive analysis, your car dealership structure, your car dealership marketing plan and most importantly your dealerships financial forecasts.
2. Initial Approval Application
Before you can setup any business in the UAE you will need to get approval from the Department of Economic Development or the free zone in which your car dealership is looking to trade from.
Required Documents for getting DED Approval:
- Passport copies of all shareholders
- Proposed dealership trade name
- Dealership activity description
- NOC from current sponsor
3. Trade Name Registration
Once you have received DED approval to trade, the next required document that your dealership will need to complete is registering your dealerships name. Again, to register a business name in the UAE you need to go through the DED or your free zone authority.
Requirements for Trademarking a Business Name in the UAE:
- Your Dealerships trade name must adhere to UAE naming conventions
- Your Dealership name should not infringe on existing trademarks.
- Your Dealerships name must reflect your business activities.
4. Memorandum of Association (MOA)
Once you have trademarked your dealerships name the next document that your dealership needs to get is a Memorandum of Association. A MOA is a document that outlines your dealerships ownership structure. Are you going to operate as a sole trader? Partnership? Company?
- Key Components of a Memorandum of Association
- Shareholder details and their respective shares in your Car Dealership in Dubai
- Dealership objectives and activities
- Management structure
- Notarization: For Dealerships that operate on the UAE mainland, your MOA must be notarised by a public notary in Dubai.
5. Shareholder Agreements
The next document that your car showroom in Dubai should have is Shareholder Agreement. A shareholder agreement will complement your dealerships MOA. This document will outline the relationship between shareholders, profit distribution and dispute resolution.
6. Tenancy Contract
The next document that all Dealerships in the UAE need to have is a Tenancy Contract. A Tenancy contract is a legal agreement between your dealership and your location landlord which will confirm that you have the right to occupy the location and operate your car showroom.
For mainland car dealerships in Dubai your tenancy contract must be registered with the official rental index in Dubai, Ejari.
7. Initial Trade License Application
The most important document for operating a car dealership in the UAE is a Trade Licence. A trade licence grants you the right to conduct business in the UAE.
- Types of Licenses for Car Dealerships in the UAE:
- Commercial License: Is required for buying and selling vehicles in the UAE.
- Service License: This license is required if your dealership offers services like repairs or maintenance.
- Industrial License: This license is required if you are planning to manufacture or modify vehicles.
- Required Documents to get a Trade licence in the UAE:
- Approved trade name certificate
- MOA
- Shareholder agreements
- Tenancy contract
Once you have all these documents, you will need to submit them to the DED or your free zone authority.
Final Word,
To start and operate a Car Showroom in the UAE there are multiple documents that you are required to have. The 7 documents presented in this piece are required to start and operate a car dealership in Dubai as of 2024.
We hope you enjoyed reading this article. To read more articles like this, please visit the EasyCars latest news page here.
DISCLAIMER – The content within this blog does not constitute professional advice and is intended to be general in nature. Please consult with all relevant parties prior to making any decision.
About EasyCars,
EasyCars by Jeal is a UAE Motor Industry Specific, Dealer Management Software that automates the daily tasks of running a motor dealership. Using the latest technologies, EasyCars removes frustrations experienced at the dealership - opening the doors to future growth.
EasyCars features include Simple Stock Management, Automated Advertising, Automatic VAT Calculations, Xero Accounting Integration, Facebook Automotive Inventory Ads, Dealer Websites and Business Reporting in the one central management software.
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