Auto spare parts trading License Dubai, UAE: 2022 Guide


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There’s a reason why the UAE has such a long and fruitful history as a trading nation. Its strategic location and incredible infrastructure make it the ideal location from which to import and export goods to every corner of the world.

And any budding traders out there will find plenty of sectors in which to trade. One that is seeing great success right now is auto spare parts trading. With the MENA auto aftermarket set to continue its growth in the years ahead, there’s never been a better time to get involved.

If you’re ready to get started, Set Hub can help to guide you through the process.

What are the benefits of starting an auto spare parts trading company?

Dubai’s location at the heart of the Middle East puts it within easy reach of the vast Asian and African markets. The UAE is also home to some of the busiest ports in the world as well as one of the busiest airports.

For an auto spare parts company, this presents incredible import and export opportunities.

There are plenty more great reasons to start a business out here too. Dubai’s tax rate remains at 0% for both corporate and personal income, with VAT at a flat 15%. Then there’s the easy incorporation process, low barriers to entry, and incredibly welcoming business environment.

What are the steps to get an auto spare parts trading License in Dubai?

There is a little admin to take care of before applying for a trade license in Dubai. It’s best to get in touch with a local company expert at this stage so you can be sure that all your documents are accurate and in order.

The most important early step is choosing your company name. When making this decision, be aware that you must abide by a strict set of naming conventions.

You should avoid any offensive or blasphemous language. Avoid names of well-known organisations and avoid abbreviations if naming your company after yourself – i.e., Dave Mann Consulting, rather than D Mann Consulting.

Set Hub can check that your chosen name is available before registering it for you.

With this decision made, you can now apply for your auto spare parts trading license. You can make this application yourself directly to the Department of Economic Development (DED) or equivalent Municipality if you wish to set up elsewhere in the emirates.

The process is much more straightforward, however, if you work with Set Hub. We can make and manage the application to ensure an easy incorporation process.

What documents are required to get an auto spare parts trading license?

Whether making your application yourself or with our help, you’ll usually need to provide:

  • A completed application form.
  • Articles of incorporation (if necessary).
  • Passport copies for all shareholders.
  • Brief description of intended business activities.


Do I require a visa to run an auto spare parts trading business in Dubai?

Yes, you do. As well as applying for your visa, you can also sponsor visas for company employees, family, and domestic staff such as housekeepers or drivers.

The maximum number of visas you can apply for will depend on the size of your company, your chosen setup and, for dependant visas, your personal earnings.

In all cases, the visa application process follows the same five steps:

  • Apply for an entry permit.
  • Status adjustment.
  • Medical and fitness test.
  • Emirates ID registration.
  • Visa stamping.


You’ll need a bank account to trade out here too. There are various local and international banks to choose from. However, opening an account can be a complicated process for overseas entrepreneurs.

Before making your application, you should first familiarise yourself with several financial institutions to find one that is best suited to your business needs and most likely to offer you corporate banking services. Again, Set Hub can help you with this process.

How much does a spare parts trading license cost?

The cost of a spare parts trading license in Dubai starts at around AED 10,000, increasing to around AED 40,000 depending on the size and nature of your business.

As well as this cost, you’ll need to account for the cost of premises, equipment, and customs taxes if you intend to import.

For a full breakdown of all costs involved in starting your auto spare parts business in Dubai, get in touch with Set Hub.

Are you ready to start your spare parts trading business in Dubai?

Hopefully, this guide has made clear that if you’re armed with the right knowledge, setting up a spare parts trading business doesn’t have to be overly complex.

That being said, it does require a level of prior knowledge of the process. What’s more, it is important to note that the application process is only straightforward if your license application is complete at the time of submission and free from errors.

To help you to ensure that this is the case, it’s a good idea to work with a company formation specialist such as Business Incorporation Zone when establishing a new company in the UAE.

We are a team of company registration professionals who are passionate about bringing the dreams of aspiring entrepreneurs and SMEs to life.

As well as handling your license application, Set Hub can also assist with the opening of corporate bank accounts and advise on the most appropriate financial institution to suit your specific needs.

We also offer visa and immigration services and can handle all government formalities, permissions, work permits and visas applications required to trade in the UAE.

In short, our experts can establish your company on your behalf, make your license and visa applications, and take care of all the necessary admin – leaving you free to get on with running your business.