How to open a used car trading business in Dubai, UAE

How to open a used car trading business in Dubai, UAE - Makebiz

As new car sales decline, activity in the used car market is moving in a positive direction. On average, 3.5 used cars are purchased per new car purchase. Their sales are expected to exceed one million per year by 2025. 

With a population of locals, expats and tourists, there is a vast potential customer base for successful businesses. And according to Dubai’s existing development strategy, the population is projected to grow rapidly by 2030. As the number of car owners in Dubai is at an all-time high, there is a great opportunity for used car trade. A variety of cars are popular: from economy class for everyday tasks to luxury and premium class.

The process of registering a company in the Emirates is maximally simplified by the government and has a short timeframe. However, at each step, you may need the assistance of a lawyer who understands the local laws. 

Registering a business involves several steps. You will be required to:

1. Choose a business name. It is recommended to offer several options in case the main option is unavailable.

2. Apply for a trade license. When registering in a free economic zone, it is reviewed by the governing body of the freezone. If registering on the mainland, by the Department of Economic Development.

3. Obtain a visa for the founder of the company.

4. Open a bank account for financial transactions.

5. Buy used cars and put them on the balance sheet of the company.

To ensure a successful business start-up, it’s worth working with a team of professionals who can provide support at every stage. Sign up for a free consultation at Makebiz and learn how to start a used car trading business in Dubai.

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