Auto Garage

How to Start a Auto Garage Shop Business In Dubai, UAE?

Dubai’s growing automotive industry and diverse customer base make it an ideal location for auto garages. The sector includes catering to the luxury and exotic cars and staying updated with technological advancements like electric vehicles.

The city boasts a thriving automotive industry with many vehicles on the roads, creating a consistent demand for automotive services. The high rate of car ownership, driven by a growing population and a strong economy, provides a substantial customer base for an auto garage shop. Furthermore, Dubai’s status as a global tourist destination and luxury car hub creates additional opportunities for an auto garage shop. Moreover, Dubai’s focus on sustainability and electric vehicles (EVs) presents an emerging market niche. Establishing an auto garage shop specializing in EV repairs and maintenance can position the business at the forefront of this growing sector.

Meydan Free Zone presents a diverse range of over 20 business activities specifically catered to auto garage shops. These activities provide entrepreneurs with various options to choose from based on their interests and expertise. Here are some of the major business activities available:

  • 4520.01 Maintenance and Repair of Motor Vehicles:
    • Mechanical Repairs
    • Electrical Repairs
    • Electronic Injection Systems Repair
    • Ordinary Servicing
    • Bodywork Repair
    • Repair of Motor Vehicle Parts
    • Washing, Polishing, etc.
    • Spraying and Painting
    • Repair of Screens and Windows
    • Repair of Motor Vehicle Seats   
  • 4520.02 Tyre and Tube Repair, Fitting or Replacement
  • 4520.03  Anti-Rust Treatment
  • 4520.04 Installation of Parts and Accessories Not As Part of The Manufacturing Process             
  • 4520.82 Auto Denting & Painting
  • 4520.83 Auto Mechanical Repair
  • 4520.84 Auto Electric Repair
  • 4520.85 Auto Radiators Repair & Maintenance
  • 4520.86 Tyre Fixing & Wheel Alignment Services
  • 4520.87 Car Washing & Cleaning
  • 4520.88 Auto Oil Change            
  • 4520.89 Auto Rust Proofing Services
  • 4520.90 Auto Accessories Fitting
  • 4520.91  Auto Exhaust Repair
  • 4520.92 Car Polish Services
  • 4520.93 Vehicles Upholstery Services
  • 4520.94 Auto Air-Condition Repair & Maintenance
  • 4520.95 Auto General Repair
  • 4520.99 Mobile Auto Repair Services –   Roads and Transport Authority (RTA) POST

4520.01 Maintenance and Repair of Motor Vehicles

Apply for your business license under Wholesale and Retail Trade and Repair of Motor Vehicles and Motorcycles and choose the business activity Maintenance and Repair of Motor Vehicles with activity code 4520.01.

You can offer a wide range of services as an auto garage that maintains and repairs motor vehicles. You can provide a comprehensive range of solutions to ensure that vehicles are in optimal condition, both mechanically and aesthetically. Listed below are the services you can offer with your license from Meydan Free Zone:

  • Mechanical Repairs: This involves diagnosing and fixing mechanical issues in motor vehicles. You can repair engines, transmissions, brakes, suspensions, exhaust systems, and other mechanical components.
  • Electrical Repairs: You can repair a vehicle’s electrical system and fix issues with the battery, alternator, starter, wiring, lights, and other electrical components.
  • Electronic Injection Systems Repair:  Your license allows you to specialize in Fuel injection systems and can diagnose and repair problems related to fuel injectors, sensors, fuel pumps, and other components of the electronic fuel injection system.
  • Ordinary Servicing: You can perform routine maintenance tasks to keep a vehicle in good condition. It includes oil changes, filter replacements, fluid top-ups, tire rotations, and inspections based on the manufacturer’s recommendations.
  • Bodywork Repair: You can offer bodywork repair and can fix damages to a vehicle’s exterior caused by accidents, collisions, or general wear and tear. This includes repairing dents, scratches and repainting damaged areas.
  • Repair of Motor Vehicle Parts: Your license permits you to repair or replace specific vehicle parts that may be faulty or damaged. You can include fixing or replacing components such as the alternator, starter motor, radiator, fuel pump, or any other part causing issues.
  • Washing, Polishing, etc.: You can provide cosmetic services to enhance the appearance of vehicles. This can include washing, waxing, polishing, and detailing to make the vehicle look clean and shiny.
  • Spraying and Painting: Having painting facilities, you can offer services for repainting vehicles or specific body parts. This can involve color matching, removing old paint, preparing surfaces, and applying new paint to restore the vehicle’s appearance.
  • Repair of Screens and Windows: In case of damaged windshields, windows, or mirrors, you can repair or replace them. This includes fixing cracks and chips or replacing the entire glass component.
  • Repair of Motor Vehicle Seats: You may also offer services to repair or restore damaged or worn-out seats. This can involve fixing tears, replacing upholstery, or repairing mechanical components such as seat adjusters or recliners.

4520.02 Tyre and Tube Repair, Fitting or Replacement

Apply for your business license under Maintenance and Repair of Motor Vehicles and choose the business activity Tyre and Tube Repair, Fitting, or Replacement with activity code 4520.02.

Tyre and tube repair, fitting, or replacement services encompass a range of services related to maintaining and fixing tires and tubes for vehicles. With a business license, you can offer these services through automotive workshops, tire shops, or auto garages. One of the primary services you can provide is tyre repair, which addresses minor damages such as punctures or small cuts. Tyre fitting is another key service you can offer. This involves removing the old tyres, inspecting the wheels for any issues, mounting the new tyres onto the wheels, and ensuring proper balancing and alignment. You can also repair damaged or punctured inner tubes on vehicles equipped with inner tubes. This involves removing the damaged tube and installing a new one to ensure proper tire inflation.

4520.03  Anti-Rust Treatment

Apply for your business license under Maintenance and Repair of Motor Vehicles and choose the business activity Anti-Rust Treatment with activity code 4520.03.

Anti-rust treatment in an auto garage refers to a process or service aimed at preventing or inhibiting the formation and progression of rust on a vehicle’s metal surfaces. You can offer anti-rust treatment as a preventive measure to protect the vehicle’s body panels, undercarriage, and other susceptible areas from corrosion. Engaging in Cleaning, Surface Preparation, Application of Anti-Rust Products, and  Drying or Curing of the vehicles is generally possible with your license.

4520.04 Installation of Parts and Accessories Not As Part of the Manufacturing Process

Apply for your business license under Maintenance and Repair of Motor Vehicles and choose the business activity Installation of Parts and Accessories Not As Part of the Manufacturing Process with activity code 4520.04.

The installation of parts and accessories not as part of the manufacturing process as part of your license refers to adding or fitting aftermarket components, upgrades, or modifications to a vehicle. This typically involves installing parts and accessories that the vehicle manufacturer does not originally include during the assembly line production.

You can offer this service to customers who want to enhance or customize their vehicles according to their preferences or specific needs. For example, you can provide various types of installations to enhance vehicles. You can do Performance upgrades involving adding aftermarket components like exhaust systems, air intakes, turbochargers, or engine management systems to boost power and acceleration. Furthermore, you can upgrade the vehicle’s suspension and handling, such as brakes and sway bars, to make it more stable and capable off-road. Additionally, spoilers, body kits, and audio systems can be installed. You can also offer Safety features like backup cameras and alarms for improved security. Your license also authorizes installing technology integration, such as smartphone connectivity and navigation systems, keeping vehicles up-to-date with the latest features and enhancing the driving experience.

4520.82 Auto Denting & Painting 

Apply for your business license under Maintenance and Repair of Motor Vehicles and choose the business activity Auto Denting & Painting with activity code 4520.82.

Your Auto Denting & Painting license covers restoring and painting vehicle bodies damaged in accidents or requiring refurbishment. This includes services such as denting, chassis modification, and welding works. Additionally, holders of this license are permitted to sell activity-related materials, albeit in non-commercial quantities.

4520.83 Auto Mechanical Repair

Apply for your business license under Maintenance and Repair of Motor Vehicles and choose the business activity Auto Mechanical Repair with activity code 4520.83.

Your Auto Mechanical Repair license enables you to run workshops specializing in repairing mechanical breakdowns for vehicles and cars. This includes services like installing hydraulic systems for brake and steering control, as well as enhancing fuel circulation. Additionally, you are permitted to sell activity-related materials, but only in non-commercial quantities.

4520.84 Auto Electric Repair

Apply for your business license under Maintenance and Repair of Motor Vehicles and choose the business activity Auto Electric Repair with activity code 4520.84.

The Auto Electric Repair license allows you to perform maintenance and repair work on the electrical components of automobiles. You are permitted to service and fix various electrical systems within vehicles. This includes working with wiring, batteries, alternators, and starters, which are integral to properly operating a vehicle’s electrical functions. You can diagnose issues, perform repairs, and ensure that these systems are in optimal working condition. Furthermore, the license also allows you to sell activity-related materials in non-commercial quantities. This means you can offer certain items or components associated with auto electric repair on a small scale, typically for individual use rather than large-scale commercial purposes.

4520.85 Auto Radiators Repair & Maintenance 

Apply for your business license under Maintenance and Repair of Motor Vehicles and choose the business activity Auto Radiators Repair & Maintenance with activity code 4520.85.

Your license from Meydan Free Zone enables us to offer comprehensive services for repairing, maintaining, cleaning, and restoring vehicle radiators. Additionally, you are authorized to sell materials related to these activities in quantities intended for non-commercial purposes.

4520.86 Tyre Fixing & Wheel Alignment Services 

Apply for your business license under Maintenance and Repair of Motor Vehicles and choose the business activity Tyre Fixing & Wheel Alignment Services with activity code 4520.86. With a license for Tyre fixing and wheel alignment services, you can perform a wide range of tasks to ensure the proper functioning and alignment of vehicle tires and wheels.

Tyre fixing services include inspecting, repairing, and replacing tires. This involves patching or plugging punctured tires to fix leaks, mounting and dismounting tires onto rims, balancing tires to distribute weight evenly and prevent vibrations, installing new tires when needed, checking and adjusting tire pressure, and rotating tires to promote even wear.

Wheel alignment tasks include inspecting and adjusting the camber, caster, and toe angles of the wheels, aligning them to manufacturer specifications for proper tracking and stability, and checking and correcting any misalignment issues caused by impacts or wear. Additionally, you may involve testing and adjusting steering and suspension components as needed.

4520.87 Car Washing & Cleaning 

Apply for your business license under Maintenance and Repair of Motor Vehicles and choose the business activity Car Washing & Cleaning with activity code 4520.87.

With your Car Washing & Cleaning license, you have the authorization to provide a range of vehicle washing and cleaning services using either immovable auto or manual washing stations. Your services extend to cars, trucks, buses, and motorcycles. Additionally, you have the privilege to sell activity-related materials in non-commercial quantities.

It’s important to note that a separate license is required to offer Parking Car Washing services. By obtaining the appropriate permit, you can expand our services to include parking and car washing while adhering to legal requirements and maintaining the highest standards in your operations.

Terms and Conditions for Car Washing & Cleaning outlined by Dep. of Economic Development (Commercial Compliance & Consumer Protection Sector)

  • The commercial name mentioned in the license shall be similar to the trade name.  
  •  The Department’s approval shall be obtained before the change of licensed location and relocation.  
  • The consumer shall obtain an invoice for the purchased goods.  
  • The protection of the environment and public cleanliness laws and regulations shall be respected.  
  • No procedure, amendment, or alteration of license data shall be made unless approved by the Department.  
  • No spare parts, accessories, or vehicle lubricants shall be sold unless the relevant license is obtained.  
  • Do not place sales, discounts, or special offers without permission.  
  • No activity shall be practiced after 12 am unless the relevant permit is obtained.  
  • Custodial staff shall wear a uniform carrying the name of the facility.  
  • Before providing any service, its price shall be made known to the consumers.  
  • An official approval shall be obtained from the owner of parks, housing, commercial complexes, and public areas before actually practicing the activity in such locations.

4520.88 Auto Oil Change      

Apply for your business license under Maintenance and Repair of Motor Vehicles and choose the business activity Auto Oil Change with activity code 4520.88.

Having an Auto Oil Change license from Meydan Free Zone enables you to actively participate in the process of replacing engine oil and other vital fluids, ensuring the vehicle’s efficiency is upheld. Furthermore, you are authorized to vend service-related products like grease, lubricants, and liquids, albeit in limited quantities intended for non-commercial purposes.

4520.89 Auto Rust Proofing Services 

Apply for your business license under Maintenance and Repair of Motor Vehicles and choose the business activity Auto Rust Proofing Services with activity code 4520.89.

With your Auto Rust Proofing Services license, you have the capability to apply rust-resistant materials, such as chrome, steel, and others, to cars. These materials provide protection against corrosion and rust caused by external factors. Additionally, you can sell materials relevant to the rust-proofing process, but only in non-commercial quantities.

4520.90 Auto Accessories Fitting 

Apply for your business license under Maintenance and Repair of Motor Vehicles and choose the business activity Auto Accessories Fitting with activity code 4520.90.

With your Auto Accessories Fitting license, you can install non-essential exterior accessories that enhance vehicles’ visual appeal and functionality. This includes fitting interior electronic devices and smart devices, as well as installing window film to reduce heat and glare from the sun. Moreover, you can sell materials relevant to these fitting activities in limited quantities intended for non-commercial purposes.

4520.91 Auto Exhaust Repair

Apply for your business license under Maintenance and Repair of Motor Vehicles and choose the business activity Auto Exhaust Repair with activity code 4520.91.

Your Auto Exhaust Repair license grants you the authority to maintain and repair automobile exhaust systems to minimize engine noise and reduce emissions. Additionally, you are permitted to sell activity-related materials in non-commercial quantities. 

4520.92 Car Polish Services 

Apply for your business license under Maintenance and Repair of Motor Vehicles and choose the business activity Car Polish Services with activity code 4520.92.

Your license for Car Polish Services enables you to conduct exterior polishing and waxing on automobiles, rejuvenating the luster and brilliance of their paintwork and all other visible elements on the outer surface. Furthermore, you are authorized to sell materials associated with these activities in limited quantities for non-commercial purposes.

4520.93 Vehicles Upholstery Services 

Apply for your business license under Maintenance and Repair of Motor Vehicles and choose the business activity Vehicles Upholstery Services with activity code 4520.93.

With your Vehicles Upholstery Services license, you can offer a range of vehicle seat services, including installing liners, springs, woven strips, and covers made of cloth or leather. In addition, your license permits you to sell materials relevant to these activities, although in limited quantities, for non-commercial purposes.

4520.94 Auto Air-Condition Repair & Maintenance 

Apply for your business license under Maintenance and Repair of Motor Vehicles and choose the business activity Auto Air-Condition Repair & Maintenance with activity code 4520.94.

Auto Air-Condition Repair & Maintenance entails services dedicated to repairing and maintaining automotive air conditioning systems. With a valid license, you are authorized to perform maintenance and repair work on car air-conditioning systems. This involves identifying and resolving issues that hinder the proper functioning of the vehicle’s air conditioning system. Repair tasks include fixing or replacing faulty components such as compressors, condensers, evaporators, and refrigerant lines.

Maintenance duties include cleaning or replacing filters, assessing refrigerant levels, lubricating components, and ensuring overall system efficiency. Additionally, you are permitted to sell materials relevant to these activities in quantities that are not intended for commercial purposes.

4520.95 Auto General Repair 

Apply for your business license under Maintenance and Repair of Motor Vehicles and choose the business activity Auto General Repair with activity code 4520.95.

Your Auto General Repair license encompasses businesses that specialize in repairing mechanical failures in light and heavy motor vehicles. You can provide services to diagnose, troubleshoot, and fix a wide range of issues that can arise in the mechanical components of vehicles.

Regarding light motor vehicles, this can involve repairing problems with the engine, transmission, brakes, suspension, exhaust system, electrical systems, and other essential components. For heavy motor vehicles, such as trucks or buses, the scope of general auto repair expands to cover more specialized techniques and components. These may include the engine, transmission, drivetrain, steering, suspension, braking systems, and other relevant parts.

4520.99 Mobile Auto Repair Services

Your Mobile Auto Repair Services license permits you to provide emergency repair services for motor vehicles directly on the road. You can offer these services through mobile workshops equipped to handle mechanical, electrical, air conditioning, and tire repairs. The distinguishing feature of your license is the ability to provide on-the-spot repairs wherever the vehicle is located.

It is possible to operate your workshop with self-driving or semi-autonomous vehicles or any other type of mobile workshop that may be developed in the future, making it easier to reach stranded or damaged vehicles.  The scope of repair services offered by your firm includes mechanical repairs, such as engine diagnostics, transmission, and brake system repairs. You can also handle electrical repairs, addressing issues with the vehicle’s electrical systems, including the battery, wiring, and electronic components. Additionally, you are capable of providing air conditioning repairs, ensuring that the vehicle’s cooling system functions properly. Furthermore, you can offer tire repairs and replacements, addressing punctures, flat tires, or worn-out treads.

Inclusions

With your business license for Auto Garage Shop with activity codes 4520.01, 4520.02, 4520.03, 4520.04, 4520.82, 4520.83, 4520.84, 4520.85 4520.86, 4520.87, 4520.88, 4520.89, 4520.90, 4520.91, 4520.92, 4520.93, 4520.94, 4520.95, and 4520.99, you are allowed to perform various activities related to the maintenance and repair of motor vehicles. These activities include mechanical repairs, electrical repairs, repair of electronic injection systems, regular servicing, bodywork repairs, repair of motor vehicle parts, washing, polishing, and more. Additionally, you can engage in spraying and painting, repair of screens and windows, repair of motor vehicle seats, repair and fitting of tyres and tubes, anti-rust treatment, and install parts and accessories that are not part of the manufacturing process.

Exclusions

Your Auto Garage Shop business licenses with activity codes 4520.01, 4520.02, 4520.03, 4520.04, 4520.82, 4520.83, 4520.84, 4520.85 4520.86, 4520.87, 4520.88, 4520.89, 4520.90, 4520.91, 4520.92, 4520.93, 4520.94, 4520.95, and 4520.99  does not allow retreading or rebuilding of tyres.

Third-Party Approvals

Your business activities licensed under activity codes, including 4520.01, 4520.02, 4520.03, 4520.04, 4520.82, 4520.83, 4520.84, 4520.85, 4520.86, 4520.87, 4520.88, 4520.89, 4520.90, 4520.91, 4520.92, 4520.93, 4520.94, and 4520.95 does not require third-party approval to operate your auto garage shop in Dubai.

However, it is important to note that if you intend to operate a Mobile Auto Repair Services business in Dubai, there is an additional requirement of obtaining approval from the Roads and Transport Authority (RTA) on top of the initial license. This means that while the other activities covered by your existing licenses can be operated without further approval, mobile auto repair services require an additional step to ensure compliance with RTA regulations.

The Roads and Transport Authority (RTA plays a vital role in regulating and managing transportation-related services in Dubai. They have specific guidelines and requirements to ensure the safety and quality of services provided by mobile auto repair businesses.  

Obtaining approval from the RTA may involve submitting an application, providing necessary documentation, and potentially undergoing inspections or audits to ensure compliance with their standards. You can legally operate your Mobile Auto Repair Services business in Dubai by obtaining the necessary approval from the RTA.

Terms and Conditions for Motor Vehicle Repairing by Dep. of Economic Development (Commercial Compliance & Consumer Protection Sector)

  • Sale policy shall be declared to the consumer through an appropriate means, including the goods’ return, replacement, or reparation.  
  • Any fake products or goods on the local market should be reported to the Department.  
  • Both parties must comply with their agreements in terms of specifications, numbers, weights, and measurements.  
  • The customer shall receive a paper clarifying the vehicle body upon receiving it from the workshop before reparation and showing the vehicle’s condition through a layout of the vehicle body.  
  • The activity shall only be practiced in the location by a license or permit.  
  • The Department’s approval shall be obtained before the change of licensed location and relocation.  
  • The consumer shall obtain an invoice for the purchased goods.  
  • No procedure, amendment, or alteration of license data shall be made unless approved by the Department.  
  • No counterfeit goods shall be promoted, sold, or displayed.  
  • The standardizations of country laws regulating the sale and trade of different products shall be considered.  
  • The commercial name mentioned in the license shall be similar to the name on the signboard.  
  • The customer shall receive a document stating that the reparation workshop received his vehicle.  
  •  Do not place sales, discounts, or special offers without permission.  
  • Prices shall appear on goods and commodities.  
  • No products carrying a fake trademark shall be sold/used.  
  • No activity shall be practiced after 12 am unless the relevant permit is obtained.  
  • No spare parts shall be sold unless such sale is included in the repair process (The sale shall only be made for repair rather than for any consumer desiring to purchase such spare parts).  
  • The workshop shall be responsible for the vehicle during the repairs till the customer receives it.  
  •  If the services are subjected to any guarantee, e.g., Ziebart rust-proofing material and vehicle paints, the customer shall be notified either in writing or through a seal, including the guaranteed items, terms of the guarantee, and reasons the guarantee could be voided.  
  • The trademark shall be registered at the Ministry of Economy for its protection.  
  • Laws that regulate the consumer’s rights shall be considered, i.e., the phrase “The sold goods are neither returnable nor exchangeable” shall not appear on the invoice. 
  • No additional fees shall be imposed against the use of credit cards.

Economic Substance Return

The business activities listed under the codes 4520.01, 4520.02, 4520.03, 4520.04, 4520.82, 4520.83, 4520.84, 4520.85, 4520.86, 4520.87, 4520.88, 4520.89, 4520.90, 4520.91, 4520.92, 4520.93, 4520.94, 4520.95, and 4520.99, which pertain to auto garage services in Dubai, are exempt from specific regulatory requirements such as Ultimate Beneficial Ownership (UBO) and Economic Substance Regulations (ESR).

In Dubai, the Economic Substance Regulations (ESR) mandate that companies engaged in certain business activities must demonstrate sufficient economic substance within the UAE to comply with international standards and prevent undue tax advantages. Additionally, companies must maintain accurate records about their Ultimate Beneficial Owners (UBOs), who possess true ownership or control over the company. However, businesses involved in auto garage activities in Dubai are not subject to these UBO or ESR regulations.

Anti-Money Laundering Compliance

The auto garage business activities 4520.01, 4520.02, 4520.03, 4520.04, 4520.82, 4520.83, 4520.84, 4520.85, 4520.86, 4520.87, 4520.88, 4520.89, 4520.90, 4520.91, 4520.92, 4520.93, 4520.94, 4520.95, and 4520.99 in Dubai are exempt from Anti-Money Laundering (AML) regulations in the UAE.

AML regulations aim to prevent money laundering and financing illegal activities. These regulations typically require businesses to implement various measures, including customer due diligence, record-keeping, and reporting of suspicious transactions. However, for the specific auto garage activities mentioned in Dubai, AML regulations do not apply.

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