How to Start an Air-Condition Trading or Air-Conditioning Service Business with Meydan Free Zone? 

With Dubai’s hot climate, the air-conditioning service business ensures comfortable and regulated indoor temperatures across different sectors.

Air-Condition Trading or Air-Conditioning Service Business in Dubai refers to the commercial activity of buying, selling, and trading air-conditioning systems and related equipment. It involves providing comprehensive services, including installing, maintaining, and repairing air-conditioning units for residential, commercial, and industrial applications.

4520.94 Auto Air-Condition Repair & Maintenance

Apply for your business license under Wholesale and retail trade; repair of motor vehicles and motorcycles, and choose the business activity Auto Air-Condition Repair & Maintenance with activity code 4520.94. 

Having an Air-Condition Repair & Maintenance business license from Meydan Free Zone allows you to conduct various activities related to the maintenance and repair of car air-conditioning systems. For example, you can provide services such as troubleshooting and fixing issues with the air-conditioning system, cleaning and replacing filters, repairing or replacing faulty components, and ensuring optimal system performance.

In addition to repair and maintenance services, your license permits you to sell materials related to air-conditioning repair and maintenance. However, this is limited to non-commercial quantities. This means that while you can sell items such as air-conditioning refrigerants, replacement parts, or cleaning agents, you are not allowed to engage in large-scale commercial sales of these materials. The sale of such materials is meant to support your repair and maintenance activities rather than operate as a standalone commercial venture.

Inclusions

With your business license for Auto Air-Condition Repair & Maintenance, 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 Air-Condition Repair & Maintenance business license does not allow retreading or rebuilding of tyres.

4759.89 Air-Condition Trading

Apply for your business license underRetail sale of electrical household appliances, furniture, lighting equipment, and other household articles in specialized stores and choose the business activity Air-Condition Trading with activity code 4759.89.

With your Air-Condition Trading license Meydan Free Zone, you have the flexibility to buy and sell these different types of air-conditioning equipment, catering to various customer needs and preferences. This includes central air-conditioning units, window air-conditioning units, and split units, regardless of whether they are connected to a general central air-conditioning system or not.

For instance, you can source and sell central air-conditioning units that are typically used in commercial buildings or larger residential complexes. Similarly, you can trade window air-conditioning units that are commonly used in individual rooms or smaller spaces. Additionally, your license allows you to resell split units. Split units consist of indoor and outdoor components and are commonly used in residential settings. They provide localized cooling for specific areas within a building.

Inclusions

Your Air-Condition Trading license enables you to participate in the retail sale of various categories of products. These include retail sales of household furniture, articles for lighting, household utensils and cutlery, crockery, glassware, china and pottery, wooden, cork, and wickerwork goods, household appliances, musical instruments and scores, security systems (such as locking devices, safes, and vaults) without installation or maintenance services, as well as household articles and other equipment not classified in other activity codes.

Exclusions

Your business activity excludes retail sales of antiques. For example, you cannot engage in the retail sale of second-hand books, retail sale of other second-hand goods, retail sale of antiques, and activities of auctioning houses (retail).

Terms and Guidelines for Air-Condition Trading in Dubai

The Commercial Compliance & Consumer Protection Sector of the Department of Economic Development has established specific terms and guidelines that must be adhered to when engaging in Air-Condition Trading business activity in Dubai. It is essential to follow these guidelines while conducting your Air-Condition Trading operations.

• Sale policy shall be declared to the consumer through an appropriate means of declaration, including the goods return, replacement, or reparation.  
• The Department shall be informed of the existence of any fake products or goods in the local market.  
• The obligations of agreements entered into between both parties shall be carried out in terms of specifications, number, weight, and measurement.  
• The activity shall only be practiced in the location by virtue of 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 products carrying a fake trademark shall be sold.  
• No repairs shall be undertaken unless the relevant permit is obtained.  
• Any devices which are not in compliance with the environment and laws of the country shall not be sold. If devices are exported, the purchaser shall be notified, whether in writing or through a seal confirming the same.  
• 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.
•  Do not place sales, discounts, or special offers without permission.  
•  Prices shall appear on goods and commodities.  
•  No activity shall be practiced after 12 am unless the relevant permit is obtained.  
• If the electronics are subject to any guarantee, the purchaser shall be notified either in writing or through a seal, including the guaranteed items, terms of the guarantee, and causes for the guarantee to be voided.  
• If there is a manual for devices and phones, it shall be clearly written in Arabic and any other language and be delivered to the purchaser.  
• The trademark shall be registered at the Ministry of Economy for its protection.  
• Laws that regulate the consumer’s rights shall be taken into account, 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.  

4773.35 Air-Condition, Refrigeration Spare Parts & Components Trading

Apply for your trade license under Other Retail Sale of New Goods in Specialized Stores and choose as business activity Air-Condition, Refrigeration Spare Parts & Components Trading with activity code 4773.35. 

Air-Condition, Refrigeration Spare Parts & Components Trading license from Meydan Free Zone permits you to resell air-conditioning and refrigeration spare parts and components, enabling your businesses to trade various products related to these systems. 

Here are some examples of the types of spare parts and components that you can trade under Air-Condition, Refrigeration Spare Parts & Components Trading license:

• Air-conditioning Spare Parts: You can trade a wide range of components used in air-conditioning systems, such as compressors, fans, motors, filters, coils, thermostats, control panels, and electrical parts. 
• Central Air-Conditioning Units: You can trade central air-conditioning systems and their components. The spare parts may include ducts, dampers, chillers, pumps, and air-handling units.
• Window and Split Air-Conditioning Units: You can trade spare parts for residential and small commercial space’s window and split air conditioning units, including indoor and outdoor units, condensers, evaporators, fan blades, remote controls, and copper pipes.
• Coolers and Cold Storage Compartments: This license allows you to trade spare parts and components for coolers and cold storage compartments. You can sell refrigeration coils, evaporators, condensers, temperature controllers, door gaskets, and shelving systems used in walk-in coolers, refrigerated display cases, or cold storage warehouses.
• Central Water Cooling Systems: Spare parts and components for central water cooling systems can also be traded under your license. These parts may consist of cooling towers, pumps, heat exchangers, water treatment equipment, valves, and piping systems used in large-scale water cooling applications.
• Other Refrigeration Equipment: Besides air-conditioning systems, your license allows for trading spare parts and components for other refrigeration equipment. Examples include ice machines, refrigerated display cabinets, trucks or vans, and commercial refrigerators or freezers.

Inclusions

With your Air-Condition, Refrigeration Spare Parts & Components Trading, you can engage in the retail sale of photographic, optical, and precision equipment. Moreover, you can engage in the retail sale of watches, clocks, and jewelry, the retail sale of flowers, plants, seeds, fertilizers, pet animals and pet food, the retail sale of souvenirs, craftwork, and religious articles. You can also perform the activities of opticians and activities of commercial art galleries with your license. Besides selling household fuel oil, bottled gas, coal, and wood, retailing cleaning materials, weapons and ammunition, stamps and coins, and non-food items, your license also covers retailing cleaning materials.

Third-Party Approvals

Trading activities 4520.94 (Auto Air-Condition Repair & Maintenance), 4759.89 (Air-Condition Trading), and 4773.35 (Air-Condition, Refrigeration Spare Parts & Components Trading) do not require any additional approvals to carry out their business operations. These Air-Condition Trading or Air-Conditioning Service Business activities can be conducted without requiring further third-party approvals or permissions.

Economic Substance Return

Trading activities 4520.94 (Auto Air-Condition Repair & Maintenance), 4759.89 (Air-Condition Trading), and 4773.35 (Air-Condition, Refrigeration Spare Parts & Components Trading) are not required to comply with regulatory requirements like Ultimate Beneficial Ownership (UBO) or Economic Substance Regulations (ESR).

Economic Substance Regulations (ESR) in Dubai aim to ensure that companies conducting certain business activities in the UAE maintain an adequate level of economic substance within the country, in compliance with international standards and commitments to prevent unfair taxation practices. Wherein Ultimate Beneficial Ownership (UBO) refers to the individual(s) who ultimately own or control a company or entity, and in Dubai, it is a regulatory requirement to disclose and keep accurate records about these individuals. 

Anti-Money Laundering Compliance

Anti-Money Laundering (AML) compliance in Dubai encompasses the regulatory measures and procedures to prevent and detect money laundering and terrorist financing activities within the jurisdiction, ensuring the financial system’s integrity. AML regulations do not apply to Trading activities 4520.94 (Auto Air-Condition Repair & Maintenance), 4759.89 (Air-Condition Trading), and 4773.35 (Air-Condition, Refrigeration Spare Parts & Components Trading) in Dubai.