Dubai’s vibrant automotive industry and luxury vehicle market offer a significant need for auto accessories. In addition, locals and expatriates in the city are known for their enthusiasm for using various auto accessories to enhance their vehicles’ performance, aesthetics, and functionality.
The city’s thriving modification culture is another factor driving the demand for auto accessories. Car enthusiasts in Dubai commonly modify their vehicles with aftermarket accessories and parts, ranging from cosmetic improvements to performance improvements. This culture further expands the market for auto accessories.
Moreover, a variety of automotive events are held in Dubai, attracting car enthusiasts and industry professionals from all over the world. Businesses in this sector can showcase and trade auto accessories at these events, presenting additional opportunities.
4530.00 Sale of Motor Vehicle Parts and Accessories
Apply for a business license under Wholesale and retail trade and repair of motor vehicles and motorcycles and choose business activity Sale of motor vehicle parts and accessories with activity code 4530.00.
Your Sale of Motor Vehicle Parts and Accessories license allows you to involve n the resale, wholesale, or retail of accessories that are fitted in cars and enhance the overall vehicle experience. These accessories cover a wide range of products, including additional bumpers for adjusting the exterior appearance, air deflectors to improve the car’s efficiency, baggage loading racks to expand the car’s utility, sun and rain protectors, and small trailers.
Your license also enables you to sell and install interior electronic and smart devices, catering to the growing demand for advanced technologies within vehicles. You can offer your customers a variety of interior enhancements, from entertainment systems to navigation devices.
Furthermore, you can install accessories in public service vehicles, such as police cars, ambulances, and fire engines. This allows you to provide specialized services and cater to the unique requirements of these vehicles, ensuring they are equipped with the necessary accessories to fulfill their specific functions.
With this license, you can sell and install the accessories they deal in, enabling you to offer your customers a comprehensive range of services. This integrated approach enhances customer satisfaction and allows you to establish yourself as a reliable provider of high-quality automotive accessories in Dubai’s competitive market.
Inclusions
The Sale of Motor Vehicle Parts and Accessories license grants you permission for wholesale and retail sales of a wide range of automotive products. This includes various parts, components, supplies, tools, and accessories for motor vehicles.
With this license, you can retail rubber tires and inner tubes for tires. Additionally, you can offer retail sales of spark plugs, batteries, lighting equipment, and electrical parts. You can serve both individual customers and businesses within the automotive industry.
Exclusions
Your license explicitly excludes the retail sale of automotive fuel, which means you are not authorized to engage in the retail sale of fuel for motor vehicles and motorcycles. This limitation applies to the direct sale of fuel to customers for use in their vehicles. Furthermore, your license excludes the retail sale of lubricating and cooling products for motor vehicles. Thus, you cannot sell these specific products directly to customers for their vehicles’ maintenance or servicing needs.
4540.89 Motorcycles Spare Parts & Accessories Trading
Apply for your business license under Sale, Maintenance and Repair of Motorcycles and Related Parts and Accessories and choose the business activity Motorcycles Spare Parts & Accessories Trading with activity code 4540.89.
Inclusions
Under your trade license, you can participate in various activities related to selling, maintaining, and repairing motorcycles and their associated parts and accessories. This encompasses both wholesale and retail sales of motorcycles, including mopeds. You can provide a diverse range of motorcycles to meet the preferences and needs of your customers. Moreover, your license allows for the wholesale and retail trade of parts and accessories designed for motorcycles. This includes selling these items through commission agents and mail-order houses. Additionally, you are authorized to offer maintenance and repair services for motorcycles.
Exclusions
It is important to note that specific activities are explicitly excluded from your trade license. You are not permitted to engage in the wholesale trade of bicycles and their associated parts and accessories. This means that your license does not cover the wholesale of bicycles or their components. Similarly, the retail sale of bicycles and related parts and accessories is also excluded. Therefore, you are not authorized to sell bicycles or their components to customers directly. Furthermore, your trade license does not extend to motorcycle rental services. Renting out motorcycles is not permitted under this license. Additionally, the repair and maintenance of bicycles are also excluded. You are not authorized to offer bicycle repair and maintenance services under the scope of this trade license.
Third-Party Approvals
Engaging in the sale of motor vehicle parts and accessories in Dubai does not necessitate third-party approval from external authorities. However, it is essential to adhere to the general terms and conditions established by the Department of Economic Development (Commercial Compliance & Consumer Protection Sector).
General Terms and Conditions for Auto Spare Parts Trading by the Department of Economic Development (Commercial Compliance & Consumer Protection Sector)
- The policy of return, replacement, or repair shall be disclosed to the consumer in an appropriate manner.
- Any fake products or goods on the local market must be reported to the Department.
- 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 under a license or permit.
- A change or relocation of a licensed location requires approval from the Department.
- Obtaining the required permit is necessary for the installation of vehicle spare parts.
- Any additional spare parts or accessories that do not comply with environmental laws and regulations shall not be sold. The purchaser must be notified in writing or through a seal confirmation if such spare parts or accessories are exported.
- The consumer shall obtain an invoice for the purchased goods.
- No products carrying a fake trademark shall be sold.
- 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 taken into account.
- The commercial name mentioned in the license shall be similar to the name on the signboard.
- Purchasers shall be notified in writing or by seal if the spare parts are covered by a guarantee, including the items covered, terms of the guarantee, and reasons for voiding the guarantee.
- Do not place sales, discounts, or special offers without permission.
- Prices shall appear on goods and commodities.
- Practicing any activity after 12 am is prohibited without the appropriate permit.
- Registration of the trademark at the Ministry of Economy is necessary 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.
ESR and UBO
The business activity of selling motor vehicle parts and accessories is exempt from the requirements of Ultimate Beneficial Ownership (UBO) and Economic Substance Regulations (ESR). UBO pertains to individuals who ultimately own or control a legal entity, while ESR ensures companies engaging in specific activities have a substantial economic presence in the jurisdiction, typically through demonstrating adequate economic activity.
AML
Anti-Money Laundering (AML) regulations do not apply to selling motor vehicle parts and accessories. AML regulations primarily target financial institutions and businesses involved in financial transactions. Since Auto Accessories Trading in Dubai typically does not engage in these transactions, they are not subject to AML regulations, which aim to prevent illegal activities such as money laundering and terrorist financing.
