How to start a tyre trading business in Dubai, UAE
Dubai’s location at the crossroads of the world’s largest and fastest growing markets has made it a prime trading location for years. But beyond the attention-grabbing trade in pearls, gold, and jewels are many more just as rewarding.
One such trade that is unlikely to be the first industry that comes to mind when you think of our emirate is tyre trading. And it’s big business.
Dubai is one of the major players in the tyre trading market with an industry worth an estimated USD 1.5bn. Every year, the emirate imports hundreds of millions worth of tyres from China, Japan and India. Most are subsequently exported to countries within the region, such as Iran and Iraq.
For those with the skills and expertise, there is a rich trade to be done. And, when you start your tyre trading business with Business Incorporation Zone (BIZ), you could be trading in a matter of days.
What are the benefits of starting a tyre trading company in Dubai?
Aside from the benefits mentioned above, such as a strategic location, great market links, and growing demand, there are many more reasons to do business in Dubai.
The emirate’s tax rate remains at 0% for both corporate and personal income, with VAT at a flat 5%. Then there’s the easy incorporation process, low barriers to entry, and incredibly welcoming business environment.
Steps to start a tyre trading company in Dubai
While it is not a particularly laborious process, there is a little admin to take care of before applying for a trade license in Dubai. For this reason, it’s best to work with a local expert such as BIZ at this stage. We can make sure all your documents are accurate and in order before embarking on your application.
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.
BIZ can check that your chosen name is available before registering it for you.
With this decision made, you can apply for a tyre trading license. This application should be made to the Dubai Department of Economic Development (DED) or equivalent Municipality if you wish to set up elsewhere in the emirates.
What documents are required to get a tyre trading license in Dubai?
When making your application for a tyre trading license, you will 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 need a visa to run a tyre trading business in Dubai?
If you’re planning to reside and work in the UAE, then 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, BIZ can help you with this process.
What is the cost of a tyre trading license in Dubai?
A tyre trading license usually costs between AED 10,000 and AED 15,000. But this can increase significantly depending on the size and requirements of your business.
As well as the cost of your license, you will also need to account for premises and equipment. If you intend to import and export tyres, you will also need to consider customs taxes.
For a full breakdown of all costs involved in starting a tyre trading business in Dubai, get in touch with BIZ.
Are you ready to start your tyre trading business in Dubai?
Hopefully, this guide has made clear that if you’re armed with the right knowledge, setting up a tyre 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 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, BIZ 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 visa 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.