How to Setup Auto Repairing Garage in Dubai, UAE: Step-by-Step Guide to Get a License

The high-end lifestyle and luxury car culture of the city of skyscrapers has created a wealth of opportunities for a garage business in Dubai. Owning an exotic car in the emirate is taken as a symbol of opulence that presents a lucrative opportunity for skilled mechanics to start their automotive journey in UAE’s most populated emirate. 

You’ve landed at the right place; you wish to setup auto repairing garage in Dubai, UAE and enter the growing automotive industry. This blog will feature the benefits and a step-by-step guide to starting an auto garage business in the Emirates’ business hub. 

Why Setup Auto Repairing Garage in Dubai, UAE?

The city of skyscrapers has the reputation of being the emirate in the UAE with the most flourishing automotive scene. The constant increase in the car-loving population is evident by the multitude of luxury vehicles crowding the city’s roads and the elevation in the car ownership rate. This has resulted in high demand for auto garage shops offering consistent top-notch automotive services. 

Additionally, the city with its iconic landmarks, attractive destinations, and world-class recreational sites attracts a large influx of visitors throughout the year, further opening more opportunities for a garage business in Dubai. The government of the UAE has included the adoption of electric and hybrid vehicles under its sustainability vision of the 2040 master plan. 

Services Offered by an Automobile Repair Service Company:

From special services to auto cars and motorbikes to tailored services to heavy-duty vehicles like trucks, a garage business in Dubai is presented with plenty of choices. An automobile repair service company in the city offers an extensive array of services, including:

• The services of routine maintenance and repairs of specialized parts of cars, motorbikes, trucks, and other heavy-duty vehicles. 
• From oil changing and fuel pump placement to engine diagnosis, engine tune-ups, oil leakage repair, and many other services related to vehicle engines are offered by garage businesses in the city. 
• Tire replacements, tire fittings, transmission fluid changes, transmission filter repairs, brake repairs, suspension repairs, and many other repairing services can be accessed from an automobile repair service company.
• Auto body services, including paintwork repairs, paintless dent repair, auto glass replacement, auto radiator, and electric maintenance and services, are also provided by automobile repair service companies in the city. 

Benefits of Establishing a Garage Business in Dubai:

Setting up a garage business in Dubai can be a promising and lucrative investment option for business owners and investors with the following potential benefits:

• High Demand: The car ownership rate in Dubai is 541 cars per 1000 people, which is higher than some of the world’s expensive cities like New York, London, and Singapore. This further guarantees the need for reliable and superior repair services.

• Lucrative Market: A growing car-loving population and the reputation of the city as a luxury car hub promise a consistent demand for high-end automobile services. This demand presents a lucrative market for businesses offering services for luxury car brands. 

• Government Support: Through various initiatives and programs, the government of Dubai consistently supports entrepreneurship and foreign investment in the emirate.

• Strategic Location: Due to Dubai’s favorable position and top-notch transportation facilities, superior connectivity to prominent international and national markets is possible. This makes purchasing and shipping of automobile supplies and spare parts possible at competitive prices.

• Skilled Workforce: Extensive visa options and friendly policies set by visa authorities have increased the influx of skilled mechanics, technicians, and automotive professionals in the city, which facilitates easy access to the skilled workforce and the offering of high-end automotive services.

• Tourism Potential: Millions of tourists from all over the globe visit the glamorous city of skyscrapers for a variety of purposes, including business, leisure, family visits, etc. The flourishing tourism sector also promises a successful venture of a garage business in Dubai, as visitors might require access to automobile maintenance and repair services during their visits.

• Strong Regulatory Framework: With a clear and business-friendly framework, Dubai guarantees equitable competition and transparency. 

Steps to Setup Auto Repairing Garage in Dubai, UAE:

1. Partner with Future Dream, Dubai: 

Partner with UAE’s leading business setup consultant, Future Dream, to ensure a successful venture of auto repair garage business in the city. Our experienced team of business setup specialists will guide and assist you in handling this complex process easily without any hassle.

2. Choose an Appropriate Business Activity:

Selection of the right business activity is crucial for a successful venture of a business setup in Dubai. Experts at Dubai’s top-rated business setup company will provide valuable insights into the current market trends of the city. This will greatly assist you in choosing the most practical and appropriate business activity for your garage business in Dubai.

3. Choosing the Right Jurisdiction in Dubai:

Three jurisdiction options are presented before global investors and business owners in the Emirates to set up auto-repairing garage businesses in Dubai, UAE, which are free zone, offshore, and mainland. With a distinctive legislative framework, each jurisdiction caters to different business needs with unique benefits. Select the jurisdiction that fulfills your business requirements and is most compatible with your chosen business activity.

4. Finalize Your Business’ Legal Structure:

Depending upon the selection of a legal structure for a business, the responsibilities and obligations of the business are set. Only after the selection of a legal structure can you apply for a Garage license Dubai. LLC, sole proprietorship, partnership, free zone company, branch office, foreign company, and others are the legal structure choices presented to businesses in Dubai.

5. Business Activity and Company Name Approval:

In the next step, you need to apply for approval of the chosen business activity and company name to the DED. Only after obtaining approvals from the department, you can proceed with the next step of the setup process of the garage business in Dubai. 

6. Company Registration:

Company registration is the first proceeding step towards obtaining a garage license Dubai. This step involves applying for and obtaining all the approvals requested by the Department of Economic Department from the relevant authorities. The required documents and approvals for each business activity vary, and the paperwork for the trade license progresses with each approval stage. 

7. Locate an Emirati Agent:

Depending on the type of business structure chosen, you may or may not require an Emirati partner or agent. However, finding a reliable local partner can be an overwhelming task. Business setup experts at Future Dream with strong connections with reliable businesses in Dubai’s booming industry can help you locate and partner with a trustworthy agent. 

8. Obtain External Approvals and MOA:

You might have to obtain external approvals from other government or private authorities based on your chosen business activity and as requested by DED. Additionally, you need to prepare a MOA, which is a crucial step as it reflects your business compliance with the UAE’s government regulations. You need to seek guidance from a business setup expert for MOA preparation. 

9. Lease or Rent a Space for Garage Business:

Rent or lease a space for your garage business after understanding your business requirements. Also, you must understand that the space rented or leased for the business determines the number of visas you can request from DED for your workforce and shareholders.

10. Ejari Registration:

To ensure fairness and transparency between the two parties involved in the tenancy contract, RERA has introduced the concept of Ejari registration. This registration serves as the legal proof of the tenancy and states the duration, rent amount, responsibilities, and rights of the involved parties. 

11. Initial Approval from DED: 

One last crucial step before obtaining your business license is obtaining initial approval from DED, which states the Emirates government supports and has no objection to your business establishment in the country.

11. Collect Your Business’ License:

Apply for a business license by submitting the required documents, including the MOA, necessary approvals, a certificate for company name registration, an Ejari registration certificate, and others. In the next few working days, you’ll receive your business license if the documentation process is correct.

12. Open a Corporate Bank Account:

The final step in starting a garage business in Dubai is opening a corporate bank account under your company name. This not only assists you manage your business finances more easily but will be very beneficial for improving the credibility and brand image of your business among clients and shareholders.

Start Auto Garage Business with Future Dream, Dubai:

Connect with Future Dream and take the first step towards a successful venture of an automobile repair garage in Dubai. The city’s rapid economic growth has resulted in a culture of luxury where exotic cars have become a way of life. This change has paved the way for business owners who wish to start their auto garage or auto shop in the Emirates’ commercial hub. 

Seeking guidance from an expert business setup company can greatly benefit you with various stages of the setup process, including documentation, license selection, activity selection, and calculating auto shop start-up costs. Being the leading business setup consultancy in the Emirates, we have been a trusted partner of many successful businesses thriving well in Dubai’s booming commercial industry. 

With our team of experienced and knowledgeable business setup specialists, we guarantee complete assistance for the establishment of an auto garage business in the city. Also, our affordable business setup packages include the service of the best business setup cost calculator that, after determining your business model, generates the most accurate estimated cost for your business setup.