How to start automobile business in UAE

How to start automobile business in UAE

Posted by | August 14, 2018 | Uncategorized
How to start automobile business in UAE



How to start automobile business in UAE

UAE is the second largest automotive market (including cars, parts and accessories, trailers and semi-trailers, trucks, public transport vehicles, tractors, other) in the GCC after Saudi Arabia. UAE relies heavily on imports with virtually the entire supply of cars and light vehicles being imported. Therefore it is lucrative to start automobile business in UAE.

The strong domestic demand for automotive products is illustrated by the seventy five percent of the UAE’s online consumers who plan to buy a new or used car in the next two years.

More and more foreign entrepreneurs and investors pay their attention to the United Arab Emirates as to the reliable platform for building both local and international business. Today, the UAE provides ideal conditions for business development in the various market segments, whether it is the re-export of vehicles and spare parts, manufacturing, selling or servicing. Moreover, the highly specialized zones with a special economic status operate on the territory of the United Arab Emirates. To start automobile business in the UAE in the specialized economic zones where the most favorable conditions were created for foreign investors.

Process-How to start  Automobile Business in UAE

1.Know your market. Research on your local market to ensure that you are not wading into an overly-competitive market with many well-established automobile businesses.

  • Do an internet search, look in the local phone book, and pay close attention to advertisements on local television to identify similar businesses in your area.
  • Account for the size and population of your city and compare that to the geographic location of existing automobile businesses.
  1. Develop a business and marketing plan.Your business plan should list information about exactly how you are going to run the business, any specialty areas, how you will open and maintain your business, where you will get your car parts, and how you will price them to earn a profit. Your marketing plan should contain information about your target audience and local competition as well as how you intend to draw in your target audience.
  • Your specialty areas may be in imports, exports, motors, or bodywork. Do some research to determine what area can work for your business.
  • A automobile business can be particularly lucrative if you provide rare or hard to find parts for more obscure vehicles.
  • In your business plan, be sure to account for all costs and expenditures related to the business, project realistic sales goals, design a plan to reach new customers, identify potential demographic segments of the community who will utilize your services, and plan for the growth potential of your business. Be sure outline where and how you expect to generate the necessary capital to get your business off the ground and to ensure that you can expand when needed.


  1. Obtain the necessary paperwork.Make sure you acquire all the required licensing, permits, and insurance to run a automobile business in your area. Pay attention to zoning regulations as well as state and federal guidelines.

Most states require a license for automobile businesses that buy, restore, recycle, and resell.

4.Find a suitable location.
 Find a location for your automobile business. As long as you have quality marketing and advertising strategies, you don’t necessarily need a location that is easy for people to find. People may come looking for you because of the service you provide is so particular.

  • You will need a location that is big enough to house and properly catalog a variety of parts for all the makes and models of cars you cater to.
  • Hire employees. If you are looking to open a automobile business, chances are that you have at least rudimentary knowledge about cars and how they work. However, you will likely need a licensed mechanic in your business to help refurbish old parts and identify parts that have potential resale value. Posting an add in local newspapers or on job search websites can help you find potential candidates for employment.
  1. Identify supply sources.The more you have on hand, the better. In the beginning, it may be hard to invest in the right parts. Start small, and seek parts you know people are looking for. You can also invest money in parts you know are necessary and are expensive when purchased brand-new. This way, people will more often seek out the used parts you have.
  • Identifying the parts you need and where to find them depends largely on your business plan. Your business may choose to focus on providing parts for rare vehicles not in production anymore, as these will be in high demand among a small segment of the population. Alternatively, you may choose to specialize in providing parts for very common vehicles in an effort to expand your potential sales base.
  • Try finding these parts in junkyards, from cars sold at salvage auctions, or contact insurance agencies to try to purchase “scrapped” cars from them at a discounted price.
  • As a automobile business owner, you will need to educate yourself on the mechanics of how a car operates in order to find the right parts. Also, be prepared to test the parts you find to know if they are still operational or can be refurbished to become operational again.

 Benefits to start an automobile business in free zone

Dubai free trade zone in is a modern trading platform, which provides foreign business with the preferential conditions for carrying on business in the UAE. The main purpose of this economic zone is the development of the national car-manufacturing sector and support of the automobile business. This is the ideal international platform for business associated with trade in motor vehicles, components and spare parts. Thousands of companies from all over the world are registered on the territory of the Dubai Cars & Automotive Zone free trade zone, and each of them has great prospects for the development and additional corporate possibilities.

The Government of the Emirate of Dubai, when initiating such projects, actively encourages the development of the national automobile sector and attracts large investments into the economy. Whereas earlier the Dubai Cars & Automotive Zone free trade zone served mainly for the re-export of cars to the regional markets, today it is a platform that is favorable in all aspects, and which provides an access to the local market of the Emirates. A well-developed logistics and major international transport hubs of the UAE serve as the great addition for organizing business entities.

The Abu Dhabi’s Government initiative to develop ‘The Auto City’ in the Mussafah area will create a cluster of advanced workshops and service centers, attracting investment in  to start automobile business and spare part logistics. In terms of remanufactured parts, local government bodies have been showing increased commitment to greener technologies with commercial vehicles remanufactured parts finding growing acceptance in the country. businesses usually


Success of Automobile business in Free Trade Zones

This economic zone is combined in its structure. There is also a possibility of entering new international markets, and an access to the local market of the UAE. The most favorable conditions, including the appropriate infrastructure and tools, were created here in order to facilitate entering an international market. Partners and clients of the economic zone are provided with the unlimited storage facilities, tried and tested international logistics and the possibility of closing business contracts with the leading players of the automotive business.

A competent policy of the UAE and in particular the customs agreements with the neighboring countries provide foreign business with a preferential access to the regional markets. The costs for international logistics, owing to the broad dealer network of companies registered on the territory of the free zone, are significantly reduced, and there emerges an opportunity to optimize many business processes.

A well-established urban and social infrastructure, office and retail space and storage facilities with the appropriate equipment are available at the investors’ services. The innovative software products, which provide efficient monitoring of the market, and possibilities for cataloging and tracking the available products will be offered for you. All the corporate benefits and opportunities are available regardless the type of a company, whether these are major international holding formations or representatives of small and medium-sized business.

Reach Online VAT Accounting Software for Automobile business in UAE

Reach Online VAT Accounting Software   includes products that assist in the operations of automobile Business. These products can assist with both front and back office tasks, and  provide tools for inventory; cost calculation, financing, and authorization—for both cars and customers (e.g. credit reports, accident history, etc.).Reach Software  also offers features for preparing and storing warranty information, sales contracts, tracking auto repairs, appraisals, and recurring e-payments.

Top Features of the Reach Online VAT Accounting Software for Automobiles Business in UAE. 

  • Digital Agreements: Create Agreements on the Tab and get it signed digitally from your customer. Save agreements on the Cloud and helps the customer with supe fast documentation.
  • Inventory Management: Easily Manage Your Inventory With Help of Reach Online VAT Accounting Software :
    • Update vehicle inventory records for sold and trade-in vehicle.
    • Record trade-in unit on stock card or add vehicle to inventory system.
    • Record cost of sold unit on stock card or in inventory systems.
    • Add needed reconditioning estimates to stock card or inventory system as applicable.

Probably the most important aspect for the automobile business is good inventory  control. Know your market — Analyze your sales trends and compare them to vehicles in your inventory. The unit sells well in your market; and Your sales people can sell the unit profitably after reconditioning costs. Reach online Accounting Software enables to keep a track on the process till final sale is done.

  • Online Sales : Increase online sales and generate more leads via the internet with Reach web based Reach has developed a low cost solution for used car dealers. It has many of the great features and has the capability to import and export from just about any medium. In addition to importing and exporting from car portals the dealer has the option to manually add cars via the ecommerce website which is easily integrated to Reach Online VAT Accounting Software . The online software also comes with a premium image uploader. Dealers can also choose to export their data to other online portals.
  • Accounting Management: All functions relating to accounts are inbuilt with the software. You can manage your Accounting Ledgers, Bank & Cash Operations, Purchase & Sales Estimates, Warehouse Allocations, Expense Recording, Expense Grouping, Payments – Part or Full, Journal Entries, Income and loss a/c, Balance sheets, Receipts – Part or Full, Contra Entries, Financial Reports, Day book.
  • Tax Management: Our accounting Software automatically calculates the taxes relevant for every bill created. The Software is designed as per the government norms for calculation of VAT. It also has the option to add any number of taxes relevant to the business. In case of change in tax percentages a change it in the software on your own. All you have to do is add your tax percentage and our software will calculate the taxes automatically. This multiple tax scheme can also be applied to multiple products on a single purchase.
  • Income Management: The Company can create Quotations then the same can be converted as a Sales order or Pro-forma invoice or Invoice. From Invoice you can create Receipts as well. Accountants will be able to know what payments have been received and what are pending in the reports. You can also set reminders for receiving payments.
  • Expense Management: You can create Purchase Orders then the same can be converted as bill or payments. You can also create Debit notes for purchase returns. Accountants will be able to know which purchase bills have been paid and which are pending in the reports. You can also set reminders for making payments.
  • Invoicing: Generates VAT compliant invoice of the company in the specified design as requested by the client or can choose from the available templates in the software. It also converts quotes to invoice .One of the features is the software can convert the Foreign currency invoices to base currency and further calculating the VAT at UAE standard rate.

·         Business Automation: Leads from all sources,Leads extractions via mail server,Converting leads to appointments,Quotes,Converting quotes to Invoices,Email-SMS update,Delivery status update,Work pending strategye.

  • Business Intelligence Dashboard: The software has a feature of providing you key statistics of the business at any given point of time.The dashboard displays work status, profit and loss, expenses graphically.It also features  best Selling Executive, Highest Selling product, Largest value customer for the month. Every night the client gets a SMS summing up the entire sales , expenses ,case production ,and stock value for the day.

·         Print Tax Invoice In Arabic: Reach software lets you print invoices in Arabic, English or both, as per the mandated guidelines of GAZT and FTA.

  • Auditor View: Full-fledged Financial reports, Tax reports VAT reports, read process by auditor, with e-filing options, PF & ESI Reports, Tax Consulting Modules are some to be named.
  • Check Post for VAT returns: As the software has been designed exclusively to aid individuals and entities to be VAT compliant in UAE, the set of rules and regulation laid by FTA (Federal Tax Authority) of UAE are embedded in the software. Hence any process error will be popped up by the application can be viewed .For instance wrong Tax Registration Number, incorrect taxable figure, wrong taxation period.
  • Automatic Update on Tax legal Sections: As the Reach software are cloud computed software gets upgraded to update any revised tax laws and section if any in future.
  • Computation Of VAT Returns: The software is inbuilt with all the detailed crucial information  on tax computation Tax Assesee can  fetch all the details of all the taxable transactions It lists down transactions which are included and excluded in the VAT return  calculate input tax, reverse charge and output tax to avail claim if any 
  • Filing Of VAT Returns: The registered businesses in UAE are required to generate the VAT return File from their accounting software, login to the FTA’s e-tax portal and upload the return file. On the basis of the uploaded return file, the e-tax portal will validate the file and accordingly the details from the file will be auto-populated in the online return form. Reach VAT software is designed to ease the process of filing returns and comes under the purview of FTA prescribed set of rules and regulations.
  • * VAT Reports etc.
  • Calculate VAT automatically.
  • VAT support in Sales, Purchase, Sales and Purchase returns, Journal entries.
  • Generate Federal Tax Authority compatible tax reports.
  • VAT Paid (charged by suppliers) and Vat Collection (Charged to customers) Analysis.
  • Transaction wise details of VAT paid and VAT collected.
  • Attach every Vendors/Customers VAT number and other details.
  • VAT supported for Goods (stocked) and Service (non-stocked) items.
  • Online application accounting.
  • VAT Account Reconciliation, VAT Collection & VAT Paid analysis report.
  • Report export to excel and other standard formats.
  • VAT returns statement compatible with Federal Tax Authority standards.

Online accounting VAT software enables you to file vat returns, manage accounts and other business operations from any geographical area be it at the comfort of the house.

  • Receipt: Receipts can either be manually entered or imported it in excel format easily.
  • Payments: Payments can either be manually entered or imported it in excel format easily.
  • Multi Company: Manage business through comfort of the smart phone.
  • Tally Import: Tally files can be easily imported to Reach Software of various periods and manage business easily.
  • Auditor’s Report: Full Financial Report are available,Read process by Auditor,Tax Reports,VAT Report with e-filing options,PF & ESI Reports,Tax Consulting Modules are some featuress mentioned.
  • Mobile Application: Access business information through tabs and android smart phones, pick photos of expense vouchers and attach to expenses, daily profitability and other key reports can be viewed on phone.
  • Bank Synchronization: Bank Statements can be imported in to Reach software through excel files.
  • Security: There is complete security of data stored in the hard disk. Data can be accessed and control by creating access restriction. One time password facilities also ensures a check in the log in to the website. 
  • Run Business from anywhere: The business can be run access data from anywhere at your comfort. Just like checking mails from the laptop or systems.
  • Free and Automatic Upgrades: At Reach Accountant you will be provided free services of upgrading the software frequently with new features and use it absolutely free. 
  • No investment in expensive hardware: The software is browser based. It just requires internet connection which can be connected to multi computers without using LAN and servers. 
  • API: The client can integrate the existing software with Reach accounting application , 
  • Automatic Data Backup: Reach stores all the data in servers offsite with regular backups. Hence business information is safe and secure

·         User Interface & Complexity:The software is designed to make its use friendly and easy,no cumbersome process to operate the application and software.

  • Scalability:It is an VAT accounting software which can scale with your business needs. . Some software companies offer only one version of the product and some have progressive versions depending the business type or size. Reach Accounting software offers both integrated an entry level version as well as a feature rich version which you might not need for the current business processing but will definitely need in future for business development.


Reach accountant proves to be your best companion to resolve and   tackle all business issue pertaining to financial reports, auditing ,reformation of business structure in lines with new taxation regime and for business success and growth.







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