HomeFree Zone Company - Sharjah Publishing City Free Zone - Sale of Motor Vehicle Parts and Accessories

Article: 3678

Trading Company SetupSale of Motor Vehicle Parts and Accessories

Information verified with the provider on

Sharjah Publishing City Free Zone logo
JurisdictionSharjah Publishing City Free Zone
Service
Short description

This company can engage in the sale of motor vehicle parts and accessories, encompassing both wholesale and retail sales of all types of parts, components, supplies, tools, and accessories for motor vehicles, items such as rubber tires and inner tubes, spark plugs, batteries, lighting equipment, and electrical parts. The activity can also include to the trading of batteries for trucks, equipment, and machinery, trading of car accessories and additional parts, trading of vehicle numbers, as well as trading in auto spare parts and components including used auto spare parts and requisites.

About the company's activities
Types of activities

The following group of business activity has been selected for the SPCFZ company setup: 

Sale of motor vehicle parts and accessories (Group 453):

  • 4530.00 - Sale of motor vehicle parts and accessories;
  • 4530.01 - Wholesale and retail sale of all kinds of parts, components, supplies, tools and accessories for motor vehicles, such as:
    • Rubber tires and inner tubes for tires;
    • Spark plugs, batteries, lighting equipment and electrical parts. 
  • 4530.02 - Trucks, Equipment and Machinery Batteries Trading;
  • 4530.03 - Cars Accessories Trading;
  • 4530.04 - Cars Additional Parts Trading; 
  • 4530.05 - Vehicles Numbers Trading; 
  • 4530.06 - Auto Spare Parts & components Trading;
  • 4530.07 - Used Auto Spare Parts & Requisites Trading.

The company can engage in up to five business activities under one license without additional fees.

Business Activities

The following group of business activity has been selected for the SPCFZ company setup: 

Sale of motor vehicle parts and accessories (Group 453):

  • 4530.00 - Sale of motor vehicle parts and accessories;
  • 4530.01 - Wholesale and retail sale of all kinds of parts, components, supplies, tools and accessories for motor vehicles, such as:
    • Rubber tires and inner tubes for tires;
    • Spark plugs, batteries, lighting equipment and electrical parts. 
  • 4530.02 - Trucks, Equipment and Machinery Batteries Trading;
  • 4530.03 - Cars Accessories Trading;
  • 4530.04 - Cars Additional Parts Trading; 
  • 4530.05 - Vehicles Numbers Trading; 
  • 4530.06 - Auto Spare Parts & components Trading;
  • 4530.07 - Used Auto Spare Parts & Requisites Trading.

The company can engage in up to five business activities under one license without additional fees.

Additional External Regulator Approvals

No additional approvals are required to register a company conducting this business activity.

Share Capital Requirements

The minimum share capital required for SPC company is AED 50,000. Its contribution is optional.  If the share capital exceeds 5,000,000.00 AED, its contribution becomes mandatory.

Company Name Requirements
  • Must not be identical or similar to local/global brands or registered trademarks
  • Must not contain the names of local/international religious, political or governmental organizations
  • Must not contain the names of Allah or God, or any other religious terminology
  • Must not contain geographical names, such as the names of emirates, cities, countries and other landmarks
  • Must not infringe any third party's intellectual property rights
  • Must not violate the UAE laws or contain words that are obscene, indecent or generally offensive
  • Must correspond to the company’s business activities
Bank Account

Entrepreneurs are provided with the opportunity to open a corporate account in classic banks with physical branches, as well as in digital banks and in payment systems.

When choosing a bank to open a corporate account, factors such as the level of service, fees, available currencies, convenience of online banking, the reputation of the bank and other conditions that may be important for business should be taken into account.

Successful corporate bank account opening requires a well-prepared document package, which may vary depending on the specific requirements of a particular bank. Incorrectly or incompletely submitted documents may negatively affect the final decision of the bank in processing the application for opening a corporate bank account.

About Jurisdiction
Name and Description
  • Title: Sharjah Publishing City Free Zone
  • Description:

    SPCFZ (Sharjah Publishing City Free Zone) is a free economic zone (free zone) established in 2017 in the Emirate of Sharjah, UAE. It is the world’s first free zone fully dedicated to the publishing industry.

    SPCFZ offers a unique ecosystem for publishers, writers, and creative professionals, providing ideal conditions for the implementation of cultural and creative projects. With advanced technologies and infrastructure, the free zone attracts talent and companies looking to develop projects in the fields of culture, media, and the arts. Companies registered in SPCFZ are permitted to conduct business within the free zone and beyond the UAE.

    SPCFZ issues the following types of business licenses:

    • Standard (wholesale and retail trade, services, manufacturing)
    • E-commerce
    • Publishing
    • E-Publishing.

    With a simplified registration process, flexible business conditions, and reduced operating costs, SPCFZ enables entrepreneurs to successfully enter both local and international markets, while effectively expanding their operations.

Advantages

The SPCFZ company registration provides various benefits and opportunities for entrepreneurs:

  • Access to local and global markets. Companies registered in the free zone can conduct business within the free zone and beyond the UAE. This helps to expand business, create and strengthen partnerships and and enables interaction with clients and partners worldwide.
  • Strategic location. The free zone is situated in Sharjah, the cultural capital of the UAE, in close proximity to both Dubai and Sharjah airports, as well as the Khalid and Hamriyah ports. This provides easy access to key markets in the Middle East, Africa, and South Asia, positioning the free zone as a vital logistics and trade hub.
  • Remote company registration. The free zone enables entrepreneurs to establish their business remotely, without the need for physical presence in the UAE, providing convenient access to the registration process from anywhere in the world.
  • Full profit control. The free zone enables foreign entrepreneurs to retain 100% ownership of their company, granting full control over profits and unrestricted capital repatriation outside the UAE. This fosters an optimal environment for strategic financial planning and efficient business management, free from limitations on economic activities.
  • Wide range of business activities. The free zone offers licenses for more than 2,000 types of businesses, enabling entrepreneurs to develop projects across various industries, including publishing, media, e-commerce, trade, services, and manufacturing.
  • Combining business activities. The free zone allows the combination of various business activities under a single license, reducing operational costs and expanding the range of services and products offered to clients.
  • Ecosystem for publishers. The free zone has established the Publishers Hub — a unique environment that helps publishers optimize printing processes and expand their presence in international markets. This makes the free zone an ideal choice for companies operating in publishing, media, and digital content.
Offices/Premises

Various rental property options are available within SPC, provided upon preliminary request depending on availability:

Office Solutions:

  • Coworking (cost included in the license fee): a workspace in a coworking area that can be accessed for up to 4 hours per month during business hours. The number of hours can be increased to 10, 20, or 40 for an additional fee of 1000, 2000, and 3000 AED, respectively.
  • Office Space "Furnished Office" (AED 900 per sq.m./year): an office space ranging from 20 to 30 m² with unlimited 24/7 access. A refundable deposit for the selected type of space is required when submitting the application for company registration.
  • Office Space "Furnished Office" (AED 750 per sq.m./year): an office space ranging from 20 to 30 m² with unlimited 24/7 access. A refundable deposit for the selected type of space is required when submitting the application for company registration.

Business Properties:

  • Storages (AED 480 per sq.m./year): warehouse spaces within SPC. A refundable deposit for the selected type of space is required when submitting the application for company registration.
  • Shell / Core Spaces (AED 550 per sq.m./year): unfinished spaces within SPC. A refundable deposit for the selected type of space is required when submitting the application for company registration.
Tax Regime and Profit Management

The UAE imposes a variety of taxes and fees that regulate the financial activities of both legal entities and individuals. Below are the main ones:

  1. Value Added Tax (VAT):
    • Since January 1, 2018, the UAE has implemented a VAT rate of 5%, which applies to most goods and services and is charged to companies operating within the country, except for those registered in designated zones.
    • A Designated Zone is a territory within a free zone that is treated as outside the UAE for tax purposes, allowing goods to be exempt from taxation, provided certain criteria are met. The main taxation rules in Designated Zones are:
      • Designated Zones are listed in the Cabinet Decision to Federal Decree-Law No. (8) of 2017 on Value Added Tax (VAT).
      • Goods tranferred between or within Designated Zones are not subject to VAT.
      • The export and import of goods between a Designated Zone and a foreign company are also VAT-exempt.
    • For local companies and those registered in Non-Designated Zones (free zones not included in the Designated Zones list), the standard tax rules set forth in the Federal Decree-Law on VAT apply.
      • Companies with an annual turnover exceeding AED 375,000 are required to register with the Federal Tax Authority (FTA) as VAT taxpayers.
      • Companies with a turnover between AED 187,500 and AED 375,000 may register on a voluntary basis.
      • Companies can offset VAT paid on purchases of goods and services (input VAT) against the VAT they collect on sales (output VAT), shifting the tax burden to the final consumer.
      • Some goods and services may be exempt from VAT or taxed at a 0% rate, such as international transportation, educational, and medical services.
  2. Corporate Tax:
    • As of June 1, 2023, the UAE has introduced a corporate tax at a rate of 9%, levied on the taxable net profit of companies with income exceeding AED 375,000.
    • A 0% rate is applied to taxable income not exceeding AED 375,000.
    • Charitable, non-profit organizations and medical institutions are fully exempt from corporate tax.
  3. Excise Tax:
    • Since October 1, 2017, the UAE has introduced an excise tax aimed at reducing the consumption of harmful products and funding healthcare initiatives.
    • The tax applies to alcohol, tobacco products, and beverages containing added sugar, including energy and carbonated beverages.
    • Excise tax rates vary by product category:
      • 50% on carbonated drinks (excluding mineral water)
      • 100% on tobacco products
      • 100% on energy drinks
      • 100% on electronic smoking devices and related liquids
      • 50% on products containing added sugar or sweeteners.
    • Companies dealing with excise goods must register with the Federal Tax Authority (FTA), submit monthly declarations, and maintain records. Excise tax is paid upon the import, production, or release of goods for consumption in the UAE.
  4. Customs Duties:
    • Custom duties in the UAE are applied to most imported goods at a standard rate of 5% of the cost, insurance, and freight (CIF). Some product categories, such as pharmaceuticals and food items, may be exempt from duties or subject to reduced rates.
    • Goods imported into the UAE's free zones are generally not subject to customs duties as long as they remain within these zones. However, once such goods are moved to the UAE mainland, standard duties apply.
  5. Personal Income Tax:
    • In the UAE, personal income is not subject to taxation.
    • UAE citizens and residents are exempt from paying taxes on their personal income, including salaries, interest, dividends, inheritances, gifts, luxury goods, and capital gains.
  6. Other Local Taxes and Fees:
    • Individual emirates may impose specific local taxes and fees in line with their economic and social needs.
    • These taxes and fees are aimed at supporting public services and implementing infrastructure projects.
Resident Visas

SPCFZ offers the following main types of UAE resident visas for foreign investors and company employees:

  • Investor Visa:
    • Issued to foreign investors and entrepreneurs who invest in or acquire companies.
    • Allows for business management, living, and working in the UAE.
    • Grants the right to sponsor family visas.
    • Valid for two years but can be canceled if the investor is absent from the UAE for more than six months.
  • Employment Visa:
    • Issued by the company for its foreign employees.
    • Permits residency and employment in the UAE.
    • Depending on the job position, education and specialization may need to be verified.
    • Valid for two years but can be canceled if the employee is absent from the UAE for more than six months.
    • Can be renewed alongside the employment contract.
  • Dependent Visa (for family members and domestic staff):
    • Issued to the sponsor's family members and accompanying domestic staff (nannies, housekeepers, caregivers, etc.).
    • Permits residency in the UAE.
    • Valid for two years.
  • Student Visa:
    • Issued to foreign students enrolled in universities and colleges registered with the freezone.
    • Allows for living and studying in the UAE.
    • Valid for the duration of the study period.

Order service directly at SPC

Total:

Order the support of an authorized platform partner

Plan:
Standard
Premium
Total:

Order services directly through SPC

With the assistance of our platform manager, who will provide you with service instructions, arrange meetings with SPC representatives, and assist in coordination

  • Direct access without intermediaries
  • No additional fees
  • No commissions

Choose our "Standard" plan

Receive expert guidance from an authorized consultant who will manage the entire process of obtaining SPC services

  • Time-saving
  • Predictable outcomes
  • Personal expert assistance
  • Business-class transportation to service locations
  • Minimal involvement required

Opt for our "Premium" plan for top-tier expert guidance

An elite consultant will oversee the process of obtaining SPC services, ensuring a seamless experience

  • VIP airport reception in Dubai for one person
  • Premium-class airport-hotel-airport transfers
  • Expedited VIP procedures
  • Guaranteed results
  • Personal expert available 24/7
  • Premium-class transportation to service locations
  • Minimal involvement required
UPPERSETUP Logo

Online platform for business registration in the UAE

Phone:

+971 52 184 1181
Company registrationBecome a PartnerResourcesAboutContacts
© 2024 UPPERSETUP Technology Ltd. All content on this site is protected by copyright
Send WhatsApp message