Article: 3678
Trading Company SetupSale of Motor Vehicle Parts and Accessories
Information verified with the provider on 13.03.2025
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.
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.
No additional approvals are required to register a company conducting this business activity.
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.
- Must correspond to the company’s business activities
- Must not be identical or similar to local/global brands or registered trademarks
- Must not contain geographical names, such as the names of emirates, cities, countries and other landmarks
- Must not contain the names of Allah or God, or any other religious terminology
- Must not contain the names of local/international religious, political or governmental organizations
- 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
Entrepreneurs can open corporate accounts in traditional banks with physical branches, as well as in digital banks and payment systems.
When choosing a bank to open a corporate account, consider the following: service level, fees, available currencies, online banking performance, bank reputation, as well as other conditions that may be important for your business.
Successfully opening a corporate bank account requires a well-prepared documentation package, which may vary depending on the specific requirements of each bank. Documents submitted incorrectly or incompletely may negatively affect the bank's final decision in processing the application.
- 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.
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.
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.
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:
- 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.
- 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.
- 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.
- 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.
- 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.
- 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.
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.
The UAE has several taxes and fees that regulate the financial activities of both legal entities and individuals. Below are the main ones.
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.
-
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 as follows:
-
The Designated Zones are listed in the Cabinet Decision to Federal Decree-Law No. (8) of 2017 on Value Added Tax (VAT).
-
Goods moved between or within Designated Zones are not subject to tax.
-
The export and import of goods between a Designated Zone and a foreign company are also not subject to tax.
-
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.
-
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.
-
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 drinks and carbonated beverages.Excise tax rates vary depending on the product category:
-
50% on carbonated drinks (excluding mineral water)
-
100% on tobacco products
-
100% on energy drinks
-
100% on electronic smoking devices and liquids used for them
-
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.
-
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). Exceptions include certain categories of goods, such as medicines and food products, which may be exempt from duties or subject to a reduced rate.
-
Goods imported into UAE free zones are generally not subject to customs duties as long as they remain within these zones. However, when such goods are transferred to the UAE mainland, standard duties apply.
-
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.
Step-by-Step Guide to Service Acquisition
This guide includes the required documents, service fees, responsible authority, and the time needed for each step
Shareholder - Individual
- Personal documents of the shareholder, manager and authorised officers:
- Passport copy
- Emirates ID and UAE resident visa copies (for UAE residents)
- Digital passport-sized photo
Shareholder - Body Corporate
- Company name with translation into Arabic
- Certificate of Formation
- License (if applicable)
- Memorandum of Association (MOA)
- Board resolution
- Certificate of Good Standing/Incumbercy Certificate
- Company information: ownership type, ownership structure chart, сountries of operation, website
- Personal documents of the the authorized representative of the company:
- Passport copy
- Emirates ID and UAE resident visa copies (for UAE residents)
- Digital passport-sized photo
- Details of the authorized representative of the company: full name, email, phone number, residential address
- Completed Company Registration Application form containing the following basic information:
- Legal form
- License type
- Business activities list
- License term
- Three preferred company names listed in order of priority with translation into Arabic
- Type of office solution
- Number of visa quotas
- Share capital amount
- Shareholders ownership shares
- Ultimate Beneficial Owners (UBO) information
- Information about the company being registered: expected annual turnover, сountries of customer and supplier market, website (if available)
- Contact details of the shareholder, manager and authorised officers: email, phone number, residential address
- The company's trade name must comply with SPCFZ requirements.
- The company's business activities must be selected from the list of business activities available in SPCFZ.
- SPCFZ may require additional documents, such as a copy of the home country ID, a Police Clearance Certificate, a Medical Card, and others, depending on the risk level associated with the business activity and the shareholder's nationality.
- Costs and terms may be increased at the discretion of SPCFZ.
- The cost of license renewal depends on the number of visa quotas.
Auto-generated registration forms for electronic confirmation:
- Memorandum of Association (MOA)
- Lease Agreement
- None (previously provided)
- Various rental property options are available in SPCFZ, provided upon preliminary request and subject to availability:
-
- Coworking (included in the registration fee). A workspace in a coworking area with access for up to 4 hours per month during working hours, with the option to increase to 10, 20, or 40 hours for an additional fee.
- Furnished Office (AED 900 per sq.m./year). Outfitted office starting from 20 m² with unlimited 24/7 access. A refundable deposit will be charged.
- Unfurnished Office (AED 750 per sq.m./year). Unfitted office starting from 20 m² with unlimited 24/7 access. A refundable deposit will be charged.
- Retail (AED 550 per sq.m./year). Retail spaces designated for various purposes. A refundable deposit will be charged.
- Shell&Core Spaces (AED 550 per sq.m./year). Customizable spaces intended for various purposes. A refundable deposit will be charged.
- Storages (AED 480 per sq.m./year). Designated space in the building for storing inventory, equipment, or materials. A refundable deposit will be charged.
- SPCFZ provides an unlimited number of visa quotas within the selected office solution.
- SPCFZ allows the rental of office or commercial premises outside its territory after obtaining approval and paying a fee of AED 3,500.
Lease Agreement
- None (previously provided)
- The procedure for identity verification (KYC) and confirming registration forms is conducted electronically. The shareholder and manager must record a short video where he/she shows his/her passport and states personal details according to the instructions set by SPCFZ.
- Auto-generated registration forms include:
- Memorandum of Association (MOA)
- Lease Agreement
Verification of the shareholder's identity
Confirmation of registration forms in electronic form
- None (previously provided)
- Company incorporation documents are issued in electronic form.
- Upon completion of the registration, SPCFZ uploads all documents to the portal.
Certificate of Formation
Memorandum of Association (MOA)
License
Share Certificate
Lease Agreement
- None (previously provided)
- The Establishment Card is required to obtain visa quotas.
- The Establishment Card Application is submitted automatically upon completion of the company registration.
- The Establishment Card is valid for 2 years.
Establishment Card in electronic form
- None (previously provided)
- E-Channel is a unified immigration system that allows individuals and legal entities to apply for visas and related services through an online portal.
- Companies with visa quotas must register on E-Channel and renew their registration annually.
Access to E-Channel
- None (previously provided)
- SPCFZ provides an unlimited number of visa quotas within the selected office solution.
Visa Quota
- Passport copy (main page and page with the UAE entry stamp)
- Digital passport-size photo
- Completed Visa Application Form containing the following basic information:
- Current visa status (if the applicant is in the UAE)
- Religion
- Marital status
- Full names of mother, father
- Education (degree)
- Unified Identification Number (UID)
- Position in the company
- Conditions of cooperation with the company
- Applicant contact details: email, phone number, permanent residence address in the home country and the UAE (if available)
- Company information (Establishment Card number)
- If an applicant received an E-visa while being inside the UAE, or entered the country by an Entry Permit, he/she has to stay in the UAE until he/she has a UAE resident visa (E-residency). However, if the applicant plans to leave the country before obtaining resident status, the Entry Permit/E-visa must be canceled, and a fee must be paid. The visa allocation process has to be started all over again.
- The applicant's passport must have a remaining validity of at least six months at the time of applying for the Entry permit/E-visa.
- The Unified Identification Number (UID) is a unique number automatically assigned to all individuals crossing the UAE border.
- SPCFZ may require additional documents, such as a copy of the home country ID, a Police Clearance Certificate, a Medical Card, and others, depending on the risk level associated with the business activity and the applicant's nationality.
Entry Permit/E-visa
-
None (previously provided)
- This step applies if the applicant is in the UAE at the time of applying for the E-visa.
Status Change document
- None (previously provided)
SPCFZ offers two options for undergoing a medical fitness test:
- Within the established SPCFZ list of medical centers:
- The results will be automatically uploaded to the SPCFZ portal.
- The cost of the fee may vary based on the speed of processing results:
- 24 hours – AED 365
- 4 hours – AED 2,000
- Independently at any authorized medical center in the UAE that are part of the EHS system:
- The results will be automatically uploaded to the SPCFZ portal.
- The cost of the fee may vary based on the location of the medical fitness test and the speed of processing results:
- 24 hours – AED 320
- 30 minutes – AED 750
Medical fitness test application with an appointment
- Original passport
- Entry Permit/E-visa
- Status Сhange document (if applicable)
- Medical fitness test application with an appointment
- The purpose of the medical fitness test is to check for the presence/absence of infectious diseases that may threaten public health in the UAE.
- The medical fitness test requires personal attendance and consists of two stages:
- Blood Test: check for HIV, tuberculosis, hepatitis B, and hepatitis C
- Chest X-ray: check for tuberculosis
- The medical fitness test takes about 30 minutes, while the rest of the time is spent waiting for the results.
- The validity period of the Medical Certificate is 90 days.
Medical Certificate
- Personal documents of the applicant:
-
- Passport copy
- Entry Permit/E-visa
- Status Сhange document (if applicable)
- Medical Certificate
- Corporate documents:
- License
- Establishment Card
- The Medical Insurance Policy must be uploaded to the SPCFZ portal.
- The fee may vary depending on the chosen insurance company and the insurance plan.
Basic Insurance Policy
- None (previously provided)
Emirates ID application with a biometric data submission appointment
- Original passport
- Entry permit/E-visa
- Status Сhange document (if applicable)
- Medical Certificate
- Emirates ID application with a biometric data submission appointment
- The biometric data submission requires personal presence in Sharjah and involves fingerprinting, which is used for identity verification.
- Waiting for the scheduled appointment for biometric data submission may take from 1 to 20 days, depending on the workload of the regulatory authority.
- Biometric data is not submitted if the applicant previously held a UAE resident visa.
Stamped Emirates ID application with a biometric data submission appointment
- Stamped Emirates ID application with a biometric data submission appointment
- Medical Certificate (if applicable)
- The visa (E-residency) is digital and does not need to be physically affixed to the passport.
- The validity period of the UAE resident visa is two years.
UAE resident visa (E-residency)
- Passport copy
- Emirates ID plastic card is delivered within 5 working days to the address provided in the application for obtaining Emirates ID.
Emirates ID plastic card
- Corporate documents:
- License (if applicable);
- Memorandum of Association and/or Articles of Association (MoA and/or AoA);
- Certificate of registration (if applicable).
- Personal documents of the shareholder, general manager, and bank account signatory:
- Copy of the passport;
- Copy of UAE resident visa (E-Residency);
- Copy of Emirates ID;
- CV (work experience, education);
- Personal bank account statement for the last 6 months.
- For the bank account signatory:
- Proof of residential address in the UAE (utility bill or bank statement);
- Contact information: email, UAE phone number.
- Commercial site lease contract (office or special purpose premises).
- Information about the company's planned transactions (jurisdictions, turnover, counterparties). The application form will be provided by UPPERSETUP.
- The bank is chosen on an individual basis, depending on the needs and profile of the company.
- The cost of assistance, required documents and the timeline for opening a corporate account may be revised depending on the selected bank and risk factors associated with the company's profile, including but not limited to the company's direction of business, the profile of shareholders and potential counterparties.
Corporate bank account details
Active access to online banking
Order service directly at 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