You can get an auto spare parts trading license in the UAE by choosing a business jurisdiction, reserving a trade name, getting an import/export code, then submitting a license. To set up an auto spare parts business, you will need to lease an office, process your visa, and register for tax.
Every vehicle on UAE roads eventually needs a new filter, battery, tire, or brake pad. That demand is why auto spare parts trading stays a consistent choice for business setup in Sharjah and the rest of the UAE.
Overview of the Auto Spare Parts Industry in the UAE
The UAE auto spare parts industry has two main sources of demand. There’s the local vehicle fleet, and there’s re-export trade to buyers across the Gulf, Africa, and Central Asia. Dealers, garages, and online sellers all need a steady supply of imported and locally traded parts.
The auto spare parts trading license requirements start with your product range. Your license needs to list the correct activity code, usually “Auto Spare Parts Trading” or “Used Auto Spare Parts and Requisites Trading,” and it needs to cover the specific parts you deal in. That includes engine components, filters, brake pads, tires, batteries, lubricants, and body parts, whether the vehicles are new or used.
How to Start a Spare Parts Business in the UAE?
You start a spare parts business in the UAE in eight steps: choose your jurisdiction, reserve your trade name, apply for your trade license, get your import/export code, lease a warehouse if required, process your residency visa, open a corporate bank account, and register for tax.
1. Choose Your Jurisdiction
A mainland license lets you sell directly to garages, retail customers, and fleet operators anywhere in the UAE without restriction.
A free zone license suits you if you mainly import, export, and sell wholesale rather than sell direct to mainland customers. SRTIP free zone offers 100% foreign ownership and costs less to set up than a mainland company.
A free zone company cannot sell directly to mainland consumers on its own without a licensed distributor or a mainland branch.
2. Reserve Your Trade Name
Your trade name has to follow standard UAE naming rules, so avoid names that are offensive, religious in tone, or already registered by another company. Apply through the Department of Economy and Tourism if you’re on the Dubai mainland, your emirate’s Department of Economic Development elsewhere, or directly through your free zone authority.
3. Apply for a Trade License
Apply through the Department of Economy and Tourism if you’re on the Dubai mainland, your emirate’s Department of Economic Development elsewhere, or directly through your free zone authority. If you’re getting a trade license in Sharjah, you’ll need your reserved trade name, shareholder passport copies, and proof of your office or premises to submit the application.
4. Obtain Your Import/Export Code from Customs
You need an Import/Export Code from UAE Customs before you can bring in or ship out any spare parts. This code applies whether you’re licensed on the mainland or in a free zone, since Customs registration is mandatory for every trader handling cross-border goods.
5. Lease a Warehouse or Showroom, If Required
Mainland licenses require a physical warehouse or showroom with a registered lease. Free zones are more flexible, often bundling flexi-desks or warehouse units into your package, so a separate lease isn’t always necessary.
If you deal in tires, batteries, lubricants, or other safety-critical parts, you also need approval from the Ministry of Industry and Advanced Technology through the Emirates Conformity Assessment Scheme. If you store flammable goods like oils or aerosols, you need Civil Defense approval too.
6. Process Your Residency Visa
Apply for your residency visa once your license and premises are confirmed. Most free zones process it within a week or two, and your visa quota depends on your license package.
7. Open a Corporate Bank Account
Open your corporate account once your license and visa are in place. Banks ask for your trade license, shareholder documents, and details about your business activity before they approve the account.
8. Register for Corporate Tax and VAT
VAT registration becomes mandatory once your annual taxable turnover passes AED 375,000. Corporate tax applies at 9% on taxable income above the same threshold, though qualifying free zone companies may access a 0% rate on qualifying income.
What is the Cost of an Auto Spare Parts Trading License?
An auto spare parts trading license in the UAE costs between AED 5,500 and AED 25,000 for the license alone, plus AED 3,000 to AED 6,000 per visa if you sponsor staff. Free zone packages sit at the lower end of that range, while mainland setups run higher once you add warehouse rent and extra approvals.
| Cost Item | Estimated Cost (AED) |
| Trade license | 5,500 – 25,000 |
| Visa (per visa) | 3,000 – 6,000 |
| Medical test and Emirates ID (per visa) | 1,000 – 2,000 |
| Office or flexi-desk | 0 – 25,000+ |
| Establishment card and immigration file | 1,500 – 3,000 |
| External approvals (ESMA, Civil Defense, Customs) | 500 – 5,000+ |
| Annual license renewal | Similar to first-year license cost, excluding one-time fees |
Your final cost depends on your jurisdiction, visa count, office type, and which approvals your products need. Use the business setup cost calculator to enter your details and see the exact cost for your setup.
Conclusion
Getting an auto spare parts trading license in the UAE comes down to picking the right jurisdiction, registering the correct activity, and clearing the regulatory approvals that apply to your product range. Once your license and approvals are in place, you can start importing, exporting, and trading parts to garages, distributors, and buyers across the region.
SRTIP Accelerator can guide you through licensing, visa, and bank account setup for your auto spare parts business. Contact us for a free consultation.
Source: https://www.srtipacc.ae/auto-spare-parts-trading-business-license/