One of the developing frontiers constantly in the global market is the automobile industry. In every aspect, the automobile industry makes use of the latest techniques and technologies which makes it ever-evolving. This is because opening a pitstop in Dubai is a proven and effective business model as tires have remained consistent throughout. This blog details how to start a pitstop in Dubai.
Dubai has been a prime trading location for years as it is located at the crossroads of the world’s largest and fastest-growing markets. One of the major trade businesses that take place in the country is the tire trading business. Opening a tire shop in the world’s prime location is beneficial to entrepreneurs as every year millions worth of tires are imported from different corners of the world. Some of them are even exported to other countries.
Location and licensing are two critical components to opening a pitstop in Dubai. The location should have enough space to accompany all the vehicles. If the entrepreneur is starting a pitstop shop as a new business in Dubai, they can purchase it as a lease although buying the space is ideal as a form of investment. It is always better to find a space where a high number of people have easy access so that the business would have a high demand in the market.
The entrepreneur should also perform thorough research about the location before investing in it. This is a critical factor in opening a pitstop to assess the population base and vehicles on the road. Since every vehicle on the road requires a tire service, opening a pitstop in the country is often a safe business.
For opening a pitstop, the entrepreneur also requires liability insurance and business licensing and needs to register the company with the concerned authorities. They can begin marketing the tire shop business and acquire the equipment needed after obtaining licensing and insurance.
Steps to Open a Pitstop in Dubai
Before applying for a trade license in Dubai, there are some factors to be considered although opening a pitstop in Dubai is not a complex process. It is always better to work with business setups in Dubai as they would ensure that everything is done most accurately. Before embarking on the application process, they make sure that all the documents to be submitted are correct and precise.
Choosing a name for the company is the most important early step to be considered while opening a tire shop in Dubai. It is because when it comes to naming a company, the UAE is very strict. The name of the company should reflect the activity and the entrepreneur should abide by a strict set of naming conventions.
Entrepreneurs cannot employ the use of foul language for naming their shop. Blasphemous and offensive language should be avoided by the business person at every cost. If an entrepreneur desires to name the company after themselves, they should keep the full name rather than the abbreviation.
It is also to be made sure that the business person should avoid keeping the names of well-known organizations. However, the most important thing to consider is to check whether the chosen name is available to register. The company formation in Dubai helps the entrepreneur ensure that the chosen name abides by the strict set of naming conventions as mentioned by the government of UAE.
After deciding on the company name, the entrepreneur can apply for a tire trading license in the UAE. In the process of opening a company in the UAE, obtaining a trade license is the most important step. For handling the registration of a new shop or business in the emirate, the Department of Economic Development (DED) in Dubai is responsible. The entrepreneur had to deal with the authorities of the DED to open a pit stop in Dubai. If they wish to set up anywhere else in the emirate, they can give the application to the equivalent municipality.
Documents and Other Procedures Required to Open a Pitstop in Dubai
One of the benefits of starting a pitstop in Dubai is that for both corporate and personal income, the country’s tax rate remains at zero percent. Also, the welcoming business environment and the easy incorporation process drive the entrepreneur into this field of business.
There are several documents required when an entrepreneur needs to open a pitstop in Dubai. Authentic and relevant documents are required to be submitted in every business setup taking place in Dubai. The documents should be submitted to the concerned authorities.
The business person should provide passport copies of all the shareholders, a completed application form, a description in brief regarding the intended business activity, and articles of incorporation. If any other documents are asked to be submitted, the entrepreneur has to submit them for getting the final clearance from the authorities.
The entrepreneur can pay the fee once all the procedures are completed. They can get the trade license they have applied for once the Department of Economic Development (DED) accepts their application.
Apart from getting the documents cleared, the business person must also have a UAE visa to reside and work in the country. Having a visa benefits the entrepreneur in several ways. It helps them to sponsor visas for others including spouses, children, domestic staff such as drivers or housekeepers, and also employees.
Depending on the size of the shop or company they are opening in the country, the maximum number of visas they can apply for would vary. The number of visas is also dependent on their chosen setup, personnel earnings, and dependent visas.
The business person must also open a bank account to start a pitstop in Dubai to receive payments. They can choose either local or international banks. It is best to get in touch with business setup consultants in dubai as they would help the entrepreneur to choose from several financial institutions to find the best and most accurate one suiting their needs.