Do you want to start a car rental business in Dubai? Dubai is the ideal location for such an endeavour. Not only is it a hotspot for supercars, but the vast ex-pat community means that many people prefer to rent rather than buy when it comes to conventional cars. Aside from ex-pats, the emirate receives hundreds of thousands of business and tourism visitors each year, all of whom require transportation.

The UAE car rental and lease market were valued at USD 1.8 billion in 2018. By 2023, this is expected to reach USD 2.5 billion. If you want to start a car rental business in Dubai, there couldn’t be a better timing than now! With Expo 2020 on the horizon, Dubai is expected to witness a surge in business travellers, many of these visitors will need a car to go about, and they are willing to pay for it.

Does this pique your interest? Then continue reading to learn to start a car rental business setup in Dubai.

Step 1: Decide on a location

You’ll need some space because your fleet of vehicles will require a physical location. You’ll benefit from being in a strategic position, whether it’s near an airport or another transportation hub.

The second decision you must make is whether to establish your business on the UAE’s mainland or in one of its free zones. Free zone setup is popular and generally highly cost-effective – however, if you want to trade directly with the UAE market, you’ll need to take some additional measures (such as creating a branch or employing a distributor). Only a mainland arrangement allows you to deal directly with the UAE market.

Step 2: Outlining your business activities

It’s necessary to have a clear notion of what you’ll be doing when starting a business in the UAE. Failure to do so can lead to problems down the road, and engaging in unlicensed activities can result in fines or licence revocation.

Your indicated activity must be chosen from the official list of the Dubai Department of Economic Development (DED). The official DED activity for founding a car rental business is ‘Car rent and passenger transport.’

Step 3: Choosing your company name

This step, in addition to the others listed above, is critical. There are a few things to consider while choosing a name for your business. It might assist if you followed the rigorous naming guidelines at first. To put it another way, you must refrain from using any insulting or abusive language.

Avoid acronyms and avoid using the names of well-known businesses when calling your company after yourself. Check to see if the name you want to use is available for registration.

Step 4: Making your license application

A commercial licence is required to operate a car rental business in Dubai (and the UAE). You must present the following documents when applying for your licence:

  • Completed application form
  • A copy of the proposed owner’s passport
  • Two passport-size colour photographs

You will also require permission from the Road Traffic Authority (RTA). Keep in mind that your workers may be required to attend RTA training as well.

Step 5: Making your visa applications

Finally, in order to work in the UAE, you will need a UAE visa if you do not already have one. If you have the right legal representation, the visa application process can be pretty simple. The majority of business formation agents can assist you with both this phase and your licencing application.

If you hold a UAE corporate licence, you can also sponsor others for visas. The maximum number of visas you can apply for is determined by the size of your firm, the configuration you choose, and your earnings for dependant visas.

How much does it cost to start a car rental business setup in Dubai?

The cost of a car rental business setup in Dubai is determined by a number of factors. It comprises the cost of the licence, the rent or lease of your office space, and any RTA-required papers and authorizations.

Furthermore, you should think about the expense of the automobiles you will rent out. It is totally up to you how many vehicles are in your fleet. The standard car size for prestigious companies is ten. You have the option of buying them or leasing them.

Setting up a meeting with a company formation professional and outlining your business requirements is usually a better option.

Setting up a meeting with a company formation professional and outlining your business requirements is usually a Hopefully, this tutorial has demonstrated that, with the correct information, starting a car rental business in Dubai doesn’t have to be difficult. It does, however, require some prior knowledge of the process. It’s also worth mentioning that the application process is only straightforward if your licence application is complete and error-free when submitted.


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