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How to Start a Car Rental Business in Dubai?

Many favourable factors make Dubai a perfect location to start a new business. And, when it comes to setting up a car rental business in Dubai, there are a couple of more reasons. Firstly, the emirate has a large ex-pat community who may not wish to buy a car while in the UAE or rely on public transport or hire a taxi service for long trips.

Secondly, with the rising number of business travellers and foreign visitors to Dubai year-on-year, the demand for car rental services has only increased. These factors are the main reasons behind Dubai’s rapidly growing car rental market, and there’s never been a better time to get started! Let us find out how to start a car rental business in Dubai.

Step-by-Step Process to Start a Car Rental Business in Dubai

  1. Select an Ideal Location:
  • Mainland or Free Zone: You can set up your car rental business in Dubai either on the mainland or in a free zone. While free zone setup can be more cost-effective, you will need to open a branch or use a distributor to trade directly with the local market.
  • Physical Premises: You will also need to take on physical premises, including an office and a parking lot or a garage to park your fleet. This site area will need to be a minimum of 150 square meters.
  • Proximity: Ideally, your car rental office should be in a built-up central location or near a transport hub, such as an airport and train stations, to make it convenient for your clients. Also, the garage for your rental fleet should be adjacent to your office so that more customers can hire your car rental services.
  1. Decide Your Fleet Composition:
  • Type of Vehicles: Choose the type of vehicles you want to maintain as part of your fleet based on your target customers. If you target tourists and elite families, you should keep high-end luxury cars and offer chauffeured services. Whereas, if you target corporate professionals and frequent travellers, you can choose standard and economical vehicles.
  • Condition of Vehicles: The cars you choose for your fleet should be in proper condition and not older than two years. You can sign up for a service agreement with a reputed maintenance firm to ensure your cars are in top condition for your clients and perform optimally. Proper insurance coverage for your fleet is also mandatory.
  1. Choose Your Company Name:
  • When you select a name for your company, make sure you abide by the strict naming conventions. You should avoid using any offensive, derogatory, hurtful, or profane language.
  • Avoid using the names of well-known organizations. If you choose to name your company after yourself, avoid using abbreviations.
  • Also, you must check if your chosen company name is available to register.
  1. Make Your Car Rental Licence Application:
  • You need to apply for a commercial licence to operate a car rental business in Dubai and expand it further. When applying for a licence, you will need to submit the following documents:
    • Completed application form
    • Copy of Passport of the proposed owner or co-owners
    • Two coloured, passport size photographs
  1. Get Approval from RTA:
  • In addition to the commercial licence, you will also need approval from the Road Traffic Authority (RTA).
  • To get the approval for your licence, you need to fulfil certain conditions to acquire a no-objection certificate from the RTA. Your office staff will also have to undergo RTA training.
  1. Be Prepared for Inspection:
  • Once you obtain your licence, you are subject to inspection by the RTA at any time. Therefore, you need to ensure that your car maintenance and bookkeeping meet the necessary standards.
  1. Make You Visa Applications:
  • You will need to apply for a UAE visa to work here. If you already have one, there will be no issues setting up your car rental business in Dubai.
  • If you hold a UAE business licence, you can even sponsor your parents, spouse, children, or a housekeeper for their visas.
  • The maximum number of visas you can apply for depends on the size of your company and the company structure. The maximum number of dependent visas allowed depends on your personal earnings.

Conclusion:

Operating a car rental business in Dubai can be a very profitable venture. If you plan to start your car rental business in Dubai, our business setup experts at Creative Zone can help you in every way. We can assist you in completing all the necessary documentation and meeting the legal requirements. If required, we can also help you process your visa at the earliest.

Call us at 800 LICENSE (5423673) to speak to one of our business setup consultants to know how we can help you launch your car rental business in no time.


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