Home Business How to Start a Car Rental Business in Dubai, UAE 

How to Start a Car Rental Business in Dubai, UAE 

by Uneeb Khan

A lot of attractive reasons make the entrepreneur start a business in the UAE. All have been well documented from its zero percent tax rate to its strategic location. There is a rise in visitors coming to Dubai which makes it a good opportunity for starting a car rental business. To get around the city, many of these visitors require a car and they are happy to pay for the service. So, how to start a car rental business in Dubai? 

The customers are allowed to rent the automobiles for a small period. The visiting ex-pats, people with licenses who do not own a car can rent a car in Dubai as the company does not provide any drivers. For the period they desire, the clients can easily reserve a vehicle of their choice as they are placed in locations convenient for the clients to access to pick up and drop it off.  

Start a Car Rental Business in Dubai with these Simple Steps

The process of starting a car rental business in Dubai is straightforward when the entrepreneur works with an expert who excels in business setup in Dubai. The following are the steps to start a car rental business in Dubai: 

Decide on a Location 

The entrepreneur needs to take a physical premise while starting a car rental business in Dubai. The location must be in a built-up place or at a transport hub such as a train station or airport. The entrepreneur has got the chance of doing so in the mainland or a free zone when setting up the business in UAE. The free zone setup is more cost-effective but the entrepreneur must remember that they need to open a branch or employ a distributor to deal instantly with the UAE market. 

Outline the Business Activities 

The entrepreneur must outline the business activities when starting a business in the UAE. When the business owner fails to do so, it can cause issues further down the line. It can lead to fines or even license revocation when they carry out unlicensed activities. The business owner must choose the activities from the official list published by the Dubai Department of Economic Development (DED). 

Car rent and passenger transport is the official DED activity when starting a car rental business. They are permitted to rent automobiles for a short period without drivers under this activity. 

Select a Name for the Company 

One of the important steps when involved during company setup in Dubai is to choose a name for the company. The entrepreneur should keep certain things in mind at this stage. Many of these criteria would not relate anywhere else in the world. 

The business owner should accept a strict set of naming conventions. They should avoid using any blasphemous or offensive language. They should also avoid abbreviations while naming the company after themselves and should prevent the names of well-known organizations. Whether the chosen name is available to register should also be checked by the entrepreneur. 

Make the License Application 

The business owners require a commercial license to operate a car rental business in Dubai and the wider UAE. They are required to submit the complete application form, two color passport-size photos, and a passport copy of the proposed owners when applying for the license. 

The business owner might also need approval from the Road Traffic Authority (RTA) on top of the commercial license. RTA training should also be done by the staff.  

Make the Visa Application

An entrepreneur requires a UAE visa to work in Dubai if they do not already have one. The visa application process can be incredibly straightforward with the right guidance from the business setup consultants. Business owners can get help from company formation agents for visa applications and license applications. 

The entrepreneur can also sponsor others for their visas as the holder of the UAE license. They can sponsor a parent or child, a spouse, and also a household worker. Depending on the size of the company, chosen setup, dependent visas, and personal earnings, they can apply for the maximum number of visas.   

Starting a Car Rental Business in Dubai- Costs Involved 

To start a car rental business in Dubai, there are many costs. The factors that depend on the cost of starting a car rental business are the least of the premises, the price of the license, and the cost of any approvals required by the RTA. 

The entrepreneur must also consider the cost of the vehicles on top of all these. Most reputable firms have at least 10 vehicles and it is up to the entrepreneur how many vehicles they have in their fleet. The vehicles can either be taken on lease or can be purchased outright. It is not possible to offer a rough guide on the cost of setting up the car rental business. It is because, in terms of size, location, and level of service, there occurs a variation in car rental businesses. 

Entrepreneurs should know that the process of application is straightforward and it does not require any prior knowledge. It is always better to work with business formation experts while establishing a new business in the UAE to make the process free from errors. They aim to bring out the dreams of aspiring entrepreneurs and also provide assistance suiting the needs of the business owners. 

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