Many favorable factors make Dubai an ideal place to start a new business. And when it comes to starting a car rental in Dubai, there are several other reasons. First, there is a large community of immigrants in the emirate who may not be able to buy a car or depend on public transport in the UAE, or want to hire a taxi service for long trips. Dubai is the perfect place for such an endeavor. Not only is it a hotspot for supercars, but the large community of ex-pats means that many people don’t want to buy a regular car and are much more than happy to rent one.
And in addition to emigrants, the emirate naturally welcomes hundreds of thousands of business travelers and tourists each year, all of whom need to be able to move. Overall, it is not surprising that car rental in Dubai makes a lot of sense for those looking to start a new business in Dubai. The Goldstein Market Intelligence Report studies the UAE car rental and leasing market and predicts a CAGR+9% growth over the 2017-2030 periods. Another report puts the current value of the UAE car rental and leasing market at $1.8 billion
Second, as the number of business travelers and overseas visitors to Dubai grows every year, the demand for car rental companies is increasing. These factors are the main reasons behind Dubai’s rapidly growing car rental market and there has never been a better time to start! If all this sounds tempting, let’s get into the details of starting a car rental company in Dubai.
Basic Steps of the Process to Start a Car Rental Business in Dubai
Select Location
The mainland of Free Zone
You can set up your car rental in Dubai or on the mainland or in the free zone. While free zones can be more cost-effective to set up, you will need to open a branch or hire a dealer to trade directly with the local market.
Physical Premises
You will also need to bring physical facilities, including offices and parking lots or garages, to park your fleet of vehicles. The area of this object must be at least 150 square meters.
Proximity
Ideally, your car rental office should be in an integrated central location or close to a transportation hub such as an airport or train station for the convenience of your customers. Also, the garage for your rental fleet should be next to your office so that more customers can rent your rental car.
Decide Your Fleet Arrangement for Car Rental Business
Type of Vehicles
Choose the type of vehicle you want to serve as part of your fleet based on your target customers. If you are targeting tourists and elite families, keep high-quality luxury cars and provide driver-driven services. If you’re handling business travelers and frequent travelers, you can choose between standard and economy vehicles.
Condition of Vehicles
The vehicles you choose for your fleet must be in good condition and not older than two years. To make sure your car is in top condition and functioning optimally for your customers, you can enter into service contracts with reputable maintenance companies. Insurance protection for your vehicle fleet is also mandatory.
Select Your Company Name
- Observe strict naming conventions when choosing a name for your company. You must avoid using language that is offensive, demeaning, abusive, or obscene.
- Avoid using the name of a well-known organization. If you decide to name your company after your name, avoid abbreviations.
- You should also check if the company name you selected is available for registration
Make Your Car Rental License Application
You must apply for a commercial license to operate and expand a car rental company in Dubai. When applying for a license, you must provide the following documents:
- Completed application form
- Copy of Passport of the proposed owner or co-owners
- Two colored, passport size photographs
Get Approval from RTA
- In addition to a trade permit, you will need a permit from the Road Traffic Office (RTA).
- To get approved for your license, you must meet certain requirements to obtain a license certificate from the RTA. Your office staff must also complete RTA training.
Stay Prepared for Inspection
- Once you have received your license, you are subject to RTA inspections at all times. Therefore, you need to ensure that the maintenance and billing of your car meet the required standards.
Make You Visa Applications
- You must apply for a UAE visa to work here. If you already have one, there will be no problem arranging your car rental in Dubai.
- If you have a UAE business license, you can even help your parents, spouse, children, or housekeeper with their visas.
- The maximum number of visas you can apply for depends on the size of your company and the structure of the company. The maximum number of dependent visas allowed depends on your income.
Wrapping Up
Operating a car rental company in Dubai can be a very profitable venture. If you are planning to start a car rental business in Dubai, the experts of a professional business setup consultant company can help you in any way they can. They will help you fill out all the necessary paperwork and meet legal requirements. If necessary, they can also help you process your visa as quickly as possible.
