How to Start a Car Rental Business in Dubai?
Start a Car Rental Business in Dubai
When planning to visit any country, you could wish you had your own car. Nevertheless, owning a car in every country is not possible. Nonetheless, renting a car in any country could be one of the most convenient solutions.
Renting a car is considered one of the budget concepts when you are on vacation. Travelling or out for some businesses. A car rental business in Dubai is also an opportunity to have complete freedom of movement, be it for transit or residents, to travel to any other destination that public transportation cannot access and of course avoid unnecessary maintenance costs.
What’s in UAE?
In the year 2024, the total population of the UAE is currently at 10 million*, with different kinds of nationalities in it. Dubai is considered a transit hub, and the city is designed for cars, with well-constructed roads that guarantee safety while driving.
Dubai ranks fourth in the list and has welcomed around 16 million* international visitors, and it is planning to welcome 20 million* more tourists in the next two years. The city is popular for having the tallest building in the world, which is an 828-meter-tall seven-star hotel. The city was awarded the world’s tourism destination in the Tripadvisor Travelers Choice Award in 2022 and 2023.
Dubai experiences a world-class lifestyle with people satisfying their needs, and one of these is renting a car for as low as AED 150 per day, depending on the car. As of the first half of 2022, Dubai reported a rise of 23.7 per cent compared to the 2021 reported car rental business in Dubai, with a total of 12,000 car rental companies and around 205,000 vehicles registered for transport and rental activities. With the car rental business, Dubai has encouraged and given a platform for entrepreneurs to start their own car rental business in Dubai.
How does it work to rent a car in Dubai?
All that you need is a passport, a valid driver’s license from your home country, and a potential International Driving Permit (IDP) depending on your nationality, and the minimum age to rent a car in Dubai is 21 years of age for most companies.
Target and time looking for car rental
- Tourist who wants to explore the
- A resident who wants to rent for professional or personal
- Recreational activities for those who adore sports and luxury
- To increase capital investment of businesses that rent commercial
Dubai targeting to welcome 20 million* tourists this year. Dubai is playing a significant role in the growth of car rental businesses in Dubai. Thanks to the new technology, which makes people’s lives so easy and convenient, they can use any smart application, locations for pickup, and rent cars as and when it is needed and crucial. Finding a car for rent through Technology has become easier than ever with increased technology.
How to set up a car rental business in Dubai
1. You will need to have a proper business plan for the smooth operation of your where you can market, and you need to analyze where you can open your car rental business, and where is the potential area to target and get more clients.
2. I will need to have a physical space for a license and parking of a car.
3. Finalizing the Jurisdiction between the Mainland and Free Zone companies you will need to decide on the suitable structure of your car rental business: whether you want it to be a sole proprietorship, civil company, limited liability company (LLC), or you want it as a branch of a foreign company. Each of these structures will have different requirements. Freezone Company cannot work directly with the local market. Only B2B is allowed.
Choosing the fleet—the type of vehicles you want—based on the clients that you will gain.
For tourists, choose high- and luxury cars; for corporate professionals, choose standard and affordable cars. The cars that you will choose need to be in proper condition.
4. Choosing a company name that is unique and not yet registered in the UAE.
5. Obtaining approval and registration from the Road & Transport Authority (RTA) for your car rental business means compiling the necessary requirements of the RTA authority. Like security system training for all the staff.
6. Lease or purchase a vehicle that fits your needs. Also, sign up with a maintenance firm for proper maintenance of cars to avoid any inconvenience to your customers on the drive.
What are the required documents to start your car rental business in Dubai?
1. Passport copy (valid for at least 7 months)
2. VisitVisa copy or Visa copy (if available)
3. NoObjection Certification (NOC) if you already have an employment visa
How to increase your business
- Marketing campaign highlighting what you can do better than the
- Attractive offers, like (four kilometres are free, free petrol, free first drive)
What is the cost of starting a car rental business in Dubai?
Starting a car rental business in Dubai will generally range from AED 15000*-AED 20000* for a license and necessary approvals from the Department of Economic Development (DED) and Roads and Transport Authority (RTA) + 5% market fee, which will be calculated on the rent of the location of the premises.
The cost that will be incurred is considering the location as per the size and location.
Cost for the fleet of vehicles that you opt for seating as per the special requirements from RTA.
Cost of the fees associated with permits.
Conclusion
To rent a car in Dubai, there is no hustle, as no deposit or paperwork is required; you just need to provide your passport.
The road network in a large city is a benefit to not stop you from making your dream come true.
If you are interested in having a car rental business, you need an adviser to contact a
professional business setup advisor like Flying Colour Business Setup. The success of the car rental business is not a challenge.
How will Flying Colour Business Setup help you set up a car rental business in Dubai?
1. We will check your business plan and understand your
2. Our team will help you finalize the structure of your
3. Compliance requirements are critical for all companies in the industry. So, update yourself with the authority to comply with the licensing process.
4. We will guide you through your journey of setting up your car rental.
5. We assure you that throughout your journey, our designated relationship officer will always provide you with updates on the
6. Flying Colour Business Setup will be your one-stop solution for all aspects of starting your car rental. We are always committed to our clients to provide better support to help you and your company succeed.
To learn more about How to Start a Car Rental Business in Dubai? book a free consultation with one of the Flyingcolour team advisors.
The article was published on 12/11/2024. It is important to note that the federal policies and updates mentioned may have changed since then. For the most current information, please contact our consultant.
