Dubai has a very strong tourist flow which is what makes its transportation system very intrinsic. To the overall infrastructure of the country. While public transportation in the core areas is fully developed and still flourishing. The sub-urban needs to be explored with the help of private vehicles or rented ones. The road network in Dubai is undoubtedly top-notch and the credit for the same goes to the government. The mixture of all these factors has led to a surge in the operation to start rent a car business in Dubai. Operating in the country and seeing good business. Here not only due to the tourists but also because of the large number of other businesses that operate here.
The regular and consistent inflow of people for professional reasons. Also makes much use of these rental facilities. Because of this many car rental businesses in Dubai concentrate on these customers rather than any other section. The car rental business is really profitable considering another business setup in Dubai. If you are also planning to start rent a car business in Dubai but do not know where to start. We have laid down the list of requirements for the same.
Starting a car rental and leasing company in Dubai has its perks. Dubai is home to locals and a large community of ex-pats. While many of these ex-pats are okay with using local transport, a significant number of them want to use public transport.
The number of tourists visiting Dubai is increasing each day. Most of these visitors don’t rely on public transport but seek car rentals. Therefore, starting a car rental company in Dubai can bring a significant boom to your business. According to reports, the car lease and rental industry are expected to rise to US $2.5 bn by the end of 2023.
Things to Know While Setting Up Rent a Car Business in Dubai
1. Apply for a professional license and RTA approval
Accordingly, you cannot start your rent a car business in Dubai without RTA approval. The approval from the Roads and Transport Authority will contribute towards the smooth functioning of the business.
Furthermore, the company should also register itself under the Department of Economic Development. We can assist to register the company with a virtual office and without meeting RTA’s parking requirement.
2. Local Service Agent
For renting a car business in Dubai, you need to have a local agent. Entrepreneurs can partner with professionals who can help them execute their business. If you want ownership of the business, Business Link UAE will guide you through the entire process.
If you are new to the entire business, you must get a proper idea about its functioning.
3. Choose a trading name and get approval
The government of UAE is very particular about the name of the business you choose. The trade name should abide by the laws of the UAE. Once you decide on the name, you should set it up to get approval.
You will need to submit additional documents such as a passport copy and shareholder agreement. The DED will raise an issue if the name offends any of the laws. Moreover, you should also submit the No Objection Certificate granted to the business by RTA. This will play an important role in getting the business license efficiently.
Once you get the license, it is also necessary to define the nature of your business. Providing thorough detail about the activity will help to speed up the process for license approval.
4. Get all the documents to submit at the DED
The documents that you need to submit to the DED include the following:
- A copy of the completed form application of the DED.
- Approval copy from the Road Transport Authority
- Passport Copy
- Office Details and Tenancy Contract
- Copy of the training completed certificate
5. Get the license from DED
After submitting the documents, you will need to pay the fees too. It is only after approval from the respective authorities that you will get the business license from the DED.
After receiving the license, you will be able to start your car rental business in Dubai. However, as an investor, you should have enough capital to pay for it. At the same time, you may as well apply for the UAE residential view. The number of visas that will be approved will depend on the office area you have rented to conduct the business.
6. What kind of services do car rentals offer in Dubai?
Apart from catering to corporate customers, car rentals also play an essential role in leisure. Some of the common services that rent a car business in Dubai include the following:
- Leisure services
- Transport services
- Individual rental services
- Corporate rental services
There are leading companies in Dubai that specifically target individuals and companies to sell their services.
Things to keep in mind while starting rent a car business in Dubai
If you want to start a car rental business in the UAE, you keep certain things in mind. These include:
- It would help if you started all the business only by complying with the rules and regulations set by the Department of Economic Development.
- It is advisable to keep the paperwork ready by the time you want to start your business.
- The car rental insurance company should allow you to get the vehicle. You can also opt for loans to get car insurance. At the same time, if you have a limited budget, you need to get temporary car insurance.
- Apply for the work permit and view.
Get the business license. Depending on the work permit and view, you can also sponsor your family members and other individuals who may be employed under you.
There are many instances in this procedure that require you to get in touch with authorities and that is why Business Link UAE is here to help you through this. We will get the required documents to arrange for you and give you the initial support of setting up a car rental business in Dubai.
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