+971 524093924

How to Start Car Rental Business in Dubai

Dubai is the prime hub for international business and trade across the world, millions of tourists come here to see luxury and modern buildings and Arabian culture. Along with tourists, businessmen also come here and start new businesses, because of its no tax system, well-growing economy, and safe and secure environment.

In Dubai, the real estate market, import/export, healthcare, and automobile market are also the most lucrative businesses. Speaking of the automobile business, it is the finest prospect to start a car rental business in Dubai. Dubai is a vast tourist and business destination around the world.

Millions of tourists and working people come here to search for jobs and explore the city. Public transport is best in Dubai but people also like to rent cars. With rental vehicles, people stay or stop according to their interests and explore the whole city. So car rental business is a highly-demand business in Dubai.

What is a Car Rental Business?

Dubai is a dynamic city and made world-class roads. So the car rental business is easily run here. A car hire agency is a firm that permits its clients to lease automobile vehicles for a restricted period. This time depends on the location as sometimes it takes a few hours and sometimes around two or three weeks, reliant on the terms delivered by the company.

Car rental firms are mainly managed with their numerous local branches expanding across diverse areas, permitting you to restore or return a vehicle to any of its branches. The prime cause of this enterprise is to begin a car rental business in Dubai to help people with transport daily. Individuals, employees, families, and friend groups facing challenges in acquiring their vehicle for any reason can effortlessly arrange transportation as needed.

Steps to Start Car Rental Business in Dubai

Collaborating with a company setup expert ensures a seamless and straightforward process for establishing a car rental company in Dubai, guiding you through every step from inception to completion.

1. Decide on a Location

When beginning a car rental business in Dubai, choosing an enterprise zone is important. Since you will require material assumptions for your fleet of automobiles, you will require some area. A strategic and growing location will help you here, like near an airport or another transport hub. When established in the UAE, you have two options: is mainland and the free zone. Free zone setup is additionally profitable compared to the mainland where you would be required to spread a branch or use a supplier to deal instantly with the UAE market.

2. Outlining Your Business Activities

Before starting a business in the UAE, it is vital to have an exact understanding of your enterprise activities. The second stage to acquiring a car rental business license in Dubai is to choose your firm activity. There are some potential license kinds that you could make an application for, depending on the type of vehicle rental you choose to run. The prime license is passenger transport and car rental, or if you work in a slightly different sector then you may require a different license.

3. Choose Your Company Name

The third step is also important. Selecting a company name. Some things to reflect when selecting a firm name. Note that strict naming conventions must be adhered to or avoid any disrespectful and irreverent language. Nor select any well-known firm name. Along with this, you must check that your selected name is available to register.

4. Make Your License Application

To run a car rental business in Dubai, you will require a commercial license.
When making an application for your license, you will be required to submit:

  • Completed application form
  • Owner passport copy
  • A colored passport-size picture
  • Consent from the Road and Transport Authority (RTA)
  • Lease agreement

After getting a license, your last step would be to boost your Dubai car rental business. Launch a dynamic marketing campaign to generate excitement around your startup. Develop strategies that spotlight the standout features of your car rental services. At the beginning of the business, deliver some discounts that attract your customers.

5. Making Your Visa Applications

To start work in Dubai, you require a UAE visa. If you follow the correct rules then the visa application method is uncomplicated. Most enterprise shape agents can oblige you in conducting your license application. As a holder of a UAE business license, you can also sustain others for their visas like parents, children, and household workers. The number of visas you are permitted to make an application is dependent on the size of your company, activity, dependent visas, or your earnings.

Benefits of Starting a Car Rental Business in Dubai

The car rental company presents a business that permits people to lease cars for a fixed time. The period would be a few hours or a few weeks, depending on the firm’s terms. The rental car company’s prime aim is helping people with their daily transport.

Venturing into the car rental industry in Dubai can be highly advantageous if you grasp its dynamics and embrace new technology. Here are some key benefits of initiating a car rental business in Dubai:

  • Tourism on the Rise: Dubai is a famous tourist destination, millions of tourists come to Dubai every year to explore the Emirate’s unique architecture, historical and religious sites, stunning beaches, and nature. Many travelers coming to Dubai will be seeking to engage a car to discover all the UAE. In these years, the car rental business has been in elevated demand in Dubai.
  • New Preferences: After the covid, many people are not comfortable traveling with public transportation or they come for holidays or want to explore the city, renting a vehicle for holidays or trips is common nowadays. A car rental firm permits a customer to travel around Dubai without transferring public transport.
  • Technology: The prime benefit of starting a car rental business in Dubai is that it will permit you to make the most of advancing technology. Smartphones and location apps make it simple for people to choose and lease cars when they require them.

Cost of Starting a Car Rental Business in Dubai

The procedure for starting a car rental business in Dubai is simple. Along with this, you should assess the prices too. You need to expend the cost of getting a business license, leasing the space, rental contracts, insurance, and the approvals attained by RTA. You must take into account the varying costs of vehicles within your fleet, as these can differ based on the types of vehicles available. The Cost is Detailed as Follows:

  • Business License: The cost of a small business license can vary from 8000 AD to 10,000 AED.
  • EJARI Contract: The Ejari contract fee can vary depending on the size and value of the property.
  • Name Approval: 600 AED, 10 AED each for knowledge and innovation fee
  • RTA car rental service fee: 1000 AED, 10 AED each for knowledge and innovation fee.

Once the car rental business startup runs, there is a fee for vehicle care and monthly rent. The rent depends on the extent of the belongings and also the site. This is the whole information to start a car rental business in Dubai. It is essential to meet the legal requirements of the car rental business to ensure compliance with the law and maintain the smooth operation of your car rental business.

Also read, Small Business Ideas in Dubai


Please Fill Out Your Details Our Sales Executive will call You!