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How to Start a Car Rental Business in Dubai 2022

Ever since the Pandemic has come to a halt there are many tourists rushing to their favorite destinations. Dubai is undoubtedly one of the best destinations and there are a couple of reasons that make it the perfect location for car rental business.

The number of visitors has increased around million a year and is expected to reach 20 million in the upcoming year. Most of the visitors will be needing a car to commute and are happy to pay for the service.

Rent a Car License Dubai:

Rent a Car license in Dubai allows a firm to rent cars/automobiles for a short period of time, without a driver for those who don’t own their car. This is mainly applicable for the tourists or for the ones whose cars are damaged and waiting for a repair.

While setting up a car rental business in Dubai one has an option to do so in the mainland or in a free zone. The most cost effective option is the Free Zone and for this one should open a branch or take help of a distributor to directly trade with the Emirates Market.

How to Start a Car Rental Business in Dubai 2022

Step 1: Location Setup:

While setting up a car rental business in Dubai physical location is required for both office and garage to park your fleet. It is advisable that the site has a minimum of 150 sq meters. 

Next step is to decide on the type of vehicles. One could choose a luxury range of fleets if they are specifically targeting tourists or can also stick to conventional affordable vehicles as per the preference of their clients. But one should keep in mind that the fleet should not be older than two years.

Ensure that the fleets are well maintained and you can be linked with an annual maintenance to keep your vehicles in shape.  Also it’s best to get GPRS installed in your vehicle for effective tracking.

Since most of the commuters use the internet it’s best to get registered online and having a car rental booking app for your fleets helps to generate bookings and in turn the revenue.     

Step 2: Selecting the Company Name:

Selecting the company’s name is vital and there are few things to be kept in mind while choosing the name. 

Name chosen should not have any offensive language and also check whether its available to register.

Step 3: Getting your License Application:  

To operate in Dubai a commercial license is required and the following are required for it:

  • Passport Copy of the Owner 
  • Color Passport Size Photos-2 Nos 
  • Application Form- Completed One 

On top of that one should get approval from the RTA (Road Traffic Authority) and your driver may be required to undergo RTA training.

Step 4: Applying for Visa: 

To work in the UAE there is a need for VISA and this can be applied with the help of an authorized agent. On holding a UAE business license it becomes easy to sponsor others for their visas too and this could be your partner, spouse, children and so on.

The maximum amount of Visas one can apply depends on the size of the company, the setup chosen and your personal earnings.

What is the Cost of Starting a Car Rental Business in Dubai 2022?

Well this mainly depends on factors such as license, the rent or lease of the premises and the RTA approval charges. In addition to this choosing the vehicle type is the major investment and for any car rental company to operate in Dubai a minimum of 10 fleets are required. Leasing the vehicles would be a more affordable option rather than purchasing one.

 Cost factors mainly vary on the location, the company size, fleets size and service. To determine the exact figures it is best to contact a company formation who can bring in the best outline of your requirements.

Car Rental Business in Dubai

Opening a car rental business is handy as many tourists prefer commuting in cab rather than public transport as it is more time consuming. Also many small and medium enterprises prefer to rent a car for official purposes.

Car rental businesses are so beneficial as the majority of people would love to drive a luxury car but cannot afford to buy it and also the locals in Dubai depend on the car rentals to drive their dream car. Car rental license in Dubai allows you to provide a luxury car for rent and this is applicable for both short and long term residents.

Renting a car is also quite a demand in Dubai as many commuters would love exploring the nearby destinations. For these four wheelers are required the most and tourists are more than happy to rent one for them.  

Conclusion:

Applying for a car rental business in Dubai does require prior knowledge and this blog would be of great help as most of the processes are straightforward if your license application is complete without any errors in them. 

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