A car rental business is a brilliant choice to start in Dubai. From its 0% tax rate to increasing demand for rental vehicles, one can find many positive reasons to start a car rental business in Dubai.
One such example is Dubai’s large ex-pat community. The majority of Ex-pats won’t wish to buy their vehicle in a foreign country but may wish to have one for their daily uses. In such situations, most people rely on rental cars than public transport. Rental cars are a convenience for the majority of Ex-pats.
Another example is, Dubai being the irreplaceable tourism giant. The number of tourists and visitors numbers in Dubai is rising because of Expo and other events happening there. Many of them will require a car to get around and will be ready to pay for the service.
Does one need more reasons to admit the scope of this business in Dubai? No.
Sound interesting but having doubts about the procedures? Need not worry. In this blog, we have covered everything you need to know before starting a car rental business in Dubai.
How to start a car rental business in Dubai?
You can start a car rental business in Dubai with the 5 steps given below. Let us dig into it for a better understanding.
Choose a location
A car rental business in Dubai will need physical premises for both office and garage space to house the vehicles. You can choose your location on the mainland or in a free zone. Before finalizing the location, make sure that the location is easily accessible for tourists. It will be better if you can find a place near airports or train stations.
The next step is to have a crisp plan covering everything regarding the business. From the location and budget to the infrastructure and services you intend to provide, a business plan should have every detail regarding the business activities.
The activities you provided in the plan must be chosen from the official list published by the Dubai Department of Economic Development (DED).
Choosing a company name
You must abide by the strict naming rules in Dubai while finalizing a name for the company, and the rules are;
Avoid any offensive or blasphemous language.
Avoid names of well-known organizations.
Avoid abbreviations if naming your company after yourself.
Check the chosen name is available to register.
Applying for the license.
You will require a commercial license to start a car rental business in Dubai. You will need to submit certain documents while applying for your license, and they are;
Completed application form
Passport copy of the proposed owner or owners
Two color passport-size photos
Apart from that you and your staff will need approval from the Road Traffic Authority (RTA).
Making your visa applications
Finally, you will need a UAE visa to work here. You can seek professional assistance from an experienced business consultant like Bizvise, to avoid complications.
As the holder of a UAE business license, you can sponsor Visas for your spouse, parent, child, or staff. The maximum number of visas you can apply for will depend on the size of your company, and chosen setup.
What is the cost of starting a car rental business in Dubai?
The cost of starting a car rental business in Dubai depends on several factors including the price of the license, the lease of your premises, and the cost of any approvals required by the RTA. The major expense will be the cost of the vehicles, which you either purchase or take on a lease. The size, location, and level of service can also influence the costs.
To have detailed information about the set-up costs and procedures of starting a car rental business in Dubai, consult an experienced business consultancy like Bizvise. We are a team of committed experts who are willing to arm you with the right knowledge on starting a new business. All you need to do is to contact us.