Dubai is a city that is fast becoming one of the top tourist spots in the world. It has reached the one million mark and is expected to reach the 20M mark soon. The tourist buzz of this city makes it very profitable to open a car rental business in Dubai. So if you are planning to own a car rental license in Dubai, however, it’s essential to know what the business is all about.
Benefits of Setting a Car Rental Business in Dubai
Listed below are the benefits of setting up a car rental business in Dubai:-
- The car rental business goes on throughout the year.
- Reduce the dependency on public transport as they are unpredictable
- 85% of people in Dubai are not their citizens, hence prefer renting more convenient
- The cost of rental is much less than compared insurance or a personal car
- It gives you freedom, especially in traveling in remote and Wanderlust places.
- A rental vehicle helps explore more than a bus or taxi.
- Car rental allows you to choose a vehicle depending on your need.
Procedures to Start a Car Rental Business in Dubai
1. Choose the right jurisdiction
You have two options for setting up your business in Dubai, UAE. You can have your business either in a free zone or on the Mainland. Free zones are the most cost-effective areas. Clever corp has a team of experts who will guide you in choosing the proper jurisdiction according to your business operation requirement.
2. Commercial space rental contract
Choosing the correct place for a fleet of vehicles is the most important thing. Choosing a location close to the airport, market area, or MNCs companies area is crucial.
3. Map Out your Business Activities
In UAE businesses outlining your business idea is a crucial step in setting up business in Dubai. Unlicensed activities may result in acceptable or possibly the cancellation of the license. The official list of your specified activity must be selected from the Dubai Department of Economic Development (DED).
4. Decide on a Name for your business
The name of the company should be unique and under the registration rules.
- Companie’s name should not contradict its activities
- The name shouldn’t have been registered earlier
- Can’t have any indecent words
- Should not indicate God’s names or his divine attributes.
- Avoid using an abbreviation.
5. Choose a legal type of license
A legal car rental license is required in Dubai or anywhere in UAE. The information must be provided while requesting a license:
- The filled-out application form
- A copy of the putative owner(s)’ passport
- Two passport-size photographs in color
Additionally, you’ll require the Road Traffic Authority’s blessing (RTA). RTA training might also be necessary for your drivers.
6. Keep all Necessary Documents in Hand
The documents you need to set up a rental business in Dubai are as follows:-
- A copy of your passport
- A copy of your Emirates ID
- A copy of your visa page
- A no objection certificate from your sponsor
- International driving permit
- An RTA undertaking
- Original driving license from their home country
7. Get RTA Approval for your business
It would be best if you had an undertaking first to get an RTA approval for your car rental business. In the first year, ten insurance cars should be provided with parking spaces for your vehicles.
All these are the procedure to get an RTA approval for your business.
Costs Associated with Setting up this Business
- The initial approval will cost around AED235.
- The name approval will cost AED735.
- The LSA agreement will be priced at approx. AED900.
- The cost of Ejari will depend on the rented commercial space.
- The final submission of documents, if your trade name is non-Arabic, will cost you approximately AED500.
With all of these in mind, you are set to go. Consult with Clever Corp, be the owner of your car rental license in Dubai, and get your business ready.
And if you need any help setting up your business, we are always ready to help you along the way. To discuss more in detail your business plan, reach us today to have a suitable solution for your business dreams. We at Clever corp hold vast experience and our expert advisors are round the clock at your service to understand your idea better and get them into reality. Contact us at +971586412031 or +97145804048 to discuss with our experts at [email protected].