Since the beginning of the year, the Dubai car rental business has experienced a spike. The rapid growth of this market can be attributed to a number of factors.
Dubai has become one of the world’s most popular tourist destinations recently. As Dubai expects to welcome around 20 million tourists this year, it will play a significant role in the growth of car rental companies.
An analyst report by MarkNtel Advisors projects that the UAE Rent a Car Market will grow 8.9% between 2022 and 2027. The UAE’s favourable policies and easy licensing are generally driving this market. In addition, the rapidly expanding tourism sector has resulted in massive footfalls of tourists, pilgrims, and migrants in the country and events such as Auto Expos, which last six months and attract approximately three million people, are also expected to increase demand for car rental services in the UAE and drive the market through 2027.
So, let’s find out how to start car rental business in Dubai.
In this blog, you will learn about:
Here is everything you need to know about how to start a car rental business in Dubai, UAE.
Benefits Of Starting A Car Rental Business In Dubai, UAE
The term “car rental company” refers to a business that rents automobile vehicles for a limited time. Typically, this period is between a few hours and a few weeks, depending on the company’s terms. The company’s primary focus is helping people with their daily commutes.
Car rental businesses in Dubai are advantageous if you understand the industry and are prepared to use new technology. Here are some of the key benefits of starting a car rental business in Dubai:
- Tourism on the rise: Millions of tourists travel to Dubai every year to visit the emirate’s incredible architecture, historical and religious sites, beaches, restaurants and nature. Dubai is also the gateway to the rest of the United Arab Emirates; therefore, many tourists arriving in the country will be looking to hire a car to explore the rest of the UAE. In the coming years, there will undoubtedly be high demand for your car rental business in Dubai.
- New preferences: Since the pandemic, many people have been less comfortable travelling on public transportation. For people who do not own their car, renting a vehicle for trips is becoming more common. Hiring a car allows them to travel around Dubai without sharing public transport or dealing with the costs of buying their own personal vehicle.
START YOUR CAR RENTAL BUSINESS NOW WITH AED 1,042 PER MONTH
- Technology: Another benefit of starting a car rental business in Dubai is that it will allow you to make the most of emerging technology. Thanks to smartphones, apps and geolocation, it is easier than ever for people to pick up and rent cars as and when they need them. This makes finding and renting a car much smoother, making people more likely to rent vehicles.
Steps To Start A Car Rental Business In Dubai, UAE
To start a car rental business in the UAE, you must first get a trading license. The following 5 steps show how you can get this license.
Select Your Business Activity
The first step to getting a car rental business license in Dubai is to select your business activity. There are a few potential license types you could apply for, depending on the type of vehicle rental you hope to do. The most common is ‘Passenger Transport and Car Rent’, although you may need a different license if you operate in a slightly different sector. We can advise you on the most appropriate license for your activities at Meydan Free Zone
Choose The Location Of Your Car Rental Business In Dubai
When starting a car rental business in Dubai, choosing a business location is crucial. Since you will need physical premises for your fleet of vehicles, you will need some space. A strategic location will help you here, whether close to an airport or another transport hub.Many car rental businesses choose to launch from Meydan Free Zone because Our location in central Dubai, close to the airport and the seaport, means you are perfectly located to meet the needs of tourists, business travellers and local customers. We also offer 0% tax rates and 100% foreign ownership.We can advise you on setting up your free zone company at Meydan Free Zone and provide the support you need to ensure your car business start-up thrives.
Choose A Trade Name For Your Dubai Car Rental Business
Your trading name needs to describe what your company does succinctly, and it must not use any language that could be considered offensive or potentially blasphemous. Further, the company name must not contain any acronyms which include your initials. For instance, Ali Khamza Car Hire would be OK, but AK Car Hire would not be permitted
Complete Your Application And Pay Fees
To receive your Dubai UAE car rental commercial license, you will need to complete your application form and provide a range of documents and paperwork.To operate a car rental business in Dubai, you need to get a Non-objection certificate A NOC from RTA (The Roads and Transport Authority).Upon receiving the NOC, you must submit the filled-out application. Paying the associated fees as part of your business license application is also essential
Receive Your License And Open A Business Bank Account
Getting your license to run a car rental company in Dubai takes just a few days – so long as all your paperwork is in order and your application form and fees are all correct. At Meydan Free Zone, we help you by checking that all your paperwork meets the requirements so that you avoid any unnecessary admin obstacles.
1. Select your business activity
The first step to getting a car rental business license in Dubai is to select your business activity. There are a few potential license types you could apply for, depending on the type of vehicle rental you hope to do. The most common is ‘Passenger Transport and Car Rent’, although you may need a different license if you operate in a slightly different sector. At Meydan Free Zone, we can advise you on the most appropriate license for your activities.
2. Choose a trade name for your Dubai car rental business
Your trading name needs to succinctly describe what your company does, and it must not use any language that could be considered offensive or potentially blasphemous. Further, the company name must not contain any acronyms which include your own initials. For instance, Ali Khamza Car Hire would be OK, but AK Car Hire would not be permitted.
3. Choose the location of your car rental business in Dubai
Selecting a business location is a vital step in launching your car rental business in Dubai. Many car rental businesses choose to launch from Meydan Free Zone because it offers a 0% tax rate and 100% foreign ownership. Our location in central Dubai, close to the airport and the sea port, means you are perfectly located to meet the needs of tourists, business travellers and local customers.
We can advise you on setting up your free zone company at Meydan Free Zone, and provide the support you need to ensure your car business start-up thrives.
4. Complete your application and pay fees
In order to receive your Dubai UAE car rental commercial license, you will need to complete your application form and provide a range of documents and paperwork. It is also essential to pay the associated fees as part of your business license application.
5. Receive your license and open a business bank account
Getting your license to run a car rental company in Dubai takes just a few days – so long as all your paperwork is in order and your application form and fees are all correct. At Meydan Free Zone, we help you by checking that all your paperwork meets the requirements so that you avoid any unnecessary admin obstacles.
START YOUR BUSINESS NOW WITH AN INSTANT IBAN
Once your license has been approved, the final step is to open a business bank account so that you can make and receive payments – Meydan Pay is our simple digital banking solution for businesses working in our free zone. It gives you an IBAN and digital wallet, which comes with all the features you need to start making and receiving payments – which is ideal for car rental companies working with foreign tourists and local customers.
Cost To Start A Car Rental Company In Dubai, UAE
There are several key costs to consider when starting a car rental business in Dubai: the license price, the cost of your premises, and the RTA approvals. Then on top of that, there is the cost of the fleet of vehicles you will use – which you may purchase or lease.
Launching a car rental firm in Dubai varies in cost depending on how many visas you require. If no visas are needed, starting a car rental company can cost as little as AED 12,500.
START YOUR BUSINESS NOW WITH AED 1,042 PER MONTH
If you need more visas, the application fee costs up to AED 23,600 (for six visa allocations). This figure includes your business license and associated fees.
For a quote tailored to your business and the number of visas you need to apply for, contact Meydan Free Zone today, and we can give you a precise figure for how much your car rental business license will come.
Besides the license cost, you will also need funds to pay for the vehicles you hope to rent, insurance, office space, car cleaning services and marketing costs.
Documents To Start A Car Rental Company In Dubai, UAE
If you want to launch a car rental business in Dubai, you will need to provide the following documents as part of the application process.
At Meydan Free Zone, we can support you with all steps in compiling these documents, and we will also check them for any errors:
- A completed application form which describes what kinds of car/vehicle rental you will offer
- Copies of your passport and passport size photos
- A copy of your residence visa (if applicable)
- Emirates ID copy (if applicable)
Why Meydan Free Zone?
Meydan Free Zone, located in central Dubai, is the perfect place to launch your car rental business. Our free zone is located close to the airport, the central business district, hotels and tourist sites, and major roads. This will make it very easy for customers to pick up your vehicles and for you to meet customers where they are. Our experienced consultants can support you with all aspects of business setup in Dubai, so you can focus on starting your car rental business – and leave the legwork to us.
To find out more, visit our website, or get in touch with us via setup@meydanfz.ae or 800FZ1.
We also provide many additional services to any company looking to enter the vehicle rental market in Dubai, UAE. For example, Meydan Pay provides you with a digital wallet and an IBAN, allowing you to receive payments from your customers anywhere in the world (especially helpful when dealing with international tourists and business travellers). Learn more about Meydan Pay here.
Similarly, Meydan Commerce is a unique offering that helps your car rental firm launch online – helping you run a website and ads and use listings sites to get your car rental company’s name out there and win business on the internet. And, if you are starting, our Easy Payment Plans allow you to spread the cost of launching your vehicle hire firm over several months.
With ever more demand for car and vehicle hire in Dubai, now is an excellent time to launch your rental company. Contact Meydan Free Zone today, and begin renting out cars to tourists, locals, business travellers and expats in no time.
