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Car rental business Dubai-All Things you need to know

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car rental business in dubai

According to global polls, the car rental and leasing business are one of the industries that will grow by 2021. Because of recent advances, such as innovation, the automobile sector is now one of the most powerful on a global scale. In Dubai, the rental and leasing of automobiles are booming. Given the global popularity of the automotive industry, starting a car rental business in Dubai could be lucrative. 

The United Arab Emirates has served as a business hub. Dubai will not be left behind as the car rental industry takes off around the globe. Sheiks and affluent men reside in Dubai. These gentlemen are the proud owners of some of the world’s most opulent automobiles. Those who wish to start a car rental business in Dubai, however, must complete the necessary documentation.

Why choose the car rental business?

Car rentals appeal to both businesses and individuals because they come with a no-maintenance package. There are also no yearly vehicle-renewal or insurance payments. All of the overheads are covered by the service provider, and it all comes with reasonable monthly payments. Companies can save money by using automobile rental services for their employees and business travel. Car leasing or renting allows businesses to avoid depreciating assets, remove maintenance, renewals, and other costs, and keep overhead costs low. Beginning a vehicle rental and renting organization in Dubai has its advantages. 

Dubai is the home to local people and a huge number of ex-pats. While a considerable lot of these ex-pats approve of utilizing nearby vehicles, countless of them need to utilize the public vehicle. The quantity of sightseers visiting Dubai is expanding every day. The majority of these guests don’t depend on public vehicles however look for vehicle rentals. Accordingly, beginning a vehicle rental organization in Dubai can carry a critical blast to your business. As per reports, the vehicle rent and rental industry are relied upon to ascend to the US $2.5 bn before the finish of 2023. Dubai conducts Business Expos consistently that denotes the visit of a few famous business voyagers. The greater part of these need to reach out to a vehicle rental business.

Before you launch the car rental business, you have to review a few things.

If you want to start a car rental business in the United Arab Emirates, there are a few things to consider. These are some of them:

  • It would be beneficial if you started your business strictly following the Department of Economic Development’s rules and regulations.
  •  It is also a good idea to have all of your paperwork ready before you start your business.
  • The car rental company’s insurance should let you rent the vehicles. 
  • You can also get car insurance through a loan. Simultaneously, if you’re on a tight budget, you’ll need to purchase temporary auto insurance. 
  • Apply for a work permit and view

Obtain a business permit. You can also sponsor your family members and other individuals who may be employed under you, depending on the work permit and view.


Now, let’s gaze at the steps involved

Individuals interested in launching a car rental business in Dubai should begin with the basics. Professional business setup consultants can help you achieve great results. The following are some of the most effective strategies to establish a car rental business in Dubai:

1. Submit an application for a professional license and RTA clearance.

  • Without RTA approval, you cannot launch a car rental business in the UAE. The clearance of the Roads and Transport Authority will aid in the smooth operation of the company. 
  • Register with the Department of Economic Development.
  • It is necessary for the car rental company to comply with all legal requirements. They can only receive the license if all of their documents are correct.

2. Get a local agent for your business

  •  Hire a local agent for your company. A local agent is mandatory no matter what kind of automobile rental business you start in Dubai. 
  • Entrepreneurs can form partnerships with professionals that can assist them in carrying out their plans. 
  • If you are new to the industry, you should gain a thorough understanding of how it operates.

3. Choose a business name and get it approved.

  • The name of the company you choose must be approved by the UAE government. The trade name should be compliant with UAE laws. 
  • Once you decide on a name, you’ll need approval. 
  • Additional documentation, such as a passport copy and a shareholder agreement, will be required.
  •  If the name violates any laws, the DED will file a complaint. 
  • Present the RTA-issued No Objection Certificate for the business. This will be critical in obtaining a company license in a timely manner. It is also vital to identify the nature of your firm once you have obtained the license.


Renting a car is a for-profit enterprise. You must, however, apply for a commercial license in order to perform the operations properly.

4. Obtain all of the documents that you will need to submit to the  DED.

 You must submit the following documentation to the DED:

  • A copy of the DED’s completed application form;
  • Copy of the Road Transport Authority’s approval;
  • Passport copy; 
  • A copy of the office details and tenancy contract;
  •  and a copy of the training certificate completed

5. Obtain a license from the DED

  • You must also pay the costs after submitting the documents. The DED will issue you a professional license only when you have received clearance from the appropriate authorities. 
  • You will be able to start your automobile rental business in Dubai once you have received the license. However, as the investor, you should have sufficient funds to cover the costs.
  •  You can also apply for the UAE residential view at the same time. The number of visas that will be approved is determined by the size of the office space you have hired.

6. Choose a suitable location.

  • The location of your firm is extremely important to its success. When starting a car rental business in Dubai, you must first determine who your target market is. 
  • It is best to start the business near business parks, residential neighborhoods, or hotel apartments.
  •  Choosing the right location for your organization will help you attract a large number of good deals.
  •  Furthermore, establishing a firm in a luxury location can help you develop business authority, which will help you receive good rentals.


Need further assistance in setting up a car rental company?

Business Link UAE can assist you in establishing a car rental business in Dubai. Our team of specialists will assist you in starting your business from the ground up. Please contact us if you require any additional assistance. Once you’ve received your visa, you’ll be able to begin marketing your business.

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