Car rental is a booming industry in the United Arab Emirates, especially in Dubai. With an ever-expanding tourist market and a growing population, the demand for car rental services is constantly increasing. The UAE offers a favorable regulatory environment for business start-ups, with relatively simple administrative procedures. Car rental companies offer a wide range of vehicles, from economy cars to high-end cars, to meet the needs of their customers. Car rental has become a lucrative business for entrepreneurs and investors looking to expand their business in this dynamic and growing region.
If you are interested in starting a car rental company in Dubai, here are the steps to follow:
1. Choose the right register to create a company in the UAE
When considering setting up a car rental company in Dubai, it is important to choose the right registry to register your company. Dubai offers two main options: free zones and Mainland.
It is important to consider the specific needs of your business when deciding between a free zone and the Mainland. If you are looking to establish a broader presence in Dubai and do business with government entities, the Mainland may be the best option for your company.
2. Choosing a name for your business in Dubai
Choosing a name for your business is an important step in establishing your company in Dubai. You need to choose a name that reflects your business and is easy for your potential customers to remember. It is also important to check that the name is available and that it complies with Dubai rules and regulations. It is also recommended to check if your company name is available as a domain name for your website, as this can help to strengthen your online presence.
3. Reserve a trade name
Reserving a business name is a crucial step in establishing a business in Dubai. Reserving a business name allows you to protect the name you choose for your business before finalizing your business registration. It also ensures that no one else will use the same name as you. Reserving a business name can be done through the Dubai Department of Economy or through a company formation service provider like Merritt Middle East. It is important to note that reserving a business name is different from registering the company, and reserving does not guarantee that the name will be approved upon registration of the company.
4. Find a commercial space
You need to find a commercial space for your business. The main zones for the creation of companies are the mainland and the free zone. In our case, we will focus on the creation in the mainland.
If you want to set up your business in the mainland, you will need to find a suitable business premises. You will need to take physical space – both an office and a “parking lot” or garage for your vehicles.
5. Obtain a commercial license
To set up a car rental business, you will need an appropriate business license. You will need to contact the Dubai Economic Development Department (DED) to obtain the necessary license. In our case, you will need a professional services business license. The official DED activity is “car rent and passenger transport” (code 771001). You are allowed to rent cars without a driver for short periods of time under this activity.
6. Obtaining a car rental license: RTA
You will also need to apply for a No Objection Certificate (NOC) to apply for a new commercial transport business license (new business/branch/ meter) from the Dubai Roads and Transport Authority, better known as RTA. This license is issued in the form of a car rental permit and is required to operate a car rental business in the city.
RTA is the government agency responsible for the regulation of transportation services in Dubai. If you want to start a car rental business in Dubai, here are the main requirements you need to meet to get approval from RTA:
– Obtain a business license;
– Have an approved fleet of cars: the cars must be in good condition and meet the safety standards set by RTA. The vehicle registration date must be within the same year or not exceed 24 months from the registration application date. Additionally, you must provide at least 10 vehicles in the first year with designated parking spaces. All rental vehicles must also be insured.
– Commercial Location: You must have a commercial location for your car rental business, which must meet RTA’s safety and accessibility requirements;
– Insurance: You must have comprehensive insurance for your fleet of cars and obtain proof of insurance before you can begin renting cars;
– Rate Compliance: You must comply with the rates set by RTA for car rentals in Dubai;
– Registration with RTA: You must register with RTA as a car rental company and comply with all rules and regulations set by the agency.
The cost of this application is:
– AED 1,000: for obtaining the NOC;
– AED 2,000: training fee on the car rental company security system;
– AED 20: knowledge and innovation fee;
– AED 2000: our fees.
RTA requirements here :
7. Buy cars for your customers
You will need to buy cars for your car rental business. You can buy them locally or import them from another country.
The date of manufacture of the vehicles must be equal to the date of registration or not more than 24 months from the date of registration.
However, some vehicles are exempt from these requirements:
– Vehicles with a value greater than AED 600,000 and a date of manufacture less than or equal to 4 years. The value of the vehicle must be proven and documented;
– Vintage cars with a date of manufacture of more than 30 years;
– As well as vehicles that have never been used.
8. Congratulations, your license has been issued!
With years of experience in company formation in Dubai, we are able to offer you comprehensive and personalized services to meet all your business formation needs. Whether you are a first-time entrepreneur or an experienced investor, our team has the expertise to help you succeed.
Our experience and knowledge of the local market allows us to guide you through the process of setting up a business, offering sound advice on the regulations and laws in Dubai. We work closely with our clients to understand their specific needs and provide them with tailored solutions that meet their requirements.
By choosing Merritt, you will benefit from our expertise, know-how and commitment to delivering exceptional results. We are here to help you succeed.
For more information, contact us at support@merritt.group.
