Things To Keep In Mind Before Starting A Car Rental Business In Dubai

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Car Rental Business In Dubai

A car rental company provides cars for rent on a daily and weekly basis at reasonable rates. Car rentals are appealing to a wide range of people. Business and leisure passengers, as well as those whose cars are out of commission and business, are common customers. 

Car rental business in Dubai


Car rental companies are eager to capitalize based on the UAE market’s enormous potential. They promise to be different now that their activities have been adjusted to the new economic reality. The approach is centered on some factors that have been stimulating the business of the companies, which include cutting down costs, the ever-growing tourism industry, and globalization signaling the growth of the market. If you are an entrepreneur who is looking forward to setting up a car rental business , then you can contact the best business setup consultants in Dubai to make the setup process quick and easy. 

Types of vehicles rented in Dubai?


Dubai is one of the richest places that rent out almost all kinds of automobiles. We recommend you to serve out all kinds of motors from cheap ones to luxurious ones like SUVs, Mercedes, and many more. The particular place receives all kinds of visitors from different parts of the world to fulfill various purposes. We need to provide them with economic cars and luxury wheels for tourists. So they can choose whichever car they like according to budget and you won’t miss out on any customers. 

Things to know before you start the business 

Here are some things to keep in mind before you move on with the big step. 

Getting a commercial license and RTA approval  

Please ensure that you have approval from the Roads and Transport Authority for hassle-free business operation. DED or the Department of Economic Development gives you access to company registration. After getting it done, you can think about the physical office setup. It must have a good parking space and maintenance area. Also, certain companies provide you with offices for rent in Dubai. 

Deciding on a local sponsor to open LLC Company 

If you are planning on being the entrepreneur of a car rental service, then you need to partner with a local UAE national. You also should prepare a shareholding agreement declaring 51% of share ownership by the UAE national and the rest 49% with you.  

Getting no objection certificate from RTA and Trade name approval from DED 

You have to get approval for the trade name. For that, submit a copy of your passport along with the tenancy contract. Also, submit the shareholder agreement to the DED for license approval.  

Deciding on the right location

First of all, be aware of your target clients and set up a company near the living area, workplace, or hotel apartment. While choosing a location always give priority to a place where your target audience resides.  

Car Rental Business

Important documents for Car Rental Business, Application at DED, Dubai

 A person who intends to run a car rental business must need a commercial license. If you are one among them, then you need the following documents:-  

  •  Full business application form from DED
  •  You will need a passport copy and photographs of shareholders.
  •  Next, you need approval from the Road Transport Authority.
  •  Another important document is Office Details and Tenancy Contract.
  •  Finally you need a Training Completion Certificate.  

Getting Business License from DED


The Business License is issued by DED, Dubai after you submit the necessary documents and pay the fees  You can now officially start your car rental company in the United Arab Emirates.

Also, the car rental company investor, his family, and employees are entitled to apply for a UAE residency visa. The maximum number of visas available is determined by the rented office space.  

Advantages of car rental business  

People especially travelers love to rent a car because of many reasons and these reasons are the great advantages of the car rental business 

There are plenty of advantages to renting a car  

Provides freedom of movement 

  With your car rental service, people can enjoy their holidays. They don’t have to worry about the extra taxi prices or bus stops. You help them to enjoy the time, explore without much trouble about travel expenses. 

Cost-effective option 

You help foreign explorers from wasting too much money to tricky taxi drivers. Renting a car is a great option to save money. They can rely upon you and only spend a limited amount of money on the car rental service.  

Quality service  

Buses may be cheap but nothing is more satisfying than delivering safety and a comfortable ride for your clients. Also, they love how car rental service offers them options to save money and time.  

Comfortable option  

This advantage is what makes a tourist person choose a car rental service. They don’t have to think about a thing because their car is waiting for them at the airport or their favorite spot. They don’t need to meet up with tricky Taxi Drivers or messy bus stops. Also, taxi or bus has limitations when it comes to visiting a place. It’s not practical to get a bus towards your exact spot to enjoy special scenery. A car for yourself makes you less stressed about missing or making a vehicle wait for you.    

Affordable for clients  

You can provide an affordable trip package with your car rental service. It’s a big deal even if you help them cut down a little bit of traveling cost. It’s worth it for them to drive a rental car if the trip is short, for example, it’s like four hours to get to the destination. It is the perfect choice for clients if kids are traveling. 


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