How to start a car rental business in Dubai?

Dubai is one of the best places to establish a car rental company. It has a surprisingly strong tourist ebb, which has resulted in a well-established transit system. Despite the fact that public transportation is widely available, the majority of the other locations may only be explored with the assistance of a private or rented automobile. In addition, the majority of the businesses opted to rent an automobile for their outdoor work. The confluence of all of these factors has resulted in an increase in the number of automobile rental companies. In short, the automobile rental business is regarded as a lucrative venture that allows you to earn a substantial sum of money. Furthermore, establishing a Business Set up Dubai is a simple and straightforward process.

Let’s look at how to start a car rental business in Dubai.

What are the steps involved in starting a car rental business in Dubai?

So, if you want to start a car rental business in Dubai, you’ll have to go through a number of steps to get your licence. The following are the critical steps:

  1. Specify your business activities 

It’s critical to establish all of your business activities before launching a car rental firm. Otherwise, it may lead to problems and involvement in illegal activities, which may result in large penalties or licence revocation. Furthermore, it is preferable to choose activities from the Dubai Department of Economic Development’s approved list (DED).

  1. Choose a name for your company 

One of the most crucial things to do before beginning a business is to name it. However, there are a few things to consider while choosing a name for your business. The government of Dubai has set rigorous naming regulations, which you should be aware of.

  • Use language that isn’t offensive or disrespectful.
  • Avoid utilising the names of well-known companies.
  • If you’re calling your company after yourself, stay away from abbreviations.
  • You should also check whether the name you want to register is available.
  1. Find a location for your Company

Finding the correct location for your company is a crucial step in ensuring its success. You’ll require a healthy environment for your automobile line. As a result, set up a physical premise that is at least 150 metres square. Also, pick a location that is in the middle of all the major ports. So that visitors, including tourists, are more likely to visit you. The next step is to decide whether you want to launch your business in the Dubai Mainland Company Setup or free zone. A company that has been established as a Freezone company set up can provide you with cost-effective proposals. However, keep in mind that you may require an extra location or a distributor to serve the local market in the future 

  1. Apply for the License

In order to start a car rental business in Dubai, you must first obtain a commercial licence. Additionally, you should request approval from Dubai’s Road Traffic Authority. In addition, the RTA has the right to inspect your car rental licence at any time. As a result, you must ensure that your firm is properly maintained and working at a high level. There are also particular standards that must be met in order to receive an RTA NOC. To receive your licence, you must submit the following documents to the authorities:

  • Completed application form
  • Two colorful passport size photos
  • Passport copies of the owner(s)
  1. Apply for Visa

The concluding step is to apply for a Dubai visa, which is required to work in Dubai. Luckily, the visa application process in this country is extremely simple. You can even sponsor a visa for your family and staff after you have your automobile rental licence. Keep in mind, however, that the overall number of visas you can apply for is determined by the size of your company, jurisdiction, and revenue.

How much does it cost to set up a car rental business in Dubai?

When calculating the total cost of starting a car rental business, there are various expenses to consider. This covers the cost of the licence, the rent for your office space, the RTA approval price, the documentation fee, and much more. In addition, depending on the fleet of vehicles you purchase, you may incur additional costs. The total cost can also vary depending on the size, setup, location, and service. In short, estimating a quantity without correct computation is difficult. The simplest approach to figure out how much it will cost is to consult with a business formation expert.


Dubai is regarded as one of the best places to start a business without much difficulty. Its advantageous and flexible regulations attract a large number of entrepreneurs from all over the world. The automobile rental industry is thriving thanks to an increasing number of tourists each year. As a result, it has become one of the top businesses to start in Dubai. So, if you have the necessary information, you can easily start your own automobile rental business here.

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