Dubai is a global business hub and tourism attraction city that hosts millions of tourists and visitors. Its solid infrastructure and fast-growing population position it as the best place to start a car rental business. Whether you are looking to start a luxury car rental company or affordable car rental services, Dubai’s ideal location and high demand can help you setup your successful car rental business.  This blog will explain the procedures of car rental company setup, what documents required to open the company, Free Zone Vs Mainland, and Cost of business setup.

What are the required steps to open a car rental business in Dubai?

Opening a car rental business in Dubai requires different steps and procedures. The below are the important steps that need to be taken in order to obtain your car rental license in Dubai.

1- Choose your Business Activity: The business activities depend on your business model. The below is the list of car rental license business activities in Dubai:

• Car Rental: Includes firms engaged in renting vehicles without drivers for a minimum of one day, this can be through self-driving or semi-autonomous trucks or any other type that will be developed in the future.
• Racing Cars Rental: Includes renting different racing cars without drivers as well as be exclusively restricted to racing tracks, this can be self-driving or semi-autonomous vehicles or any other type that will be developed in the future.
• Hourly Car Rental: Includes firms engaged in renting vehicles by the hour via electronic media, smart apps, the firm will locate it’s vehicles in convenient locations across Dubai, the lessee through mobile apps you can reserve the vehicle, fix the period of time, pay the fare and then drive the car according to the instructions of the lessor, at the end of the reservation the lessee shall return the vehicle to the place he drove off from or can park it at any place in Dubai.
• Motorcycles Rental: Includes firms engaged in renting motorcycles with two wheels or more, equipped with an automatic engine, and licensed to operate on paved and off- roads.

2- Free Zone Vs Mainland:

• Free Zone: Gives access to operate only in the same free zone and online.
• Mainland: Operate anywhere in Dubai without any restriction.

3- Required Documents and Process:

Once your business activity is chosen as well as your license issuing authority ( Free Zone/ Mainland), you have to prepare your documents to start your company registration process.

• Initial Approval and Trade Name Reservation: This process illustrates that the authority has approved your request to open a car rental company and accepted your trade name.
• RTA Approval: This is a permit that should be obtained from Roads and Transports Authority in order to be able to operate your car rental business in Dubai.
• MOA Signing: It is document called Memorandum of Association which proves the company ownership and Managements.
• Issue Your Trade License: Submit all the documents to your licensing authority and complete the payment in order to print your company trade license.
• Investor Visa Processing: It is a legal residence visa that allows you to live, sponsor your family, and open bank account in Dubai.
• Open Business Bank Account: You need to approach the bank and provide your company document in order to open your professional and personal bank account.

Note: Required documents may vary depending on the legal structure, business activity, and issuing authority.

For a broader comparison on business jurisdictions, consult our guide on Dubai mainland business setup cost to choose the best location for your car rental company.

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

Car rental business setup in Dubai differs from one jurisdiction to another (Free Zone or Mainland). The below is general cost and estimate. It may vary due to many factors including the number of shareholders involved and how many residence visas are required:

Note: You have to consult with experienced business setup consultant in order to have the exact estimate according to your requirements.

You may also want to read our full process for Dubai residence visa application if you plan to run your business locally.

Conclusion: Opening a car rental company in Dubai is a profitable business because of its strong economic infrastructure, high demand by visitors and residents. By obtaining the right trade license, RTA license, and necessary approvals, you will be able to run your business freely and operate anywhere in Dubai.

FAQs:

How to start a car rental business in Dubai? 

You need to obtain a trade license and RTA approvals.

Is car rental business profitable in Dubai?

Yes, it is a profitable business and depends on your business model.

Do I need a physical office and parking?

Yes, a physical office/ Virtual location and a specific parking space might be required depending on your number of cars.

What is the minimum number of cars required to start a car rental company in Dubai?

There is no minimum requirements of cars, you can even start with 1 car only.

Can a foreigner own 100% of a car rental company?

Yes, whether in free zone or mainland, you can own your company with 100% ownership in Dubai.

How many days it takes to open a company in Dubai?

It depends on your business activities and required approvals. It takes usually from 2 to 5 working days.