rent a car business license in Dubai

Tuesday March 14, 2023

How to setup rent a car license in Dubai

Dubai is a travel destination millions of people are travelling every year. Dubai is the place which attract people who love luxury lifestyle. You can shop world best brands here, enjoy the services of world-class hotels and food.

Car rental business is always in demand in Dubai mainland. People coming to Dubai with international driving license can use a car on rental basis and drive during the stay as much as they need. In recent year as we have seen spark in number of tourist increases. The rent a car license registration demand increase simultaneously. In this article we will discuss all the factors, you should know before setting up your own license.

Why car rental license in Demand in Dubai

As we know Dubai is the hub for tourist and fun loving people, Dubai Mainland is the best option to setup a car rental license. You can choose any suitable location for your office and shop anywhere in Dubai Mainland (Dubai City), which suit your budget and cover your target customer.

Business Activities related to car rental license:

Choosing appropriate business activity is a key decision, which fulfills your business goals and customer needs. There are several business activity related to car rental in Dubai Mainland, we will focus on few of the important and most common activities as follow:

Car Rental

Activity Group:                 Car rent and passenger transport

Activity Description:      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

Hourly Car Rental

Activity Group:                 Car rent and passenger transport

Activity Description:      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

Activity Group:                 Car rent and passenger transport

Activity Description:      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.

Using Electronic Media Smart Applications or any other Means of Renting Vehicles

Activity Group:                 Car rent and passenger transport

Activity Description:      Includes firms authorized by the RTA to provide the rental service via calls, electronic media, smart apps, or any other mean, it involves organizing the booking, e-Payment, information, customer support services.

The Process of Rent a Car License Registration in Dubai

To register a car rental license in Dubai, you have understand the complete process before you start it, so you will have clear idea how to go ahead what are the requirements for a smooth operations.

  1. Finalize the business activities for your license: as per your business plan and expertise you have finalize the business activities.
  2. Find some unique trade name for your business, keep at least three option it’s better to have multiple name options because normal names are already booked by someone else.
  3. Search and find a suitable location for your business, the one of the most import task is to finalize business location, if you want to cater walking customer it must be on a busy road side where a huge foot fall cross your shop. If you plant to target customer using online and other media or marketing strategy then you can have office in that kind of place.
  4. RTA NOC & Approval for selected business activity.
  5. Prepare MOA in DED with all shareholders and get a trade license by paying trade license fee.
  6. Further you can process investor visa and employee visa as you go.

Important facts to keep in mind – These business activities fall under RTA guidelines, so keep updated with RTA news and updates. Always fulfill specified guidelines given by RTA.

How much it cost to setup a Rent a car trade license in Dubai Mainland

As the cost of setting up a license may vary on several factors, like one of the main factor is the cost of the office or shop rental. So you have to choose the location which suits your budget.

The office rental amount also reflect in trade license fee as 5% of office rental amount will be added in trade license let’s say if you have annual lease agreement of AED 80000 for your shop or office. Then 5% of the lease agreement AED 4000 will be added in your as market fee, Thus if lease agreement goes higher it will increases trade license accordingly.

The Number of shareholder make a difference in license cost, if number of shareholder increases the cost also goes up.

The Number of business activity affect the cost of trade license, each car rental activity needs RTA approval thus it increase cost as well if we choose multiple activities. So choose wisely because this will be a recurring cost.

How we can assist you in setting up car rental license in Dubai

Elegant Services is Business setup consultant since 2009, we have expertise in setting up business from scratch, we offer transparent and value for money services. We make sure each of our clients will have unmatchable experience while company setup with our team.