7 Proven Methods To Start A Car Rental Business In Dubai

With extravagant luxury, high-tech facilities, old-world appeal, and a strong tourist gathering, Dubai is an ideal market to start a car rental business.

Even after being home to major car rental companies like Avis, Hertz, Budget, Dollar, etc., this large city has never hampered the development of small to medium-sized companies.

Since the past decade, the government has massively extended the road network throughout the UAE.

Although public transport is readily available throughout the country, a large portion of beautiful Dubai can only be explored by a car. There are ample taxi services in Dubai, but its frequent use may be costlier than leasing a vehicle.

Steps to Start a Car Rental Business

 

1. Car Rental Location

In order to start a car rental business, you initially need a physical space. This space will be utilized for both your office as well as the garage to park your fleet. Preferably, it must be near a built-up area or at transport hubs such as a train station or an airport.

When you plan to set-up your rental business in Dubai, you can do so in the mainland or a free zone. While choosing a free-zone can be cost-effective, you may need to open a branch or use a distributor to deal directly with the local market.

2. Choosing the Fleet

The type of vehicles you want as a part of your fleet depends on your clients you are trying to gain. If you are targeting tourists, you can get high-end luxury cars.

However, if your target customers are corporate professionals, you can choose standard and affordable vehicles.

Make sure that the cars you choose to lease are in proper condition. You can sign up for a service agreement with a maintenance firm to ensure the timely service and maintenance of your vehicles for a smooth experience.

3. Defining Your Business Activities

While starting a Dubai-based car rental business, you must have a clear outline of your business activities. Else, it can cause issues later and engage in unauthorized activities that can lead to hefty fines or even a license cancellation.

Moreover, it would be best if you chose the stated activities from the official list that the Dubai Department of Economic Development (DED) has published.

4. Choosing the company name

Along with all the above steps, this step is also important. When you select a name for your company, there are a few things to keep in mind.

Initially, it would help if you obeyed the strict naming conventions. In other words, you need to avoid any derogatory or hurtful language.

Do not use the names of well-established organizations and if you are naming your business after yourself, avoid using abbreviations. Also, check if the name you have chosen is eligible to register.

5. Creating a license application

A commercial license is necessary to manage a car rental company in Dubai and expand it further.

If you are applying for a license, the following documents are required to submit:

Completed application form

Passport copy of the owner or co-owners

Colored passport-sized photographs

Above all, you need consent from the Road Traffic Authority (RTA). Your workforce needs to undergo RTA training.

6. Getting Visas

If you already have a UAE visa to work, there will be no issues in establishing a business in Dubai. Else, several agents can help you process your visa at the earliest.

If you hold a UAE business license, you can sponsor others for their visas too. Those could be your parents, children, spouse, or a housekeeper.

The size of your company determines the maximum number of visas you can apply for.

7. Marketing Efforts

Once your business is all set, promote it for your target customers. Just starting a company won’t bring you profits. People need to know who you are. With a lot of competitors in a similar market, your service should add value to the customers.

You can start with a marketing campaign that highlights the standout features of your rental services. Besides, you can offer your customers some attractive introductory benefits such as discounts on the first ride, free rides, free kilometers, free fuel, etc. In this way, your business will grab the eyeballs.

The Cost of Starting a Car Rental Business in Dubai

The cost of establishing a car rental business depends on various aspects. It includes the value of the license, the rent/lease of your office premise, and the price of any documentation and authorizations required by the RTA.

Besides, it would be best if you considered the cost of the vehicles you will rent out. The number of vehicles you want in your fleet depends on you.

For esteemed companies, 10 is the standard size of cars. You can either purchase those or take them on lease.

It’s always a better idea to set up a meeting with a company formation expert and summarize your business requirements.

Conclusion,

We hope this post has cleared the air on all the doubts that come to mind when you think of starting a car rentals business in Dubai.

Dubai is one of the most happening cities in the world. With an increasing number of tourists visiting every year, the success of a car rental business is not a challenge. However, with already established companies doing well, your rental facilities need to make a difference for the customers to stand out.

 

 

 

 

 

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