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how to start limousine business in Dubai, UAE

How to Start a Limousine Business in Dubai: Step-by-Step Guide

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Dubai’s Limousine industry is expected to grow by over 1Bn AED by 2025 with a fleet size of 7,000. The Limousine industry of Dubai experienced 85% growth in the first half of 2022, as per the Government of Dubai. It is a rapidly growing sector. So, if you plan to enter the luxurious world of the Limousine business in Dubai, now is the best time to do it. 

In a recent news article by Khaleej Times, Saleem Ahmed Khan, a former taxi driver, started his own driver fleet business with 850 drivers in the UAE. This indicates that, contrary to popular belief, anyone can start a luxury car rental business in Dubai with determination and dedication.

Whether it’s a lively night out, a crucial business meeting, a romantic dinner, or one of the biggest celebrations of your life, like a wedding, a Limousine Licence in Dubai is your key to curating cherished memories. Before you start with the business registration and setup, you must understand the process, compliances, and costs required for your new venture.

This guide offers you a roadmap to start a successful Limousine business in Dubai. It discusses the intricacies of establishing a lucrative business model and how you can complete the process seamlessly.

How to Start a Limousine Business in Dubai: A Strategic Approach

To start, you must obtain a Limousine business licence in Dubai. However, it is just the starting point. To set up a business and succeed, you have to focus on a holistic approach.

We will share step-by-step methods to ensure your limousine business succeeds and thrives in Dubai’s dynamic market.

How to Get Limousine Business Licence – Step-by-Step Process

Obtaining a limousine trade licence in Dubai sets up the groundwork for you. It is the first and most important step in your business development journey. Let’s explore the step-by-step process of obtaining a Limousine licence in Dubai:

  • Initial Approval to Choose Your Trade Name – Initial approval for your trade name is required to be taken from DET. You must choose a unique trade name for your company as the first step. Get this name registered with the Department of Economic Development (DED) to move forward to the next step.
  • RTA Approval – Submit required documents to RTA for Approval. You must gather all the necessary documents, such as business plans, as per the RTA Guidelines. The business plan must include the financial and operational plans to submit to the Road Transport Authority (RTA).
  • Prepare and Notarize Your Company Memorandum of Association (MOA) – Prepare a Memorandum of Association (MOA) for your Limousine company. This document should clearly state what your company aims to achieve, what it does, and how it’s organised. You have to get the MOA notarized to ensure it’s legally valid and follows all the rules.
  • Licence Issuance – After receiving approval from RTA and notarizing your company by MOA, trade licence issuance will start from DED. Be extremely careful when you fill out the application to issue a business licence for your limousine business. Also, make sure that you have all the required documents during submission. Do not forget to include any supporting documents to avoid any disruption. You can get help from business setup experts at Avyanco Business Setup for a smooth and seamless start of your limousine business.
  • Get your establishment card – You receive an approval certificate after passing your road test. You must also obtain an Establishment Card to register your workers with the Ministry of Labour. This concludes the registration process for obtaining your Limousine business licence.
  • Registration of Cars and Drivers – Now that you get your business licence and establishment card from the authorities, the final step is to register your cars and drivers with the RTA you will use for your limousine business startup.

Requirements for Getting a Limousine Licence

If you fail to meet the requirements for a Limousine licence, you cannot start your venture. You must carefully understand and meet all requirements to receive a Limousine business licence.

Here are the key requirements for a limousine business:

  • It is mandatory to have an office as an operational base. This office must have a minimum space of 225 sq. ft. to meet the compliance requirements.
  • You have to present a business plan to the RTA for approval. This plan must highlight your financial & operational alignment with an investment plan of AED 5 million, as limousine business is costly.
  • You must have a fleet of at least 30 vehicles to meet the demand for Limousine service. You cannot conduct business unless you have them. These 30 vehicles should be distributed as 20% Electric, 24% hybrid, and the rest normal.
  • To commence your Limousine business operations, shareholders are legally required to sign an agreement with RTA. This agreement ensures that you are following the RTA regulations.

How Much Does it Cost to Start a Limo Business in Dubai?

Limousine services fall under the category of luxury business. You can easily incur startup costs ranging from AED 1,00,000 to AED 1,50,000, covering licence fees, vehicle costs, marketing, and maintenance. 

New and high-quality Limousines require heavy investment. The cost varies based on factors like the brand, model, features, and vehicle age.

If you want a brand-new luxury limousine, it could cost you anywhere from AED 200,000 to over AED 1,000,000. But if you go for a pre-owned model, it’s cheaper.

However, used models may have issues like the remaining vehicle’s life and maintenance history. The key is to balance your budget and the quality of service you want to offer.

Consider starting with a limited fleet to minimise initial expenses.

If you carefully follow these steps and meet all the requirements, you’ll be on your way to getting a Limousine licence in Dubai. Then, you can start your journey as an officially licenced Limousine service provider.

Benefits of Entering the Limousine Business in Dubai

The Limousine business has a growing market in Dubai. The demand for such services has been rising. You can enjoy multiple benefits if you start a Limousine business in Dubai.

  • High-Profit Potential – The luxury transportation sector in Dubai has seen incredible growth and is expected to grow at a good pace. With a well-positioned and strategically marketed Limousine business, you can tap into this lucrative market and make substantial profits.
  • Straightforward Setup – Dubai’s business-friendly environment and well-defined regulatory processes make establishing a Limousine business relatively straightforward. You can also engage with a business consultancy firm like Avyanco to streamline the process further.
  • Quick Earnings – As tourists, corporations, and HNWIs already have a high demand for Limousines, you can expect to start generating revenue quickly. You can devise good marketing strategies and build partnerships with hotels, travel agencies, and corporate entities to speed up the process.
  • Stress-free Operations – Compared to other businesses, the Limousine business in Dubai is stress-free. Once you obtain the licence and the setup is complete, daily processes only involve managing reservations, maintaining the fleet, and ensuring great customer service. With careful planning, you can enjoy a business model that is not too complicated.

Is the Limousine Business Profitable in Dubai?

Dubai’s transportation industry is lucrative. As Dubai is a leading business and tourist hub, the transportation sector flourishes here. Tourists, high-net-worth individuals, executives, and corporates require premium transportation services.

Limousine comes in various sizes, starting with 8-seaters and going up to 22-seaters. You can easily charge an hourly rental of AED 450 for an 8-seater. However, the hourly rental cost for a 22-seater may go up to AD 1200. 

Various people use limousine services for various purposes. They serve several requirements, from special occasions (like weddings) to corporate requirements.

Leveraging Expertise – How Avyanco Can Help You Start Your Limousine Business in Dubai

Starting a new venture can be a daunting task. You must follow processes carefully to obtain a Limousine business licence in Dubai. Multiple steps are involved, and you have to be extra careful with every little detail.

However, mistakes can happen due to a lack of experience and expertise. That’s where Avyanco comes to your rescue, proficient with business setup in Dubai. We help you through each step of your journey. We ensure your documents are error-free and you are equipped with all the necessary resources to get approval from Dubai authorities.

Hence, do not hesitate to contact us today to start your entrepreneurial journey. We will help you start a Limousine business in Dubai without any hassle.

Final Thoughts on Limousine business in Dubai

Dubai is a great market to start a Limousine business. The market is expected to grow in the coming years, and there are many opportunities. Follow this guide carefully to set up your Limousine business and take advantage of the growing market.

You must follow all the steps mentioned to obtain a Limousine trade licence and ensure compliance at all costs. Carefully analyse the market and finances before deciding.

If you need help with anything, you can contact us, and we will be happy to resolve your queries.

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