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How to Start a Car Rental Business in Dubai

start a car rental business in dubai
Table of Contents

If you’re someone who wants to jump on the bandwagon of entrepreneurship, then you’ve come to the right place. In this blog, we’ll elaborate on why you should think to start a car rental business in Dubai. Let’s start from the basics and then get to its details.

What is a Car Rental Business and How Does it Work?

A car rental company or a car hire agency is a company that allows its customers to rent automobile vehicles for a limited time period. Commonly, this period is somewhere between a few hours to a couple of weeks, depending on the terms provided by the company. Car rental companies are mostly organized with various of its local branches spread across different areas, allowing you to return a vehicle to any of its branches.

The primary objective of this business is to start a car rental business in Dubai in order to assist people in commuting on a daily basis. Students, employees, families, and groups of friends who cannot buy their own car due to any reason can easily arrange one when needed.

The Rapid Growth in Car Rentals in Dubai

Car rental businesses, specifically in Dubai, have seen a spike recently. There are plenty of reasons that contribute to the rapid growth of this business.

Over the past years, Dubai has become the center of attention for tourists worldwide. Dubai now expects to welcome around 20 million tourists this year, making it a significant factor in the rise of luxury car rental businesses such as limousine business in Dubai.

Benefits of Starting a Car Rental Business in Dubai

What is it about a car rental business that stands out among the many businesses that you can setup in Dubai?

An interesting fact for you: The car rental business is so high on demand in Dubai that you have to reserve your cars in advance the reason why to start a car rental business in Dubai remain one of the most profitable ventures. Although there is a huge availability of rental fleets in different car rental companies, there still is a need for more rental automobiles to meet the high public demand.

And with the ever-expanding economy and massive influx of visitors, you don’t have to worry about this business getting obsolete anytime soon. Yes, there are alternate commuting services such as Uber and Careem, but people usually do not opt for these as they prove to be a little heavy on the pocket if used frequently. On the other hand, renting a car serves as a preferred choice for the general public.

The cost of car rental business license in Dubai

This booming industry is a sign as to why YOU should start a car rental company in Dubai and make it a success. The car rental business license in Dubai including company registration and legal approvals cost is around AED 30,000/- plus office rent and operation cost as well as working capital required.

The cost of starting a car rental business in Dubai largely depends on the size and nature of the business. Both free zones and the mainland provide benefits based on specific regions and they both are cheap. So you can opt for either one of them, taking into consideration the nature, goal, scope, and objective of your business.

Steps to Start a Car Rental Business in Dubai

UAE’s Department of Economic Development (DED) presents unconditional business opportunities and ease of doing business. Following are some steps outlined for you:

  1. The Location Factor:

The car rental business in Dubai would definitely require you to have a physical space that could be used as a garage for your automobiles as well as your office. Choose your location near a developed area or preferably transport hubs like an airport or a train station.

Here again, you’ll need to keep into consideration the pros of Dubai Mainland and the free zones.

  1. Choose the Type of Fleets:

Who are your targeted clients?

When choosing the kind of vehicles as your fleet, understand the type of clients that you want to serve. If your targeted clients are tourists, then it’s better to opt for luxurious cars. On the contrary, if you want to serve the local public, then choose affordable and standard vehicles.

  1. Outline Your Business Activities

In order to kick-start your business with zero uncertainties and confusion, you’d need to efficiently plan out your business activities. Go through the necessary activities as stated by the DET on their official website and work accordingly. Doing so would eradicate any potential issues like license cancellation or hefty fines.

If you’re a budding entrepreneur who plans to launch their first-ever start-up, then know that you can always refer Avyanco to assist you with a smooth process. Avyanco houses the best team of professional business advisers that will guide you to start a business in Dubai.

  1. Submit a License Application

After deciding the name of your company, you would next need to get a Professional license to open a car rental company in Dubai. This process may require you to have the following documents:

  • Owners and co-owners passport copy
  • Completely filled application form
  • A colored-passport sized picture
  • Consent from the Road and Transport Authority (RTA)
  • Lease agreement
  1. Effective Marketing Strategy:

Assuming that your UAE Visa is all sorted, your final step would be to promote your rental business. Start a marketing campaign that creates a buzz about your start-up. Work on strategies that highlight the key features of your car rental services. As introductory benefits, offer some discounts that intrigue your customers.

Allow Avyanco to Help You Setup a Car Rental Business in Dubai

Avyanco Business Setup is a well-ordered business setup company in Dubai that has some of the best experts and qualified staff on board. Originating in UAE, our organization assists companies to start a car rental business in Dubai while providing budding entrepreneurs with financial compliance services to assist them in setting up their businesses with minimum hassles.


About the Author


Jashvantkumar Prajapati

(Founder and CEO of Avyanco Group of Companies; Business Setup Consultancy, Avyanco Tax and Accounting LLC, and Avyanco Auditing LLC.)

He keeps a varied portfolio with core expertise in investment management, corporate structuring, commercial law, business consultancy, lead management, business planning and market research. Aspire to help potential entrepreneurs and investors to come ahead and form their companies in highly emerging economies like UAE.