How To Start A Rental Car Business In Dubai? - IBG Consulting Dubai

How To Start A Rental Car Business In Dubai?

August 27, 2021by admin

With high-tech facilities and luxury lifestyles, you can surely opt to start a business in Dubai and gain progressive success. One of the business options that you can choose is starting your rental business. Rental cars in Dubai bring great potential since taxis usually result in higher fares that tourists like to avoid.

You need to plan strategically before starting any business in Dubai. Planning gives you a head start in allocating necessary steps for your business’s progress. Here are the primary steps you need to follow for starting your rental car business in Dubai:

Choosing the Right Location

The first thing you need to do for any company setup in Dubai is to find the right location for it. Therefore, you need to choose an optimal location for starting your rental car business. Here are a few things you should focus on:

  • The location should have adequate space for establishing parking as well as your office for operations.
  • It should preferably be built near transport facilities such as airports or trains. Tourists and residents can book your service right away.
  • Choose the zone you want to open your business in. It can either be a freezone or on the mainland. Each carries its perks so you can assess which is more favorable for initiating your business.

Estimating Costs

This is also an important factor to consider before starting a rental business in Dubai. You’d need to know the potential costs of a rental business. On average, it would take AED 15-20K, apart from licensing and leasing, for starting a rental business.

Moreover, you’ll also have to consider renting a space, buying or leasing cars, setting up an office, employee salaries, car maintenances, etc. All this has to be considered before diving into launching your business.

Defining Business Activities

Getting a clear idea of the business activities will also bring efficiency to your rental business. Apart from that, for acquiring a business license in Dubai, you would need to state the type of business as well as list potential operations.

Therefore, ensure that you’ve planned business activities before launching your service. What customers will you be dealing with? What kind of rental services will you be offering? Will your business be collaborating with other businesses or services providers? All such questions must be answered beforehand.

Company Formation

When all necessary details are set into the plan, you have to come up with a catchy name for your business. This is important since your company name will be creating its value in the market. It’s also important in case you want to get yourself registered with a trademark.

From abbreviations to naming conventions, you will need to check available names. This is to ensure your name doesn’t correlate with other companies or causes copyrights violations. Make sure your company name is unique to avoid any issues later.


Adding Fleet

The next step is also important since it will impact the performance of your business. You need to choose the right fleet to be added to your rental business. This selection depends upon the demographics that you’re targeting.

From lower to middle to higher and upper-higher class, you need to identify your customers first. Identifying them will also give you an estimate of the budget you’d need to arrange your fleet. Afterward, you would need to ensure that all vehicles in your fleet are well-maintained and in proper conditions.

People often rent cars to have a comfortable experience. Therefore, if your vehicles aren’t holding their standards, you might face backlash from the customers, leading to a reduction in your business’s profile.


Once you’ve decided on your company name and have sorted your business applications, it’s time to apply for a license. It’s important to get a business license in Dubai to run your operations legally. If you’re working in a freezone, then you may enjoy the perks of getting a license in no time.

You will be needing a commercial license for starting a rental car business or chauffeur services in Dubai. While applying, the following are some of the things you’ll be requested to submit:

  • Completed application form with correct details
  • Passport copies of the owner and co-owners
  • Passport size photos (colored)

Apart from these requirements, you’ll also have to undergo training from the Road Traffic Authority RTA as well as get a consent form from them.

Handling Visa Requirements

It’s not a hassle for those already residing in the UAE. However, if you’re a foreigner, you’ll require a UAE business visa for the proceedings. There are several organizations that you can take help in getting this done for you.

In addition, a business visa will also bring perks of sponsoring your family members or potential employees. However, the number of sponsors depends upon the size of your company or business.

Marketing and Promotions

The last thing is marketing and promoting your services and business. From flyers to brochures, traditional to digital marketing, all sorts of processes will be considered for effective brand promotion.

The costs of marketing will also be added to your initial costs so you have to consider your budget strength right away. Furthermore, you’ll have to give away discounts and free rides to attract potential customers.

How Can IBG Help?

Being experts in setting up businesses, IBG Consulting offers steadfast and professional services for your rental car business. From planning to execution and licensing, we’d provide aid to help streamline processes, completing them on time.

Our experts ensure to highlight important aspects of your business proceedings so you’re aware of the risks. Apart from that, we ensure ingenuity with transparency for giving a solid foundation for the business establishment of our clients.

Closing Thoughts

With an increasing number of tourists and visitors, starting a rental car business in Dubai can bring favorable progress. Ensure to strategize for the proceedings for making a successful launch while adhering to legal processes.

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