How To Start A Car Rental Business in Dubai?

Car Rental Business

Dubai is one of the perfect destinations to start a car rental business. It has a remarkably robust tourist ebb which makes its transportation system very entrenched. Even though public transportation is readily available here, most of the other areas can be only explored with the aid of a private or rented vehicle. Also, the plurality of the companies chose to rent a car for its outdoor work. The stew of all these aspects has brought a rise in the undertaking of car rental companies. In short, the car rental business is heeded as a profitable business which lets you earn a handsome amount of money. In addition, forming a company in Dubai is a smooth and hassle free task.

So now, let’s find out how to begin a car rental business in Dubai.

What are the steps involved in starting a car rental business in Dubai?

So, if you are planning to start a car rental business in Dubai, you have to undergo a variety of procedures to obtain the license. Those crucial steps are listed below: 

Specify your business activities 

Before starting a car rental business, it’s important to outline all your business activities. Or else, it can later result in troubles and immerse in unauthorized activities which can bring you huge fines or even license revocation. Besides, It is better if you select activities from the official list disclosed by the Dubai Department of Economic Development (DED). 

Choose a name for your company 

Naming your company is one of the most important things to do before starting your business. However, there are a few aspects to keep in mind while selecting a name for your business in Dubai. You should be mindful of the strict naming conventions imposed by the government of Dubai. 

  • Avoid using offensive or irreverent wording.  
  • Avoid using names of prominent organizations. 
  • In case you are naming your business after yourself, avoid using abbreviations. 
  • Also, you have to check whether your chosen name is available to register. 

Find a location for your Company

Finding the right location for your company is a really important step for the success of your business. You will be needing a wholesome space for your line of vehicles. Therefore, establish a physical premise of at least 150 meters square. Also, choose an area that is the center point of all the prominent ports. So that people including tourists will be more likely to come to you.The next step is to determine whether to start your business in Dubai free zone or the mainland. A free zone offers you cost-effective proposals. But keep in mind that, you might need an additional branch in the future or might need a distributor to handle the local market.

Apply for the License

You have to obtain a commercial license for opening a car rental business in Dubai. In addition, you should also seek an approval from the Road Traffic Authority of Dubai. Also, your car rental license is liable for inspection by the RTA at any time. Therefore, you must keep your business properly maintained and operating up to the standard. Also, there are specific requirements that must be fulfilled to obtain a NOC from the RTA. you are required to submit the following documents before the authorities to obtain your license:

  • Completed application form
  • Two colorful passport size photos
  • Passport copies of the owner(s)

Apply for Visa

The final step is to apply for your Dubai visa, as it is necessary for working here. Fortunately, the visa application process here is exceptionally straightforward. After obtaining your car rental license, you can even sponsor a visa for your family and employees. However, keep in mind that the total number of visas you can request will depend on the size of your enterprise, jurisdiction and revenue. 

How much does it cost to set up a car rental business in Dubai?

There are several expenditures to consider while estimating the total cost for setting up your car rental business here. This includes the cost of license, rate of your office space, fee for the RTA approvals, fee for documentation and much more. In addition, there are other expenses based on the fleet of vehicles you purchase. Also, depending on the size, setup, location and service the total cost can be varied. In short, it is pretty hard to estimate an amount without proper calculation. The easiest way to determine the cost would be with the help of any business formation experts.  


Dubai is deemed as one of the best destinations to start any kind of business without much trouble. Its beneficial and flexible policies attract numerous entrepreneurs across the globe. With a boosting number of tourists every year enables the car rental business to flourish successfully. Which made it one of the best businesses to start in Dubai. So, basically if you are equipped with the right knowledge, you can easily start your car rental business here.


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