When you think of a vehicle, there it is, gliding gracefully through the streets of Dubai’s commercial district. The ‘city of gold’ is also well-known for its exotic automobiles and other forms of luxury transportation. As a result, if you are considering establishing a vehicle rental company in Dubai, you have made a wise decision that will definitely pay off.
The information provided in the accompanying blog will assist you in understanding the specifics of how to start a vehicle rental business in Dubai. However, one must first understand the nature of the company’s operations.
What is the procedure for hiring a vehicle in Dubai?
Clients may hire cars for short periods of time from car rental companies, according to the company’s policies. Drivers, on the other hand, are not provided by the business. Renting a car in Dubai is an option for those with driving licences who do not have access to a vehicle, as well as visiting expats and owners of damaged or wrecked cars who are awaiting repair.
In a similar vein, hourly automobile rental companies operate in the business of renting out cars on an as-needed basis. The booking of these may be done via online platforms or through smart apps on mobile phones.
The businesses that hire cars in Dubai deliberately position their vehicles in strategic places around the city, making it easy for customers to pick up and return their leased automobiles. Consequently, clients may simply book a car of their choosing for a length of time that suits their requirements.
However, if you want to operate a car rental company in Dubai, you must guarantee that the lessee follows your instructions and that the cars are returned on time and in the same condition as when they were leased out. A pre-paid agreement might also be advantageous in your situation.
What are the benefits of starting a vehicle rental company in Dubai?
Approximately 3 million people are expected to live in Dubai by 2021, according to the most recent data from the World Population Review. Non-citizens constitute 85 percent of the total population. They may choose to hire a vehicle in Dubai for a variety of reasons, some of which are listed below:
Time saver: The public transit system allows for a seamless and easy travel to and from most locations around the city. However, there are certain restrictions, such as the need to adhere to tight work schedules during rush hour or the inability to organise short excursions to neighbouring Emirates. In order to have more control over their travel times, many individuals choose for this option.
Foreigners also find it simpler to rent a vehicle in Dubai than it is to purchase a car, which allows them to avoid the extensive paperwork that comes with purchasing a car. Another time-consuming job might be searching for replacement components whenever a repair or change is needed or desired. This is not the case with four-wheelers that are leased.
Owning a car requires the payment of insurance premiums as well as maintenance and repair costs. As a result, many choose to rent a vehicle in Dubai rather than own one.
You now have the opportunity to own 100 percent of your company.
A partnership with an Emirati sponsor was formerly required for the establishment of any kind of vehicle rental company in Dubai. As a result, the entrepreneurs were required to establish a Limited Liability Company in the Emirate of Dubai.
The Department of Economic Development, on the other hand, now offers a professional or service licence for those who want to run a vehicle rental company in Dubai. For court formalities, you will still need the services of a local service agency.
The procedure for establishing a vehicle rental company in Dubai is as follows:
If you are in the United Arab Emirates, you must prepare the following papers in order to establish a vehicle rental company in Dubai:
a photocopy of your passport
Copy of Emirates Identification Document (EID) Copy of Visa Page
A letter of no objection (NoC) from your existing sponsor is required.
a duplicate of your Ejari (commercial space rental contract)
The Road and Transport Authority of Dubai has given its commitment (RTA)
How do you go about obtaining RTA approval for your company?
In order to operate a vehicle rental company in Dubai, you must first get permission from the RTA by demonstrating the following:
1. Taking up a responsibility
The date of production of the vehicles must be within the same calendar year as the date of submission of the registration application, or it must not be more than 24 months after the date of submission of the registration application.
The cars listed below are exempt from such requirements:
Luxury automobiles or vehicles with a price tag in excess of AED600,000, provided that the vehicle’s manufacturing date does not exceed four years in the same calendar year Automobile values should also be backed up by certified documentation.
Classic cars that are more than 30 years old and meet the criteria set out by the Vehicles Licensing Department are eligible for registration (VLD).
Vehicles that have not been used in any way whatsoever.
2. Provide a minimum of ten cars in the first year of operation
3. Insurance coverage for all automobiles
4. Allocate parking spots for visitors.
The following is a summary of the costs associated with starting a vehicle rental company in Dubai:
Approval of the Service Price at the Outset
Approval of the AED235 Name
AED735 for the LSA Agreement AED900 (about) for the Ejari
It is dependent on the business space that is leased.
If the trade name is not in Arabic, the final filing of papers will cost DED AED8,500 (about).
Consult with the company’s legal counsel.
Generis Global is comprised of a team of experienced business advisors, public relations officers (PROs) with important contacts in government agencies, VAT and tax specialists, and other professionals. Generis Global is headquartered in New York City. The staff can help you with the process of establishing your rent a vehicle company in Dubai, and they can even perform the legwork for you.