How to start a car rental business In Dubai?

To start a car rental business in the UAE, you must first get a trading license. The following 5 steps show how you can get this license.

1. Select your business activity

The first step to getting a car rental business license in Dubai is to select your business activity. There are a few potential license types you could apply for, depending on the type of vehicle rental you hope to do. The most common is ‘Passenger Transport and Car Rent’, although you may need a different license if you operate in a slightly different sector. At Meydan Free Zone, we can advise you on the most appropriate license for your activities.

2. Choose a trade name for your Dubai car rental business

Your trading name needs to succinctly describe what your company does, and it must not use any language that could be considered offensive or potentially blasphemous. Further, the company name must not contain any acronyms which include your own initials. For instance, Ali Khamza Car Hire would be OK, but AK Car Hire would not be permitted.

3. Choose the location of your car rental business in Dubai

Selecting a business location is a vital step in launching your car rental business in Dubai. Many car rental businesses choose to launch from Meydan Free Zone because it offers a 0% tax rate and 100% foreign ownership. Our location in central Dubai, close to the airport and the sea port, means you are perfectly located to meet the needs of tourists, business travellers and local customers.

We can advise you on setting up your free zone company at Meydan Free Zone, and provide the support you need to ensure your car business start-up thrives.

4. Complete your application and pay fees

In order to receive your Dubai UAE car rental commercial license, you will need to complete your application form and provide a range of documents and paperwork. It is also essential to pay the associated fees as part of your business license application.

5. Receive your license and open a business bank account

Getting your license to run a car rental company in Dubai takes just a few days – so long as all your paperwork is in order and your application form and fees are all correct. At Meydan Free Zone, we help you by checking that all your paperwork meets the requirements so that you avoid any unnecessary admin obstacles.

Once your license has been approved, the final step is to open a business bank account so that you can make and receive payments – Meydan Pay is our simple digital banking solution for businesses working in our free zone. It gives you an IBAN and digital wallet, which comes with all the features you need to start making and receiving payments – which is ideal for car rental companies working with foreign tourists and local customers.

Cost To Start A Car Rental Company In Dubai, UAE

There are several key costs to consider when starting a car rental business in Dubai: the license price, the cost of your premises, and the RTA approvals. Then on top of that, there is the cost of the fleet of vehicles you will use – which you may purchase or lease.

Launching a car rental firm in Dubai varies in cost depending on how many visas you require. If no visas are needed, starting a car rental company can cost as little as AED 12,500.

If you need more visas, the application fee costs up to AED 23,600 (for six visa allocations). This figure includes your business license and associated fees.

For a quote tailored to your business and the number of visas you need to apply for, contact Meydan Free Zone today, and we can give you a precise figure for how much your car rental business license will come.

Besides the license cost, you will also need funds to pay for the vehicles you hope to rent, insurance, office space, car cleaning services and marketing costs.

Documents To Start A Car Rental Company In Dubai, UAE

If you want to launch a car rental business in Dubai, you will need to provide the following documents as part of the application process.

At Meydan Free Zone, we can support you with all steps in compiling these documents, and we will also check them for any errors:

• A completed application form which describes what kinds of car/vehicle rental you will offer

• Copies of your passport and passport size photos

• A copy of your residence visa (if applicable)

• Emirates ID copy (if applicable)

Why Meydan Free Zone?

Meydan Free Zone, located in central Dubai, is the perfect place to launch your car rental business. Our free zone is located close to the airport, the central business district, hotels and tourist sites, and major roads. This will make it very easy for customers to pick up your vehicles and for you to meet customers where they are. Our experienced consultants can support you with all aspects of business setup in Dubai, so you can focus on starting your car rental business – and leave the legwork to us.

• Trade License: Meydan Free Zone offers a fully digital and paperless experience, allowing businesses to receive their business license within 3 business days. 

• MOFA-recognized business license: Officially recognized by the Ministry of Foreign Affairs (MoFA), this acknowledgement adds credibility and legitimacy to the business, particularly for international operations.

• Certified by the Dubai chamber of commerce: This certification signifies that the license holder has met specific standards and requirements set by the Chamber, further enhancing the credibility and trustworthiness of the business. 

• 3500+ business activities: This provides the flexibility to choose specific activities from a comprehensive list of over 3500 options, enabling you to operate in diverse sectors and industries.

• Flexi-desk included with license: This offers a practical and budget-friendly solution for establishing a physical presence in Dubai, ensuring convenience and cost-effectiveness.

• Guaranteed bank account opening: Through strategic partnerships with 25 renowned global banks, businesses obtain assured bank account opening, granting them access to vital funding.

• Open your office in Dubai mainland with NoC: With a No Objection Certificate, the business license allows for the unrestricted establishment of offices in Dubai mainland, a prime business location.

• Unlimited visa allocation

• Access to over 20 marketplaces to sell your products: With access to over 20 marketplaces, the license holder gains the opportunity to tap into diverse customer bases and distribution channels.

• Strategic location in the heart of Dubai, near the airport, seaport

• 100% ownership with capital & profit repatriation to home country

• Payment gateway integration on WhatsApp & Instagram

• Last-mile delivery - logistics solutions for your supply chain

• Tax-free environment

Our team at Meydan Free Zone can guide you through the entire process and ensure that all legal requirements are met seamlessly.

Get in touch today!