Set up a Mainland vehicle rental company in Dubai
Car rental is a rapidly growing sector in the United Arab Emirates, particularly in Dubai. With a constantly expanding tourism market and a growing population, demand for car rental services is steadily increasing. The United Arab Emirates offers a business-friendly regulatory framework, with relatively straightforward administrative procedures.
If you want to set up a car rental company in Dubai, here are the steps to follow:
The 7 steps to follow
Choose the right register
When considering setting up a car rental company in Dubai, it is important to choose the right jurisdiction in which to register your company. Dubai offers two main options: free zones and the Mainland. It is important to consider your business's specific needs when deciding between a free zone and the Mainland. If you are looking to establish a broader presence in Dubai and do business with government entities, the Mainland may be the best option for your company.
Choose a name in Dubai
Choosing a name for your business is an important step in setting up your company in Dubai. You should choose a name that reflects your business and is easy for your potential customers to remember.
Reserve a trade name
Reserving a trade name is a crucial step in setting up a business in Dubai. Reserving a trade name helps protect the name chosen for your business before finalizing the registration.
Find a commercial space
You need to find commercial premises for your business. If you want to set up your business on the Mainland, you will need to find suitable commercial premises. You will need to rent physical premises - both an office and a “parking area” or garage for your vehicles.
Obtain a commercial license
To start a car rental business, you will need the appropriate business license. You will need to contact Dubai’s Department of Economic Development (DED) to obtain the required license. The official DED activity is “car rental and passenger transport” (car rent and passenger transport - code 771001).
Obtain the RTA permit
You will also need to request a No Objection Certificate (NOC) from Dubai’s Roads and Transport Authority (RTA). This authorization is issued in the form of a car rental permit and is required to operate a car rental business in the city.
Buy the vehicles
You will need to purchase cars for your car rental business, either locally or by importing them from another country.
Car rental permits (RTA)
You will also need to request a no-objection certificate (NOC) from Dubai’s Roads and Transport Authority (RTA). This authorization is issued as a car rental permit and is required to operate a car rental business in the city.
Here are the main requirements to meet:
Administrative conditions
- Obtain a commercial license
- Commercial location compliant with RTA requirements
- Registration with RTA
Fleet & insurance
- Have an approved vehicle fleet: the vehicle registration date must be in the same year or no more than 24 months before the application date. At least 10 vehicles must be provided in the first year, with assigned parking spaces, all insured.
- Comprehensive insurance for the fleet
- Compliance with rates set by RTA
Request cost
Car Rental Permit (RTA)
The cost of this application is:
- Obtaining the NOC: AED 1,000
- Safety training (vehicle rental): AED 2,000
- Knowledge and innovation fees: AED 20
- Our fees: AED 2,000
- Total: AED 5,020
Buy cars for your customers
Vehicle rules
You will need to purchase cars for your car rental business, either locally or by importing them from another country.
The vehicles' manufacturing date must be the same as the registration date or no more than 24 months before the registration date. However, certain vehicles are exempt from these conditions:
Exempt vehicles
- Vehicles valued at more than AED 600,000 and with a manufacturing date no more than 4 years ago (value must be proven and documented)
- Classic cars manufactured more than 30 years ago
- Vehicles that have never been used
Our support
With years of experience in company formation in Dubai, we can offer you comprehensive and customized services to meet all your business formation needs.
For more information, contact us at: support@merritt.ae.