6 Reasons Why Bookkeeping is Important for Your Business
Why Bookkeeping is Important to your Business What is Bookkeeping Bookkeeping is the process of recording and classifying financial transactions in a systematic manner to maintain
How to Start Car Rental Business in Dubai
Car Rental Business In Dubai, UAE?
Dubai is a top tourist destination for people around the world. Millions of people visit the city every year and they require transportation for exploring the city. This attracts a lot of entrepreneurs for setting up a business due to its strategic location and large tourist gatherings, providing ample opportunities for new businesses to grow. And when it comes to starting a car rental business, there are a lot of expatriates who don’t want to buy a vehicle and rather prefer to take public transport or rent a car in Dubai. Whether for the daily tofro office trips, business meetings, long trips with a girlfriend, shopping with kids, taking your doggo to the vet or weekend barbecues with friends, a car is the most convenient and preferred means of transport in Dubai or any other emirate of the UAE.
Let’s look at some more reasons why car rental company formation will pay you off handsomely:
-
The automotive sector in Dubai is one of the most profitable sectors in Dubai for plenty of reasons
-
Car rental companies in Dubai are able to serve their rides to customers at a competitive rental fee complemented by fatty discounts and affordable daily, weekly and monthly car hire packages. 24/7 emergency assistance, free delivery & pick-up are the other benefits the Dubai-based rental car providers offer to their consumers
-
A huge customer base because residents/expats (with 21+ age and a valid driving licence) choose to rent a car instead of buying their own for all good reasons such as affordability, variety, effortless process, and high level of comfort as well as convenience compared to public transport, etc.
-
100% ownership of your car rental business on the mainland is possible now. However, you are required to engage a Local Service Agent for an annual service fee as part of the mandatory requirements to fulfill to acquire a service/professional trade license in Dubai, UAE.
-
A car rental fee is way cheaper (as low as AED 30/day) than taxi fares here, that’s why the car rental business in Dubai is always at its peak
Benefits of Starting A Car Rental Business
With rental vehicles, people have the leverage to make as many stops as they want and extend their stay at places they find interesting. Car rental businesses in Dubai are advantageous if you understand the industry and are prepared to use new technology. According to the latest statistics published by World Population Review, around 3 million people reside in Dubai as of 2023. Out of this, 85% people are non-citizens.
Below are some of the reasons why they are likely to prefer renting a car in Dubai:
Tourism
Millions of tourists travel to Dubai every year to visit the emirate’s incredible architecture, historical and religious sites, beaches, restaurants, and nature. Many tourists arriving in the country will be looking to hire a car to explore the rest of the UAE.
Time Saver
Although public transport in Dubai is one of the best in the country and covers the whole of the city, people also prefer to rent cars because there are certain limitations such as meeting strict work timings during rush hours or planning for a quick trip.
Technology
Another benefit of starting a car rental business in Dubai is that it will allow you to make the most of emerging technology. Thanks to smartphones, apps and geolocation, it is easier than ever for people to pick up and rent cars as when they need them
Steps to apply for Car Rental Business
1. 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.
2. Choose Location
choosing a business location is crucial. Since you will need physical premises for your fleet of vehicles, you will need some space. A strategic location will help you here, whether close to an airport, seaport, or another transport hub to meet the needs of tourists, business travelers, and local customers.
3. Application & Pay Fees
To operate a car rental business in Dubai, you need to get a Non-objection certificate NOC from RTA (The Roads and Transport Authority). Upon receiving the NOC, you must submit the filled-out application. Paying the associated fees as part of your business license application is also essential
4. 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 MARKEF, we help you by checking that all your paperwork meets the requirements so that you avoid any unnecessary admin obstacles.
Cost To Start A Car Rental Company In Dubai
When you consider how to start a car rental business in Dubai, you need to consider the costs involved before you begin trading. You’ll need to factor in the cost of your trade license, your premises, the RTA authorizations, and the cost of your fleet of cars. 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. 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.
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.
-
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)
To establish and run a mainland car rental company in Dubai, you need a commercial license that DED dispenses. Submit to DED an online application complete with all the required details and attachments to obtain one. Below is the list of documents that are required for a car rental business license in Dubai:
-
Duly filled-in application form
-
2 coloured passport-sized photographs
-
Valid visit or residence visa for partners
-
Preliminary approval of the licensing authorities (Dubai Economy – Free Zones)
-
Copies of the partners’ passports
-
Emirates ID of citizen partners (if applicable) or passport in case the citizen doesn’t have identification papers
-
NOC from the sponsor in case the partner is a non-GCC citizen
-
Undertaking to abide by the conditions and requirements related to the requested type of activity
-
Approval of other governmental bodies for some business activities (check the table in the Terms and Conditions section).
-
A letter from the Road Traffic Authority (RTA) bearing their consent Furthermore, your employees may also have to undergo RTA training.
Blogs you might find useful :
Variety of Business Licenses in Dubai
Variety of Business Licenses in Dubai Dubai is a world of entrepreneurs and businessmen. It’s one of the most growing economies in the world. If you’re a newbie looking
Flexi Desk & Fixed Desk
Flexi Desk & Fixed Desk Flexi Desk Dubai : Everything you need to know For anyone operating their business in the United Arab Emirates (UAE), you should be aware of all the po
Planning a company formation in the UAE? Here is what you need to know!
Planning a company formation in the UAE? Here is what you need to know! Setting up your own company formation in a foreign land is one of the biggest decision. UAE is said to be on
ADNOC ICV, IN-COUNTRY VALUE
ADNOC ICV – IN-COUNTRY VALUE ADNOC In-Country Value program is an acquirement drove activity which is intended to accomplish ideal incentive from ADNOC country’s oil and gas as
Import and Export Business Opportunities in Dubai
Import and Export Business Opportunities in Dubai Import and Export Business in Dubai Dubai is a leading player in the global trade market, known for its thriving import and export
Apply Visa & Residency Visa via Video Call
Apply Visa via Video Call Dubai residents can now apply for visas and residency via video call Customers from all over the world can complete transactions in 5 min via video call.
Foodstuff Trading In Dubai
Foodstuff Trading In Dubai Foodstuff trading is a very important business activity in Dubai. It is a major contributor to Dubai’s economy and is an activity that has been prosper
What is Bookkeeping
What is Bookkeeping? What is Bookkeeping? Bookkeeping is the process of recording your company’s financial transactions into organized accounts on a daily basis. Which is also es
How to Start a Small Business in Dubai?
How to Start a Small Business in Dubai? Small Business in Dubai Dubai is turning into the perfect destination for entrepreneurs to start their businesses. The economy of Dubai is g
Pet Grooming Business in Dubai
Pet Grooming Business in Dubai Pet Grooming Business Dubai is witnessing growth in the pet salon industry with numerous entrepreneurs and investors all set to make the most of it.
Difference Between Cash Accounting and Accrual Accounting
Cash Accounting vs Accrual Accounting Accrual accounting is the preferred method of recording transactions because it provides a more accurate representation of what actually happe
UAE Residence Visa and Entry Permit
UAE Residence Visa and Entry Permit The Entry Permit Entry Permit allows the holder to enter the UAE and it is valid for only a certain amount of time (usually up to three months).
What is a TAX Consultant ?
What is a TAX Consultant? What is a tax consultant? When you run a company in Dubai, you need a professional TAX consultant that can handle all the TAX and accounting task of your
How to Start Car Rental Business in Dubai
How to Start Car Rental Business in Dubai Car Rental Business In Dubai, UAE? Dubai is a top tourist destination for people around the world. Millions of people visit the city every
Corporate Tax Law
Corporate Tax Law The UAE’s new corporate tax law (CT ) will take effect on 1 June 2023 All businesses in the UAE (including Free Zone companies) are required to file tax ret
Business Set up in Dubai. Mainland I Freezone I Offshore
Business Set up in Dubai Mainland I Freezone I Offshore What is Mainland in Dubai? Business setup in Dubai mainland allows companies to trade within the local markets as well as co
IT Company Business License in Dubai
IT Company Business License In Dubai IT, Tech-based Company in Dubai Dubai attracts a large pool of entrepreneurs each year for a number of reasons, including the ease of doing bus
Advantages of outsourcing Accounting and Bookkeeping
Advantages of outsourcing Accounting and Bookkeeping As your business grows, all you will be concerned about is the accounting. With the growing business, you will have to bring in
Accounting and Bookkeeping In-house vs Outsourced
Accounting and Bookkeeping In-house vs Outsourced Bookkeeping and accounting are two functions which are extremely important for every business organization. In the simplest of ter