Are you thinking of starting a business in the most popular Emirate of the UAE? If yes, then it is the best decision you have ever made. Dubai has a potential market for all sorts of businesses. However, car rental is one business that you would never go wrong with.
Dubai being a popular destination for tourists has a very intrinsic transportation system. The tourists flow in Dubai is always constant which is why the car rental business is always booming.
Why is the car rental business in Dubai a good idea?
Dubai has a well-established and flourishing public transportation system. But if it has a well-developed public transportation system, why is there a need for car rental? It is because the sub-urban areas of Dubai require a private vehicle or a rented car to be explored. Most of the tourists want to explore Dubai to the fullest which is why they need either a private car or a rented car to explore.
The top-notch road network of Dubai, thanks to its government, has led to an increase in the operation of car rental companies. This is why if you want to start a business in Dubai, car rental is a good option.
Car rental has led to a surge not only because of the increase in tourists but also due to the various other businesses which are increasing in number. The increase in businesses has led to an inflow of people which is again a plus point for the car rental business. Professional individuals mostly need their own vehicles rather than using public transport which is why car rental is at boom.
Most car rental businesses target professionals more than anyone else because Dubai hires employees from all over the world and these professionals need a car to rent to commute to work every day.
How can you start a car rental business in Dubai?
Car rental is the most profitable business in Dubai as it has a strong tourist gathering. The high-tech facilities, extravagant luxurious lifestyle and an old world appeal attracts foreigners from all over the world.
Driving a rental car in Dubai has become easier in the last decade as the government has widely extended the network of roads throughout the UAE. What makes people choose a rented car over the taxi services is the taxi fare. It may become quite costly to travel by taxi on an everyday basis.
If you want to start a car rental business in Dubai, follow the steps below:
Step 1: Get a location for your office and garage.
The first step for starting your car rental business is having a physical space that you will use for your office as well as a garage to park your vehicles. It is advised that you choose a space that is close to a built-up area or at a transport hub like an airport or a train station etc.
Step 2: Pick the type of vehicles for your fleet.
Once you have gotten a space for your business, you need to decide on what type of vehicles you want as a part of your fleet. This is mostly dependent on what kind of clients you are trying to target.
For example, if your niche is tourists then you can keep high-end luxury cars. Whereas, if your niche is corporate professionals you can get affordable and standard vehicles. Whatever type of vehicles you choose, make sure they are in proper condition.
To ensure the condition of the vehicles you can also sign up a service agreement with a maintenance firm. This would ensure timely maintenance of your vehicles and your clients would get a smooth experience.
Step 3: Have a clear outline of your business activities.
After the first two steps, a very important step is to set your business activities clearly. A business, whether it is a car rental or any other in Dubai needs to have a clear outline of business activities. If you would not then you might have to face issues later such as being listed in unauthorized activities etc. If this happens you shall have to pay heavy fines or your license may get canceled.
There is an official list of activities published by the Dubai Department of Economic Development from which you can choose from.
Step 4: Pick a company name.
The fourth step is to choose a company name for your car rental business. Although this step seems very easy, there are some things you have to consider. There are some strict naming conventions of Dubai that you have to abide by.
When selecting a name for your company you shall avoid any hurtful or derogatory language. Moreover, avoid using the names of famous organizations. If you want to name your car rental business after yourself then it is advisable to avoid the use of abbreviations.
Step 5: Create a license application.
After the above steps, you have to apply for a license. You will need a commercial license to manage a car rental business and expand it further in Dubai. For applying for a license you will need a completed application form, the owner’s or co-owner’s passport copy, colored passport-sized photos, and consent from the Road Traffic Authority.
Moreover, your workforce will have to undergo Road Traffic Authority training.
Step 6: Get the Visa.
A visa will be required for starting your business. If you have a UAE work visa already, then you can straight away start your business. However, if you don’t then you will have to get one. There are several agents that could help you process your visa as early as possible.
Once you have a UAE business license, you will be able to sponsor other people as well. These could include your employees, spouse, parents etc.
Step 7: Promote your business.
Last but not least is to make efforts to promote your car rental business. A car rental business in Dubai has a lot of competitors which is why you need to tell your target customers who you are to earn maximum profits.
What you can do is start a marketing campaign that highlights the features of your services. Moreover, for promotions, you can offer some introductory discounts or incentives like free rides, free fuel, free kilometers etc.
Conclusion
Dubai is the best Emirate of the UAE for establishing a business, especially a car rental business. The emirate has a high inflow of tourists and professional expats which makes the car rental business flourish at all times. By following the right steps you can successfully start your car rental business in Dubai.
