With high-tech facilities and a luxurious lifestyle, you can choose to start a business in Dubai and achieve progressive success. However, suppose you are looking for a profitable business option to start in Dubai for better returns on your investment. In that case, a car rental is a suitable option. Unfortunately, car rental in Dubai has much potential as taxis charge higher prices, so tourists want to avoid them.
It is necessary for new entrepreneurs who are planning to start a car rental business in Dubai to perform proper research before their business is set up. Proper research will help them make the right decisions for better business returns in the future. Here in this blog, we will be discussing some significant points that foreign investors or entrepreneurs need to keep in mind before starting a car rental business in Dubai:
The first thing every business in Dubai needs to do is find the correct location. Therefore, you must choose the optimal place to start your car rental business. Here are some of the critical points for starting a successful car rental business in Dubai:
1. The premises must have sufficient parking space and an office for work.
2. You must choose a location near the local airports or bus stops, so foreign tourists or locals can easily hire your car rental services in Dubai.
3. Select the area where you want to open your business. It can be a free zone or on land. Every area in Dubai has its ups and downs; you must be very careful before choosing the location for starting your rental business.
This is also important to consider before starting a rental business in Dubai. You need to know the complete expenses before your plan to start a rental business. Licensing and rent aside, an average of AED 15-20,000 is required to open a rental business. In addition, you also need to think about renting a place, buying or renting a car, setting up an office, employee salaries, car maintenance, etc. All of these should be considered before setting up your business in Dubai.
A clear description of business activities will also make your rental business more efficient. In addition, to obtain a business license in Dubai, you must determine the type of company and the possibility of business activity. So make sure you plan your business activities before launching your service. For example, which customers will you work with? What types of rental services will you offer? Will your company cooperate with other companies or service providers? Of course, all these questions must be answered first.
With all the necessary details in the plan, you must develop a catchy name for your business. This is important because your business name will create value in the market. Registering your business trademark is also necessary for a profitable business in UAE.
It would be best to look at the available names, from abbreviations to naming conventions. This ensures that your name is not associated with any other company or causes copyright infringement. In addition, your company must have an innovative name to attract customers and avoid copyright issues later on.
The addition of new and latest automobiles for rental also affects the performance of your business. First, choose the right fleet to add to your rental business. This choice depends on the audience you are targeting. You must first identify your customers, from low to mid to high and high-end. Identifying them will also give you an estimate of the budget you will need to get your fleet in order. Next, you must ensure that all the vehicles in your fleet are well maintained and in good condition. People often rent a car for a comfortable experience. Therefore, if your vehicle does not meet its standards, you may face backlash from customers, resulting in less exposure to your business.
Once you`ve decided on your company name and sorted out your business application, it`s time to apply for a license. Getting a business license in Dubai is essential to running your business legally. If you work in a free zone, you can start enjoying the benefits of a license in no time. You need a business license to set up a car rental business in Dubai. Below are some of the things you need to submit when applying:
In addition to these requirements, you must also be trained and obtain a consent form from the RTA.
This is not a problem for those already living in the UAE. However, if you are a foreigner, you need a UAE business visa for production. You can turn to several organizations for help doing this for you. Apart from that, a business visa also brings benefits when sponsoring your family members or prospective employees. However, the number of sponsors depends on your company or business size.
The last is to market and promote your services and business. All kinds of processes for effective brand promotion are considered, from flyers to brochures, from traditional to digital marketing. Marketing costs are also added to your initial costs, so you should immediately consider the strength of your budget. You also need to provide discounts and free shipping to attract potential customers.
As a company formation in Dubai expert, MAD Middle East offers a stable and professional service for your car rental business. From planning to implementation to licensing, we help you streamline processes and get them done on time. Our experts ensure they highlight critical aspects of your business operations so you are aware of the risks. In addition, we ensure ingenuity with transparency to provide a solid foundation on which to build our clients` businesses.
With the increasing number of tourists and visitors, setting up a car rental business in Dubai can bring profitable progress. Ensure you strategically plan the procedures for a successful launch while following the legal process.