Car rental businesses, specifically in Dubai, have seen a spike recently. There are plenty of reasons that contribute to the rapid growth of this business.
Over the past years, Dubai has become the center of attention for tourists worldwide. Dubai now expects to welcome around 20 million tourists this year, making it a significant factor in the rise of luxury car rental businesses such as the limousine business in Dubai.
How to start car rental business in Dubai
Activity Name Car Rental Activity Code RTA: 5
Department of Economy and Tourism: 7710001
Activity Description: Establishments that rent vehicles without drivers for a minimum of one day, and it can be with regular (manually-driven) vehicles, self-
driving vehicles, semi-autonomous vehicles, or any other type to be developed in the future.
Activity Concerned
Department Commercial Transport Activities Department Licensing Agency Commercial Transport Activities Department
Authorities to be approached before obtaining a permit :
- Licensing authorities (Department of Economy and Tourism – Free Zones and Development Areas)
- Licensing Agency (Commercial Transport Activities Department)
Authorities to be visited after obtaining a permit : Nil
Fees - License/ permit renewal: AED 1000
- Training fee: AED 100
- Categories Table:
Categories Number of Vehicles Licensed for Leasing Annual Fees Due
First : 100 and below AED 2000
Second 101 – 500 AED 4000
Third 501-1000 AED 5000
Fourth 1001 and above AED 6000
Conditions and Procedures for Permit Issuance
- To have the Permit issued, the applicant shall obtain the initial approval of the Licensing Authority in the Emirate.
- The owner of the establishment, or his legal representative, submits the permit application on the template prepared by the RTA for
this purpose, through its approved service channels, along with the following documents:
A. The initial approval to carry out the Activity issued by the Licensing Authority in the Emirate for new
Establishments, or a copy of the valid commercial license for existing Establishments.
B. The approval from the Competent Authority to carry out the Activity if the legislation in force requires obtaining such approval.
C. A copy of the valid passport or identity card of the Establishment’s owner and all partners, in addition to a copy of the valid
residency voucher for the non-citizen partners.
D. An undertaking to abide by the conditions and requirements necessary to carry out the Activity.
Responsibilities of the
Establishment.
1- Comply with the regulations, resolutions and instructions of the RTA regarding the activity.
2- Provide an office, vehicles and parking spaces commensurate with the nature of the activity authorized to be practiced, and comply
with the controls and standards approved by the Agency in this regard.
3- Carry out the activity specified in the permit.
4- The vehicle designated to carry out the authorized activity shall be registered in the Emirate of Dubai, whether it is owned or
leased by the establishment.
5- Refrain from sticking or hanging any promotional material on the body of the Vehicle before obtaining prior approval from RTA.
6- Not assign the Permit to a third party or dispose of it in any way, except after obtaining the prior approval from the Agency.
7- Use the parking spaces approved by RTA and concerned bodies in the Emirate when practicing the activity.
8- Cooperate with RTA officials and those authorized by RTA, and provide the Agency with the required information and documents.
9- Install the tracking system approved by the Security Industry Regulatory Agency, in accordance with instructions approved by the
Agency in this regard.
10- Commitment to obtain the tracking system installing certificate as approved by the Security Industry Regulatory Agency, and
renew it annually.
11- Comply with the technical requirements of the vehicle, approved by the Agency and the competent government authorities,
according to the activity authorized to be practiced.
12- Obtain licenses and Permits required by the legislation in force in the Emirate.
13- Vehicles used for carrying out the activity shall be inspected when licensing or renewing its license at the service centers specified
by the Agency in this regard.
14- Not to stop practicing the Activity without obtaining the prior approval of the Agency. This approval shall be issued in accordance
with the conditions and procedures adopted by the Agency in this regard.
15- Keep records that include all data related to the practice of the Activity for the periods specified by the Agency in this regard.
16- Comply with the times and places when and where the practice of the activity is prohibited as determined by the competent authority in
this regard.
17- Obtain the approval of the Agency in case of changing the location of the Establishment.
18- Adhere to the terms and conditions of the approved technical examination determined by the Agency.
19- Not to transport any passenger in the vehicle designated for carrying out the activity other than those working in the Establishment.
20- Use the vehicle for authorized use only.
21- Fulfill the security and safety requirements set by the competent authority.
22- Report the failure of the information e-system, within a maximum of three hours.
23- Conduct training on the electronic car rental offices information system.
24- Not to engage in renting vehicles on an hourly basis.
25- Not to add the activity of transporting passengers using luxury vehicles and the activity of vehicle rental by hours with the activity
of vehicle rental.
26- Only allow the rental system for vehicles that are not owned by the establishment, provided that they belong to a licensed rental
establishment in the Emirate of Dubai.
27- Subscribe and register in the Systems and Platforms approved by the RTA, including the System.
28- Commitment to use the user guide of the Transport Activities Rental System “TARS”.
29- Agree to undertake to comply with the additional requirements set by the Agency.
Special requirements
The mechanism for calculating the age of vehicles and their replacement/renewal:
New light vehicles (they shall meet all the requirements below)
1- To be bought from the authorized agent located inside the state – zero kilometers.
2- Vehicle registration controls: The vehicle life shall not be more than (3) years for manual or electric vehicles from the vehicle’s
registration year.
3- Vehicle replacement life: The registered vehicle shall be replaced after (4) years for manual vehicles and (6) years for electric
vehicles from the vehicle’s manufacture date.
Used and imported vehicles: (they shall meet all the requirements below)
1- Vehicle registration controls: The vehicle life shall not be more than (4) years for ordinary vehicles and (6) years for electric
vehicles from the vehicle’s registration year, provided that it passes the technical examination.
2- Vehicle replacement life: The registered vehicle shall be replaced after (4) years for manual vehicles and (6) years for electric
vehicles from the vehicle’s manufacture date.
The Elite Vehicles specified by the Licensing Agency
1- To be bought from the authorized agent located inside the state – zero kilometers.
2- The vehicle shall be on the list approved by the Licensing Agency.
3- Vehicle registration controls: The vehicle life shall not be more than (4) years from the vehicle’s registration year.
4- Vehicle replacement life: The registered vehicle shall be replaced after (10) years from its date of registration.
Used/imported Elite Vehicles from outside the state which are determined by the Licensing Agency
1- The vehicle shall be on the list approved by the Licensing Agency.
2- Vehicle registration controls: The vehicle life shall not be more than (6) years from the vehicle’s registration year, provided that
it passes the technical examination.
3- Vehicle replacement life: The registered vehicle shall be replaced after (10) years from its date of manufacture.
New luxury vehicles specified by the Licensing Agency
1- To be bought from the authorized agent located inside the state – zero kilometers.
2- The vehicle shall be on the list approved by the Licensing Agency.
3- Vehicle registration controls: The vehicle life shall not be more than (4) years from the vehicle’s registration year.
4- Vehicle replacement life: The registered vehicle shall be replaced after (7) years from its date of registration.
Used/imported luxury vehicles from outside the state which are determined by the Licensing Agency
1- The vehicle shall be on the list approved by the Licensing Agency.
2- Vehicle registration controls: The vehicle life shall not be more than (5) years from the vehicle’s registration year, provided that
it passes the technical examination.
3- Vehicle replacement life: The registered vehicle shall be replaced after (7) years from its date of manufacture.
*Approved List of Elite and Luxury Vehicles:
Classic vehicles:
1- Classic Vehicle registration controls: The vehicle life shall be less than (30) years, provided the vehicle is approved by the Technical
Committee of the Vehicle Licensing Department.
Service Delivery
