The car rental business in Dubai has a vast scope, catering to a diverse range of customers. The popularity of Dubai as a tourist destination drives visitors’ demand for rental cars, who prefer flexibility and convenience when exploring the city. In addition, as a major business hub, Dubai is a popular destination for business travelers reliant on car rentals for commuting. The sector also caters to the city’s expatriate community, residents, and individuals seeking luxury or specialty vehicles for special events. With a wide selection of cars available, including luxury and exotic models, Dubai’s car rental market is well-positioned to meet the needs of its customers.
7710.85 Car Rental
Apply for a trade license under Rental and leasing activities and choose Renting and leasing of motor vehicles with the business activity Car Rental and activity code 7710.85.
The car rental license from Meydan Free Zone allows you to rent vehicles without drivers for a minimum duration of one day. This means you can provide self-driving or semi-autonomous vehicles, as well as any other types that may be developed in the future, to customers who wish to rent a vehicle for a day or longer.
Your Car Rental license from Meydan Free Zone can be applied to the following services.
Renting passenger cars: You can offer a range of passenger cars for rental purposes. For example, customers can rent sedans, hatchbacks, SUVs, or luxury cars from your fleet from you. Vehicles like these can be made available for customers to drive themselves without needing a driver.
Renting trucks: Your license also allows you to provide trucks for rental purposes. This can include different types of trucks, such as pickup trucks, box trucks, or heavy-duty trucks. Customers who need a truck for moving goods or other purposes can rent them from your company and operate them without a driver.
Renting utility trailers: If customers require additional storage or hauling capabilities, you can offer utility trailers for rent. Utility trailers are detachable trailers that can be hitched to vehicles, such as cars or trucks, to transport goods or equipment. Customers can rent these trailers from you to fulfill their specific needs.
Renting recreational vehicles: Your license also covers the rental of recreational vehicles. Customers who want to go on road trips or camping adventures can rent these recreational vehicles from your company.
It’s important to note that the car rental activity allows you to combine it with other activities classified as “RTA-Group A.” This means you can offer additional services along with car rentals, provided they fall under the approved RTA-Group A activities. Additionally, you can also engage in activities not related to transport as long as they are permitted by other relevant authorities.
Book a complimentary professional consultation to learn more about the extensive range of RTA-Group A activities you can incorporate or explore non-transport-related ventures. At Meydan Free Zone, our seasoned team is dedicated to assisting you in identifying the perfect opportunities tailored to your unique requirements and goals. During the consultation, we will provide you with in-depth insights, comprehensive information, and expert guidance, ensuring you fully recognize the possibilities of your Car Rental business license.
Exclusions
Your Car Rental business license excludes renting or leasing of vehicles or trucks with driver and other activities such as financial leasing. For example, leasing, in which the lessee acquires substantially all the benefits of the asset’s use while accepting all its risks.
Third-Party Approval – Post License
After applying for your car rental license from Meydan Free Zone, obtaining additional approval from the Roads and Transport Authority (RTA) is necessary. This third-party approval process is required to ensure adherence to the regulations and standards set by the RTA. By obtaining this approval, you can perform your operations confidently, knowing that your activities align with the requirements and guidelines established by the RTA.
ESR
performing a car rental business does not involve specific regulatory obligations such as Ultimate Beneficial Ownership (UBO) or Economic Substance Regulations (ESR).
Ultimate Beneficial Ownership (UBO) regulations aim to identify and disclose the individuals who ultimately own or control a business. These regulations are implemented in various jurisdictions to promote transparency and prevent illegal activities such as money laundering. However, in Dubai, UBO requirements are not mandatory for car rental businesses, meaning there is no legal obligation to disclose such companies’ ultimate owners or controllers.
Economic Substance Regulations (ESR) are regulatory requirements to ensure that businesses operating in specific sectors have a substantial economic presence in the jurisdiction where they are established. These regulations are primarily concerned with preventing profit shifting and tax evasion. However, in the case of car rental businesses in Dubai, ESR obligations do not apply, which means that these businesses are not required to demonstrate economic substance in the jurisdiction.
AML
Business activities related to car rental in Dubai are not subject to Anti-Money Laundering (AML) regulations. AML regulations are intended to prevent and detect money laundering and the financing of terrorism by imposing certain obligations on businesses, such as customer due diligence, record-keeping, and reporting suspicious transactions.
Why Start Your Car Rental Business with Meydan Free Zone?
In the Meydan Free Zone, businesses enjoy a number of exceptional benefits and services. It offers numerous advantages for companies seeking to enter the vehicle rental market in Dubai. One of these unique services is Meydan Pay, which provides convenient solutions for financial transactions.
With Meydan Pay’s digital wallet, companies can securely receive and manage your funds, while the IBAN allows you to accept payments from customers worldwide. These services make it easier for your vehicle rental businesses as you can receive multi-currency payments with us, which is particularly convenient when dealing with international tourists and business travelers. Learn more about Meydan Pay
Similarly, Meydan Marketplace is a unique offering that helps your car rental firm launch online – allowing you to run an e-commerce service page and ads and use our listings avenues to get your car rental company’s name out there and win business online. And, if you are starting, you can spread the cost of launching your vehicle hire firm over several months with our Easy Payment Plans. Contact Meydan Free Zone today, and begin renting out cars to tourists, locals, business travelers, and expats in no time.
