A global business hub, Dubai, attracts a huge number of investors and tourists. Lucrative returns, a multitude of opportunities and the ease of doing business, all these and more make the futuristic city an ideal destination. Among the many businesses, the automobile sector holds a prestigious position in the country’s economy. The city attracts a vast majority of the affluent population who seek transportation suited to their stature. Limousines remain a preferred choice in this regard. We will go through the process of how to start a limousine business in Dubai to help interested parties gain knowledge about the proceedings.
Limousine Business in Dubai
Exotic, classic and supercars are a common sight in Dubai. Additionally, there are many places to see supercars in Dubai for those wanting a closer look at these high-end vehicles. As Dubai perhaps holds the grandest stature in the UAE, city exploration requires a ride matching the emirate’s aura.
Supercars and sports cars offer an unmatched driving experience. However, when it comes to comfort and luxury, limousines conveniently take the mantle. The affluent population of Dubai prefers these high-end vehicles for their commute.
Besides city travel, limousines are commonly used to make grand appearances at lavish events. It’s not just the tourists as residents also make use of these vehicles. Luckily, limousine rental in Dubai is an easy process with numerous services available.
How to Start a Limousine Business in Dubai
The high demand for limousines makes this a viable business model. However, like every other business, there are some rules and regulations attached to the process. It is essential to comply with these regulations before starting a business venture.
Let’s go through the process of how to start a limousine business in Dubai and see what are the requirements.
Business Licence
For any sort of business in Dubai, it is compulsory to get a licence. The different types of business licences in Dubai are categorised as per the field. Listed below are the requirements for a business licence to start a limousine car business in Dubai.
CHOOSE A TRADE NAME
The first thing to do is choose a trade name for the business. It is important to comply with the guidelines when selecting a name. For instance, the business name should not be offensive or discriminatory. Applicants should register the trade name with the Department of Economic Development (DED).
TRAINING AND TESTS
Tests and training are important to get a licence. RTA provides training and conducts a theory test. The test contains a series of questions the applicant has to answer. In addition to this, applicants should take a road test.
The road test is compulsory to obtain the limousine trade licence in Dubai. The road test evaluates the driver’s skills and knowledge. Additionally, it ensures a driver is capable of handling a limousine. It is also important to know the Dubai traffic fines to avoid any sort of inconvenience on the road.
COMPANY REGISTRATION
Upon completion of the road test, get the approval certificate from the training inspector. Additionally, be sure to obtain the Establishment Card from the Ministry of Labour. The Establishment Card is essential for labour registration.
ARRANGE CAPITAL
To start a limousine business in Dubai, it is important to get the finances in order. Sufficient funds are important to retrieve a business licence. The total cost includes licence fees, property charges and the cost of purchasing vehicles. Supercars, hypercars and high-end vehicles like limousines tend to be pricier.
The prices may vary with the type of limousines in the fleet. Moreover, it is a smart move to have a diversity of vehicles as this helps cater to different preferences.
COMPANY MEMORANDUM OF ASSOCIATION (MOA)
Drafting a Memorandum of Association (MOA) is a compulsory step in the procedure to start a limousine business in Dubai. The MOA outlines the company’s objectives, operations and structure. Also, it is important to get the MOA notarized before submitting it with the registration application.
DOCUMENTS SUBMISSION
Along with the registration application, applicants should submit all the required documents. Arrange the documents in proper order to avoid any inconvenience. The documents should be submitted to the Road and Transport Authority (RTA) Dubai for handling the registration.
Limousine Licence Registration Requirements
Learning how to start a limousine business in Dubai has some more considerations. Let’s go through a complete breakdown of the requirements for obtaining a business licence for a limousine business in Dubai.
OFFICE SPACE REQUIREMENT
There must be a physical office to conduct business operations. An office base is compulsory to obtain a business licence. Moreover, it is important to buy an office space as per or bigger than the size specified by the authorised.
RTA APPROVALS
Several RTA driving tests are essential for getting a Dubai driving licence. Similarly, RTA approvals are compulsory for starting a limousine business in Dubai. These include the submission of the business plan. Additionally, applicants must submit the project’s financial liability as per RTA’s requirements.
Moreover, it is important to show the availability of funds for the business. This ensures the applicant has enough resources to operate the limousine business.
VEHICLE REQUIREMENT
The limousine business should have a fleet of at least 20 vehicles. The requirement ensures there are enough vehicles to meet the limousine demand.
RTA AGREEMENT
From applying for an RTA permit to advertising on taxis or operating as a luxury driver, the authority has a streamlined process for everything. Similarly, business owners sign an agreement with RTA upon receiving the licence. The agreement outlines the RTA guidelines and regulations the business must follow.
After completion of the aforementioned requirements, an individual is eligible to start a limousine car business in Dubai. Be sure to comply with all the laws to ensure a hassle-free experience.
FAQs
Is a Limo Business Profitable in Dubai?
Dubai experiences a huge influx of tourists. Generally, tourists prefer to use the Dubai public transport or rental services during their stay. Moreover, limousines remain in huge demand as these vehicles are a status symbol. Considering the high demand and the affluent population, starting a limousine business makes perfect sense in Dubai.
How Much is a Limousine Licence in Dubai?
A limousine business licence cost depends on several factors. For instance, the number of shareholders, total vehicles in the flat and office location among other considerations. The cost can range anywhere from AED 15,000 to AED 20,000.
There you have it, the entire process of how to start a limousine business in Dubai. Limousines are a symbol of status and wealth. Moreover, the limousine history shows how the vehicles have evolved and become more opulent with time.
The huge influx of tourists in the emirate drives the heavy demand for these vehicles. Therefore, limousine service in Dubai remains a smart and lucrative business model. Besides this, starting a car rental business in Dubai also remains a formidable business option.
In the fast-evolving automobile industry, limousines aren’t the only luxury vehicles. Also, city exploration in a personal vehicle provides great ease of mind. Pre-owned vehicles are a viable option in this regard. Check out these used cars for sale in Dubai and select from a plethora of luxury vehicles to explore the futuristic city.
Stay connected to dubizzle’s auto blog to learn how to start a limousine company in Dubai and other transport businesses.
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