Car lease business in the UAE

The car lease sector in the UAE includes several business models, each with its own licensing and regulatory requirements. All activities must comply with the rules of the Department of Economy and Tourism (DET) and the Roads and Transport Authority (RTA).

Main types of car lease services

1. Self-drive car lease

Description: Renting out vehicles without drivers for one day or longer.
Examples: Sedans, SUVs, pickups, trucks, trailers, camper vans.
Clients: Tourists, residents, individuals whose vehicles are under repair.

Requirements:

  • Physical office and parking space
  • Registration of all vehicles with the RTA
  • SIRA-certified GPS trackers
  • Regular inspections and compliance with technical standards

2. Chauffeur-driven car lease

Description: Providing vehicles with professional drivers.
Examples: Premium sedans, SUVs, limousines
Clients: Business travelers, tourists, event guests

Requirements:

  • Separate passenger transport license
  • RTA-approved driver permits
  • Adherence to safety and comfort standards

Car sharing services

Description: Short-term rentals via mobile apps.
Examples: ekar, Udrive
Clients: Urban residents, tourists, people without personal vehicles

Requirements:

  • Special RTA permit for car sharing
  • System integration with the RTA
  • Compliance with parking and vehicle placement rules

Specialized vehicle rental

Description: Renting out specialized vehicles such as trucks, trailers, camper vans.
Clients: Businesses, event organizers, travelers

Requirements:

  • Additional permits depending on vehicle type
  • Compliance with technical and operational standards

The Roads and Transport Authority (RTA) regulates vehicle rental, transportation services, car sharing, and transport-related applications in Dubai.

Where to get a car lease license?

Unlike car trading licenses, car lease services must be licensed in the mainland by the Department of Economy and Tourism.

Technically, a free zone license is possible but will restrict operations to within that zone. With a free zone license, you cannot:

  • Rent out vehicles to clients in Dubai, Abu Dhabi, or other emirates
  • Register vehicles with the RTA (required for public road use)
  • Operate freely across the UAE

To run a full-scale car lease business, you must obtain a mainland license and RTA approvals. You may open a free zone branch to expand, but the parent company must be mainland-registered.

How to get a car lease license in the UAE

  1. Choose a mainland jurisdiction (you can select the emirate).
  2. Define business activities (e.g., self-drive, chauffeur, limousine rental) from the DET and RTA approved list.
  3. Obtain initial approvals from DET and RTA.
  4. Rent an office and a parking lot — mandatory for RTA approval.
  5. Submit documents: passports, business plan, lease agreement, etc.
  6. Register all vehicles under the company name and ensure they pass inspections.
  7. Pay government fees and collect your license.
  8. Apply for additional RTA permits if needed (e.g., for limousines or drivers).

DUQE company formation process

Company registration in DUQE Free Zone is a quick process. The license will be issued within 1-3 business days, and the whole process takes from 1 to 2 weeks, as you need to go through the initial approval, business plan review, and other initial procedures.

  1. Determine the business activities of your future company and the corresponding license type. This aspect is vital for a successful business setup, as choosing the wrong activity and license can cause errors during company registration, leading to problems with opening a bank account or obtaining residency visas for yourself and your employees.

  2. Define your company’s legal status. DUQE Free Zone offers several company types for establishing a business, depending on the preferred number of shareholders and business activities:

    • FZE (Free Zone Establishment) – an LLC with a single shareholder who can be either an individual or a non-individual (company).
    • FZC (Free Zone Company) – a free zone LLC formed by multiple shareholders, which may include both individuals and non-individuals (companies).
    • Branch of a local company
    • Branch of a foreign company
  3. Prepare and submit the necessary documents together with the application form. DUQE requires a minimal documentation package.

    For individuals:

    • Passport copy
    • Entry stamp/cancellation paper/UID number
    • Personal details

    For branch/subsidiary:

    • Board resolution
    • Certificate of incorporation
    • Memorandum of Association (MoA)
    • Valid business license of the parent company
    • Share certificate
    • Certificate of incumbency or good standing

    After all the documents have been compiled and the necessary paperwork has been drafted, you will be required to pay the necessary fees for the registration process to proceed with the application.

  4. Collect the license and registration documents for the company, including:

    • Certificate of incorporation
    • License
    • Lease agreement
    • MoA and Articles of Association
  5. Receive the Establishment Card containing information about your company and visa quotes.

  6. Apply for an entry permit. If you’re outside of the UAE during the processing of the entry permit, you will need to come to the country when the document is issued within 60 days to complete the medical test and biometrics for your visa. If you’re in the UAE when the entry permit is issued, a status change will be made from your previous UAE tourist/residency visa to the new one.

  7. Undergo a medical checkup and submit documents for a residence visa and an Emirates ID. Different registration packages may provide for a varying number of visas available for owners and employees of the company. Once you have the results of your medical test, you can submit all the details for visa approval. Your electronic visa will be sent to you by email. You can also find it in the UAE ICP app.

  8. Once your visa is issued, secure your Emirates ID card.

  9. Apply to a UAE bank to open a corporate bank account. The approval may take a few weeks. Once you receive your account details, you are free to start running your business.

Expert

With us you can navigate this process quickly and effortlessly. You don`t even have to arrive in Dubai — the registration procedure can be completed remotely. However, you will need to visit the UAE for medical checkups, visa formalities, and account opening.

DUQE license costs

At DUQE Free Zone, company registration fees start at 12,500 AED for a zero-visa license with a virtual office.

The list of available packages, depending on the cost and visa quotas, includes:

COSTVISA QUOTASITEMS INCLUDED
12,500 AED0Trade license with 3 business activities + lease agreement
14,250 AED1Trade license with 3 business activities + lease agreement
16,000 AED2Trade license with 3 business activities + lease agreement
17,750 AED3Trade license with 3 business activities + lease agreement
19,500 AED4Trade license with 3 business activities + lease agreement
21,250 AED5Trade license with 3 business activities + lease agreement
23,000 AED6Trade license with 3 business activities + lease agreement

Additional value-adding services at DUQE

At DUQE Free Zone, entrepreneurs gain access to an extensive range of value-added services designed to support their business journey at every stage. These tailored solutions are crafted to empower investors, streamline administrative processes, and create an environment where businesses can focus on growth rather than bureaucracy.

Among the key services offered are:

  • Professional accounting support
  • VAT registration assistance
  • Guidance for bank account opening
  • Medical testing and Emirates ID processing
  • Comprehensive health insurance solutions
  • Fully equipped Business Center facilities

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