How to start a limousine business in Dubai - Prospr

Limousine business in Dubai

Limousine is a symbol of status and wealth. Affluent tourists in Dubai prefer to book a limousine over other vehicles. Demand for Limousine is relatively high among corporate giants that book this vehicle for their respected international clients. Starting a limousine business in Dubai is a good idea. It’s a niche-based business where you can earn more than a standard car rental business because you can charge high rental rates for limousines. 

As an expat, you want to invest in a business that brings you more money. Prospr understands this; thereby, we have unlocked a detailed guide that explains:

How to start a limousine business in Dubai?

Here are some steps you need to take for setting up a limo business in UAE:

Step 1-Understand the basic  requirements

If you are interested in this business, you must know the basic requirements. First, the requirement is about your capital, which is 5 million AED. Before the government issues you a limousine business license, they want to know whether you can run this business. In other words, they want to know how financially stable you are. It means you need some partners to add this much capital to your limo company formation in Dubai.

The next significant expense is inventory. You must have at least 20 limousines in your fleet. The UAE government wants to ensure that you have sufficient vehicles to meet the growing demand of this business. Limousines are more expensive than other vehicles. So, arranging 20 vehicles will cost you a good amount of money:

  1. Standard Luxury Limousines (e.g., Lincoln Town Car, Chrysler 300) typically range from AED 150,000 to AED 300,000 each.
  2. High-End Luxury Limousines (e.g., Mercedes-Benz S-Class, BMW 7 Series): These can range from AED 300,000 to AED 600,000 each.
  3. Ultra-Luxury Limousines (e.g., Rolls-Royce Phantom, Bentley Mulsanne): These range from AED 1,500,000 to AED 2,000,000 each.

Given these ranges, let’s calculate the total cost for 20 limousines in each category:

Vehicle Cost 
Standard Luxury Limousines:
  • Low end: 20 x AED 150,000 = AED 3,000,000
  • High end: 20 x AED 300,000 = AED 6,000,000
High-End Luxury Limousines:
  • Low end: 20 x AED 300,000 = AED 6,000,000
  • High end: 20 x AED 600,000 = AED 12,000,000
Ultra-Luxury Limousines:
  • Low end: 20 x AED 1,500,000 = AED 30,000,000
  • High end: 20 x AED 2,000,000 = AED 40,000,000

So, the total cost of 20 limousines in the UAE can range from AED 3,000,000 for standard luxury models to AED 40,000,000 for ultra-luxury models.

Step 2-Choose a trade name

Once you have all the capital and resources to start your limousine business, it’s time to start a business setup in Dubai by picking the most suitable trade name. Pick a name and reserve this name by registering it with the DED Department of Economic Development. 

How to start a limousine business in Dubai - Prospr

Step 3-RTA training

Before you apply for a limousine business license, it’s mandatory to complete training provided by the Road Transport Authority (RTA). After completing this training, you must pass a theoretical test and a series of questions. Answer them correctly to pass the theory test.

Step 4-Take the road test

Once the theoretical test is over, you will schedule a road test, during which the trainer will assess your road skills and knowledge.

Step 5-Register your company

You need to get an inspector’s approval certificate from an inspector for your RTA training and then register your company with the Ministry of Labor. You will get an Establishment card. Based on this, you can hire your business employee.

Step 6-Set Up an office

Next, you must rent your office per your business requirements and sign a lease agreement.

Step 7-Notarize Memorandum of Association

You need to draft a Memorandum of Association (MoA). It’s a good idea to hire an expert for This. All your business partners need to sign this document, which you should later attest from a notary public.

Step 8-Apply for a Limousine license Dubai

As you have all the required documents, it’s time to apply for your limo business license. You must apply for a business license alongside all the vehicle specifications, proof of ownership, MoA, and business plan to the RTA.

You must read RTA standards and requirements before submitting this application. RTA has defined driver qualification. Every driver must undergo a training program and hold a UAE driving license. Besides, there are some safety features and luxury specifications for your vehicles.

Read comprehensive guide: How to get Advertising license in UAE

RTA will start reviewing your application and scheduling an inspection of your vehicle. If everything meets the criteria and standards, they will issue a limousine business license and permits. 

Step 9-Agreement with RTA

Once you have a license in your hand, all the shareholders or partners of the company need to sign an agreement with RTA. This agreement provides details of all the terms and conditions you need to follow to operate a limousine business in Dubai. It’s vital to follow these terms to stay compliant. Any breach or violation may lead to fines and license cancellation. 

How much does it cost to start a limo business in Dubai?

You must have 5 million AED as your capital and 20 vehicles for this business setup. Another major cost factor is your limousine business license, which costs between AED 15,000 and AED 20,000. It would help if you also had cash for vehicle procurement, marketing, office, and ongoing maintenance of your business.

Prosper can help you with Limousine business setup in Dubai

We understand how challenging it is for you to set up a complete Limousine business in the UAE. Therefore, our business consultants are always ready to help. We offer guidance regarding every step of the business. From getting your license to its operation, we are always prepared to support you. Send your business inquiries to hello@prospr.ae

Picture of Samad Ahmed

Samad Ahmed

Samad is a tech enthusiast dedicated to delivering socially responsible, ethical, and transparent products in the MENA region. With over a decade of business experience, he continues to support the entrepreneurial community as the owner of Prospr, a company specializing in business setup services across the UAE, particularly in Dubai.

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