Limousine Business License in Dubai: Everything You Need to Know
If you’re considering starting a Limousine Company in Dubai, you’re entering a prestigious and thriving market. Dubai, known for its luxury and extravagance, offers great opportunities for those who wish to provide high-end transportation services. To help you get started, we’ve compiled a comprehensive guide on obtaining a Limousine Company License in Dubai, outlining the requirements, procedure, and important details you need to know.
Conditions for Issuing a License for Luxury Passenger Cars
Before you embark on the journey of establishing your Limousine Company, you need to meet several conditions set by the Public Transport Authority. These conditions include:
- Official Request Letter: Begin by submitting an official request letter from your company to the Public Transport Authority.
- Passport Copies: Provide passport copies and Emirates ID for UAE Nationals and Expatriates with UAE Resident Visas.
- Initial Approval: Obtain initial approval from the licensing authority.
- Trade Name Reservation: Secure the reservation of your business’s trade name.
- Feasibility Study: Prepare a feasibility study for your business.
- Operational Mechanism: Outline the mechanism for operating your vehicles.
- Financial Budget: Present your proposed financial budget for conducting the limousine service.
- Administrative Structure: Describe the administrative structure, human resources, and their expertise that will be utilized in your business.
- Bank Guarantee: Provide a cash or bank guarantee issued by a local UAE bank, as specified by the concession contract.
- Headquarters: Set up an appropriate headquarters equipped with the necessary facilities as specified by the Authority.
- Tariff Compliance: Commit to abiding by the Authority’s determined rates and ensuring they are not higher than regular taxi fares.
- Digital Integration: Agree to integrate your services into electronic media, smart applications, and related systems as required by the Authority.
- Service Level Agreements: Pledge to adhere to all service level agreements specified by the Authority.
- Operational Pledge: Commit not to operate luxury cars until after signing the agreement.
- Vehicle Regulations: Adhere to the specified luxury car categories, the number allowed to operate, the maximum period of use, and the approved vehicle types as stipulated by the Agency.
After RTA’s Initial Approval
Upon receiving the initial approval from the RTA, you’ll need to fulfill additional requirements:
- Bank Guarantee: Provide a bank guarantee for 20 cars, with a payment of AED 86,400.
- Additional Vehicles: If you have more than 20 vehicles, an extra bank guarantee payment of AED 4,320 per vehicle is required.
- License Fee: Pay a fee of approximately AED 20,000 to issue the license.
After Signing the RTA Franchise Contract
Once you’ve signed the RTA franchise contract, these additional conditions apply:
- Minimum Fleet Size: Launch a minimum of 20 vehicles within 3 months.
- Vehicle Quality: Ensure that all vehicles in your fleet are top of the range.
- Monthly Operation Fee: Pay an operation fee of AED 1,200 for each vehicle per month.
- Contract Duration: The agreement period is 3 years.
- Vehicle Operation Period: Vehicles are operational for 5 years from the date of manufacture, except for “stretch” vehicles, which are operational for 10 years from the date of manufacture.
RTA Approved Vehicles for Limousine Sector
The RTA has categorized approved vehicles for the Limousine sector into four categories:
|max. age limit
|Standard (min. 20 vehicles)
|Vehicles fulfil RTA’s Standard Limousine Technical Specifications and the Manufacturer’s Suggested Retail Price (MSRP) is 200% to 400% more than the Taxi vehicle’s MSRP.
|5 years from the year of make
|Luxury (min. 10 vehicles)
|Vehicles fulfil RTA’s Luxury Limousine Technical Specifications and the Manufacturer’s Suggested Retail Price (MSRP) is 400% more than the Taxi vehicle’s MSRP.
|7 years from the year of make
|Stretch (min. 10 vehicles)
|Vehicles fulfil RTA’s Stretched Limousine Technical Specifications and length is 6720 mm or more.
|10 years from the year of make
|Family (max. 25% of fleet size)
|Seven seaters van vehicles which has less Technical Specifications than Limousine standard vehicles.
|5 years from the year of make
- The list of RTA Approved Vehicles for the Limousine sector is subject to change based on market demands.
- All vehicles must be fully optioned.
- Vehicles not on the approved list may be considered upon an official request from an authorised dealer, subject to RTA approval.
- Final approval for new vehicles not on the list is contingent upon inspection at the Public Transport Agency Muhaisnah Area.
- The Approved Vehicles list is reviewed annually to accommodate new vehicle models.
*Above information are based on RTA’s website… for any updates, contact our consultants directly.
Starting a Limousine Company in Dubai is an exciting venture, and RAG Global Business Hub is here to guide you through the entire process, from initial planning to obtaining your license.
Contact us today to kickstart your journey toward becoming a licensed Limousine service provider in Dubai.
Frequently Asked Questions on Limousine Business License
- What are the initial steps to start a Limousine Company in Dubai?
- Conduct a Feasibility Study: Understand market demands, operational strategies, financial projections, and compliance aspects.
- Secure Trade Name Reservation: Ensure the availability and reservation of the desired trade name.
- Submit Request to Public Transport Authority (RTA): Officially request approval to establish a Limousine Company.
To embark on establishing a Limousine Company in Dubai, initial steps involve conducting comprehensive Limousine Feasibility Study in Dubai to understand the market landscape and demands. Subsequently, secure a trade name reservation, submit an official request letter to the Public Transport Authority, and meticulously prepare a detailed feasibility study. This study should encompass financial projections, operational strategies, and compliance aspects for a successful Limousine business setup in Dubai.
- What documents are required to apply for a Limousine Company License in Dubai?
To obtain a Limousine Company License in Dubai, critical documents include passport copies, Emirates ID, a comprehensive feasibility study showcasing market demand and operational viability, a detailed financial budget outlining projected expenses and revenues, and confirmation of trade name reservation. These documents are pivotal for a seamless and compliant process of acquiring a Limousine business license in Dubai.
- Can expatriates apply for a Limousine Company License in Dubai, and what documents are needed?
Absolutely, expatriates can apply for a Limousine Company License in Dubai. Required documents for expatriates are akin to those for UAE Nationals, encompassing passport copies, Emirates ID, a feasibility study, financial budget, and trade name reservation. Ensuring the submission of these documents is imperative for a successful application for a Limousine business setup in Dubai.
- What is the significance of a feasibility study in obtaining a Limousine Company License in Dubai?
A feasibility study holds immense importance in the process of acquiring a Limousine Company License in Dubai. This study provides comprehensive insights into market demand, operational prerequisites, financial projections, and risk assessment. It serves as a crucial document demonstrating the feasibility and potential success of your venture in the competitive landscape of the Limousine industry in Dubai.
- How should I prepare the financial budget for a Limousine Service License in Dubai?
Crafting a robust financial budget for a Limousine Service License in Dubai involves meticulous planning. Anticipate expenses for vehicle procurement, administrative costs, operational expenses, marketing initiatives, and estimate revenues. A well-documented budget showcases financial stability, a pivotal factor in securing a
Limousine business license in Dubai.
- What administrative structure and human resources expertise are required for a Limousine Company License in Dubai?
Establishing an efficient administrative structure for a Limousine Company License in Dubai necessitates defining key roles and required expertise for seamless operations. Adequate human resources expertise, including management, drivers, customer service personnel, and administrative staff, is crucial to meet regulatory requirements and deliver top-tier service in the Dubai Limousine industry.
- What is the process of obtaining a bank guarantee for a Limousine Company License in Dubai?
Acquiring a bank guarantee involves providing a specified cash or bank guarantee issued by a local UAE bank, complying with the concession contract requirements outlined by the licensing authority. This bank guarantee is a mandatory requirement in the process of obtaining a Limousine business license in Dubai.
- What facilities are required for setting up the headquarters for a Limousine Company in Dubai?
Headquarters for a Limousine Company in Dubai should adhere to specified Authority requirements, equipped with essential facilities for administrative, operational, and managerial purposes. Setting up appropriate facilities is pivotal to ensure efficient operations in the Dubai Limousine industry.
- What are the regulations and compliance regarding tariffs for a Limousine Company in Dubai?
Limousine companies must strictly adhere to tariff regulations set by the Authority, ensuring compliance with designated rates and avoiding pricing higher than regular taxi fares. Adhering to these regulations is essential for a compliant and successful operation in the Dubai Limousine market.
- How important is digital integration for a Limousine Company License in Dubai, and what is required?
Digital integration is paramount for service efficiency in a Limousine Company License in Dubai. Integration into electronic media, smart applications, and related systems as mandated by the Authority enhances service accessibility and convenience. This integration is pivotal for a seamless Limousine Company Formation in Dubai.
- What are the operational commitments and service level agreements needed for a Limousine Company License in Dubai?
Operational commitments entail adhering to service level agreements outlined by the Authority, ensuring compliance with operational guidelines, and maintaining service standards for customer satisfaction and regulatory adherence. Meeting these commitments is crucial for a successful operation in the Dubai Limousine industry.
- What are the specific vehicle regulations and categories for approved Limousine services in Dubai?
Limousine services in Dubai have distinct vehicle categories, each with defined technical specifications and operational durations set by the Authority. Understanding these regulations is essential for operating within the guidelines of the Dubai Limousine market.