How to Start a Taxi Business in Dubai

Ever thought about starting a taxi business in Dubai? The busy roads of this vibrant city, where luxury cars catch the eyes, are the same streets where taxis are making impressive moves.

Whether it is someone heading out for a shopping spree, attending a business meeting, or exploring the city’s stunning skyline, tourists, residents, and locals alike rely on taxis for a comfortable and convenient ride. With world-class roads and a constant demand for transportation, the taxi business thus stands out as a highly profitable venture.

Let us take a closer look at how to get started with a taxi business in Dubai. In this guide, you will get the process, requirements, benefits, costs and everything essential information you need. 

Taxi culture in Dubai 

Residents, locals, and visitors highly depend on taxi services in Dubai. A dependable mode of transportation has become more than just a luxury, it is a necessity. The overall taxi market in Dubai has gone through significant transformations over the years. Today, traditional services have joined hands with the latest technology. 

Apps like Careem and Uber are changing the game of booking rides in the city. With the population already online, people can now book taxis in real time and reach their desired destinations with ease.  

In the first 6 months of year 2024 alone, Dubai recorded 55.7 million taxi trips. There is a lot of potential for those who want to tap into the growing market demand. 

The taxi industry is primarily overseen by the RTA (Roads and Transport Authority), which ensures that the highest standards of service are maintained. Licensing of drivers and vehicle registration are strictly handled by the RTA. In this guide, you will learn how to start a taxi business legally in Dubai. 

How to start a taxi business in Dubai? 

Follow these steps to start a taxi business in Dubai: 

Step 1. Choose a business structure:

Firstly, decide the legal form for your taxi business. It can be a sole establishment, a partnership firm, an LLC, or another form permitted by the authorities. The structure determines your business’s ownership pattern, tax liabilities, and other legal responsibilities, so choose according to your business needs and goals. 

Step 2. Register a trade name: 

Next, choose a name for your business and get it registered with the authorities. Remember, the name must follow the naming guidelines set out by the UAE government. Otherwise, it will not be accepted. 

Step 3. Get initial approval: 

For your Dubai taxi business, the first approval you need is the initial approval granted by the Department of Economic Development (DED). To obtain it, you will need to submit basic documents such as your business plan, trade name, and some personal identification documents. 

Step 4. Apply for a business license: 

To start a taxi business in Dubai, you must apply for a UAE business license with the DED. Submit the license application form and required documents and pay the applicable fees. Once approved, the DED will issue your business license. 

Step 5. Prepare your vehicles: 

Of course, since it is a taxi business, you will need to have a fleet of vehicles.  

The vehicles are a crucial aspect of your taxi business. Make sure each one is equipped with the required safety features, fare meter systems, GPS, and any other equipment mandated by the RTA. 

Step 6. Hire and train drivers: 

Your drivers must be at least 21 years old and must hold a valid UAE driving license.  

Drivers must be well-trained, as they are responsible for operating the taxis and ensuring the comfort and safety of passengers. Good communication, customer service skills, and knowledge of local routes are also important qualities to look for. 

Step 7. Get the RTA’s permit: 

The transport sector is regulated by the Roads and Transport Authority (RTA), so your business must obtain special permission from the RTA. They ensure your business complies with all the safety and legal requirements for operating in the transportation sector. 

They also assess whether your vehicles and drivers meet the necessary standards. Once they are satisfied, they will issue an approval for your taxi business. Additionally, you will need to obtain RTA permits for drivers as well and get your taxis registered with RTA. The application for RTA’s permit can be conveniently made through RTA’s website.  

Step 8. Launch your business: 

Finally, it is time to hit the roads! Start marketing your taxi business. Use the internet and social media to reach out to potential customers. Make sure to maintain ongoing compliance with laws and regulations, including license and permit renewals on time. 

Legal requirements for taxi company setup in Dubai 

These are the legal requirements in UAE for taxi business setup that you must know: 

1. Vehicle requirements:  

For the safety, comfort, and experience of passengers, the RTA has established guidelines regarding the vehicles used by taxi businesses. The safety features, accommodation space, condition and maintenance of vehicles. Additionally, vehicle lifespan, GPS tracking, and fare meters must all comply with the standards set by the RTA. 

Under the limousine business standards set by RTA, you must launch a fleet of at least 30 vehicles within 3 months. Please note that the rules regarding RTA-approved vehicles is subject to change. 

2. RTA licensing and permits: 

Since the taxi and ride sharing industry is regulated by RTA, you will need to get their permission for business. You will need to get a taxi permit from them, including registration for vehicles and license for drivers.  

Additional permits, like a commercial transport license, may be needed as per the type of business you plan to conduct. 

3. Business licensing: 

Any business belonging to any sector needs to have a valid business license issued by the DED. Similarly, to start and run a taxi business in Dubai legally, you will need to secure a taxi business license from the DED. 

4. Driver requirements:  

For your taxi business, you will need to hire taxi drivers. These drivers must be properly trained and licensed by the RTA to operate legally. They should have a good knowledge of Dubai’s road network and be fluent in English to ensure effective communication with passengers. For proving their capability, they have to go through RTA tests. 

Additionally, all drivers must be medically fit and capable of driving, with a clear criminal record. Regarding their salaries, working conditions, and other employment matters, your business must comply with the UAE labour law, which provides clear regulations to protect both employers and employees. 

5. Insurance requirements: 

You will need to provide two types of insurance for your taxi business. The first is vehicle insurance, which must include third-party coverage to ensure compensation in case of damage to third parties. The second is driver insurance, which protects your drivers against losses resulting from accidents and other mishaps. 

Having proper insurance in place helps create a secure and protected environment for both your business and your drivers. 

Documents required for taxi business setup in Dubai 

To start a taxi business in Dubai, you will need the following documents: 

• Passport copy 
• Passport sized photos 
• Filled application form 
• Trade name registration certificate 
• Business plan 
• Tenancy contract 
• MoA and AoA 
• Additional documents as may be asked for

Please note that document requirements are highly subjective and can vary with your business requirements. You can get help from our Dubiz experts.

Cost of taxi business license in Dubai 

The cost of a taxi business license (such as an Uber business license or limousine business license) in Dubai starts from AED 15,000*.  

Note* that the cost can vary depending on your business size, number of vehicles you plan to operate, and services required. To get more costing detail, you can contact Dubiz Business Setup experts.

Why should you start a taxi business in Dubai?

Dubai is a great location to start a taxi business as it offers the following advantages: 

• High demand: Constant need for reliable transport from residents, workers, and tourists. 
• Growing tourism: Millions of visitors annually are major customers of taxi businesses. 
• Tax advantages: High tax exemptions and no income tax boost profitability for businesses. 
• Supportive government: Business-friendly policies encourage easy setup and growth. 
• Diverse customer base: Serve a mix of locals, expats, and tourists. Demand never falls. 
• Modern infrastructure: Well-maintained roads and an advanced transport network support smooth business operation. 
• Availability of skilled drivers: In Dubai, you can access experienced, multilingual drivers. 
• Year-round operations: No seasonal demand fluctuations, earn profits in every season.

Conclusion 

Starting a taxi business in Dubai is truly a profitable option, given the strong demand from the transport sector and a diverse clientele.

To start the business, you will need to obtain an RTA permit and a license from the Department of Economic Development (DED) to operate legally. 

To ensure the success of your Dubai taxi business, make sure your drivers are skilled, well-behaved, and that your vehicles are in top condition. After all, the comfort and convenience of customers is what truly makes the difference.

How Dubiz can help with UAE taxi business Dubai?

Thinking about starting a taxi business in Dubai such as an Uber business or a luxury limousine business? Great! If you let us be your partner, we can help you get started with all the necessary licenses quickly and efficiently. 

Your trade license, bank account setup, etc, will all be handled by us. We will just need some basic details from you, and you will be good to go. 

Get the best business setup services in the UAE with us: 

• 8 years of industry experience across diverse business activities.
• One stop shop for all the essential business formation needs.
• A strong team of 50+ professionals delivering value across fields.
• Strong and reliable ties with local government authorities and agencies.
• Expert PRO and legal documentation support.
• Transparent pricing with no hidden charges.
• Faster processes that save time and money for clients.

Contact us today: 

📞 Call: +971 56 369 5485
💬 WhatsApp: +971563695485
📧 Email:  info@dubiz.co     

Disclaimer: The details provided in the blog are for informational purposes only and is subject to changes. Please check RTA’s official website for the latest updates. 

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