Luxury Motor Vehicle Services License in Dubai Mainland
Luxury Motor Vehicle License in Dubai Mainland allows firms to provide passenger transport by luxury motor vehicle within the cities.
As per the current statistics, Department of Economic Development (DED) has issued 1185 licenses in June 2018, out of which 35.6% licenses were related to professional services. The total number of license renewal transactions occurred with Department of Economic Development in June 2018 were 11,043. Out of this number 5,314 transactions were renewals for the automotive industry.
These number show that there is a huge demand in the market for the automotive industry.
One of the important part of license procedure is to apply for permit to transport passengers in luxury vehicles.
Following below steps are important to obtain the permit.
Required Documents for Luxury Motor Vehicle Services License in Dubai Mainland
- Letter from the company requesting for the permit for Luxury Motor Vehicle Services License
- Passport copy of shareholders
- Trade Name reservation from Department of Economic Development
- Initial approval certificate from Department of Economic Development
- Detailed feasibility plan about the project
- Five-year plan of the company
- Certificate that proves partners have a minimum of AED 5 million
- Undertaking letter from the company which proves company has a minimum of 20 vehicles
- Document stating that the director has at least 1 year of practical experience in the same field or in the related fields.
- 20,000 AED franchise fee (1,000 AED for each vehicle)
- 1,200 AED for operating the vehicle (to be settled on a monthly basis after completing the transaction).
Validity of Luxury Motor Vehicle Services License
The validity of such type of business setup in Dubai is outlined below:
- Agreement validity is for 3 years
- Validity of operating the vehicles is for 5 years from the date of manufacturing
- Validity of operating the lengthy vehicles is 10 years from the date of manufacture.
- All document need to submit through RTA center to obtain preliminary approval
- After document submission all the fees need to settle at Franchise Services to get the No Objection Certificate
- After obtaining NOC shareholder need to sign agreement at the Procurement Department at the Roads and Transport Authority headquarters.
Few Important Conditions for the Luxury Motor Vehicle Services Permit
- Customer must need to provide a 86,400 AED bank guarantee for 20 vehicles
- The customer must provide If the if the number of vehicles exceeds 20 then AED 4,320 additional bank guarantee for each vehicle need to pay
- Customer must provide a vehicle shelter in Dubai to accommodate at least 20 vehicles
Signing the agreement:
Once the agreement signed the company must need to start the business within 3 months period with minimum 20 vehicles
“When Luxury can be business – Why not own one?”
Mr. Faisal Khan
Director of PRO & BPO Solutions
About the Author
Faisal Khan is a specialist in providing consulting services to individual entrepreneurs and corporates for setting up their business in UAE. With over 6 years experience and being currently the Director of ADAM’s PRO &BPO Solutions, he has successfully registered more than 250 companies in UAE, always striving to put the clients needs first. His secret to success is to provide right advice to client that proves highly cost effective and delivering continuous client support. To start your own company in Dubai Mainland for a luxury passenger transport services, feel free to contact him on +971507084596 or drop an email to email@example.com