How to start a Car Rental Business in Dubai?

The UAE car rental market has gained popularity in recent years owing to UAE pleasant smooth roads, attractive fuel prices and polite drivers, road order and safety, intuitively clear traffic rules, low parking cost and lack of crime. It is considered that  UAE rental car prices are quite affordable, so it is often more reasonable to rent a car than to use taxi driver services.

Starting a car rental business is a lucrative business; because most of the small medium as well as large companies prefer to rent a car for its outside work; that is for each of their driver to deliver documents and items; or for their consultant to meet the client on the client site.

Starting a car rental business is also a profitable business; because most of the locals and expat are passionate to drive a luxury car; but only a few can afford to buy it. So most of the time people rely on rent a car business in Dubai to drive their dream car. A Rent a car license in Dubai will enable you to provide luxury car for a rent; that is for a short or long term to the residence of a UAE.

How to start a Car Rental Business in Dubai?

This type of companies is registered in Dubai Department of Economic Development (DED) and would fit those who are planning to do business locally. If you want to open a shop, beauty salon, building maintenance company or car rentals, DED is the place to do it.

In order to open a Mainland company, you should have either a local sponsor (UAE citizen), who will have at least 51% shares in your license and be a partner, or a local agent, who will not own shares, but will be your “gateway” to the local market. Whether you need a sponsor/partner or an agent – depends on the type of your business.

How to start a Car Rental Business in Dubai?

Companies should be located in all places geographically, and cover the key cities and emirates such as Dubai, Sharjah, Abu Dhabi, Ras Al Khaimah and others. Concerning the segmentation, some distributors choose a specific market segment (Economy, Comfort, Business, Luxury, Premium Sport) and work only within it, the others, often-larger ones, try to be presented in all segments of the market. Standard rental price depends on the chosen class of a car, so in the “Economy” class a car can be taken for 40 USD per day, while analysts say that the average check in the “business” is 135 USD, and in “Premium-sport” class it may be close to 800 USD.

Both private individuals and legal entities rent cars. The private individuals are foreign tourists, businessmen, periodically visiting the country, or those whose car is being repaired, who sometimes need a car of a different class than their own one, or when transport is needed only for a few hours. Legal entities especially start-up companies or foreign missions, also tend to use rental services. For these purpose renting is more favorable than the creation and maintenance of their own fleet. In addition, dealing with corporate clients is more preferable, as it promises higher income.

How to start a Car Rental Business in Dubai?

Starting a car rental business, a company should start with its registration and  necessary documentation, licensing and activities coordination in the RTA (Road Traffic Authority). Further staff training is carried out (directly engaged in providing lease services) in the Road Traffic Authority.

A start up car rental company needs at least 10 cars in its fleet. Otherwise, the business will not be profitable. Cars can be one-time purchased or taken on lease. Of course, the second option at the initial stage is less expensive, but in the end it will increase costs of the equipment purchase by 15-20%. As a rule, one-time purchase of cars of the same brand can give an entrepreneur a substantial discount. Experts inform that in the first months of work parking spaces will be needed for approximately 70% of the units of the fleet. While some vehicles are working, there should be some place where the others can be washed or minor repaired, etc.

How to start a Car Rental Business in Dubai?

For a car rental company an office is not a mandatory attribute, a car can be delivered to a specified address. However, its presence is welcome; from the client’s perspective the availability of the office is a indication  of reliability of the car rental company. Concerning the staff, a small project requires the following staff members: a Project Coordinator (administration, control, communication with management and staff, conducting advertising strategy), a manager -dispatcher to work with clients, drivers (1-2 people), an accountant and a lawyer (possibly outsourcing).

According to the experts’ advice, the advertising campaign should be launched at the very beginning of enterprise registration, and a company should pay great attention to this aspect while the market is really competitive. Firstly, a company should create a recognizable corporate style, as well as conduct the Internet promotion. In addition, partnership with the places of target audience deployment play an important role in the marketing strategies, those may be airports, business centers, hotels, popular places. The ability to locate the information stands or flyers in such places can give tangible results.

Taking into account financial indicators, the UAE car rental business looks quite attractive. There’s no sense to fear market competition but it makes sense to use the highly effective demand and favorable work conditions together with proper management and creativity in order to get your own market share.

How to start a Car Rental Business in Dubai? Before rent a car in UAE you must check following facts

Documentation

Before renting a car in UAE, you must possess all the legal documents necessary to drive a car in UAE. The parameters vary according to the visa status and nationality.

For a UAE resident, followings documents are necessary;

• Copy of Passport
• Copy of Residential Visa
• Valid UAE Driving License
• Copy of Emirates ID

Tourists visiting Dubai on a tourist visa need to submit;

• Copy of Passport
• Copy of Visit Visa / Visa Stamp
• Valid International Driving License

Power passport holders like people from GCC, US, UK, Canada & certain other countries enjoy certain benefits in Dubai and can drive on their international driving license.

Vehicle Appearance

Before renting a car in UAE, check out whether the car is having any minor or major internal or external damages.

You can click the pictures of the car and report the damages to the company representative, so as to absolve yourselves from additional financial burden later.

Car Insurance Protection

Check out whether your car is covered under any insurance scheme offered by your car rental company or not.

Insurance provides a pivotal role while renting a car in Dubai. In case of any unfortunate event, financial risk is transferred from the driver driving the insured car to the insurance company.

So it is better to know about insurance status of your vehicle before renting it .

Advance payments

Most of the rental car companies in Dubai often charge security payments upfront so as to ensure the safety of their vehicles.

It is advisable to pay through credit card to get an easy refund in case any dispute arises with the car dealer in Dubai.

In case you don’t have any credit card, you can simply pay through cash but don’t issue Cheques as they are not acceptable by most of the car dealers in Dubai.

Mileage

Before proceeding for a drive in your rented BMW, Mercedes or an Audi, you need to check out the health of the engine.

Salik Charges

RFID technology launched by Dubai Roads & Transport Authority on 1 July 2007.

Every car in Dubai has Salik chips fixed on their screens .As the car zooms past the booth, an amount of 4 AED get automatically deducted from the prepaid chip.

This amount is to be paid by those who have rented a car service and not by the company.

Vehicle Failure & Accidents

Renting a car in UAE may sometimes leave you in trouble, if you don’t go by guidelines and check the health of the vehicle before renting it.

Car break down usually happen at unreached destinations. You can get stuck in the middle of the desert with no help around or an accident can take place with your costly rented car.

In both situations, be swift while communicating the issues to local rent a car dealer and local police.

You may save money by letting the car dealer know about the failure but for accidents, damages are to be paid even if the second party is at fault.

Riding out of UAE

It not permitted to take a rented car beyond UAE borders but some rent a car companies in Dubai issue special insurance documents to the drivers.

So make sure to confirm from the company before driving out of UAE in a rented car.

Terms and Condition

The document let you know about the company guidelines which they adhere to .It also tells you about the process adopted, when a dispute arises with a client.

So, if you are planning to rent a car in Dubai, Sharjah, Ajman or anywhere in UAE. Don’t forget to go through terms of the company.

Exploring this amazing growth is always a treat but the excitement and comfort can be multiplied by renting a luxury car in Dubai.

Need to upgrade to Reach Accountant online VAT Accounting Software

Reach can be used for new and used car dealers to manage their sales and purchase documentation and manage sales commissions across branches. Reach accountant software is properly designed to fit all of the desires for a success running of the enterprise. The software may be used in industries ,buyers ,producers, outlets,  workshop ,commercial enterprise projects and so forth. It’s an accounting software program which can   manage your ebook of accounts, taxes, inventory, sales, purchases and many more  online speedy and securely.

How to Control Your Vehicle Rental with Advanced Technology of Reach Accountant

Many companies have not given due attention to the principles of Management and with this have suffered the consequences and often fail to reverse the negative results. This is because many owners are not updated with the new technologies for Business Management of your future Vehicle Rental quickly, safely and effectively.

Digital Marketing and Sales

How to be visible on the internet and receive Online Reservations with Reach Accountant

Bringing customers up to your company is not an easy task, so you should draw up a plan to publicize the establishment. You can use powerful tools for digital marketing and sales: Website, Application and Web Booking. Know each one of them and see that these tools are fundamental in the promotion .

Top Features of the Reach Online VAT Accounting Software for Automobiles ,Used Car Dealers and Car Rentals

Digital Agreements: Create Agreements on the Tab and get it signed digitally from your customer. Save agreements on the Cloud and  helps the customer with super fast documentation.

• Inventory Management: Easily Manage Your Inventory With Help of Reach Online VAT Accounting Software :
  • Update vehicle inventory records for sold and trade-in vehicle.
  • Record trade-in unit on stock card or add vehicle to inventory system.
  • Record cost of sold unit on stock card or in inventory systems.
  • Add needed reconditioning estimates to stock card or inventory system as applicable.

       Probably the most important aspect for the used vehicle dealer is good inventory   control. Know your market — Analyze your sales trends and compare them to vehicles in your inventory. The unit sells well in your market; and Your sales people can sell the unit profitably after reconditioning costs. Reach online Accounting Software enables to keep a track on the process till final sale is done.

• Online Sales : Increase online sales and generate more leads via the internet with Reach web based software. Reach has developed a low cost solution for used car dealers. It has many of the great features and has the capability to import and export from just about any medium. In addition to importing and exporting from car portals the dealer has the option to manually add cars via the ecommerce website which is easily integrated to Reach Online VAT Accounting Software . The online software also comes with a premium image uploader. Dealers can also choose to export their data to other online portals.
• Accounting Management: All functions relating to accounts are inbuilt with the software. You can manage your Accounting Ledgers, Bank & Cash Operations, Purchase & Sales Estimates, Warehouse Allocations, Expense Recording, Expense Grouping, Payments – Part or Full, Journal Entries, Income and loss a/c, Balance sheets, Receipts – Part or Full, Contra Entries, Financial Reports, Day book.

• Tax Management: Our accounting Software automatically calculates the taxes relevant for every bill created. The Software is designed as per the government norms for calculation of VAT. It also has the option to add any number of taxes relevant to the business. In case of change in tax percentages a change it in the software on your own. All you have to do is add your tax percentage and our software will calculate the taxes automatically. This multiple tax scheme can also be applied to multiple products on a single purchase.

• Income Management: The Company can create Quotations then the same can be converted as a Sales order or Pro-forma invoice or Invoice. From Invoice you can create Receipts as well. Accountants will be able to know what payments have been received and what are pending in the reports. You can also set reminders for receiving payments.

• Expense Management: You can create Purchase Orders then the same can be converted as bill or payments. You can also create Debit notes for purchase returns. Accountants will be able to know which purchase bills have been paid and which are pending in the reports. You can also set reminders for making payments.
• Invoicing: Generates VAT compliant invoice of the company in the specified design as requested by the client or can choose from the available templates in the software. It also converts quotes to invoice .One of the features is the software can convert the Foreign currency invoices to base currency and further calculating the VAT at UAE standard rate.

         ·            Business Automation: Leads from all sources,Leads extractions via mail server,Converting leads to appointments,Quotes,Converting quotes to Invoices,Email-SMS update,Delivery status update,Work pending strategye.

• Business Intelligence Dashboard: The software has a feature of providing you key statistics of the business at any given point of time.The dashboard displays work status, profit and loss, expenses graphically.It also features  best Selling Executive, Highest Selling product, Largest value customer for the month. Every night the client gets a SMS summing up the entire sales , expenses ,case production ,and stock value for the day.

·         Print Tax Invoice In Arabic: Reach software lets you print invoices in Arabic, English or both, as per the mandated guidelines of GAZT and FTA.

• Auditor View: Full-fledged Financial reports, Tax reports VAT reports, read process by auditor, with e-filing options, PF & ESI Reports, Tax Consulting Modules are some to be named.
• Check Post for VAT returns: As the software has been designed exclusively to aid individuals and entities to be VAT compliant in UAE, the set of rules and regulation laid by FTA (Federal Tax Authority) of UAE are embedded in the software. Hence any process error will be popped up by the application can be viewed .For instance wrong Tax Registration Number, incorrect taxable figure, wrong taxation period.
• Automatic Update on Tax legal Sections: As the Reach software are cloud computed software gets upgraded to update any revised tax laws and section if any in future.
• Computation Of VAT Returns: The software is inbuilt with all the detailed crucial information  on tax computation Tax Assesee can  fetch all the details of all the taxable transactions It lists down transactions which are included and excluded in the VAT return  calculate input tax, reverse charge and output tax to avail claim if any 

• Filing Of VAT Returns: The registered businesses in UAE are required to generate the VAT return File from their accounting software, login to the FTA’s e-tax portal and upload the return file. On the basis of the uploaded return file, the e-tax portal will validate the file and accordingly the details from the file will be auto-populated in the online return form. Reach VAT software is designed to ease the process of filing returns and comes under the purview of FTA prescribed set of rules and regulations.

• * VAT Reports etc.
• Calculate VAT automatically.
• VAT support in Sales, Purchase, Sales and Purchase returns, Journal entries.
• Generate Federal Tax Authority compatible tax reports.
• VAT Paid (charged by suppliers) and Vat Collection (Charged to customers) Analysis.
• Transaction wise details of VAT paid and VAT collected.
• Attach every Vendors/Customers VAT number and other details.
• VAT supported for Goods (stocked) and Service (non-stocked) items.
• Online application accounting.
• VAT Account Reconciliation, VAT Collection & VAT Paid analysis report.
• Report export to excel and other standard formats.
• VAT returns statement compatible with Federal Tax Authority standards.

Online accounting VAT software enables you to file vat returns, manage accounts and other business operations from any geographical area be it at the comfort of the house.

• Receipt: Receipts can either be manually entered or imported it in excel format easily.
• Payments: Payments can either be manually entered or imported it in excel format easily.
• Multi Company: Manage business through comfort of the smart phone.
• Tally Import: Tally files can be easily imported to Reach Software of various periods and manage business easily.
• Auditor’s Report: Full Financial Report are available,Read process by Auditor,Tax Reports,VAT Report with e-filing options,PF & ESI Reports,Tax Consulting Modules are some featuress mentioned.
• Mobile Application: Access business information through tabs and android smart phones, pick photos of expense vouchers and attach to expenses, daily profitability and other key reports can be viewed on phone.
• Bank Synchronization: Bank Statements can be imported in to Reach software through excel files.
• Security: There is complete security of data stored in the hard disk. Data can be accessed and control by creating access restriction. One time password facilities also ensures a check in the log in to the website.

• Run Business from anywhere: The business can be run access data from anywhere at your comfort. Just like checking mails from the laptop or systems.

• Free and Automatic Upgrades: At Reach Accountant you will be provided free services of upgrading the software frequently with new features and use it absolutely free.

• No investment in expensive hardware: The software is browser based. It just requires internet connection which can be connected to multi computers without using LAN and servers.

• API: The client can integrate the existing software with Reach accounting application ,

• Automatic Data Backup: Reach stores all the data in servers offsite with regular backups. Hence business information is safe and secure

·         User Interface & Complexity:The software is designed to make its use friendly and easy,no cumbersome process to operate the application and software.

• Scalability:It is an VAT accounting software which can scale with your business needs. . Some software companies offer only one version of the product and some have progressive versions depending the business type or size. Reach Accounting software offers both integrated an entry level version as well as a feature rich version which you might not need for the current business processing but will definitely need in future for business development.

• Calculation Of Profit Per Car: Calculate the cost of every car sold and profits made real time.Helps you quote the right prices and reduces losses.

• Outsourced Accounting: The software enables to finish the outsourced accounts in less than 30 minutes.

• Real Time Accounting: Allows client to record sales and purchases online, while finalizing accounts that is checking the Audit trail, providing MIS reports, checking Tax reports, printing financial reports and filing taxes.

• Accounting for the VAT margin scheme: Our range of accounting templates are designed to ease the whole process of record-keeping, invoice generation & VAT return preparation for used vehicle traders. They have been designed with the FTA requirements and are certain to save you time and prevent  financial losses.

Technology Used:

Reach has implemented the latest technology Cloud Computing to handle  day to day business transactions just  a click away from your browser from any part of the world.

Cloud Computing is a concept through which organizations can manage their data centres, processes and applications online via internet on the scheme of pay for use basis. Many of today’s small businesses find great advantages when adopting a virtual office environment. Rather than maintaining one centralized business location, employees are given the opportunity to work from home and connect via computer. Virtual offices can stretch across the country, or even exist within a small geographic area while still providing benefits to both employees and employers. Yet certain business functions need to be managed differently in a virtual environment. When it comes to accounting, a cloud system can improve virtual office management, especially for tasks such as expense tracking and financial report consolidation.

Benefits of Cloud Accounting

1. Spread the cost of the software by making payments by monthly subscription instead of one lump sum.
2. All the upgrades for cloud accounting software are carried out by the supplier at no extra cost, so you are always on the latest version.
3. You can access cloud accounting software anywhere that has an internet connection, so no need to use a particular computer or be stuck in the office.
4. As the name suggests, all the data is stored securely in “the cloud” which means on the supplier’s bank of servers, continually backed up, so you never have to worry again about using up your own hard-drive or taking regular backups.

Best of all, with cloud accounting software, your accountant can share your data, so they can help you if you are stuck on recording certain transactions in your accounts, like the purchase of a new laptop.  They can post their year-end journals directly, so your data is always up to date, but more importantly we can be more help to you.  For example if you would like your accountant to check the figures for your VAT Return or even file it,or prepare some management