How to Start Passenger Transport Company in Dubai – 6 Effective Steps

Introduction

A passenger transport company is a business that provides transportation services for people. This can include a variety of services, such as taxis, buses, limousines, and airport transfers.  

How to start passenger transport company in Dubai can be an intriguing question because Dubai is a rapidly growing city with a large and diverse population. This provides a strong demand for passenger transport services. Additionally, Dubai is a popular tourist destination, which further increases the demand for passenger transport services.  

For investors wishing to get into the passenger transportation industry, Dubai presents a profitable opportunity thanks to its booming economy and growing tourism sector. This guide will help you through the crucial processes necessary to launch your transportation company in this exciting metropolis. 

Step-by-Step Process to Start Passenger Transport Company in Dubai 

Step 1: Initial Trade Name Reservation Certificate 

Before you begin the process to start passenger transport company in Dubai with us, we will help you obtain an initial trade name reservation certificate from the Department of Economic Development (DED). This certificate ensures that the business name you have chosen is available and reserved for your use. 

To apply for an initial trade name reservation certificate, you will need to submit the following documents to us for the DED: 

• A completed trade name reservation application form 

• A copy of your passport 
• A copy of your visa 

Step 2: Initial Approval from the Roads and Transport Authority (RTA) 

Once you have obtained an initial trade name reservation certificate, we will get the initial approval from the Roads and Transport Authority (RTA) sorted for you. This is a critical assessment of your financial capacity and your profile as an investor. The passenger transport business in Dubai demands a significant initial investment and a strong commitment to its operation. 

To apply for initial approval from the RTA, you will need to submit the following documents: 

• A completed RTA application form 
• A copy of your trade name reservation certificate 
• A copy of your passport 
• A copy of your visa 
• A copy of your bank statement 
• A copy of your business plan 

Step 3: Licensing Process with DED 

Once you have received initial approval from the RTA, we will begin the licensing process with the DED. This involves submitting the necessary documentation and complying with regulatory requirements. 

To apply for a passenger transport license from the DED, you will need to submit the following documents: 

• A completed DED license application form 

• A copy of your trade name reservation certificate 
• A copy of your initial approval from the RTA 
• A copy of your passport 
• A copy of your visa 
• A copy of your bank statement 

• A copy of your business plan 
• A copy of your lease agreement for an office space 
• A copy of your insurance policy 

Step 4: Signing a Contract with RTA 

After obtaining your DED license, you will need to sign a contract with the RTA. As part of this process, you will be required to provide 36 post-dated checks. This number corresponds to the minimum fleet size of 20 cars required to start the passenger transport business in Dubai. 

The RTA contract also specifies the terms and conditions of your operation, including the fees you will be required to pay and the standards you must meet. 

Step 5: Payment Solutions and Vehicle Requirements 

The RTA has established partnerships with specific vendors for payment solutions. We will help you to ensure that you work with these authorized vendors for seamless financial transactions. 

Additionally, the RTA maintains a list of approved vehicles that can be used in your transport business. Be sure to acquire these vehicles to meet regulatory standards. 

Step 6: Incorporating Electric or Hybrid Vehicles 

Dubai is committed to sustainability, and the RTA mandates that a certain percentage of your entire fleet consists of electric or hybrid vehicles. This eco-friendly approach aligns with Dubai’s vision for a greener future. 

In essence, the journey to start passenger transport company in Dubai is intricate and filled with procedures and regulations. But with Adam Global’s expertise and commitment, you’re not navigating this path alone. We’re here to guide, advise, and ensure your venture thrives in one of the world’s most dynamic cities.  
 

Requirements to Start Passenger Transport Company in Dubai 

• Initial approval from the RTA 
  • Before you start passenger transport company in Dubai, you will need to obtain initial approval from the Roads and Transport Authority (RTA). This involves submitting a detailed proposal that outlines your business plan, financial projections, and fleet composition. The RTA will assess your proposal to ensure that you have the necessary resources and expertise to operate a successful passenger transport business. 
• Trade Name Reservation from Dubai Economic Department 
  • Once you have received initial approval from the RTA, you will need to reserve a trade name for your company with the Dubai Economic Department (DED). This is a relatively straightforward process that can be completed online or in person at the DED office. 
• Feasibility study 
  • The RTA will require you to submit a feasibility study for your business. This document should outline your target market, competitive landscape, and financial projections. It should also demonstrate that you have a clear understanding of the passenger transport industry in Dubai and that your business is viable. 
• Bank Statements of partners 
  • The RTA will also require you to submit bank statements for all partners in the company. This is to ensure that you have the necessary financial resources to launch and operate your business. 
• Official Undertaking letter 
  • The RTA will require you to sign an official undertaking letter stating that you will complete the minimum number of vehicles required within the selected category within a specified timeframe. 
  • Documents indicating that the company will provide devices and conform to the integration with the RTA’s Regulatory Monitoring System (RMS) 
  • The RTA will require you to submit documents that demonstrate that your company will provide devices and conform to the integration with its Regulatory Monitoring System (RMS). This system allows the RTA to track and monitor the movement of all passenger transport vehicles in Dubai. 
• CV of operation manager 
  • The RTA will require you to submit the CV of your operations manager. This individual must have at least 5 years of relevant experience in the passenger transport industry. 
• Bank guarantee 
  • You must offer a bank guarantee for 20 cars after receiving preliminary permission from the RTA. According to RTA, investors must have a bank guarantee or funds in the amount of 5 million AED. This is to make sure you have the funds available to buy the necessary quantity of cars. 
• Vehicle requirements 
  • All vehicles used to start passenger transport business in Dubai must be top of the range and must meet the RTA’s safety and emissions standards. Vehicles must also be operated for a period of 5 years from the date of manufacture. 
• Agreement period 
  • The RTA franchise agreement is for a period of 3 years. 

To Start passenger transport company in Dubai significant undertaking is required, but it can be a rewarding business venture. By carefully following the steps outlined above, you can increase your chances of success 

Scope of Passenger Transport Company in Dubai 

Dubai, a global tourism magnet, offers vast opportunities in the passenger transport sector. Key highlights for potential investors include: 

• Tourism Boost: With attractions like Expo 2020, the demand for transport services is on the rise. 

• Attractive Profits: A single transport vehicle can yield monthly profits between 6,000 to 12,000 AED.

• Government Backing: Dubai’s initiatives to enhance transport infrastructure provide a supportive environment for businesses. 

• Eco-Friendly Focus: The emphasis on electric and hybrid vehicles aligns with global sustainability trends. 

• Consistent Demand: Beyond tourists, Dubai’s diverse population ensures a steady demand for transport services. 

In essence, Dubai’s passenger transport sector promises substantial returns for investors, backed by consistent demand and government support. 

Understanding the Dubai Passenger Transport Industry Demand 

The Evolution of Passenger Transport in Dubai:  

Starting a business in Dubai is easier than ever because of the city’s extraordinary transformation from a little fishing village to a major global city. The evolution of passenger transport mirrors this transformation. Initially reliant on traditional modes like boats and camels, the city has now embraced a sophisticated transport system. The introduction of the Dubai Metro in 2009, the expansion of bus routes, and the rise of app-based taxi services like Careem and Uber are testaments to this evolution. 

Current Market Trends and Future Projections:  

The passenger transport sector in Dubai is currently experiencing several positive trends: 

• Rise of Green Transport: With sustainability at its core, Dubai is pushing for more eco-friendly transport options. The introduction of electric buses and the emphasis on hybrid taxis are steps in this direction. 
• Tech Integration: The integration of AI and tech-driven solutions, like smart traffic systems and digital payment platforms, is revolutionizing the passenger experience. 

– In 2022, Dubai was ranked as the most sustainable city in the Middle East and North Africa region by the Global Green Economy Index. This is a testament to the city’s commitment to sustainable transportation. 

-In 2023, Dubai announced plans to launch a new autonomous taxi service in the city. This service is expected to be launched in 2024 and will provide residents and tourists with a convenient and sustainable way to travel around the city.
 

Key Players in the Industry:  

The passenger transport industry in Dubai is dominated by several key players: 

• RTA (Roads and Transport Authority): The primary governing body overseeing all transport operations in the city.

• Dubai Taxi Corporation: A leading taxi service provider, operating a significant portion of the city’s taxi fleet. 

• Careem and Uber: These app-based services have gained immense popularity, offering residents and tourists a convenient transport option.

• Private Luxury Transport Services: Catering to the luxury segment, several companies offer premium chauffeur-driven vehicles for the discerning traveler. 

 
Why Choose Adam Global to Start Passenger Transport Business in Dubai? 

At Adam Global, we bring decades of expertise to the table. Having assisted numerous businesses, from startups to multinational corporations, we understand the intricacies of the Dubai market. Our seasoned team is adept at anticipating challenges and offering solutions, ensuring your business setup is seamless and efficient. 

• Comprehensive Service Suite: From legal services and financial management to marketing and branding, we offer a one-stop solution for all your business needs. 

• Global Network: As a company that operates globally through regional partners, we provide insights and strategies that are globally informed yet locally relevant. 
• Commitment to Excellence: Our dedication to client success is unwavering. We not only offer advice but also partner with you, ensuring your business thrives in the competitive Dubai market. 
• Ethical Standards: At Adam Global, integrity is paramount. Our services, including anti-money laundering (AML) compliance, reflect our commitment to ethical business practices. 

FAQ’s 

Mr. Ryan Ali is an accomplished business consultant at Adam Global who is well-known for his knowledge of the transportation industry. His expertise includes assisting customers in making thoughtful philanthropic decisions. The option for a passenger transport license, according to Ryan, varies depending on the operations and type of vehicle. Ryan’s views are supported by years of experience and a wide range of services provided by Adam Global, whether the topic is large-scale impact or neighbourhood participation. Ryan can be reached at +971 56 501 4164 if you need specific guidance.