Dubai is experiencing unprecedented growth. Given the many opportunities available, this is the perfect time to launch an equipment rental business in Dubai.
Serving the construction, oil and gas, and other industries, an equipment rental company keeps the wheels of Dubai turning. If you’ve ever considered starting a business in Dubai, this is your golden opportunity.
This article explains how to set up your UAE company, covering the following areas:
- Equipment rental business in Dubai and the UAE – an overview
- How to start an equipment rental business in Dubai – step by step
- Cost of starting an equipment rental business in Dubai
- Marketing strategies for an equipment rental business in Dubai
- Business setup in Dubai with Trade License Zone
Equipment rental business in Dubai and the UAE – an overview
Dubai and the UAE are renowned for their incredible pace of development. Infrastructure has been rapidly built over recent decades – and that pace isn’t set to slow down in the foreseeable future, as Dubai and the UAE continue to invest in business and infrastructure. As a result, equipment rental businesses in the country are in high demand.
The equipment rental business primarily serves the construction, oil and gas, events and logistics sectors. The UAE government is focused on diversifying its economy to transition from its reliance on the oil and gas industry, and investment in infrastructure continues to increase by nearly double digits year-on-year. This drive for excellence provides excellent opportunities for the growth and expansion of equipment rental businesses.
Heavy machinery and specialised equipment are hallmarks of the construction and oil and gas industries, which require numerous machines for projects, some of them long-term. Exploration, drilling, transportation, excavation, and grading require daily equipment rental services.
Dubai is one of the leading events destinations in the world, ranging from expos and world fairs to sports tournaments. These require equipment for staging, rigging, media, lighting, and more.
Logistics is another niche area in which equipment rental businesses are in high demand in Dubai: warehousing with specialised racking, forklifts, pallet lifts, and other functions is a growing area that requires increased equipment rental services.
How to start an equipment rental business in Dubai – step by step
These are the steps you must take to start an equipment rental business in Dubai:
Step #1: Partner with Trade License Zone
Your first step to opening an equipment rental company in Dubai is to partner with Trade License Zone. Our business formation specialists will help manage all aspects of the trade license application and company registration processes and communicate with all relevant government and municipal authorities on your behalf.
Step #2: Choose business activities
All businesses in the UAE are required to hold valid trade licenses. Trade licenses determine the types of services and operations companies can offer and serve to regulate industries, too. There are many trade licenses to choose from, and several are related to equipment rental services. It is essential to consult a trade license expert, such as Trade License Zone, to guide you in choosing the most suitable one for your company.
Choosing business activities for your trade license that align with the business activity you wish to carry out in Dubai and the UAE is essential. There are around 2,000 business activities to choose from. A company may only conduct the business activities specified in its trade license, and if it fails to do so, it may face severe penalties from the Dubai and UAE authorities.
Contact Trade License Zone’s experienced staff to guide you through this vital step.
Step #3: Naming your company
Trade License Zone will help you choose your equipment rental company name and register it with the UAE’s Registry Office. For this, you will need to submit three names in order of preference. The UAE’s Registry Office will check if the names are available and use the most preferred one.
You can use your name in the company’s name, but you must use it in full instead of just your surname or initials. The business name must adhere to the UAE’s naming policies, including that a business name cannot include offensive or blasphemous language or references to Allah or Islam.
Step #4: Choose a business setup and business jurisdiction
The UAE has created two types of business zone to streamline its business laws and simplify the company formation process. You can choose from more than 40 Free Zones or opt for a Mainland legal structure for your equipment rental service. It is important to understand the differences between Free Zones and Mainland entities.
A Mainland company structure enables a business to trade directly within the UAE. However, a foreign national entrepreneur or investor can hold only 49% of a company’s shares, and a UAE national must hold the remaining 51%. Those shares carry no executive function, and the UAE national only serves as a liaison between the government agencies and the business.
Foreign entrepreneurs and investors can hold 100% of Free Zone-based companies. Each Free Zone offers unique benefits, such as startup support, business incubators, and financial support.
If you’re uncertain whether to select a Mainland or a Free Zone business structure for your equipment rental business, reach out to the professional business advisors at Trade License Zone to help you determine which is best for your business aspirations and activities.
Step #5: Apply for the trade license
Applying for your trade license is the last step of the company formation process. You will be required to submit your trade license application along with supporting documentation, including UAE and Dubai government and municipal approvals. Once your trade license has been granted, you must pay for the issuance of the license and open your corporate bank account. You are then eligible to trade legally in Dubai and the UAE as an equipment rental business!
Cost of starting an equipment rental business in Dubai
The cost of starting an equipment rental business in Dubai ranges from AED 10,000 to AED 15,000. This cost is for the trade license only, and there will be extra costs for the business setup, business jurisdiction and activities, government approvals, office space, and other business considerations.
For an accurate quote, contact the specialist team at Trade License Zone. Our team will be able to provide you with the information on costs, requirements, trade license types, and business setup processes for getting your equipment rental business running in Dubai.
Marketing strategies for an equipment rental business in Dubai
We’ve researched the most effective marketing strategies for equipment rental businesses in Dubai, and these are summarised in the following sections.
Strategy #1: Online Marketing
Create a professional website to showcase your company’s services and equipment. Through SEO, social media, email marketing, paid advertising on network websites, industry-specific forums and platforms and search engines, you can then target – and reach – your audience. When combined with targeted advertising campaigns, your business can reach niche audiences for your specific area or equipment. There’s no need to panic about any of this: you can hire a specialist marketing team to handle every aspect of this so you can focus on the day-to-day operations of your business.
Strategy #2: Trade Shows and Expos
Networking is still one of the most effective marketing tools in business today. You can showcase your equipment and services at trade shows and expos, engage with potential customers, and form relationships.
Strategy #3: Partnerships
An equipment rental business in Dubai can partner with construction companies, events companies, and oil and gas key players to forge long-term relationships and enhanced, dedicated services.
Business setup in Dubai with Trade License Zone
Business setup in the UAE is straightforward when you partner with Trade License Zone. While the UAE government streamlined the trade license application and company registration processes, our experts will save you time and money and eliminate the frustration of unnecessary delays or rejections.
The specialists at Trade License Zone can get you started with your equipment rental business in Dubai as soon as you provide us with some basic documentation and information. Our team will then take care of the rest for you: we’ll manage your business setup, communicate with all relevant government departments and authorities, visa amendments and applications, open corporate bank accounts, and report back to you when you’re ready to start trading. It really is that simple.