Starting a Taxi or Chauffeur Service in the UAE: What’s Required?

The UAE has become a leading hub for transport and mobility services, with Dubai at the forefront of innovation in smart mobility and luxury chauffeur experiences. Setting up a taxi or chauffeur company in the UAE offers great opportunities, but the process requires careful planning, compliance with regulations, and the right licensing.

Key Requirements for Starting a Taxi or Chauffeur Service

1. Business Structure & License

• Taxi and chauffeur services fall under the category of transportation and passenger transport activities.
• A business license must be obtained from the Dubai Department of Economy & Tourism (DET) in collaboration with the Roads and Transport Authority (RTA).
• The activity type will determine whether you operate as a taxi operator, limousine company, or chauffeur-driven service.

2. RTA Approval

• The RTA regulates all commercial passenger transport in Dubai.
• Businesses must secure RTA permits, which include requirements for fleet size, vehicle type, insurance, and compliance with safety standards.
• RTA may also set conditions regarding driver recruitment, training, uniforms, and branding of vehicles.

3. Vehicle Fleet & Specifications

• Taxis typically follow RTA-approved models, while chauffeur services can use luxury vehicles such as BMW, Mercedes, or Lexus.
• All vehicles must meet the RTA’s roadworthiness and emission standards.
• Insurance coverage is mandatory for both the fleet and passengers.

4. Drivers & Workforce

• Drivers must hold a valid UAE driving license and complete RTA training.
• Background checks, medical tests, and customer service training are standard requirements.
• For chauffeur services, multilingual and hospitality-trained drivers are often preferred.

5. Operational Requirements

• Office space, fleet parking, and customer booking systems (online and app-based) are mandatory.
• Technology integration (GPS tracking, ride-hailing platforms) is increasingly important for compliance and customer convenience.

Costs Involved

The total cost depends on the business model and fleet size but typically includes:

• Trade license fees (AED 10,000 – AED 15,000)
• RTA permits and approvals (AED 20,000 – AED 30,000+)
• Vehicle acquisition and insurance (varies widely by fleet size and class)
• Office setup and operational expenses

Dubai’s transport sector is competitive, but demand remains high for both affordable taxi services and premium chauffeur-driven cars, especially in tourism, events, and corporate travel. Partnering with a business setup consultant ensures smoother licensing and faster approvals from RTA and DET, helping entrepreneurs enter this growing market with confidence.

Expert Guidance with Caspian Accounting and Bookkeeping
Launching a taxi or chauffeur service in the UAE requires compliance with multiple authorities and precise planning. Caspian Accounting and Bookkeeping provides end-to-end advisory services—from licensing and RTA approvals to structuring your company and managing compliance.

Ready to set your business on the road to success? Contact Caspian Accounting and Bookkeeping today for tailored guidance and expert support.