How to Create a Rent-a-Car Company in Portugal?

The rent-a-car sector in Portugal has grown significantly in recent years, driven by the increase in tourism and the preference of many people for renting vehicles rather than owning them. If you are thinking about creating a rent-a-car company, it is important to know the process, the necessary licenses and the essential steps to ensure the success of your business.

Steps to Create Your Rent-a-Car Company

Market Research Before opening any company, it is essential to carry out a market analysis to understand the competition, the target audience and the demand for your services. The rent-a-car sector in Portugal can be competitive, especially in tourist areas. Evaluate the location of your business, possible partnerships (for example, with hotels or travel agencies) and the demand for different types of vehicles.
Choosing the Legal Structure: Choose the most appropriate legal structure for your business, whether as an Individual Entrepreneur or through a Limited Company. The legal form will influence fiscal, management processes and even the owner’s responsibility towards the company.
Licensing: To legally operate as a rent-a-car company in Portugal, you need to comply with current legislation and obtain the necessary license issued by the Instituto da Mobilidade e dos Transportes (IMT). This licensing requires compliance with several requirements, such as proof of professional capacity and meeting technical and financial requirements.
Financial Capacity: Detran requires rent-a-car companies to prove their financial capacity to operate. This financial capacity is a guarantee that the company has sufficient resources to sustain its operation. The values vary depending on the number of vehicles you want to operate, and it is important to have a solid financial plan that justifies the viability of the business.
Vehicle Fleet: Choosing a fleet is one of the main success factors for your business. Decide whether you will buy the vehicles or opt for leasing contracts. Ensure that your fleet meets current safety and environmental standards. Consider including a variety of vehicles, such as economy cars, family cars, luxury cars, and even commercial vehicles, depending on your target audience.
Insurance: Make sure you have an insurance policy that covers all the vehicles in your fleet, as well as third-party liability. Car insurance is required by law and must cover potential damage caused to vehicles, passengers and others.
Location: The location of your service point can be critical to its success. Many rent-a-car companies operate in strategic locations such as airports, train stations or tourist areas, where there is greater demand for car rental services. Also evaluate the possibility of offering vehicle delivery and pickup services for the customer’s convenience.
Online Management and Reservation Platform: Many customers prefer to book their vehicles online. Therefore, it is essential that you have an efficient digital platform that allows you to manage reservations, payments and communicate with customers. Remember, a well-optimized online presence and digital marketing campaigns can significantly increase your company’s visibility.
Operational and Logistics Management: It is crucial to develop an efficient management plan for the daily operation of your fleet. Define clear processes for vehicle maintenance, fleet rotation, fueling and cleaning. A good management system is also essential to ensure that your vehicles are always in good condition to be rented, avoiding service interruptions.

Main Challenges

When starting a rent-a-car business, you may face some challenges such as fierce competition, especially in popular tourist destinations. It’s important to have a solid business plan and strategic marketing plan to set your company apart from the competition. Another common challenge is efficient fleet management, where it is necessary to keep vehicles in good working order and avoid unexpected repair expenses.

Creating a rent-a-car company in Portugal involves detailed planning, knowledge of the sector and compliance with legal obligations. With the right decisions, a well-managed fleet and efficient customer service, your company can prosper in an increasingly competitive market.

Mandatory requirements

The rent-a-car activity may only be carried out by individuals or legal entities established in the national territory, upon prior communication with a deadline to Detran, with proof that they meet the requirements to access the activity:

Suitability (all managers, administrators or directors, in the case of legal entities, or the person himself, in the case of an individual);
Minimum number of vehicles (in passenger cars, seven; in motorcycles, mopeds, tricycles or quadricycles, three) with a maximum of 5 years of age, counting from the 1st registration; if the activity is carried out only with vehicles with special characteristics, the minimum number of vehicles, as well as the maximum age of the vehicle, is in accordance with Resolution No. 267/2019;
Estabelecimento fixo para atendimento ao público;
Fixed establishment serving the public;
In the case of adhesion contracts using general contractual clauses, the lessor is obliged to send a copy of the respective drafts to the Mobility and Transport Authority (AMT), prior to the start of the activity.

Documents

The request for access to the rent-a-car activity must be accompanied by the following documents:

Certificate from the Board of Trade, or access code, in the case of legal entities, whose corporate purpose covers the activity of renting passenger vehicles and the appropriate CNAE (77110 or 77390).
Declaration of commencement of finance activity containing the appropriate CAE (77110 or 77390), in the case of individuals;
Criminal record certificates, or access code, of managers, administrators or directors, in the case of legal entities, or of the person himself, in the case of an individual, required for the activity of renting passenger vehicles or rent-a-car. In the case of citizens of foreign nationality, they must also present:
- the certificate/information from the country of origin, if they have resided in the national territory for less than 5 years; or
- o comprovativo de que residem em território nacional há mais de 5 anos através de um dos seguintes modos:
  - Declaration from the Parish Council;
  - Lease contract;
  - Federal Revenue Declaration
  - Residence permit
AT certificate proving regularized tax status*;
Social Security declaration proving regularized contribution status*;
Copy of the civil liability and personal accident insurance policy, which identifies the respective legal coverage;
Copy of the respective contracts, in the case of vehicles purchased under lease.
Declaration on honor that the vehicles comply with “Euro V” environmental standards, in accordance with paragraph d) of paragraph 1 of article 6 of Decree-Law nº 181/2012, of August 6, amended by Decree- Law nº 207/2015 of September 24th, and by Decree-Law nº 47/2018, of June 20th.