Opening a Rent-A-Car Business: Requirements, Documents, Costs

What are the requirements to open a car rental business?

Opening a rent-a-car business relies on four main elements: formal company establishment and legal permits, a fleet of vehicles, a software infrastructure to manage the fleet, and—from 2027 onwards—a license. The Regulation on the Rental of Motor Vehicles, published in the Official Gazette on August 15, 2026, is the sector's first comprehensive regulation, defining minimum vehicle numbers, vehicle age/mileage limits, and requirements for the rental manager (over 18 years old, at least primary school graduate, no criminal record, and professional qualification certificate).

Fleet insurance (comprehensive and mandatory traffic insurance) is a significant component of operating costs and risk management; however, a clause requiring separate vehicle-specific insurance could not be confirmed in this research — this should be verified with the official text prior to publication. Furthermore, your business must also be a member of KABIS (Rental Vehicle Notification System).

How many vehicles are needed to start a car rental company?

According to Article 6 of the new regulation, the minimum number of vehicles varies according to the population of the settlement where the business is located.

Additionally, vehicles must not be older than 6 years based on their model year, and must not have exceeded 300,000 km for electric vehicles and 180,000 km for other vehicles in terms of mileage. The regulation will come into effect on January 1, 2027; the deadline for existing businesses to apply for an authorization certificate is July 1, 2027, and the deadline for full compliance with fleet requirements is January 1, 2028.

How much capital is needed?

The regulation does not specify a minimum capital amount; therefore, giving a fixed figure would be misleading. The main cost items are as follows:

• Vehicle fleet investment: Whether vehicles are acquired through purchase or leasing (financial leasing/operational leasing) is the largest item determining the total cost.

• Workplace and warehouse space: Rental or purchase prices vary depending on the location.

• Insurance: The cost of comprehensive and mandatory traffic insurance for each vehicle in the fleet.

• Software and automation infrastructure: A system to manage reservation, contract, fleet, and KABIS notification processes.

• Personnel: Salary expenses for the rental manager and operations team.

What documents are required to open a Rent-A-Car business?

The documents can be grouped into two categories: personal documents belonging to the rental agent and documents belonging to the company/workplace.

For the rental agent:

• Copy of national identity card / identity document

• Residence certificate

• Criminal record check (clean record requirement)

• Professional qualification certificate (required by the new regulation)

• Passport photo

For the company and workplace:

• Tax certificate

• Tradesmen/chamber of commerce registration

• Business opening and operating permit (municipality)

• Rental agreement or title deed photocopy + building occupancy permit

• Fire report

• Signature circular

What steps are involved in establishing a car rental company?

The following six steps outline a practical process for establishing a rent-a-car business.

1. Conduct a feasibility and market analysis: Evaluate the region, target vehicle segment, fleet size, and return on investment period.

2. Formally establish the company: Complete the tax registration and the relevant chamber of commerce registration.

3. Obtain business opening and operating permits: Get the license, fire safety report, and other local permits from the municipality.

4. Establish a vehicle fleet that complies with regulations: Meet the minimum number of vehicles and vehicle age/mileage requirements based on the population of your settlement.

5. Complete the rental agent and authorization application: Obtain the professional qualification certificate and apply for the authorization certificate.

6. Install software to manage fleet and reservation processes: Bring together reservation, contract, fleet, accounting, and KABIS notification processes on a single platform.

What are the advantages of opening a car rental business?

• Sectoral demand growth: Tourism and business travel demand generates a seasonal but consistent rental volume.

• Clarifying the legal framework: The new regulation reduces uncertainty and clarifies minimum standards for businesses entering the sector — a development that facilitates institutionalization.

• A scalable business model: As the fleet grows, it can be managed with the right software infrastructure without a disproportionate increase in operational workload.

An Example from One Sector: An Initiative Preparing for the New Regulation

A new rent-a-car startup in Antalya, initially planning to focus primarily on airport transfers, had based its fleet size and budget on outdated information. With the new regulations clarifying minimum vehicle numbers and vehicle age/mileage requirements, they revised their fleet plan to determine how many vehicles would be registered in the company's name and how many would be leased. By establishing its software infrastructure at the outset, the company planned to automate reservation and KABIS (Public Transportation Information System) reporting processes from the moment it started operations.

“Once the regulations were clear, we knew exactly how many vehicles we could start with and which ones had to be ours; we didn’t budget based on guesswork,” says the startup’s co-founder.

Titarus is a car rental ERP software with over 200 modules that manages reservation, contract, fleet, accounting, and KABIS (Vehicle Registration System) notification processes for rent-a-car companies on a single platform. When establishing a new rent-a-car business, it allows you to manage the entire process from reservations to KABIS notifications from day one, all from a single panel.

Frequently Asked Questions

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How many vehicles are needed to open a rent-a-car business?

According to the Regulation on the Leasing of Motor Vehicles, which will come into force on January 1, 2027, in districts with a population of 30,000 or more in provinces with metropolitan municipalities, a minimum of 10 vehicles and in other provinces, a minimum of 5 vehicles will be required to obtain a leasing license.

Is there a minimum capital requirement to open a rent-a-car business?

The regulation does not specify a minimum capital requirement; the main cost items are the acquisition of a vehicle fleet through purchase or lease, office rent, insurance, and software infrastructure.

What documents are required to open a car rental business?

For the rental agent, identification, residence permit, criminal record certificate, and professional qualification certificate are required; for the company, tax registration certificate, chamber of commerce registration, business opening and operating permit, lease agreement/title deed, and fire safety report are required.

Are the requirements for opening a car rental business different from those for a rent-a-car business?

No; the same regulations and conditions apply to businesses operating under the name of car rental.

When is the deadline for obtaining the authorization certificate?

The regulation enters into force on January 1, 2027; the deadline for existing businesses to apply for authorization certificates is July 1, 2027, and the deadline for full compliance with fleet/vehicle requirements is January 1, 2028.

Do you want to manage your new rent-a-car business with the right software from day one? Try Titarus for 15 days free of charge, without requiring your credit card information.

Related pages: What is KABIS? Rental Car Notification System · System Features: Car Rental