The luxurious lifestyle that the UAE offers is renowned worldwide. It is to be believed that every second person in the country owns a private vehicle such as a car. This lucrative opportunity in desert-like conditions calls for opening a car wash business in UAE to help car owners get their vehicles cleaned and washed regularly.
The demand for these services has been mounting exponentially over the past few decades, and undoubtedly the trend is still ongoing. Hence, to catch up with the drift, it is important to know everything about this business, from benefits to procedures to costs involved in business formation in Dubai. This article will explain everything about starting a car wash business in UAE.
Reasons to start a car wash business in the UAE
There are numerous advantages to benefit from starting a car wash company in Dubai.
- With more and more people buying cars, the industry is constantly growing. This, consequently, has created a significant demand for car washing services.
- The people in Dubai have a high standard of living and high disposable income. This means they are willing to pay a fortune to maintain this lifestyle and high-quality services such as car maintenance and cleaning.
- The favorable tax regime of Dubai makes it an attractive location for entrepreneurs to set up a business.
- Dubai’s most advanced infrastructure and world-class roads and transportation systems facilitate car wash companies in the effective operation and delivery of services.
- A lot of people from all over the world are living and working in Dubai. This means car wash companies have a potential customer base.
- Car wash companies can easily set up and operate in the city due to its business-friendly environment, incentives, and facilities provided by the government.
Things to know before starting a car wash business
Car wash service-providing companies are becoming an integral part of the economy. However, there are certain things you need to be aware of before executing your business plan.
Provide a good customer experience
Customers tend to expect more from their service providers. Besides, they want the services bespoke. Therefore, companies must learn how to cater to customer needs and provide a good customer experience. It includes providing quality products and services, treating them as individuals, communicating effectively, listening attentively, and delivering what they want, thereby exceeding their expectations.
Obtain a business license
One must be well aware of the laws and regulations pertaining to starting a new business in the UAE. Every business, be it small or large, needs to comply with the rules and regulations and obtain a valid license to operate legally. The rules also obligate corporations to keep accurate records of all transactions, have a registered office address, and more.
Find a location
To set up a car-washing shop in the UAE, you have to count various factors while finalizing a location. For example, proximity to public transportation, the average income of the area, the total space required, accessibility of the shop for customers, and many others. Therefore, always give a good thought when it comes to location selection for your business.
Consider the cost of the equipment and cleaning products
A car wash business entails a lot of cleaning products and equipment. Hence, you need to consider the cost of these things while taking the first step to establishing your business in Dubai. For instance, you can initially start off with a basic car wash stand designed for easy setup and takedown, and later on keep adding more equipment. Additionally, the cost of equipment you would use for your business may depend on the size of your operation and how frequently you would use it.
Similarly, the chemicals or cleaning products you would use for your business are equally important. There are basically two ways to clean cars – Manually or by using the machine. Combining both methods can provide maximum efficiency and effectiveness to the services.
Steps to start a car wash business in UAE
The business formation agents at UAE Expansion will follow the below steps to make your car washing company one of the many established ones in the UAE:-
- Finalize your activities – The DED (Department of Economic Development) has curated a list of approved business activities that are permissible in a car wash company. Narrow down the ones you wish to carry out. If any of your desired activities are not on the list, you may have to secure external approvals to operate them legally in the UAE.
- Reserve a business name – If you have any names for your car washing venture, compile them and send them to the concerned jurisdiction for their analysis. The department will revert to highlighting the availability of trade names and suggest new ones if required.
- Choose a business location – Several laws govern the establishment of a new venture in the UAE. Therefore, it is important to understand the pros and cons of location before finalizing them. The business advisors at UAE Expansion will help you go through all these laws and make sure you choose the perfect location for your company.
- Obtain a license – As per the amendments made in the UAE Companies law, foreign investors can have full ownership of their car wash business in the UAE, irrespective of the jurisdiction it is registered. Hence, they can directly apply for license from the concerned authorities without having to look for an Emirati sponsor.
- Arrange visas – Visas ensure a safe and legal stay in the Emirates. It’s a straightforward process to manage your UAE visas. The basic steps include the submission of a visa application along with a few supportive documents. The concerned officials will then evaluate your documents and grant visas after verification. The number of visas you can request depends on the company’s size and investment plan.
Cost of license for a car wash business in Dubai
The overall cost of a car wash license in Dubai is a cumulative sum of various overheads incurred throughout the company formation process. For instance, trade name reservation charges, external approval fees, tenancy contracts, and many other expenses. Furthermore, variables like business location, activities, visas, etc. also add to the cost of a car wash license in the UAE.
To get accurate quotations, you can get in touch with the business consultants at UAE Expansion and explain your business model to them.
Documents required for car wash business setup in Dubai
Here is a curated list of documents that you would require to establish a car wash business in UAE –
- Applicant’s passport copy
- No Objection Certificate from the local service agent
- Proof of trademark registration (such as payment receipt)
- Tenancy contract
- Applicant’s visit visa/tourist visa/residence or investor visa
- Chamber of Commerce and Dubai Municipality’s approval
- A comprehensive business plan
Start your car wash business with UAE Expansion!
UAE Expansion specializes in business formation services and supports companies by handling all the legalities involved in launching a car wash business in the UAE. Their business specialists will help you understand the diversities of the UAE’s marketplace, guide you through the right steps, and suggest strategies to market your brand powerfully. Furthermore, their legal advisors will help you locate an ideal jurisdiction and corporate bank for your business, effectively manage the entire paperwork, and do everything that is needed to establish your dream venture in the UAE successfully.