15 Apr How to Start a Car Wash Business in Dubai?
The United Arab Emirates (UAE) is a hub for all types of car admirers. As per RTA data published by Gulf News, the number of registered vehicles in Dubai crossed over 73,540 Units in June 2021. The financially strong community and the desert-like conditions of the Emirate demand high maintenance of cars and transport vehicles at all times. Thus, a car wash business in Dubai stands amongst the most thriving businesses in Dubai.
To start the aforementioned business, you need to go through much legal paperwork and licensing procedures. While the steps to obtain a car wash license in Dubai are not too complicated, a certain amount of prior knowledge is required. Read ahead to know all there is to learn about starting a car wash business in Dubai.
What Are the Steps To Start a Car Wash Business in Dubai?
Starting the business and obtaining a car wash license in Dubai is a straightforward process. Here’s a list of steps you need to follow to start a car wash business in Dubai:
Step 1 – Decide Your Legal Entity
Every business person in Dubai must decide how they wish to operate their company legally. Whether they want it to be a public or private partnership, a sole proprietorship, a private limited, or an LLC.
Step 2 – Register Your Company Name
The first administrative task for you is to register your company name under the Department of Economic Development (DED) Dubai. The UAE government has established rules for naming an organization in Dubai. You must avoid using any offensive or foul words in the company name. Avoid using similar names of already established organizations and abbreviations while naming your company.
Step 3 – Choose a Location
The most important factor to consider while setting up a car wash business is the location. The location you choose is where you can get clients easily. You can choose between a free zone or a mainland area to start a car wash business in Dubai.
Once you decide on the location, you must choose a space with sufficient space to run your business and manage the oncoming queue of vehicles. Make sure to check for the dimensional and hygiene rules before renting an official place.
Step 4 – Obtain Tenancy Contract
Once you have rented an official place, make sure to secure all the property-related documents and location maps for future reference. Then, register it with Ejari to obtain your tenancy contract and a unique Ejari code. Note that without a tenancy contract you cannot apply for a license.
Step 5 – Apply for Initial Approval
Now you must submit the required documents including the trade name registration slip, passport copies, photographs, business plan, etc. Once you submit the documents, the government official will review the documents and if everything is in place, you will get a green card for starting your business in Dubai.
Step 6 – Apply for Visa
Visa will be required if you are planning to start a car wash business in UAE. The visa application process is fairly easy. As the holder of a UAE business license, you can sponsor employees for their visas too (employment visas). The maximum number of visas you can apply for depends on the size of your company and the area of operation.
Step 7 – Apply For Your License
You need to apply for a trade license to conduct any kind of business in Dubai. You can easily apply for a trading license through the Dubai Department of Development (DED). Wind up all the paperwork and submit all the required documents, including passport copies, photographs, Emirati ID, business plan, MoA, AoA, etc. All your documents will undergo an inspection process and if everything is in place, the UAE government will grant you a car wash license in Dubai.
Step 8 – Open Your Corporate Bank Account
You will also require a corporate bank account to do business in the UAE. A company set-up agent can help you with this process in Dubai. However, if you are working from outside of Dubai, you can still open a bank account in any legally recognized bank throughout the UAE. It’s important to note that you must have a UAE business license to open a corporate bank account in Dubai.
Moreover, banks may also ask you for a residency visa. Most banks in the UAE require a minimum balance anywhere between AED10,000 and AED150,000. Once your application is approved, your account is usually opened within two to four weeks.
What Are The Required Documents to Start a Car Wash Business in UAE?
The list of documents required while starting a car wash business in Dubai can be overwhelming sometimes. Here’s a list of all the necessary documents required to start your business in Dubai:
- Passport of the shareholders
- Passport size photograph
- Entry stamp or Visa page
For other related documents reach out to our business consultants at Shuraa UK Branch.
What is The Cost to Start a Car Wash Business in Dubai?
A rough estimate of the cost involved in establishing a car wash business in Dubai is about AED 30,000 to AED 50,000. A mainland license for your business is around AED 15,000 to AED 20,000. However, while setting up a car wash business in a free zone, you can expect the cost to be around AED15,000.
Besides this, there are other important expenses involved which you can discuss in detail with our business consultants at Shuraa India Branch
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The rate of vehicle ownership increases by 8.2% every year in Dubai, which is higher than in most cities in the world. With such rising demand, there is no doubt that a car wash business will be a successful choice of business in Dubai. And now that you know the process and required documents, wait no more.
Business consultants at Shuraa India Branch can walk you through the process again, clear all your doubts, and help you gather all the documents. Moreover, we can also get your license at an affordable rate. All you need to do is give us a call and we will take it from there.