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 business 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.
Steps to Start a Car Wash Business in Dubai, UAE
Starting the business and obtaining a car wash license in Dubai is a straightforward process.
1. Define Your Business Activities
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.
2. Reserve a Business 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.
3. Select a Location
The location is the most important factor to consider while setting up a car wash business. 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.
4. Obtain a 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.
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.
6. Apply for Visa
A 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.
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.
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 of anywhere between AED 10,000 and AED 150,000. Once your application is approved, your account is usually opened within two to four weeks.
Benefits of incorporating a car wash business in Dubai
There are several factors that drive the demand for car wash business in Dubai –
1. Status
The people of Dubai live a luxurious lifestyle, which is why they give emphasis to the appearance of their vehicles. A clean and well-presented car will affect their personal image and prestige. That is why, providing quality cleaning and detailing services has become an integral part of the car wash business in Dubai.
2. Time limitations
The residents of Dubai live busy lives, managing their work and family commitments equally. This scarcity and constraint of time have increased the demand for professional car wash services that can offer them convenience and save time as well.
3. Tourism
Millions of visitors flock to the UAE every year, contributing significantly to the tourism sector and increasing the demand for car wash services. Car rental agencies who rent cars to tourists require regular car washing and maintenance to keep their fleets in perfect condition
4. Climate
The high temperatures, dust, sandstorms, and dry climate encourage car owners to maintain their vehicle’s appearance and protect its paintwork. Regular washing will ensure longevity and preserve their aesthetic appeal.
Documents Required to Start a Car Wash Business in UAE
Here’s a list of all the necessary documents required for the car wash business in Dubai:
- A passport copy of the applicant
- NOC from your local service agent
- Payment receipt of trademark registration
- A valid tenancy contract
- Copy of your visit visa/tourist visa/residence or investor visa
- Approval from the Chamber of Commerce and Dubai Municipality
- A comprehensive business plan document
For other related documents reach out to our business consultants at Shuraa Business Setup.
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 12,900 to AED 25,500. Basically, the overall cost involved in the process depends on the type of business you intend to operate and the location you choose for the setup. For instance, a Free zone company setup tends to be more affordable than a Mainland business setup. However, it is also important to note that the trading regulations are also different for both jurisdictions.
Start your car wash company in Dubai!
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 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.