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Dubai is the ideal location to start a car wash business. Of the estimated 20 million cars in the Gulf, around a fifth of them are in the UAE. And the Emirates’ desert location means they are in constant need of a clean and polish.
Add to this the high disposable income of many UAE residents, and you have the makings of a great business. That’s before you even consider the country’s 0% personal and corporate tax rate, its welcoming business environment, and its straightforward company setup process.
It’s so easy to do business here that, with the right support, you could be up and running in just five simple steps. Before we look into the formation process, here are a few things to keep in mind when starting a car wash business in Dubai, UAE.
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.
Given below are the stages towards 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 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.
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
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.
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.
Carpet cleaning, exterior washing, dry cleaning, and other services are all part of car washing. As a result, you should be very clear about the services you provide to apply for the appropriate car wash license in Dubai.
Dubai Car and Automotive City Free Zone is one free zone appropriate for the car industry. Furthermore, the location you select for your car wash business is critical. Start a Car Wash Business in Dubai The space should be sufficient to prevent vehicle commotion and allow for hassle-free vehicle queuing.
Moreover, improve your marketing game by utilizing offline and online marketing channels to inform your target audience about your venture for Start a Car Wash Business in Dubai
The total cost of a car wash license Dubai is the sum of the various payments you make while opening your business. This covers the fees paid for reserving a trading name, receiving outside approvals, signing an ejari (tenancy contract), and much more. Start a Car Wash Business in Dubai
Additionally, location, business operations, employee visas, and service fees raise the price. You should therefore budget at least AED 18,500 to launch your carwash business in Dubai. Start a Car Wash Business in Dubai You should speak with the business consultants to obtain accurate quotes and describe your business model.
The cost to set up a business in Dubai varies based on factors like the type of company you are planning to register, government approvals, location, etc. Start a Car Wash Business in Dubai
However, based on a rough calculation, it might cost you AED 15000 to 20000 to set up a business in Dubai.
The trade name must:
not violate the public morals or the public order of the country
be compatible with the required type of activity and the legal status of the company or business entity
not contain names of any religion, or governing authority, nor names or logos of any external bodies
not have been previously registered.
not have a name starting with words like “Universal”, “Middle East”, “International” and/or translate them into Arabic.
Apply for initial approval
Initial approval is a preliminary approval granted by the UAE Government to allow a foreign investor to proceed with setting up a business in the country.
It indicates that the government has no objection to the establishment of the business, Start a Car Wash Business in Dubai but it does not give the business owner the authority to run or practice the business activity.
Drafting a Memorandum of Association (MOA) / Local Service Agent Agreement (LSA)
Memorandum of Association is considered as the constitution of the business organization and is a mandatory document for company formation in UAE.
It will contain the details of the shareholders, board of members, regulations regarding the operation of the company, policies, safety and security aspects, and so on Start a Car Wash Business in Dubai MOA has to be submitted along with other documents for business formation in the UAE.
Kindly note that businesses owned completely by non-GCC residents require a Local Service Agent from the UAE. Appointing the local service agent will be under an agreement attested by the notary public or the court.
Get additional government approvals
Based on the specific type of your business you might require additional government approvals as well. Start a Car Wash Business in Dubai
It is better to have an experienced consultant by your side at this stage as they will help you in getting all the government approvals required for your business.
Apply for Business License
Once you have completed all the above steps it is now time to apply for the business license. -+
The type of business license you will apply for depends on the primary activity of your business.
Once you have the business licence, you can start practicing business activities legally in Dubai.
You can collect the business licence from service centres of the economic departments or through their websites.
You need to submit the following documents for registering your company in Dubai:
Copy of the passport of the shareholders and directors
Copy of the national identity card of the directors and shareholders
Recent bank statements, credit card statements or utility bills containing the name and residential address of the shareholders and directors
Initial approval receipt and all the previously-submitted documents
Copy of the lease contract duly attested by the Real Estate Regulatory Agency (RERA) in Dubai
Duly attested memorandum of association
Approvals from other government entities concerned, as may be required
Open a bank account
After obtaining all the registrations and approvals from the concerned authorities, the company needs to open a corporate bank account to send and receive money relating to the company’s affairs.
Exemption from personal or corporate income taxes
Allowance of 100% repatriation of capital and profits
Lenient labor laws make it cost-effective to recruit labor forces
Excellent physical infrastructure
Some of the FTZs provide shared and virtual office facilities
Commercial company’s law provisions do not apply to FTZs
Exclusion from import and export duties
Time required to register a business in Dubai
Business registration in Dubai can be done within seven working days.
Trade name, Initial approval receipt
Approval from RTA for the mobile vehicles (if applicable)
Submit approval from RTA for Initial approval (if applicable)
MOA signing
Ejari submission
Upon payment of the payment voucher, license can be issued.
The customer will provide a request letter to vehicle licensing department stating the vehicle and activity details
Classification of the Interior design and the equipment that needs to be fixed inside the vehicle
After approval from the department, the customer can make the changes on the vehicle
The customer should visit service providers like Tasjeel or Shamil to make appointment for for RTA committee to test the vehicle and be sure that the customer is following the vehicle amending
After the vehicle is approved from RTA committee the customer can apply for initial approval from DED
The customer must check with DED regarding the cleaning material. After that, the customer need to apply for NOC for Sale of goods/services using the vehicle from RTA website
We at BCM Corporate services LLC, extend our quality services to our client with well experienced & qualified Business consultants with rich expertise in Start a Car Wash Business in Dubai so that client’s requirements of Business setup in Dubai. can be completed on time with satisfactory Results outcome. Please feel free to reach us for your Business setup and Fish Trading Business Setup in UAE requirements on our email id: info@branches.ae or call us on +971502585921
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