Car wash service is a booming business in the UAE. According to the forecast, the number of cars per 1000 UAE people is expected to grow by 8.19% until 2028. Many people enjoy having their car wash service for many reasons. The reason is that they know they will look better coming out of the wash station. The other reason is that they cannot do it themselves; many people are too busy working or live too far to have it washed.
In this article, you will learn about setting up a car wash business structure in UAE. So, let’s get into the details to know how to start a car wash business in UAE:
Types Of V
The following are the best business models in the car wash industry you can choose from in the UAE:
- Manual Car Washes: The attendants are true professionals who will clean the vehicle’s interior.
- Automatic Car Washes: Advanced machinery performing quick, efficient cleaning is these high-speed systems.
- Waterless Car Wash Services: Offering eco-friendly options that use less water than others but still provide thorough cleaning.
- Mobile Car Wash Service: The demand for car wash services at home is on-demand, which means car cleaners come to customers, perfect for busy people.
- Premium Car Cleaning Services: Specializing in luxury vehicle care, including paint restoration and interior detailing.
How To Set Up A Car Wash Business In the UAE?
To open a car wash business in Dubai, follow these steps:
- Finalise Your Activities
If you want to run your car wash company setup in Dubai, you can talk with the Department of Economic Development (DED) for the list of approved business activities for car wash companies in Dubai or UAE. You will then need to consider and choose which of the particular activities that you will offer when your Dubai car cleaning business is operational.
- Reserve a Business Name
If you have not finalised the name of your car wash business in Dubai, compile a list of 3 – 4 names you prefer and submit the names to the respective jurisdiction for review. The concerned department will assess the names, give you suggested names, and report the availability of trade names.
Avoid using names that resemble or imitate existing brands. Furthermore, terms that refer to any religious figures must not be used. The name must be full if you want to use a person’s name as the authorized name for your car wash business.
- Finding A Good Location
There are a lot of laws and regulations to follow when opening up a car wash business setup in the UAE. No matter which region you would like to operate in, there is at least one requirement: select a suitable business location, such as at a gas or oil station or in an industrial area. However, before choosing the appropriate location for your car wash centre, you must carefully learn the benefits of every business zone.
Xpert Advisory has a great team of knowledgeable business consultants who will provide you with the best guidance so that you can shortlist the most suitable location for your car wash company formation.
- Obtain A Car Wash Business License
Recently, Dubai has amended the company law to allow investors full ownership of their car wash business on the mainland or in free zones. If you want to start your business in the Emirates, you may apply directly to the Department of Economic Development (DED) for a mainland business license and with the right jurisdiction for free zone business operations.
- Arrange for Visas
The next step to start a business is to manage visas for yourself and your family members so that you stay secure in the Emirates. This process has four simple stages in which you must file the documents and the visa applications.
A careful verification of your documents will make the governing body responsible for carefully assessing and granting you a visa. Your enterprise size and investment blueprint matter here, as several authorized visas depend on the same.
- Open a Corporate Bank Account
Once up and running, your first step in starting a car wash venture in the UAE is to open a corporate bank. When you want to open a corporate bank account in the UAE, find doable financial institutions. Check their terms of service closely, and then choose the plan according to your needs.
To open a corporate bank account in the UAE, you must have a business trade license, residency visa, and the minimum capital your chosen bank requires. Usually, the minimum amount is between 50,000 upwards AED 10,000* and AED 150,000*.
- Marketing Your Car Cleaning Services
If you are trying to establish a car wash business in an aggressive market like the UAE, you must have an impressive marketing strategy to make your presence felt. If you want to do this, digital marketing platforms such as social media, search engine optimization (SEO), and online directories are best used to reach your target audience.
Attract customers by offering promotions, loyalty programs, or partnerships with local businesses. Make sure to sell customer satisfaction at the top of the list, inspire people to write positive online reviews, and utilize word-of-mouth marketing to magnify your brand’s reputation.
Documents Needed To Start A Car Wash Business Setup In UAE
To be able to submit a license application, you will need the following documents:
- Photo of the applicant
- From your local service agent, NOC
- Trademark registration receipt payment
- A valid tenancy contract
- Visit visa/tourist visa/residence or investor visa copy
- Chamber of Commerce and Dubai Municipality approval
- A comprehensive business plan document
If you have no experience in the UAE business world, you can be confused with these. So, if you want to start a car wash company in Dubai but don’t know where to begin, contact Xpert Advisory today! We provide end-to-end business assistance at pocket-friendly prices. So, don’t miss out!
Car Wash License Cost In Dubai, UAE
The car wash license in Dubai or UAE costs around AED 10,500* to AED 18,000*. Additionally, your car wash license should be reissued after every year. Also, the cost is influenced by location, desired business activities, employee visas, and service charges. Therefore, you may need at least AED 18,500* capital to kickstart your carwash business in the UAE.
Final Words
Understanding how to start a car wash business in UAE is important as it is a very lucrative market with fierce competition. However, if you have the right business model, follow local laws and regulations, and integrate technologies, you can develop a customer-focused and successful car wash business. To stand out, you must select the best place to operate, create great marketing strategies, and deliver great services.
With the help of business and accounting experts of Xpert Advisory, you can enjoy the peace of mind as they will guide you through the process of licensing your business setup in Dubai. Contact us today and put your car wash business vision into action.
FAQs
How Profitable Is A Car Wash Company In Dubai?
As car owners in Dubai demand this service, it becomes one of the most profitable businesses in the UAE.
How Much Does A Car Washer Earn In UAE?
The hourly wage for a car washer is AED 34* in the United Arab Emirates.
What Is The Average Price Of A Car Wash In UAE?
An Automated car wash can cost Dubai from 36* – 73* AED. Meanwhile, the price of a hand car wash ranges from 73* – 183* AED.
