Dubai is home to various thriving businesses, as well as a high standard of living and luxury lifestyle. This means that there are many opportunities for entrepreneurs like yourself to start a business.
The massive growth of the residential and commercial premises has paved out numerous opportunities for the cleaning industry entrepreneurs to step in and incorporate their business entities legally.
Yes, you heard it right! If you are a business investor actively looking for investment opportunities or is destined to open your own cleaning company, then Dubai is the ultimate platform that you should target.
The Growth of Cleaning Company in Dubai
There is no doubt that the location of Dubai has been extensively growing, both in terms of residential and commercial premises.
The Dubai government has made numerous initiatives to boost the real estate sector massively. Although it fell by 1.4% in 2021, a count of 37,403 new units was delivered. The prime rentals too edge up by 1.5%.
Here’s a guide on the 5 Trends UAE’s Real Estate Sector in Post Covid 19 Era.
This has marked a new benchmark to the cleaning industry, which is forecasted at a CAGR of 5.3% for the period of 2021-2026.
The Classification of the Real Estate Market in Dubai
When we are talking about incorporating a cleaning company in Dubai, it is mandatory to understand the different divisions of the real estate segment that actually avails the services.
So, the UAE Real Market can be classified accordingly:
- Commercial Space (office/ malls / retail stores / buildings)
- Residential Space (apartments / villas)
- Hospitality Space (hotels)
- Street Cleaning
- Sea and Shore Cleaning
- Runways and Road Cleaning
- Industrial Space (warehouse/factories / industrial buildings)
When we talk about industrial space cleaning, it is even more extensive as it might include waste clean-up, hazardous clean-up, cleaning of machinery, chemicals, solvents, and other supplies.
Undoubtedly, each of the zones mentioned requires the assistance of a cleaning company. Thus, they can be considered as the core target business segments.
Pointers to Keep in Mind Before You Start a Cleaning Company in Dubai
Since you have understood the core business segments that you have to focus on, let’s understand the process of initiating the same.
- First, be sure that you know about the ins and outs of the cleaning business. Also, keep a check on the rules and regulations that the UAE government holds to boost the industry.
- In Dubai, every business unit needs to take certain approvals from the dedicated authorities who issue the licenses to carry out the business operations at ease.
- The Dubai Economic Development (DED) is responsible to issue the trade/business license in Mainland.
- Based on the commercial business structure, you need to apply for a professional license or commercial license.
- Hire trained staff or skilled workforce before you deal with the business activities
- Make sure to choose a location where your target audience is available, which will help you to make business closures easy
Scenario 1- If Applying for the Professional License
If you are planning to apply for a professional license, you need to have the following:
- 100% ownership of your company
- A sole proprietorship or a civil company
Scenario 2- If Applying for the Commercial License
On the contrary, if you are applying for the commercial license, then you need to make sure to hold:
- A registered Limited Liability Company (LLC)
How to Register Cleaning Company in Dubai?
When it comes to the registration of a cleaning company, the entity has to get registered with the following authorities:
- Register with Dubai Municipality
The registration process with the DED involves the following pointers:
- Register with the DED site
- Click on the “Company Registration” tab
- Fill in the details and click on the “Security” checkbox at the end of the screen
- Cross-check the details submitted, and click on “Register”
After submitting the documents, you’ll get an email confirmation from the Dubai Municipality.
- Register with DED
Coming to the next process of registering your business entity with the DED, you need to go through the following steps:
- Choose the business activity from the DED’s list of activities
- Make sure to finalize the business structure (depends on the amount of share capital available and total number of business shareholders)
- Finalize a business name (Make sure to do market research before finalizing the name)
- Draft the relevant documents like:
- Legal Service Agreement (for Professional License)
- Memorandum of Association (for Commercial License)
- Make sure to decide on physical space and obtain the contract of tenancy from the Ejari
- Submit any other additional approvals, if required.
- Obtain the Cleaning License
As mentioned earlier, to carry out business activities, it is mandatory to obtain a business license. Therefore, if you are taking a step towards incorporating a cleaning company, you need to obtain a cleaning license accordingly.
For availing the same, the following documents are to be presented:
- Duly filled application form
- A minimum of three trade names
- Passport copies of the business shareholders
- Entry stamp or visa page of the foreign shareholders
- NOC from the current sponsor
- Any additional approval, if required by the authority
Here’s a guide on Cleaning License in Dubai, which will assist you with additional information that you should know.
Starting a cleaning business in the region is not an easy task though, as it involves various legal formalities and proper planning. Opportunities in the Dubai cleaning industry continue to be strong and growing, you must watch out for the fact that competition will become heated as the market penetrates deeper.
Having a business consultant by your side can minimize the business chores and your worries to a severe extent. Commitbiz Management Consultants, one of the top business consultants in the UAE is somebody you can count on!
For more information, you can get in touch with our business experts. Contact us today-we’d be glad to assist!