The United Arab Emirates (UAE) is a hub for luxury cars, and it can be said that the growing number of vehicles in the Emirates has made it a growing market for car wash and care sector. With growth, we mean there is an increase in demand for car wash and maintenance products and services to meet the demand. So, as cars are the king of the UAE, the car wash industry is undoubtedly a lucrative one.
The statistics reveal that by the year 2022, the automotive market in the UAE will grow as fast as North American and Western European markets.
How to Start a Car Wash Company?
Dubai is currently a hub for all kinds of business in the UAE, and a car wash is the booming sector in the Emirates of Dubai. With the increasing number of car users daily, the maintenance and cleaning of cars are essentially increasing along. The rate of vehicle ownership increases by 8.2% every year in Dubai, which is higher than most cities in the world, including Vienna, New York, London etc. It is expected that the number of vehicles in the city will rise to about 2.2 million by the year-end, which is a quite staggering figure.
The process of starting a car wash company starts from obtaining permission from the Department of Economic Development (DED). The business activity includes companies engaged in car washing and cleaning manually or through specially equipped movable vehicles which carry out such services in public parking and parking facilities in malls and other premises.
To open a car washing business in Dubai, you will have to get a professional license. The investor also has the choice of choosing an LLC where the shareholding will be 51% UAE National. The entrepreneur also has to choose a trading name. After the name is finalized, you must obtain Notary/Court signing and submission of Ejari. Then comes the approval of tenancy from the Dubai Municipality and final submission after which the license is issued to you.
The documents to be submitted include -
- Passport copy of the shareholder
- Emirate and NOC from the sponsor
- A few trade names for the company
- Tenancy contract
- Visit visa/transit visa/tourist visa/residence visa copies of the shareholders - required for ex-pats
- Ejari / Tenancy contract in the business name
The license cost includes -
- Trade license
- Chamber of Commerce
- Municipality Fees
- Trade Name Approval
- Initial Approval
- Notary / Court Fees
The probabilities of the car washing industry are immense in the UAE. Nevertheless, it always boils down to the quality of services you provide. You have to hire people for washing who are fully trained in these services. Else, you require to sell some amount on your own to have them prepared. You should also be informed of the latest techniques for car cleaning services. And, even the government laws that keep changing. Else, you have hefty fines dangling in front of you.
We at Commitbiz can assist you in setting up your car washing business in the UAE. Our advisors have years of experience in this field and can make the process hassle-free. Contact us today for more information.