Dubai loves its cars almost as much as its residents love to travel in style. Two major bonuses for anyone looking to start a car wash business out here. Then there’s the desert conditions that mean our cars are often in need of a little sparkle.
These factors combine to make us a nation of car washers. UAE residents visit the car wash on average between three to five times per month.
And there’s more good news too. Starting a car wash company in the UAE can be incredibly straightforward – provided you make your license application with the help of a local expert, of course.
So, if you’re ready to get started, here’s how Worldwide Formations can help.
How to start a car wash business in Dubai
Before starting on the admin side of company formation, there should be a couple of tasks on your to-do list. First, you’ll need to scout for a convenient location. While many motorists are willing to travel for an elite car wash service, a location with heavy car traffic will naturally increase business.
You’ll also need to ensure that you are likely to get a permit to trade in your chosen location. Alternatively, you could choose to run a mobile car wash. This is usually a much more affordable option.
Next, you should decide on the type of car wash that you wish to operate. Water waste is a big deal here in Dubai, so you’ll want to explore minimal water systems such as those that use steam or mist.
With these decisions made, you can start the licensing application process. This starts by choosing your company name — a step of the business incorporation process that takes on more importance here in Dubai.
That’s because as well as the need for a name that’s catchy and captures the essence of your business, you’ll also need to stick to the UAE’s clearly defined naming conventions.
In short, UAE company names must not contain any blasphemous or offensive language, any references to well-known institutions or any abbreviations of your name – though your full name is acceptable. Your name should also have a legal entity attached to it, such as FZE or LLC. It must also relate to your business activity, not resemble the name of any other company and be available to register.
Now, you can apply for your license and visas. If setting up in the mainland, your licensing application should be made to the Department of Economic Development or equivalent. If you’ve chosen a mainland setup, you should apply directly to the managing authority of your chosen free zone.
Worldwide Formations can guide you through your visa applications too. This process involves four stages, including a medical fitness test and biometric capturing. In all, it usually takes less than a week.
As the holder of a UAE business license, you can also sponsor others such as children, a spouse or domestic staff for their visas too, providing you meet the eligibility criteria.
The final step is to open a corporate bank account. This is not always easy for international entrepreneurs, and again, it is a good idea to work with an expert in company formation when making your application.
What documents are needed to start a car wash company?
When applying for a license to operate a car wash business in Dubai, you will need to submit several documents along with your application form, including:
- A copy of your passport – and that of any other shareholders
- Your business plan
- A copy of your signature
- A No Objection Certificate from your current employer (if applicable)
What is the cost of a car wash license in Dubai, UAE?
The cost of your car wash license will depend on the type of business you intend to operate and where you decide to set up. Mobile units will usually cost less to run than permanent premises, for example.
Free zone licenses also tend to be more affordable options. A mainland license to operate a car wash business costs in the region of AED 15,000 to AED 20,000. However, when setting up in a free zone, you can expect to pay around AED 6,000 to AED 15,000.
There are a few more differences to note between free zone and mainland setups. Mainland companies require additional approvals to trade but can operate freely anywhere in the UAE mainland.
On the other hand, free zone companies benefit from 100% customs exemption, zero currency restrictions, and the ability to repatriate your capital and profits. However, they require the services of a local agent to trade with the local market.
Free zones are also self-regulating, so free zone companies do not require any additional approvals before trading.
Start your car wash business in the UAE
By following the steps above, it is possible to obtain your car wash license in the UAE with minimal fuss.
However, it is always advisable to undertake the steps with the assistance of a registered company formations agent to eliminate any potential hassles that might arise.
With more than 15 years of experience in company incorporation, Worldwide Formations can help you get your business up and running within a week or two.
We can facilitate the formation of mainland, free zone, and offshore companies and offer a legal and authorised freelance permit for use throughout the UAE. And that’s not all. We offer a range of value-added services to facilitate all primary transitions and establishment processes. And we’re trusted by more than 10,000 clients worldwide.
So, get in touch with our expert team today. We’ll manage your license and visa application and correspond with all relevant authorities for you. All you need to do is wait for the green light to start trading.