How to Start a Car Wash Business in UAE?
UAE is known for its expensive and luxury cars, making it one of the prime locations for the Fast and Furious series. With a growing number of people belonging to or settled in the UAE, the number of cars in the Emirates is also escalating rapidly. The entire country is developed amid the Arabian desert. Therefore, the cars and SUVs in the UAE require periodic cleaning station visits to remain in their perfect aesthetic and outlook.
The car washing businesses are one of the most profitable industries in the UAE associated with interior cleaning, exterior washing, dry cleaning, etc. Your car wash business in the UAE must offer any or all of these services and fall into any relevant business activities to become eligible for a car wash business license. Suppose you open a car wash business in the UAE. In that case, you expect a range of benefits like 100% ownership in Mainland and Freezone areas, 0% personal or corporate tax, and a hassle-free business registration process.
This blog post will help you discover the privileges of starting a car wash business in UAE and how to establish your business setup in Dubai and other Emirates. Let’s discuss this in detail.
Why Start a Car Wash Business?
In 2022, the population of UAE is based on a staggering 10,206,508 people, with over 80% of overseas citizens. This is an upsurge of almost 1.9 % compared to the population of 10,016,888 in 2021. For the said reason, the UAE has marked its registered automobile figures to 3.5 million, over 40% of which belong to Dubai. These gigantic figures can promise overwhelming opportunities and high revenue for your car wash business in the UAE.
Apart from all these brightening statistics that make the car washing business in the UAE a mandatory requirement, the UAE’s strict laws are another catalyst in this equation. According to UAE law, an individual can be fined AED 500 in Dubai and Abu Dhabi for driving dirty and poorly-maintained cars that spoil the beauty of a remarkable city.
Below are some of the reasons that inform you why you should consider opening a car wash business setup in Dubai.
- As we discussed previously, UAE is sandy that becomes more dirty and dusty for cars after rains or dust storms. Car owners in the UAE need frequent car washing services to keep their vehicles clean and detailed. This is one of the top reasons that make the car wash business in Dubai the most fruitful idea.
- There are around 3.5 million vehicles in the UAE, with an annual upsurge in the ownership of cars by 8%. This considerable number reflects a high demand for car washing services in the UAE.
- The prominent cities of the UAE, like Dubai and Abu Dhabi, house several business officials and highly-paid foreign employees and investors with enough income to maintain a luxurious and well-maintained lifestyle. They don’t think for a moment about getting their vehicles cleaned regularly. Therefore, car washing businesses can profit by offering high-end interior cleaning, external washing, and detailing services.
- Setting up a car wash business in the UAE is the most budget-friendly option for locals and foreign investors. You can get a license for mobile washing service and quickly get in touch with skilled professionals to get this job done and make your business thrive quickly.
- Car wash businesses in UAE mainland and free zone areas are exempt from corporate or personal tax. This tax-free and business-friendly infrastructure of the UAE makes it a preferable choice among entrepreneurs and overseas investors. Don’t forget to check the list of free zones in the UAE before finalizing the perfect avenue for your UAE car wash business.
- The process of registering a car wash business in the UAE is straightforward. You can get in touch with business formation service providers who can help you establish your mainland or free zone business within no time. Airzone can help you connect with experienced business formation service providers.
- Getting a mobile parking car wash license in Dubai allows you to shift your mobile car washing equipment from one location to another. With a mobile car wash business license, you give your services in permitted parking zones of mainland Dubai mainland.
- A mobile car parking wash service allows customers to clean their vehicles anytime, whether in the office or a shopping mall. It frees them from going to the service station to get their vehicles cleaned in a parking lot. This time-saving option gives promising opportunities to your parking car wash business in Dubai.
All these aspects and privileges declare UAE undoubtedly a perfect avenue for the car wash business. Entrepreneurs and overseas investors can think of innovative activities like waterless cleaning services or using environment-friendly washing shampoos to secure a reputable brand presence in this crowded market segment.
How to Start a Car Wash Business in Dubai, UAE?
Setting up a new UAE car wash business involves different steps with various documentation and approvals at different stages. To register your company and get your UAE car wash business license, follow the following steps.
Step 01 – Select your business activities
The first step is choosing the permitted business activity per the federal and UAE state laws. The Department of Economic Development of the Emirate, where you will open your car wash business, regulates the mainland jurisdictions (the free zone businesses are regulated and fall under the control of the concerned free zone jurisdiction). For instance, you can check the list of permitted car wash business activities in Dubai mainland at the Dubai DED e-services portal.
The next step is to choose and shortlist the business activities that align well with your objective to establish a car wash business in the UAE. If you are unable to find your desired business activity, there is no need to worry and feel demotivated. Consult Airzone to find experienced business formation experts who can help you secure approval from relevant authorities and make your case strong.
Step 02 – Secure tradename for your business
You must decide and reserve the business name or tradename for your car wash business setup in Dubai. Reserving a trading name or business name for your company setup is also regulated by DED. Before finalizing your business name, search for trade name availability. Think of 4-5 desired business name ideas just in case you fail to find the first option unavailable.
The next step is to register the business trade name with the DED of the concerned state. For instance, reserve your business name by creating an account on Dubai DED online portal for a car wash business setup in Dubai.
Your business name must not collide with the religious, moral, & ethical values of the UAE and refrain from mimicking the brand name of other business entities. Similarly, the terms or phrases reserved for public bodies or departments cannot be chosen as a business name.
Step 03 – Choose a suitable location
The UAE federal and state bodies demand that you follow strict guidelines per UAE corporate laws. For instance, it’s crucial to set up a car wash service center near a fuel station or industrial area for a mainland business setup in the UAE.
You can read our dedicated blog about the mainland business setup in Dubai for more insightful overlook and requirements.
Don’t forget to compare the perks and limitations of free zone and mainland jurisdictions before finalizing your business location. Some particular business activities are allowed in Free Zone. Whereas the mainland areas regulate otherwise. Partnering with the right business consultancy expert is recommended at this stage for a more informed decision.
Step 04 – Getting a car wash business license
As an overseas investor, you can also enjoy 100% ownership of your mainland and the UAE’s free zone car wash business. Mailand businesses ceased to offer 100% foreign ownership before 2020. But a recent amendment to the UAE corporate law structure has lifted this limitation to offer entrepreneurs and overseas investors a business-friendly ecosystem.
You can apply for a car wash business license online with the necessary documents on the online portal of the Department of Economic Development for the mainland and to the relevant jurisdiction of the free zone.
The process involves some necessary documents and a license cost of around AED 10,000 to AED 14,000. The license renewal process is straightforward in the UAE. It is recommended to apply for your license renewal with a margin of at least 2-months from your license expiry date to avoid any trouble or delay.
Step 05 – Arrange employee visas
Finally, the last and most crucial step is to apply for work visas for your employees and UAE residence visa for yourself. You can also bring your immediate family, like spouse, children, and parents, to the Emirates by applying for a family visa. The process involves a range of mandatory documents and approvals that differ for each visa category.
The concerned departments assess your documents before application approval. The number of work visas you can apply for is determined by the size of your office, warehouse, workshop, or service facility.
To know in detail about all visa categories and the process of applying for a residence visa in the UAE, read our separate blog about how to get a UAE residence visa.
Documents Required to Start a Car Wash Business
The following documents are required to register a car wash business in the UAE:
- Copy of passport for the owner and all shareholders (if any) with a valid UAE visa
- Payment receipt for tradename reservation
- A valid rental agreement
- Approval from the concerned Emirate’s Chamber of Commerce
- A detailed business plan with permitted business activities
FAQs About Car Wash Business
Is Car Wash Business Profitable in UAE?
The luxurious and expensive lifestyle of the UAE, with its supercars and SUVs, is famous worldwide. The maintenance cost and cost of ownership for an automobile in the UAE are very fair and budget-friendly. Therefore, the growing number of automobiles in the Emirates ensures promising business opportunities for a car wash business in Dubai. A geographical aspect that further adds fuel to this booming industry is the UAE’s deserted landscape that pushes people to get their cars cleaned and appealing regularly.
Furthermore, the location of your car wash business in the UAE is another determinant of success. Your service station must be spacious enough to accommodate multiple vehicles simultaneously. Secondly, your marketing strategy and promotional or seasonal offers must be attractive enough to crowd your service station.
How Much Does It Cost for Car Wash Business License?
You can expect your car wash business license cost to be around AED 10,000 to 14,000 in the UAE. For an accurate estimated cost, connect with Airzone to find the right experts. The car wash business license cost involves a breakdown of different charges, including trade name reservation fee, approvals from concerned regulatory bodies, Ejari (rental agreement), etc. Your cost can cross this estimation if you apply for more employee visas.
UAE has become eye candy for entrepreneurs and overseas investors due to its business-friendly environment. Everyone loves to buy a car and maintain it as a status symbol. The reasons discussed in the article are sure to give you immense business opportunities for your car wash business in UAE. So, don’t miss the chance and get in touch with Airzone to find authentic business formation and consultancy providers to set up a business in Dubai or UAE.