The car wash business is a promising business opportunity in the UAE. The country’s hot climate and increasing number of vehicles make it a lucrative business idea. In 2022, about 207,500 vehicles were sold or registered in the UAE. This was 9.7% more than in 2021, showing the increasing demand for owning a car.
Car owners in Dubai need professional cleaning regularly to maintain the value of their assets. This rising demand for owning a car in the UAE creates a lucrative business opportunity for the expats. This guide explains the necessary steps to start a car wash business in the UAE with various business models and profitability.
How to Start a Car Wash Business in Dubai?
Like any other business, starting a car wash requires careful planning and registration with the relevant authority. Let’s go through the steps:
Decide Your Services
Review the approved Department of Economic Development (DED) list to select suitable activities for your car wash business. This could include interior/exterior washing, polishing, vacuuming, etc. Move forward with a clear scope of work.
Pick a Business Name
Select a catchy and unique business name. Shortlist 3-4 options and submit them to the authorities. Pick the final name from the ones they approved.
Secure Necessary Approvals
Take the necessary permits from DED, Municipality, etc., as approvals are necessary and will allow you to establish your enterprise.
Rent a Good Location
Pick a location with high visibility and vehicle access, like parking lots and gas stations. Ensure there is enough room for queuing cars.
Do All the Necessary Paperwork
Ensure that your paperwork is accurate and you have all the documents. Important documents you require to start a car wash business in Dubai and the UAE are:
- Applicant’s Passport copy
- Copy of applicant’s visa
- Approval from the Dubai Municipality and the Chamber of Commerce and
- NOC
- Payment receipt of trademark registration
- Valid lease contract
- Full business plan document
Get Trade Licences
Once you get the initial approvals, apply for relevant licences and permits. This allows you to operate without any legal inconvenience.
Arrange Employee Visas
Sponsor appropriate work visas for yourself and your staff (if any). The number of visas depends on your company’s size and capital.
Open a Business Bank Account
In the UAE, a business must have a corporate bank account to receive payments or pay bills. Hence, you must open one as soon as you start your operations.
Avyanco can assist you through each of these steps.
Is A Car Wash Business Profitable in Dubai?
Yes, the car wash business can bring in decent profits if done right. The number of cars owned by the Emirati population is expected to increase considerably. The growth in the number of cars per 1000 UAE people is expected to be 8.19% by 2028.
The factors contributing to profitability of car wash business are:
- Increasing vehicle sales and registrations
- Most tourists renting cars that need cleaning
- Harsh climate conditions result in faster wear and tear
Car Wash Business Models
There are several car wash business models you can opt from.
Mobile Car Wash
In this model, a customer receives car wash service at their doorstep. It is super convenient for customers but has a small operational scale.
DIY Wash
Customers receive all the required tools to clean their vehicles in this model. This model has low establishment costs.
Automatic Wash
Machines wash the car. There is a minimum staff requirement but high equipment costs in this model.
Eco-Friendly Washes
In this model, you only use green products to avoid or minimise any environmental damage. These services are promoted as “Green.”
How Much Does It Cost To Start A Car Wash Business in Dubai, UAE?
Starting a business has multiple costs, including registration, lease, hiring, and equipment. The business, trade licence, and permit can cost anywhere between AED 14,000 to AED 18,500.
Rent depends on the location.
Other expenses, such as insurance, maintenance, and marketing, could exist, and equipment costs depend on your business model.
Things to Consider Before Starting a Car Wash Business in Dubai
Before starting a business in Dubai, you must consider the challenges that come with it. This enables you to create an action plan to tackle those challenges.
Before starting a car wash business in the UAE, here are some key aspects you must consider.
Location Accessibility
The location must have easy entry and exit points. It shouldn’t be close to a place that experiences jams often. Hence, highways and parking spaces are ideal locations.
Free Zone vs Mainland
You must compare licence costs, ownership regulations, and better jurisdiction for your business in either the Mainland or the Free Zone.
If you are not sure about the right option, you can contact our business setup experts, and we will help you select the suitable option as per your individual needs.
Service Offerings
Be clear and concise with your car wash packages for relevant licences and avoid customer conflict.
Staffing Needs
Do not opt for cheap, untrained labour. Hire trained washers with relevant backgrounds.
Account Management
Hire a consultant like Avyanco to manage your finances. This will help you focus on your business while your taxes run smoothly from the start.
How Avyanco Helps Setting Up a Car Wash Business in Dubai?
Avyanco has a team of experienced consultants to help you start your car wash business in the UAE. We assist you through each step from beginning to end.
We help you with
- Business modelling and planning
- Finding ideal location
- Acquiring trade licence
- Account setup and management
- Staff recruitment
- Ensuring all your paperwork is error-free and complete
In short, the UAE offers a great opportunity to profitably run a car wash business if you understand industry dynamics and have a good plan.
With Avyanco as your partner for business setup, you can start your car wash business without any hassle. We will ensure you continue to scale while we handle compliance and accounting needs.
You can contact us today by calling +971 50 398 9000 or via WhatsApp at +971 50 398 9000; we are also available by email at info@avyanco.com. Let’s connect for end-to-end assistance with your new UAE venture.
