How to Start a Parking Car Wash Business in Dubai?

Start A Parking Car Wash Business In Dubai

Anyone can pursue a luxurious lifestyle in the United Arab Emirates. Today, every second person in the UAE owns a car. This factor highlights the profitability of opening a parking Car Wash Business in Dubai.  The desert-like climate of this emirate makes the car owners get their vehicles cleaned and washed regularly.  Indeed, the parking car wash business in Dubai is a promising business opportunity for entrepreneurs. The city’s hot climate and enhanced number of vehicles make it a profitable business idea in Dubai and other emirates of the UAE. According to the stats, approximately 259,139 vehicles were sold and registered in the UAE in 2023.  The number proves the increasing demand for owning a car. If you are considering starting a parking car wash business in Dubai, you must spend your valuable time with us. We will provide an in-depth guide to starting your parking car wash business in this city. In addition, we will highlight some essential information that will help you to open your car wash business in this city. 

Points to Consider Before Starting a Car Wash Business in Dubai

Car washing is a multifaceted service business in which you must perform various activities, like carpet cleaning, dry cleaning, exterior cleaning, and more. Therefore, you must be clear about the services you offer in your parking car wash business in Dubai. This factor will ensure that you have applied for the appropriate car wash license. Apart from the business activity, the location also plays a significant role in the success of your car wash business. The space of your location for the car wash business must be enough to avoid any kind of commotion between vehicles and hassle-free queuing of the vehicles. Like any other business, marketing is also essential for the car wash business in Dubai. Indeed, you have guessed it right! You should up the marketing game for your parking car wash business in Dubai to let your target audience know about your Car Wash Business in this city. You should leverage both online and offline marketing channels to market your car wash business in this city.

Mainland vs Free Zone Car Wash Setup 

You have the option to choose between a Mainland license or a Free Zone license when you are setting up your business in Dubai. Each has its own advantages:

Mainland Car Wash License 

• It allows you to operate anywhere in Dubai, including the public parking areas. 
• With the mainland license, you can provide both parking and mobile car wash services. 
• You need an appointment with a UAE local service agent to get a mainland car wash license in Dubai. 

Free Zone Car Wash License 

• You can offer 100% foreign ownership, which is ideal for international investors. 
• It also comes with low setup costs compared to the mainland. 
• Your business is restricted only to the free zone areas. You have to appoint a local agent to expand your business outside the UAE. 

Timeframe to Get Your License 

One of the main advantages of starting a car wash business is that you can get a quick license. You can get your car wash license in Dubai within 7 - 14 business days by submitting proper documents and approvals. Flyingcolour Business Setup can help you get proper knowledge about document submission, and we can make your business setup process easier. 

Legal Rules & Penalties Regarding Car Wash Business 

A car wash business has to follow compliance with strict regulations. In the Dubai Municipality and the RTA (Roads and Transport Authority).  Non-compliance checks in Dubai have severe monetary fines and penalties. 

• You cannot wash cars in non-designated areas or without authorization. You can lead to fines of AED 1,000. 
• If your business does not comply with the guidelines, the recycling of wastewater could be suspended or canceled. 
• It should be permitted that eco-friendly methods and equipment will have to be used.

Documents Required for beginning a car wash business in Dubai

Before starting your Car Wash Business in Dubai, you must gather a few documents because the relevant authority may ask you for these documents. The following is the list of required documents for starting a car wash business in this city:  

• Your passport copy
• Approval from the Dubai Municipality and Chamber of Commerce 
• A comprehensive business plan document
• NOC from your local service agent
• Payment receipt of trademark registration
• A valid tenancy contract
• Copy of your visit visa tourist visa or residence or investor visa

Based on a few factors, you might also need to submit other documents to start parking car wash business in Dubai.

Steps To Starting Your Car Wash Business in Dubai

The process of starting a Car Wash Business in Dubai involves several crucial steps. Following these steps carefully is essential to establish your car wash business successfully in this emirate. Let us take a look at the steps to start your car wash business in this city:  

Step 1: Choose your Business Activity.

Initially, you must select business activities you want to conduct in your car wash business in Dubai. The DED will give you a list of allowed commercial activities for the car washing business in Dubai.   You should carefully review the list of business activities provided by the DED. After reviewing the business activities, you should choose the appropriate business activities that suit the best with your car washing business in this Emirate. 

Step 2: Choose a Business Structure 

You can decide on your business structure if you want to operate. You can choose sole proprietorship, Limited Liability Company (LLC), and others. You will have different types of advantages and disadvantages with any business structure you choose. The LLC is the most popular choice among many entrepreneurs. 

Step 3: Reserve the Name for Business 

You have to start your car wash business is reserving a trade name. Your business name should be:

• It reflects the nature of your service.
• The name should follow the name guidelines of Dubai. You cannot use offensive words, religious references, or abbreviations.
• You have to select a unique name for your business. The name should not be registered by another company. 

Step 4: Select Your Business Name

After selecting the business activities, you should move forward with selecting the appropriate trade or business name for your car wash business in Dubai. You should ensure the name of your car wash business complies with the UAE naming guidelines.  While selecting the business name for your car washing business, you should choose a unique name in Dubai. You should not infringe on existing brands or use terms referencing deities.  You can consider your full name if you want to incorporate it with your business name. However, you should avoid any offensive name or name reflecting religion. Remember, submitting three to four business names to the relevant authority would be great.   

Step 5: Choose a Preferred Location for Your Car Wash Business.

After choosing the business name for your car wash business, you should select a reliable location. Remember, the location of your car wash business in Dubai is crucial. Depending on whether you want to choose a mainland or a free zone, you must adhere to different laws.  For example, if you choose a mainland, the location of your car wash business must be close to a gas oil station or industrial area. Therefore, you should research and understand the pros and cons of different locations before choosing a preferred location for your car wash business in Dubai.

Step 6: Open a Corporate Bank Account 

After obtaining a trade license, your next step is to open a corporate bank account in Dubai. This will help you deal with daily transactions (make supplier payments, receive customer payments) and keep financial records straight. Most of the banks in the UAE need documents:

• Copy of the trade license
• Shareholder passport & Visa copies
• Emirates ID
• Memorandum of Association (MOA)/ Articles of Association (AOA)
• Office lease agreement 
• Ejari certificate 
• Business plan & company profile 

Step 7: Obtain a Car Wash Business License

After choosing a preferred location, you should obtain a car wash business license and other permits from the Department of Economic Development (DED) or other relevant authorities. This step will ensure you operate your car wash business without complications in Dubai.

Step 8: Apply for a Visa

Lastly, you should apply for a visa for yourself, your family members, or employees to stay in Dubai.    The process for obtaining a visa involves submitting the required documents and applications. The number of eligible visas depends on the company’s size and other factors. The relevant authority will review the application and documents and grant visas after a successful verification.

Different Models of Car Washes You Can Consider

You can select the model that is best suited for your location, target market, and budget. Here are some of the models of car washes you can choose:

• Manual Car Wash – Affordable and labor-intensive
• Steam Car Wash—Environmentally friendly and water efficient
• Waterless Car Wash—Unique and space-efficient
• Automated Car Wash—More costly
• Mobile Car Wash Vans—They can have a footprint in yards, homes, and office parking locations.

Cost Of Starting A Parking Car Wash Business In Dubai 

The cost to start a car wash business in Dubai is less compared to other industries. This makes an attractive opportunity for entrepreneurs to start this business. The exact cost depends on the type of business setup you choose. Overall, the total costs can be around AED 50,000* - 150,000*. The car wash business is an affordable business setup in Dubai compared to other businesses and industries like restaurants and retail stores. you can expect the following costs to start a business:

• This cost includes Trade License Fees AED 10,000* - 14,000*
• Municipality & RTA approvals AED 5,000* - 10,000*
• Equipment & Setup AED 30,000* - 100,000* (Steam machines, water tanks, eco-friendly cleaning systems)

How Can Flyingcolour Business Setup Help You?

Starting a car wash business requires a proper understanding of Dubai’s complex rules and regulations. Understanding these aspects might be difficult for novice and international business owners. Flyingcolour Business Setup has a deep understanding of these aspects. In addition, we have a team of experts who can help you set up your car washing business in this city. Here are the services we provide: 

• We you select the right business activity
• Helping with your license applications and approvals
• We help you with your document preparation and submissions
• Helping you with your location setup and visa processing
• Providing continued support after you have set up your business

As a first-time investor or an experienced business owner, we help you start your business with ease, compliance, and on budget.

Frequently Asked Questions (FAQs) About How To Start A Parking Car Wash Business In Dubai

1. Can I make a profitable car wash business in Dubai?

Yes, the demand for car wash services is relatively predictable and consistent in Dubai, due to the high volume of vehicles and the dusty weather, it is a good business to get into.

2. Do I need special approvals to open a parking car wash?

Yes, you will need to get approvals from the DED and Dubai Municipality, and possibly the Civil Defence based on your area and type of service you provide.

3. Can I provide a mobile car wash in a residential parking lot?

Yes, however, you will need some permits and local municipality regulations regarding water and the movements of your vehicle need to be followed

4. How much time do I have to spend setting up the process for a car wash business in Dubai?

You can start your business within 7 to 14 business days. If you have the correct documents and approvals, registration, and licensing. 

To learn more about the Start a parking car wash business in Dubai, book a free consultation with one of the Flyingcolour Business Setup team advisors.

*Please note that this article was published on 19/03/2024 by the federal policies and updates at the time of writing. For the latest info please talk to our consultant.