They say there are two things you cannot avoid in life: taxes and laundry. However, as an entrepreneur in Dubai, you can avoid paying taxes and grow a sustainable and successful business by doing laundry for companies and households. Starting a laundry business in Dubai is a great way to make a clean sweep as a business.So let’s jump in. In this article, we will look at the following:
- Laundry business in Dubai and the UAE – an overview
- How to start a laundry business in Dubai – Step by Step
- Cost of starting a laundry business in Dubai
- Marketing strategies for a laundry business in Dubai
- Business setup in Dubai with Trade License Zone
Laundry business in Dubai and the UAE – An Overview
Starting your own a laundry service business in the UAE will be a profitable enterprise. The laundry industry covers a range of services, from washing clothes, bedding, and more, to specialised services such as carpets, curtains, hosiery, delicate garments, and dry cleaning.
In the laundry industry, don’t think small – there’s massive potential for growth. Your business can start by servicing people in your neighbourhood, but you can expand your company size to include laundry services for Airbnb establishments, hotels, and even restaurants.
Dubai lives up to the idea of ‘the city that never sleeps’. It is fast-paced, energetic, and cosmopolitan. There is a massive demand for quality laundromats and laundry businesses in Dubai to service this busy population. Many ex-pats and foreign nationals living and working in Dubai simply don’t have the time or laundry facilities to cope with their washing requirements.
The ever-growing hospitality sector creates a tremendous amount of laundry – and it never stops. Restaurants, boutique hotels, Airbnbs, and resorts require daily clean bed sheets, pressing long sheets, clean clothes and other laundry. Getting into this ‘dirty’ business will see you clean up in no time. Dubai is one of the most visited destinations in the world – and those visitor numbers continue to increase every week.
As a business owner, the UAE’s tax and company regulations mean that you won’t pay tax on your personal and corporate incomes – and you’ll own 100% of your company. You can repatriate your profits to your home country without friction or added expenses. Getting a laundry license is more straightforward than learning how to set up a new automatic washing machine for your dirty clothes!
How to start a laundry business in Dubai – Step by step
These are the six steps to guide you in setting up a laundry business in Dubai.
Step 1: Partnering with Trade License Zone
The first step you should make when looking into a laundry business setup in Dubai is to partner with Trade License Zone. Our specialist team will manage all aspects of your laundry business setup, company license application, and company registrations, liaise with necessary authorities and guide you through the entire laundry business setup process.
Step 2: Naming companies is easy
As part of the application process for a trade license, you must choose an appropriate business name for your laundry shop or laundry service. The UAE government has set fairly strict naming rules – for example, a business name cannot contain offensive or profane language or references to Allah or Islam. You can use your own name as part of the company name, but you must use your name in full, not just your surname or initials.
You will need to submit three different names, in order of preference, to the UAE’s Registry Office. If your preferred name isn’t available, they will use the second one, and so on. Trade License Zone’s experienced business consultants will register your selected company names with the UAE’s Registry Office and notify you when you can proceed to the next step of the company registration process.
Step 3: Selecting business activities and jurisdiction
Every business in Dubai must obtain a business license or professional license. Several options are available, and you must choose the right one based on your business activities and plans. To get your trade license, it’s necessary to specify and select your business activities accurately, as there are over 2,000 to choose from. You must select the business activity (activities) aligned to the laundry industry. You could be liable for penalties if you fail to list your business activities.
The UAE offers two business jurisdiction types: Free Zone and Mainland companies. Free Zone setup companies for laundry shops are a popular choice as they allow for 100% ownership, but extra steps are needed for trading within the domestic market. Mainland companies allow for trading within the UAE market without additional steps, but you must partner with a local partner who holds a 51% stake in the company.
Don’t feel overwhelmed by all this: Trade License Zone will help you choose the most suitable one. Contact us to help you with this vital step.
Step 4: Documents for business setup
Documents required to apply for a laundry license include the following:
- Copy of the owner’s passport and visa
- Copy of the shareholders’ passports and visas
- Completed Memorandum of Association (MOA) and Articles of Association (AOA)
- Copy of the business plan
- Copy of lease agreements
- Dubai Municipality Planning Section approval
- Dubai Municipality Health and Safety Division approval
- Company name approval from the Registry Office
For laundry license applications, Dubai Municipality has ruled that these businesses need to comply with the following to operate legally and safely:
- Display that the laundry shop is a no-smoking zone and display no-smoking zone signs
- Prominently display emergency contact numbers.
- Adhere to strict general hygiene regulations and ensure hygiene practices of all employees
- Conduct regular maintenance checks of the equipment and updates machine and workers’ guidelines on all the machines.
- Store all chemicals and formulants separately and stored with prominent information on the product’s hazards and chemical guidelines: i.e., harsh, flammable, incompatible chemicals.
- Ensure the laundry business has its own a delivery vehicle.
The Dubai Municipality’s safety department is allowed to make regular inspections to ensure safety measures and ensure hygiene levels are maintained for a quality service. Your laundry company in this international city will be one of the booming businesses if you pay attention to the details of your laundry shops.
Step 5: Submit your trade license application
Once you’ve completed the above steps, you can submit your business license application to the DED. Trade License Zone’s consultants can help you with this critical step to avoid errors, delays, or rejections.
Step 6: Getting your laundry license
Once your trading license has been approved and you’ve paid its issuance, you can apply for your UAE residency visa to live and work in Dubai. This trade license may entitle you to sponsor the visa applications of family and staff, depending on the conditions of the specific trade license. You can also open a corporate bank account at this step, which means you can begin trading as soon as you’re ready.
Cost of starting a laundry business in Dubai
The cost of starting a laundry business in Dubai ranges from AED 20,000 to AED 25,000. This cost varies depending on the trade license type, visa costs, and government approvals. You will also need to factor in other startup and business costs, such as renting premises, equipment, staff, and more.
For a free consultation, contact the expert team at Trade License Zone. An accurate quote with details of steps to be taken and costs to be expected will give you the basis to plan your business and launch it with the necessary funding and capital.
Marketing strategies for a laundry business in Dubai
The best marketing strategies for growing your laundry business in Dubai are:
- Join a local business community group
- Increase your social media presence and footprint
- Create loyalty programmes and customer rewards
- Target small companies and new businesses with discounted services
- Brand your delivery vehicle
Business setup in Dubai with Trade License Zone
Business setup in the UAE is simplified with an experienced partner such as Trade License Zone. When starting a laundry business in Dubai, we help you with all formalities required, including trade licenses, government approvals, company registrations, local sponsor dealings, and more.
The specialists at Trade License Zone can get started once you provide us with some basic documentation of your business and a little information about the nature of your business. Then, please sit back and let our team take care of the rest. We’ll manage your business license application and business activities, communicate with all necessary authorities, sort out the necessary formalities and report when you’re ready to open your laundry business. It really is that simple.