A business idea shows greater chances of success if it offers a direct solution to the problems faced by consumers. Starting a laundry business in Dubai makes business sense in this regard as the residents of the city struggle to find enough time to do chores like washing clothes. Since the city is populated with busy entrepreneurs and professionals, the demand for the laundry business won’t die out. Also, we recommend a business setup in Dubai mainland as the investors can find more customers compared to a free zone.
Apart from demand and location, properly executing the licensing process also influence the success of a business venture. Applying for a license through business setup consultants in Dubai will help you properly navigate the procedures set out by the Department of Economic Development (DED).
This article deals with the benefits and requirements of obtaining a laundry business license in Dubai mainland. Keep on reading.
Permitted Activity for Laundry Business in Dubai
The DED allows the investors to set up a laundry business in Dubai under the Activity called Laundry Services with Activity Code 9601002. You have to obtain a professional license issued by the DED to conduct laundry services activities. The laundry service license permits activities such as washing clothes, curtains, bedsheets, small carpets, mattresses, leather clothes and products. The laundry businesses are allowed to operate both automatic and manual washing methods. Talk to the best business setup consultants in Dubai to avoid errors while selecting the activity.
Process of Obtaining a Laundry License in Dubai
You need to navigate through a streamlined process before starting a laundry service business in Dubai mainland. Business setup consultants in Dubai can help you with the drafting of documents including the application. The following are the most important steps associate switch the process of business setup in Dubai mainland:
- Select a company name
- Choose the correct business activities
- Identify the legal structure
- Apply for initial approval from DED
- Draft a Local Service Agent Agreement (LSA)
- Rent a shop at the right location
- Obtain a tenancy contract from the landlord (Ejari)
- Obtain approval from Dubai Municipality
- Issuance of License
General Requirements for Starting Laundry Business in Dubai
Before opening your laundry business company in Dubai, you have to understand certain general requirements. The entrepreneurs need to meet the following requirements to ensure the success of their venture:
- The business should comply with the standards of Dubai Municipality (DM). Special approval has to be obtained from Health & Safety Department within DM. The DM officials may conduct periodic health & safety inspections
- Approval should also be obtained from DM’s planning section. The size of the shop should comply with the DM’s standards
- ‘No Smoking’ sign should be placed at the entrance of the establishment
- Emergency contact numbers should be displayed prominently
- A delivery van is a mandatory requirement for starting a laundry business in Dubai
- The working area at the laundry should not be used for activities such as sleeping & cooking
- Food items shouldn’t be kept or stored in the working area
- The clothing used for ironing should be kept clean at all times
- Curtain, sofa and chairs that have non-absorbent materials shouldn’t be kept in the working place
- Regular disinfection and cleaning are mandatory to ensure cleanliness in washrooms, working area, exhausts, curtains, pantry area, also, corners of the wall, under the sink, cabinets, drawers, and ironing table, etc.
These are some of the general guidelines that entrepreneurs need to comply with. You may be penalised if DM discovers any act of non-compliance during their periodic inspections. Compliance with accepted standards and requirements is a mandatory aspect of the process of business setup in Dubai. Business setup consultants in Dubai can advise you about such requirements so that you can ensure compliance.
Is Laundry Business Profitable in Dubai?
The laundry business is widely regarded as a recession-proof business as you are offering your services to a wide variety of people. If you can ensure cleanliness through regular disinfection and set up an online presence, it could be pandemic-proof as well. Unlike many other businesses, your target customer group is large.
Apart from targeting individuals, you can offer laundry services to beauty salons, spas, daycare centres, restaurants, hospitals, hotels and other offices. Higher-income expatriates who struggle with a mountain of laundry can also increase your business prospects. Starting a laundry business promises good profits at lower incorporation costs. You can enjoy benefits such as lower taxes and 100% ownership by appointing an LSA.
How can Jitendra Business Consultants Help you?
Conventional wisdom suggests that a sound business idea can translate into a successful venture. However, it’s not the ideas that make companies the best, instead, it’s the execution that matters most. Entrepreneurs with sound business ideas may fail when it comes to executing the steps associated with the process of business setup in Dubai. If you want to turn your laundry business into a successful venture, first you should ensure that the company is incorporated properly.
The best business setup consultants in Dubai such as Jitendra Business Consultants (JBC) can help you execute the company incorporation process seamlessly. Our highly qualified company formation experts can advise you on visa processing, immigration requirements, document drafting etc. JBC is a one-stop solution for all your requirements such as accounting & bookkeeping, VAT, audit etc. We also help you comply with regulations such as Anti-Money Laundering (AML), Economic Substance Regulation (ESR), Ultimate Beneficial Ownership (UBO) etc.