Dubai’s high tourism rate and growing resident population gives entrepreneurs a new niche to tap into: laundry. If you’re interested in starting a laundry business in Dubai, you will need to apply for a trade license with the relevant licensing authority. Working with the business setup consultants at A&A Associate is an easy way to streamline your company setup process.
Streamline Your Business Setup Process
Why Get a Laundry License in Dubai?
- High demand for services: A lot of Dubai residents, especially busy, working professionals prefer using a laundry service instead of doing it at home.
- Large tourism and hospitality sector: There’s a constant flow of tourists into the city so there’s a potential to offer laundry services to people staying in holiday rentals, serviced apartments, and hotels.
- Business-friendly environment: Dubai supports entrepreneurs with company formation options on the mainland and in free zones, making it easy to set up and expand.
- Diverse customer base: You can target multiple customer segments, giving you a lot of potential for growth. Apart from households, you can also partner with local establishments.
How to Start a Laundry Business in UAE: The Steps
Decide Your Business Jurisdiction
You will first need to decide whether to set up on the mainland or in a free zone.
- Mainland: Opening a laundry shop in Dubai mainland is the most common option for laundries. Mainland companies can work with customers all over the Emirate.
- Free zones: Dubai free zone companies can trade with the mainland if they have a permit from the Department of Economy and Tourism. Getting a license in a free zone is generally faster and cheaper than on the mainland.
Choose Your Business Activity
You should select the services you want to provide and list them on your trade license application. Some services your laundry business can offer are:
- Washing and ironing clothes
- Dry cleaning
- Stain removal
- Pick-up and delivery services
- Carpet, curtain, and upholstery cleaning
Pick a Business Name
Apply for Initial Approval
Apply for a Trade License
Open a Bank Account
After you get your trade license, you can get a residence visa and open a bank account for your laundry business. If you work with a business consultant, they can use their existing connections with banking institutions to speed up your application.
What are the Laundry License Document Requirements in Dubai?
Here are the common documents that you need for a laundry license:
- Passport copies of the business owner and any partners
- Visa copy and/or Emirates ID
- Trade name reservation certificate
- Initial approval certificate from the licensing authority
- Tenancy contract or Ejari for your laundry shop premises
- No Objection Certificate (NOC) from your current UAE sponsor (only for mainland businesses)
- Completed license application form
What is the Laundry License Cost in Dubai?
You can expect to pay AED 10,000 – 15,000 for your laundry license in Dubai, although factors like where you set up your business, the number of employees you’re hiring, and the legal structure can affect the cost.
Here’s a breakdown of most of the costs related to starting a laundry business in Dubai:
License fees | AED 10,000 – 15,000 | Paid to the DET or the free zone authority for issuing your trade license |
Trade name reservation | AED 600 – 1,000 | Registering your business name |
Rent | AED 50,000 – 150,000/year | For your laundry shop and office |
Ejari registration | AED 2,000 – 3,000 | Registering tenancy contract |
Government approvals & Municipality inspection | AED 2,000 – 5,000 | Initial approval and passing a health inspection |
Laundry equipment & fit-out | AED 30,000 – 100,000 | Washing machines, dryers, ironing stations, and shop interiors |
Tips to Successfully Start a Laundry Business in Dubai
When you start a laundry in Dubai, your success depends on more than just getting the license. You need to think about where to set up, how to run your shop, and the kind of services your customers will value the most.
Here are five tips for entrepreneurs looking to start a laundry business:
Select the Right Location
- The location of your laundry shop has a big impact on how many customers you attract.
- For example, a shop near residential areas will bring you regular customers.
- On the other hand, if you choose a location close to tourist spots like Downtown Dubai, you can develop partnerships with the hospitality sector to provide laundry support.
Invest in High-Quality Machines and Equipment
- Using the right equipment will save you money and help you deliver better results.
- Many successful laundries in Dubai use commercial washing machines and dryers because they handle larger loads and help cut down on your DEWA bill.
- If you buy reliable machines, you can avoid frequent breakdowns that might disrupt your service.
Hire and Train Reliable Staff
- You should train your staff in understanding different types of fabric and offering recommendations to customers.
- Your staff should also encourage customers to leave positive reviews on Google to improve your brand reach.
Offer Unique Services
- In Dubai, many residents prefer laundry shops that collect and deliver clothes to their doorstep.
- You can offer subscription-based packages for weekly or monthly services.
- If your laundry business uses eco-friendly washing cycles, you can use it as a unique selling point.
Market Your Services
- You can invest in local outreach campaigns. For example, you can offer a lower process for customers in your immediate delivery radius.
- You can run promotional offers like welcome discounts or referral bonuses on social media, WhatsApp, and Google.
- Your business can even collaborate with local influencers to tap into their audience markets.
Start a Laundry Business in Dubai with A&A Associate
A&A Associate houses expert business setup consultants who can help you with company formation in Dubai. If you’re interested in starting a laundry business, our consultants can handle the entire process from applying for a license to opening a bank account. Get in touch for a free consultation today!
