Cleaning Services is a prospective business activity in the UAE. There is an enormous demand for Cleaning Services Companies in UAE from the corporate as well the consumer segment in the region. With the upscale lifestyle and large properties available in UAE, the requirement for cleaning services is always on the higher side.
Cleaning Services License in UAE is gaining popularity as there is a growing demand for the service from newly constructions and existing large organizations. Also, the modern homes of working class is also looking for professional cleaning companies for home cleaning requirements.
Cleaning Services Company in UAE – Demand from Residential and Commercial Consumers
Real Estate Analysts in UAE estimates that almost 50000 new residential units are to be added to the property market in the year 2020. This will further raise the demands for cleaning services companies as there would be growing requirements for maintaining and carry out regular cleaning activities in these apartments.
On the corporate side, the demand is driven by large numbers of hotel apartments, hotels, office spaces, manufacturing facilities, hospitals, and many more. The Scope of Cleaning services Companies are extensive; It can be classified into specific services depending on the exact customer requirements.
Main Categories of Cleaning Services in UAE:
- Residential Apartments (Flats, Town Houses, Villas)
- Commercial Cleaning (Offices/Manufacturing/Hospitals)
- Industrial Cleaning (Equipment/Machinery)
Sub-Categories in Cleaning Services
Cleaning Services Companies can be categorized based on their exact business activity. Following are few Sub-categories where Cleaning Services Companies facilitate their operations.
1. Streets Cleaning Services
There are special contracts for cleaning streets, footpaths, and markets by manual or mechanical tools. Dubai Municipality regulates the activity and the business license is subject to the approval of the Dubai Municipality.
2. Sea & Shore Cleaning Services – This activity enables companies to collect and dispose of marine waste and pollutants.
3. Building Cleaning Services – Residential, Government, and Professional premises
For example, Cleaning and maintaining huge office blocks such as the Dubai Airport Free Zone.
It requires an administration team to handle the operations such as washing each floor, external glass cleaning, restroom & laundry cleaning, and more.
4. Advertising Signboards Cleaning – Cleaning of the large signboards fixed on streets and road cleaning.
5. Runways & Roads Cleaning Services – Manual and mechanical cleaning of runways and roads.
6. Yacht Cleaning Services – Yacht interior and exterior cleaning, polishing, restoration, brightening, interior cleaning, vinyl treatment, etc.
7. Car Cleaning License – Car Cleaning Service activity includes car wash using automatic or manual washing station activities.
How to Start a Residential Cleaning Services Company in Dubai?
To start a Residential Cleaning Services Company in Dubai, the business must register with the Department of Economic Development (DED) to obtain the required cleaning services license.
Based on the Shareholding pattern, the investor can decide on the company structure and license types. For Mainland Companies in UAE, there are two Business License categories that are right fit for the Cleaning Services Companies:
1. Professional License, or,
2. Commercial License
Alternatively, Cleaning Services License in UAE can be easily obtained from the Free Trade Zone also. However, for Cleaning companies aiming to employee a number of ground level staffs, take a warehouse, etc., mainland of UAE will be the right choice to keep the overall cost low and easily expand the market reach.
Professional License in Dubai – Things to Know
- 100% Ownership of your business
- Register as Sole Proprietorship or a Civil Company
- Appoint a UAE national as a Local Service Agent (LSA)
Commercial License in Dubai – Things to Know
- Must appoint a UAE national or Local Sponsor
- Local sponsor will own 51% of company shares and the rest 49% by the foreign investor
- Company will be registered as a Limited Liability Company
Documents Required for Setting Up a Cleaning Services Company in UAE
- Completed business application form for the Cleaning Services company setup
- Trade name for approval- 3 names
- Passport copies of shareholders
- Entry Stamp/Visa page/residence visa of the investor
- NOC from the current sponsor if the shareholder has a residence visa
- Any additional approval required if any
Step by Step Procedures: How to register a Cleaning Services Company in UAE
The Process of Registering the Cleaning Services Company with the Department of Economic Development (DED) is as follows:
- Choose the required business activity from the activity list
- Select the company structure (Sole Proprietor/ Civil Company/LLC Company)
- Get the tradename approval
- Get initial approval from the DED, Dubai.
- Prepare and sign the LSA Agreement (for Professional License) or the Memorandum of Association (MOA) for Commercial License
- Rent a physical office and submit the Tenancy Contract & Ejari. A mainland company must have a physical office as a mandatory requirement for obtaining a business license.
- Submit any additional approval if any
- Pay the fee and get the Business License
Things to Look for Before Setting Up a Cleaning Services Company in UAE
Cleaning Services Company Setup in Dubai is relatively easy but there are various costs and process to be in place to continue in business such as the following:
- Competition from other similar players
- Workforce requirements and logistics support
- Equipment and supplies
- Expertise in the Sub-Categories to expand business services
1. Highly Fragmented Market and Intense Competiton
The investor must be well aware of the market scenario in the UAE. The cleaning Services sector is a highly fragmented industry with a lot of small and large players intensifying the competition.
2. Large Office Space and Warehouse Facility Requirements for Cleaning Services Company
Cleaning companies would require heavy equipment, machinery, disinfectants, and related cleaning essentials in large volumes to cater to their clientele accordingly.
Hence, Investors have to account for huge upfront expenses and set up the support system to effectively procure, manage, consume, the required essentials. It must achieve consistent profitability to continue business operations.
3. Heavy Investment and Operational Cost of Cleaning Service Company
The Cleaning Services business requires a lot of investment in logistics, essentials, labor, warehouse facility, office space, etc.
The operational costs are to be on a higher side always, investors must have a solid business plan to sustain the operations.
Why Choose Dubai Mainland for Setting Up Cleaning Services Company?
For Cleaning Services Company mainland company formation is the ideal choice than a Free Zone due to the requirement of region-wise operational flexibility and setting up branch offices anywhere in UAE.
1. Flexibility to Employee More Staff
Also, Cleaning Services is a heavy labor-intensive sector that requires employing a huge number of contract staff, in-house staff, part-time workers, etc.
So, for obtaining work-permits, applying for employee visas, gaining more visa quotas, a mainland company would be the right fit.
2. Easily Scale-up the Business Operations
There would be a requirement of having large office spaces or a warehouse to store the cleaning essentials and other required support systems.
Again, locating an ideal warehouse would be more cost-effective in the mainland of Dubai.
3. Identify your Niche Area in Cleaning Services Sector
The scope of a Cleaning Services Company varies depending on the list of the business activities that will be included in the business license while setting up the business.
There is an all-time demand for various types of Cleaning Services in Dubai due to the ever-growing infrastructure and real-estate investments in the region.
So, investors can choose their niche area of cleaning services and set up their cleaning services company to scale up easily.
To know more about the business opportunities in UAE and procedures to open a Cleaning Services Company in the UAE, Connect with our expert Business Consultants right away!
Contact: Aurion Business Consultants