How to get a Laundry Business License in Dubai Mainland?

Laundries are in high demand in Dubai Mainland, so starting one is indeed a worthy business opportunity for any entrepreneur. However, the business license is one of the most challenging documents that many business owners seek to acquire. This article aims to assist you in going through the steps on how to get a laundry business license in Dubai Mainland.

Permitted Activity for Laundry Business in Dubai

Laundry service is permitted under the DED through the Activity known as ”Laundry Services” and Activity Code 9601002, which enables investors to open a laundry business in Dubai. This activity involves washing of clothes and textiles such as curtains, bed sheets, mats, small carpets, mattresses, leather, and products. The laundry service license allows the carrying out of functions such as both automatic and manual washing techniques.

How to Get A Dubai Laundry License?

The basic steps to undertake when seeking a laundry business license in Dubai Mainland are as follows:

Step 1: Choosing a Company Name

Picking a company name is the initial step in starting a laundry business in Dubai Mainland. The name should not have been taken by any other company or organization that is registered with the DED.

Step 2: Select the Appropriate Business Activities

Earlier, it was mentioned that for a laundry business, the permitted activity is “Laundry Services” with Activity Code 9601002. Proposing a correct business activity is very important so that one does not face legal problems in the future.

Step 3: Understand the legal structure

One of the factors that may not be ignored while venturing into the setting up of a laundry business is the legal form of the business. Some of the legal structures include Limited Liability Company (LLC), Sole Proprietorship, and Civil Company.

Step 4: Apply for initial approval of DED

After the final selection of the company name, business activity, and legal status, the company needs to seek initial approval from the DED. This approval is required before moving to the next stages of the licensing process.

Step 5: Draft a Local Service Agent Agreement (LSA)

The position of LSA in the business structure is that of a UAE national who sponsors the business and offers legal assistance. A Local Service Agent Agreement (LSA) requires documents to be written and signed by both parties.

Step 6: Rent a Shop at the Right Place

The location of the laundry business is a very important factor that determines its success. When selecting an area, it is important to ensure that the location is convenient for the target customer group.

Step 7: Secure Tenancy Contract from the Landlord (Ejari)

After getting a location, the shop must be rented, and the lease agreement needs to be obtained from the owner. The Ejari is a legal document that requires registration with the Dubai Land Department (DLD).

Step 8: Getting approval from Dubai Municipality

All health and safety-related businesses require approvals from the Dubai Municipality. In the case of a laundry business, prior permission must be sought from the Health & Safety Department of the Dubai Municipality.

Step 9: Issuance of License

When all of the above procedures are fulfilled, the DED will provide the laundry business license.

Comparison of Legal Structures for Laundry Business in Dubai Mainland

Laundry Business Setup Requirements

Certain general requirements have to be fulfilled before opening a laundry business in Dubai Mainland. These include:

• Compliance with Dubai Municipality Standards: The business should ensure that it operates in accordance with the requirements outlined by the Dubai Municipality.
• Approval from Dubai Municipality’s Planning Section: The approval of the planning section from the Dubai Municipality is also required. The size of the shop should not exceed or be less than the size recommended by the Dubai Municipality.
• Other Requirements: Other requirements are a ‘No Smoking’ sign to be posted at the entrance of the place, numbers of contact persons in case of emergency to be posted in clear visibility, and having a delivery van.

Conclusion

In conclusion, the establishment of a laundry business in Dubai mainland by obtaining the right licenses is a good chance to capitalize on the laundry services market in the emirate. Having experienced business setup consultants in Dubai on board assists in smoothly obtaining appropriate licenses.

FAQs

Q1. How much does it cost to obtain a laundry business license in Dubai Mainland?

The cost of a laundry business license varies depending on some factors such as the business type, size of the shop, and the number of employees, among others. It is advised to get a better understanding from the business setup consultants in Dubai.

Q2. How long does it take to obtain a laundry business license in Dubai Mainland?

It will take approximately 1 week to 1 month to get the laundry business license since its depend on the readiness of the application documents and the outgoing response from the licensing councils.

Q3. Can a foreigner own 100% of a laundry business in Dubai Mainland?

Yes, a foreigner can own the laundry business up to 100% in Dubai Mainland with the help of a Local Service Agent (LSA).