UAE is a major logistics hub and a trade center. It facilitates import-export to more than 180 countries across the world.

UAE – The ideal location for Heavy Equipment Trading

Also, UAE’s economy is driven by the growth in the construction, real estate, tourism, and infrastructure sector.

So, there is a growing local demand for Heavy Equipment Trading in the region.

The well-connected shipping lines and airline routes have made UAE the best choice for setting up heavy equipment machinery trading and setting up a manufacturing center with a global distribution network in the region.

Heavy Equipment & Machinery Rentals – A Sub Category

Heavy Equipment & Machinery rental is a booming sub-category in UAE due to the growing demand for heavy equipment in the field of construction.

The construction sector in UAE is vast and there is a constant requirement for heavy equipment such as cranes, heavy-duty trucks, concrete mixers, etc.

The industrial and commercial sector is another sector where the heavy equipment requirement is growing. Large manufacturing plants and warehouse licenses in UAE are in high demand to meet the local business requirements.

Advantages of Starting a Heavy Equipment Rental Business

Heavy Equipment & Machinery purchases require a huge investment and easily it can go up to a few 100,000 dollars.

So, to complement the primary business activity, starting a heavy equipment rental business could help the Heavy Equipment Trading Company to expand their service offering.

Customers who do not want to spend too much money on buying the product can instead use them as rentals for a fee per hour/ per project contract accordingly.

Also, renting used heavy equipment & machinery can further help in growing the business and keeping the initial investment lower than purchasing new equipment and selling it or renting it out.

Industry Demand for Heavy Equipment Trading

So, equipment like forklifts, refrigerators, and other industrial machinery would be required in large numbers to meet the industrial requirements in the region.

Now with Expo 2020 on the onset, the real estate, tourism, and infrastructural facilities in UAE are getting a major enhancement to handle a large number of visitors coming into UAE.

This is a major boost to the heavy equipment machinery trading as the demand for the equipment is  at sky-high

Key Business Activities – Heavy Equipment Trading

Under the Heavy Equipment Trading, there is a various specific business activity that investors can venture into depending on their requirements.

• Heavy-duty refrigeration units for cold storages and warehouses
• Air Purifiers, Filters & AC Duct Cleaning Equipment
• Metal Cutting and Forming
• Food & Beverages Processing, Cleaning, and Sorting
• Tobacco Processing
• Textile Apparels & Leather Productions
• Lifts & Escalators Installation
• Automobile Washing Equipment
• Electric Generators, Switchgears,
• Water Pumping, Sewage Treatment, Boilers.
• and more

Setting up a Heavy Equipment Trading Company in UAE

In UAE there are few company structures available to set up a Heavy Equipment Trading Company. The major ones are the below

1. Limited Liability Company

2. Sole Establishments

3. Civil Company

4. Trading License from Free Zone 

Limited Liability Company

As Heavy Equipment & Machinery Trading is a highly capital-intensive business sector, registering a limited liability company in UAE is beneficial to the investor to separate the company liabilities from personal wealth.

For a heavy equipment machinery Trading license in Dubai, the cost is approx. AED 25,000. The steps in setting up a Heavy equipment trading company are similar to any other company.

Read more: Finding a Local Sponsor for an LLC Company Setup

Sole Establishment and Civil Company

In the mainland of UAE, there are two more options to set up a Heavy Machinery Trading Company. In the case of Sole Establishment and Civil Work Company, there is no requirement of a UAE National Sponsor for setting up the company.

However, a local Service Agent is required to be appointed as the contact person for the company and the contract has to be submitted to the authorities to get the business license issued.

Heavy Equipment Trading License from Free Zone

Obtaining the Trading License from Free Zone for a Heavy Equipment License is a favorable option to keep the business setup cost low.

Various Free Zones in UAE offer the specialized Business License Types and the perfect infrastructure support for heavy equipment trading at a cost-effective fee in the region.

Investors can choose the Free Zone based on their exact business requirements, office space, and budget.

Our expert Business Consultants will assist you in choosing the right Free Zone for setting up your heavy Equipment Trading business in the most comfortable way in UAE.

Connect with our expert team to know more!

Contact: Aurion Business Consultants

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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 the working class are 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 the UAE estimate 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 a 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 sponsors will own 51% of company shares and the rest 49% by the foreign investor
• The 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 a support system to effectively procure, manage, and 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 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 procedures to open a Cleaning Services Company in the UAE, Connect with our expert Business Consultants right away!

Read more >> “How to Start a Manpower Supply Company in the UAE?“.

The post How to Start a Cleaning Services Company in UAE? – All Things to Know appeared first on AURION.

The lifestyle, business infrastructure, shopping, tourism, etc., makes Dubai a favorite choice for all. Real estate investment in UAE offers the best rental yield when compared with the rest of the world.

Why Dubai is a Popular Choice for Real Estate Investment?

Property investment is a great way to generate a second income. There many reasons why Dubai is a lucrative option for real estate investment.

1. High Rental Yields

Dubai’s real estate market is very matured with high-return properties. It is estimated that yearly rental yields could be in the range of 5-9% of the property price.

 2. Lower Property Prices

Dubai offers one of the lowest property prices per square feet when compared to international markets of the UK, Hong Kong, Network, etc.

3. Property Purchase and Residence Visa

Property investment valued above AED 1 Million enables the investor to get a 3-year residence visa in the UAE.

1. 5-Year Long Term Residence Visa

Investment of AED 5 Million in real estate, the investor is eligible for a 5-year Long term visa. It is to be noted that the property must not be in mortgage or loan and must be owned completely by the investor and retained for 3 years.

2. 10-Year Long Term Residence Visa

Also, as part of Gold Card Visa, an investment of AED 10 Million in real estate and other investments in UAE enables the investor for a 10-year long term visa.

The investment of AED 10 million must be in such a way that 60% of the investment must in other business categories and not real-estate.

4. No Property Tax or Stamp Duty

There are no property taxes or stamp duties applicable in UAE, as in other global markets.  Also, the registration fees and overall property purchase price comes at a much affordable rate depending on the type of apartment and location chosen.

The property purchase process is very streamlined and monitored by the authorities. The investor will have a very peaceful and comfortable property registration in UAE.

Other Investment Opportunities in Dubai

Apart from Property Purchase in UAE for earning rental income, another lucrative investment in the UAE is to open a business in any of the Free zones of UAE at a very affordable rate.

There are a host of profitable business ventures in the UAE to explore. The wide audience base, technology infrastructure, Zero Taxation, availability of skilled labor, networking opportunity, etc., makes UAE the perfect destination to set up your dream company.

Choices Available for setting up your Business in the UAE

There are umpteen choices for setting up of company in the UAE. The free zones of UAE offer various company formation packages for new entrepreneurs to large companies with warehousing and manufacturing facility requirements.

Then, there is the mainland company setup for forming an LLC Company by partnering with a UAE national or appointing a local service agent according to the business activities chosen.

1. Business License from the UAE Freezones

UAE Freezones offers various business license types for investors ranging from services, commercial, and industrial, eCommerce, media, freelance, and more.

One can choose the list of business activities specific to their desired business license category. The company set up in Dubai is a streamlined and hassle-free process. Business Consultants will assist you by choosing the right free zone license and company formation package for you.

2. Choosing a Flexi-Desk Type Office or a Shared Office, or Work-Station

Free zones of UAE offer a wide range of office types based on your requirements ranging from Flexi-desk office space to shared office space and workstation.

The flexibility of choosing an office, 100% foreign ownerships, tax-free stature, 100% profit repatriation, no customs duty, etc., is making Free zone the No.1 choice for entrepreneurs.

3. Renting out a Fully Furnished Office in the Free zone

Based on your business requirement you can choose to rent a fully furnished office in the free zone complex. The free zones of UAE offer exceptional infrastructure and business ecosystem to scale up your company easily.

4. Opening a Business in the Mainland of Dubai

For a business looking at gaining more physical presence in the UAE local market such as retail, education, construction, real-estate, Maintenance & Electricals, healthcare, etc.,

(51% UAE National Shareholding) in the mainland of Dubai is more prospective to gain business and grow faster.

Also, for individuals in the fields of engineering, legal, accounts, doctors, etc., could opt for a professional license from the mainland of Dubai and appoint a local service agent for a yearly fee.

To know more about UAE Free Zone Company Formation and LLC Company Registration, talk to our expert team right away!

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