A small business setup in Dubai, especially in the beauty and personal hygiene sector, yields a high profit. People in Dubai have a high standard of living. With this high standard of living comes several expensive needs and wants. People will not shy away from spending a lot to take care of their looks. That is why a well set up salon business in Dubai is bound to succeed.
All around the world, the corporate culture demands a well-groomed look. It is not a choice but a necessity because a groomed and professional look is a must-have if you are to be accepted in modern society. The UAE is no different. In fact, people in Dubai have more disposable income, which means they spend even more on looks than the people of other countries. A salon business in Dubai will not lack customers.
Steps for setting up a salon business in Dubai
In Dubai, you will get two options for setting up a business. You can set up your business in one of the many free zones or in Dubai mainland. As free zones do not allow you to sell your service and products outside of the free zone, a free zone is not the ideal place to start your salon business.
If you set up the business in mainland Dubai, you will have more clients, which means more revenue. The regulatory body that looks after mainland businesses is the Department of Economic Development in Dubai, also known as the DED. The DED requires the following procedure to open a salon business in Dubai:
1.) Passport and visa
The first step you need to follow is to submit a copy of your passport and visa to the DED. If you chose to have partners, then copies of their passports and visas are needed by the DED as well.
2.) Trade name
After that, you need to select and register a trading name for your business. The name has to be unique, which means it cannot match with the name of any other businesses that are registered in the UAE. However, the name can exist outside of the UAE, which will not be a problem for the Department of Economic Development. If the DED does not have a problem with the name, they will approve it and provide you with a trade name reservation certificate.
3.) Initial approval
Before proceeding any further, an initial approval is required from the DED. They will give a form that needs to be filled. The completed form with all the documents mentioned in the previous steps has to be submitted to the DED to get the initial approval. However, if any of the documents or the form is not presented correctly, they may reject the initial approval. That is why it is suggested to professional counseling for these steps.
4.) Memorandum of Association
Now you need to draft a Memorandum of Association (MOA) and sign it. This is a crucial step because the MOA is an important document. It needs to be drafted according to the mandates of the government body of the UAE. That is why you should get it done by a local service agent who has drafted MOAs before.
5.) Rent a shop
You need to rent a salon shop and set it up according to the beauty salon requirements in Dubai. Here are the requirements for a salon shop in Dubai:
- It is located in a suitable location in Dubai.
- It must have a signboard in the front.
- The chairs must strictly be the size mentioned in the guideline from the Dubai Municipality.
- The celling must have a height of 2.30 meters or more from the floor of the shop.
- There must be separate areas with proper partitions for beauty treatment services.
- There must be a washbasin where facial treatments are to be provided.
- There must be closets and drawers for all cosmetic items and towels.
- There must be a water heater in the salon.
- The equipment for the shop like hair removing materials must be made of fireproof materials.
- The furniture and equipment in the shop must be clean and proper.
- The lighting in the shop must be sufficient.
If these requirements are not meet properly, the Planning Section and the Health and Safety Division of the Dubai Municipality will hold the right to disapprove your application for the license. If these requirements are violated after you have already received your license. They may revoke your license after an inspection.
6.) Tenancy contract and EJARI Number
After you have rented a physical location, you will have a tenancy contract that needs to be submitted to the DED for the final step. A physical location allows you to have an EJARI number, which is also required by the DED. Since these are documents that must be produced for the DED and other government bodies, you must rent a salon shop to proceed.
7.) Approvals from Dubai Municipality
When you have acquired the tenancy contract and the EJARI number, you need to get two more approvals from other government divisions. One is from the Planning Section of the Dubai Municipality, who will ensure that the location where you have rented the salon is alright. Another is from the Health and Safety Division of the Dubai Municipality, who will ensure if the salon shop is set up according to their requirements.
8.) Trade license
After all the previous steps are completed and the required documents are acquired. You can move on to the final step, which is getting the trade license from the Department of Economic Development. You need to pay the required fees and submit all the documents. Once you get the trade license from the DED, you can start selling your services in Dubai.
Even though the UAE makes small business setup in Dubai easier than in other countries, any error in the steps will complicate the process. That is why it is recommended to take consultations from company setup professionals. They are experienced and have the necessary connections to make the whole process even more simple.