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How to start a daycare business in Dubai, UAE

Daycare is a requirement around the world. With both parents now at work in many cases, nursery assistants, childminders, and nannies are stepping in to provide childcare services.

Here in the UAE, however, there is extra incentive, besides demand, to get into the daycare industry. As the UAE continues its drive to encourage more women into the workforce, it’s making it easier than ever to start a childcare business for those wishing to support working families.

Of course, daycare is a highly regulated industry, but with the guidance of a company formation expert, starting your business can be fast, straightforward, and affordable.

How to start a daycare business in Dubai in 5 steps

Starting a daycare business Dubai, while simple, does require some groundwork. Firstly, you’ll want to find a local expert who can help explain the process to you, ensuring there are no surprises further down the line.

Your chosen company setup agent can help you to:

Create a business plan

The first step is to create a business plan. This should include a brief overview of your business and the activities you intend to carry out. You should also show financial forecasts as well as market and competitor research.

Find a suitable location

Location is everything when starting a daycare business. Busy working parents do not want to go out of their way to drop children off before work. Choose a location near to business or residential areas, right in the heart of your target market.

Get a license from the authorities

You’ll need a trade license to start your daycare business in Dubai, or anywhere else in the UAE. The best way to obtain this is with the help of a UAE company setup agent like Business Incorporation Zone (BIZ). We can manage the entire application process on your behalf, liaising with all relevant authorities.

You’ll also need to seek approvals from your local emirate/municipality as well as the

Directorate of Civil Defence, and the Public Health Department.

Hire qualified staff

Daycare is very much a people business. Parents need to like, and most importantly, trust your staff, so take the time to conduct a thorough interview process and background checks.

Market your daycare
Your daycare’s reputation is everything. The more you market your business, the more clients you acquire and the faster your reputation grows through word of mouth and first-hand reviews.

Starting a daycare business in Dubai – additional considerations

There are a few other factors to consider when starting a business in Dubai. For one, you’ll need to choose a name that abides by the UAE’s strict set of naming conventions.

You should avoid any offensive or blasphemous language. Avoid names of well-known organisations and avoid abbreviations if naming your company after yourself – i.e. Dave Mann Consulting, rather than D Mann Consulting.

Your company setup agent will check that your chosen name is available before registering it for you.

You’ll also need a visa to live and work here. Again, with the right guidance, the visa application process can be incredibly straightforward.

As the holder of a UAE business license, you can sponsor others for their visas too. This could be a spouse, parent or child, or a domestic worker such as a housekeeper.

The maximum number of visas you can apply for will depend on the size of your company, your chosen setup and, for dependant visas, your personal earnings.

Finally, you’ll need to open a corporate bank account. Before making your application, you should first familiarise yourself with several financial institutions to find one that is best suited to your business needs and most likely to offer you corporate banking services. You company setup agent can help you with this process.

Keep in mind that:

  • You must have a UAE business license to open a corporate bank account.
  • Some banks require shareholders to have a residency visa.
  • Most accounts require a minimum balance of anywhere between AED 10,000 and AED 150,000.

If your application is successful, your account is usually opened within two to four weeks.

Cost of starting a daycare business in Dubai

There are numerous costs involved when starting a daycare business in Dubai. You’ll need to consider licensing and visa costs, staff costs, insurances, and the cost of your premises.

There are, however, several ways to keep the numbers under control. As costs can vary drastically between jurisdictions, you may wish to look outside Dubai to its surrounding emirates.

Setting up in a free zone can also be a cost-effective way to start a business in the UAE. As well as low fees, free zone companies benefit from 100% company ownership, zero currency restrictions, customs tax exemption and the freedom to repatriate all capital and profits.

Start your daycare business in Dubai with BIZ

Hopefully, this guide has made clear that if you’re armed with the right knowledge, setting up a daycare business in Dubai doesn’t have to be overly complicated.

That being said, it does require a level of prior knowledge of the process. What’s more, it is important to note that the application process is only straightforward if your license application is complete at the time of submission and free from errors.

To help you to ensure that this is the case, it’s a good idea to work with a company formation specialist such as BIZ when establishing a new company in the UAE.

We are a team of company registration professionals who are passionate about bringing the dreams of aspiring entrepreneurs and SMEs to life.

As well as handling your license application, BIZ can also assist with the opening of corporate bank accounts and advise on the most appropriate financial institution to suit your specific needs.

We also offer visa and immigration services and can handle all government formalities, permissions, work permits and visas applications that are required to trade in the UAE.

In short, our experts can establish your company on your behalf, make your license and visa applications, and take care of all the necessary admin – leaving you free to get on with running your business. Get in touch today to see how we can help set up your daycare company in Dubai.

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