Do you love working with children and want to start your own business in Dubai? If so, opening a daycare center can be a great option for you. A daycare center is a facility that provides care and education for children aged between 45 days and 4 years, while their parents are at work or otherwise occupied. Starting a daycare center in Dubai can have many benefits, such as meeting the high demand for childcare services, generating a steady income, and making a positive impact on the lives of children and families. However, before you start your daycare center, you need to know the benefits, requirements, steps, and costs involved in this venture. This article will guide you through everything you need to know to start a daycare center in Dubai successfully.
Benefits of starting a daycare center in Dubai
Starting a daycare center in Dubai can have many benefits for you as an entrepreneur and for your customers as well. Some of the benefits are:
• High demand: Dubai is a city that has many working parents and expatriates who need childcare services for their children. According to a report by Arabian Business, the UAE’s childcare market is expected to grow by 13.7% annually until 2023. With Dubai’s diverse population and busy lifestyle, there is always a high demand for quality daycare centers that can offer safe, stimulating, and nurturing environments for children.
• High profitability: Daycare centers can generate substantial profit margins by offering value-added services, such as food, snacks, transportation, extracurricular activities, etc. Daycare centers can also benefit from repeat customers and word-of-mouth marketing, which can increase customer loyalty and retention. According to a study by KPMG, the average profit margin for daycare centers in the UAE is around 20%.
• High satisfaction: Daycare centers can allow you to express your passion and skills for working with children by creating your own unique curriculum, program, and atmosphere. You can also make a positive difference in the lives of children and families by providing them with quality care and education that can enhance their development and well-being.
What You Need to Know Before Starting a Daycare Center in Dubai
Before you start your daycare center in Dubai, you need to know some important information that can affect your success. Some of the information are:
• Legal structure: Before you register your daycare center, you need to decide on the legal structure of your business. There are different types of legal structures available in Dubai, such as sole proprietorship, partnership, limited liability company (LLC), or free zone company. Each legal structure has its own advantages and disadvantages, such as ownership rights, liability protection, taxation, and operational flexibility. You need to choose the legal structure that suits your needs and objectives best.
• Location: Choosing the right location for your daycare center is crucial for attracting customers and ensuring profitability. You need to consider factors such as accessibility, visibility, population density, competition, rent, regulations, etc. You also need to ensure that your location meets the minimum space requirements set by the authorities,
such as 3.5 square meters per child, a separate room for infants, a play area, a kitchen, a bathroom, etc.
• Staff: Hiring qualified and experienced staff is essential for running your daycare center smoothly and professionally. You need to consider factors such as number, skill, salary, visa, training, etc.
You also need to comply with the staff requirements set by the authorities, such as having at least one teacher or supervisor per 20 children, having at least one nurse per 100 children, having at least one security guard per facility, etc.
Documents required to Set up a Daycare Center in Dubai
To set up a daycare center in Dubai, you need to obtain several documents from various authorities and agencies. Some of the documents are:
• Trade license: A trade license is the most important document that allows you to conduct business activities in Dubai legally. To obtain a trade license, you need to apply through the Department of Economic Development (DED) or through one of its authorized service centers. You need to submit several documents along with your application form, such as passport copies of shareholders or partners, NOC from current sponsors if applicable, business plan copy, etc.
You also need to pay the required fees and obtain initial approval from DED.
• Food license: A food license is another essential document that allows you to sell food and beverages in your daycare center. To obtain a food license,
you need to apply through the Food Safety Department of Dubai Municipality. You need to submit several documents along with your application form, such as trade license copy or initial approval letter from DED,
layout plan of the premises showing kitchen equipment and facilities, menu copy with ingredients list and sources, etc. You also need to pay the required fees and obtain final approval from the Food Safety Department.
• Other permits and licenses: Depending on the nature and scope of your daycare center, you may need to obtain other permits and licenses from various authorities and agencies, such as the Dubai Health Authority (DHA) for health and hygiene standards,
the Dubai Civil Defense (DCD) for fire safety standards,
the Roads and Transport Authority (RTA) for parking and signage regulations, etc. You need to comply with all the rules and regulations of these authorities and agencies and obtain their approvals before you start your daycare center operations.
Steps to Start a Daycare Center in Dubai
To start a daycare center in Dubai, you need to follow some steps that can help you set up your business smoothly and efficiently. Some of the steps are:
• Creating a business plan: A business plan is a document that outlines your vision, mission, goals, objectives, strategies, and actions for your daycare center. Your business plan should also include your financial projections, budget, cash flow, break-even analysis, and return on investment (ROI). Your business plan will help you secure funding, partnerships, and licenses for your daycare center.
• Choosing the right legal form and location for your daycare center: As mentioned earlier, you need to choose the right legal form and location for your daycare center that suits your needs and objectives best. You need to consider factors such as ownership rights, liability protection, taxation, operational flexibility, accessibility, visibility, population density, competition, rent, regulations, etc.
• Registering the trade name and applying for initial approval: After you have chosen your legal form and location, you need to register your trade name and apply for initial approval from DED. You need to submit several documents along with your application form, such as passport copies of shareholders or partners, NOC from current sponsors if applicable, business plan copy, etc. You also need to pay the required fees and obtain initial approval from DED.
• Getting external approval from KHDA: After you have obtained initial approval from DED,
you need to get external approval from the Knowledge and Human Development Authority (KHDA),
which is the regulatory body for education in Dubai.
You need to submit several documents along with your application form, such as trade name reservation letter from DED, initial approval letter from DED, curriculum copy, staff list with qualifications, etc. You also need to pay the required fees and obtain external approval from KHDA.
• Getting additional government approvals: After you have obtained external approval from KHDA, you need to get additional government approvals from various authorities and agencies, such as the Food Safety Department of Dubai Municipality, the Dubai Health Authority (DHA), the Dubai Civil Defense (DCD), the Roads and Transport Authority (RTA), etc. You need to comply with all the rules and regulations of these authorities and agencies and obtain their approvals before you start your daycare center operations.
• Applying for a Business License: After you have obtained all the necessary approvals from the government authorities and agencies, you need to apply for a business license from DED. You need to submit several documents along with your application form,
such as trade name reservation letter from DED, initial approval letter from DED, external approval letter from KHDA, all other government approvals, rental contract copy, etc. You also need to pay the required fees and obtain your business license from DED.
Conclusion
Starting a daycare center in Dubai is a rewarding and profitable venture, but it also requires careful planning and preparation. You need to consider the legal, financial, operational, and marketing aspects of your business, as well as the quality of care and education you will provide to the children. You Consult a Business setup consultant in Dubai to easily start your business.