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What Are The Legal Requirements For Starting A Cleaning Business in The EU?

09 February 2018, 15:57 CET

The cleaning industry in the EU is one of the most profitable sectors, at the time being. And while it may seem complicated to set up a cleaning business, there are many advantages associated with doing so.

For one thing, the start-up costs are low – all you have to do is invest in high-quality equipment, such as powerful canister vacuums, brushes, mops, buckets, so on and so forth. Simultaneously, the work is quite flexible.

At the same time, establishing a cleaning business in Europe is readily available to anyone. Even so, there are specific legal requirements you ought to comply with in order to operate legally. We'll briefly enumerate the most important elements, so that you know what to expect.

For starters, as EU citizen, you have the right to establish your own business – as a sole trader included. You should also note that the specifications may vary by the country, as there are certain details that are specific for each market. According to this source, various EU countries have implemented notable reforms in order to make the streamline procedures for establishing a business simpler.

Leaving that aside, what is it that you should do in order to establish a cleaning business?

1. Start with registering your business

This is the first step you should take. Considering that you're self-employed, then, you ought to register as a sole trader. At the same time, registering for the self-assessment tax is implied. This requires of you to calculate and pay your taxes on a yearly basis.

2. Obtain the right insurance

Cleaning businesses should have the right insurance plan, as well, in order to operate legally. At the same time, if you plan on hiring people, you might be required to get an additional form of insurance, on top of that.

Firstly, you ought to have public liability insurance, which safeguards you against potential claims from third parties, in the case of property damage or personal injury – accidents included. In other words, you'll have coverage considering that you accidentally break someone's vase.

Secondly, professional indemnity insurance is the one that protects you in the case of claims from unsatisfied clients and employees. So, in the event in which a client refuses to pay an invoice, or you are required to rectify a mistake, the insurance policy facilitates coverage.

Thirdly, having employer's liability insurance is required if you hire staff. This insurance will cover you in case of claims from behalf of employees that experienced an injury or illness during working for you.

In order to get the most convenient insurance plan for your needs, it's recommendable to shop around and do plenty of research. In this way, you can be confident that you've chosen the right plan for your specific scenario.

3. You Are Required to Pay the Minimum Wage

If you plan on hiring people to work for you, you should be able to provide them with the minimum wage in the country you're operating in. Concurrently, you should remain informed regarding possible changes that may occur.

Cleaning Chemical Safety – A Significant Consideration

As an entrepreneur, it's your responsibility to make sure that the chemicals used by your business are used accordingly. By doing so, you minimize the likelihood of unwanted harmful incidents that could affect your workers or clients.

To that end, you should abide by the requirements associated with REACH. REACH represents Registration, Evaluation, Authorization and Restriction of Chemicals. If your business utilizes chemicals or mixtures of chemicals, then you are expected to comply with the regulations. Each business has distinct obligations it ought to meet. The primary one is to assess the risk management measures.

  • Cleaning substances must be treated with care

The people who use different cleaning supplies should be trained for this purpose. At the same time, they should comprehend the risks implied. If the cleaning substances are used incorrectly, they might lead to ill-health problems such as skin irritations, asthma, or even poisoning, in the most severe cases. If they aren't handled or stored accordingly, other complications may arrive, due to their flammable and explosive properties.

Not only that doing so is the legal approach, but it will also optimize your firm's safety and reliability.

  • In order to comply with the regulations, you ought to carry out a risk assessment

This refers to gauging the risks linked to the cleaning supplies you use in relation to the places you'll be working in, and pinpointing the potential health risks. Plus, you should read the warning labels to determine which substances are more likely to cause harm and for how long. This information is of utmost importance for keeping your staff safe.

These are some of the main things that shouldn't miss your attention if you're thinking of opening a cleaning business. While the process isn't necessarily a complicated one, you should get acquainted with the safety and legal requirements beforehand.

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