Cleaning Business

Why start a cleaning business?

Are you thinking about starting a new business with low startup costs, steady demand, and room for growth? The cleaning industry might be your best bet. According to a 2024 report by the British Cleaning Council, the sector contributed over £60.3 billion to the UK economy in 2021 and shows no signs of slowing down. 

Here’s why launching a new cleaning business is a smart move:

• Scalability: Start small and expand as demand grows, offering a low-risk, high-reward business model.‍
• Strong industry growth: A thriving sector with rising demand in residential, commercial, and industrial markets.‍
• Flexible workforce: 67% of cleaning staff work part-time, helping businesses reduce payroll costs, scale efficiently, and adjust staffing.‍
• Easy entry: Most sub-industries require no special licenses or advanced qualifications, and only 25% of the workforce holds an NQF Level 4 qualification, making it accessible to new entrepreneurs.

What are the different types of cleaning services?

The cleaning industry spans multiple sectors, from home and office cleaning to large-scale industrial operations. Below is a breakdown of key cleaning service categories, their economic value, and the type of business owners they are best suited for.‍

‍Cleaning and hygiene services

According to the British Cleaning Council (BCC), the cleaning and hygiene sector contributed £9.4 billion to the UK economy in 2021. With low skill requirements and high profitability, this industry offers an accessible and lucrative opportunity for small business owners, self-employed cleaners, and cleaning franchises looking to establish or grow their businesses.

The main business activities within the sub-industry are:

• General Cleaning of Buildings (SIC 81.21) includes routine cleaning services for homes, offices, schools, public spaces and specialist services such as oven cleaning.‍
• Other Building and Industrial Cleaning (SIC 81.22) include window cleaning, hospital sanitation, computer room cleaning, and chimney services.‍
• Other Cleaning Activities (SIC 81.29) cover disinfection, pest control, swimming pool cleaning, and transport cleaning (trains, buses, planes, etc.).

‍Facilities Management 

The sub-sector contributed £30 billion to the UK economy in 2019, making it one of the most significant industries within the broader cleaning and maintenance sector. Facilities management goes beyond cleaning, encompassing the maintenance, security, and operational management of buildings and workspaces. 

The main business activities within the sub-industry include:

• Combined Facilities Support Activities (SIC 81.10) – Covering security, catering, building maintenance, and operational services, often bundled with cleaning contracts.
• Real Estate Management (SIC 68.32) – Managing properties and maintenance contracts on behalf of landlords, commercial property owners, and corporations.
• Renting & Leasing of Office Machinery (SIC 77.33) – Providing office equipment, IT support, and machinery leasing, including cleaning and maintenance solutions.

Landscape Activities 

According to the British Cleaning Council (BCC), the landscape activities sector contributed £5.6 billion to the UK economy in 2021. With routine maintenance and specialised services, it offers opportunities for small business owners, independent landscapers, and larger firms providing contract-based outdoor maintenance.

The main business activities within the sub-industry include:

• Planting, Caring for, and Maintaining Green Spaces: Providing landscaping, gardening, and tree care services for residential and commercial properties.
• Public and Semi-Public Grounds Maintenance: Managing municipal parks, urban landscapes, and roadside greenery for local councils and government agencies.
• Sports Grounds and Industrial Landscaping: Maintaining golf courses, stadiums, and large-scale industrial green spaces to ensure aesthetic appeal and safety compliance.

With an increasing emphasis on sustainability and green spaces, businesses in this sector benefit from consistent demand, recurring contracts, and opportunities for specialisation in areas such as eco-friendly landscaping, urban rewilding, and sustainable outdoor design.

Waste and resource management 

The waste and resource management sub-industry contributed £15 billion to the UK economy in 2021, with waste collection generating £9.8 billion and waste treatment and disposal contributing £5.2 billion. As environmental concerns grow and regulations tighten, waste management has become a high-demand industry with opportunities for municipal contractors, private waste collection businesses, and recycling firms.

The main business activities within the sub-industry include:

• Waste Treatment & Disposal (SIC 38.21 & 38.22): Processing non-hazardous and hazardous waste, including landfill management, incineration, and recycling operations.
• Waste Collection (SIC 38.11 & 38.12): Handling residential and commercial waste removal, including general refuse, recyclables, and hazardous waste.

With increasing government regulations on sustainability, recycling, and landfill reduction, businesses in this sector benefit from steady contracts, compliance-driven demand, and expansion opportunities in areas like composting, electronic waste recycling, and circular economy initiatives.

Manufacturing and supply 

The manufacturing and supply sub-industry supports B2B and B2C markets, supplying essential cleaning products and equipment to commercial cleaning companies, industrial facilities, and individual consumers.

The main business activities within the sub-industry include:

• Cleaning Products Manufacturing: Production of soaps, detergents, disinfectants, and industrial cleaning chemicals used in residential, commercial, and industrial settings.
• Cleaning Machinery & Equipment Supply: Manufactures and distributes pressure washers, scrubber dryers, floor cleaning machines, and other specialised equipment.

With a rising demand for eco-friendly, biodegradable cleaning solutions and advanced automation in cleaning technology, businesses in this sector benefit from high recurring sales, scalability, and opportunities in innovation-driven product development.

What are the different types of cleaning companies?

The cleaning industry is diverse, with different business types and registration formats catering to various cleaning activities. Whether you're an independent cleaner, a property manager, or a group of leaseholders, there is a business structure that fits your needs. Here’s how different types of cleaning companies align with cleaning services in the UK.

Sole Trader – Ideal for General Cleaning of Buildings (SIC 81.21)

For solopreneurs looking to start a small-scale cleaning business, registering as a sole trader is one of the easiest ways to enter the industry.

Best suited for:

• Small commercial cleaning contracts for offices, retail stores, and restaurants.
• Domestic cleaning businesses, including home cleaning, Airbnb cleaning, and end-of-tenancy cleaning.

As your business grows, you can transition into a private limited company and expand into other cleaning activities under SIC 81.22 or SIC 81.29.

Private Limited Company (LTD) – Ideal for Industrial & Specialized Cleaning (SIC 81.22, 81.29)

For those who want a formal business structure with liability protection, registering as a private limited company (LTD) offers credibility and growth opportunities.

Best suited for:

• Industrial cleaning, including factories, warehouses, and medical facilities.
• Specialised cleaning may include window cleaning, hospital sanitation, pest control, and transport cleaning.
• Commercial cleaning with large contracts requiring employees and equipment.

You can acquire industry licenses, hire specialists, and expand into regulated cleaning services with an LTD.

Limited Liability Partnership (LLP) – Ideal for Business Partners in Cleaning

An LLP allows two or more partners to operate a cleaning business while limiting personal liability. This structure is ideal if you want to combine expertise with a partner.

Best suited for:

• Franchise cleaning businesses allow multiple partners to manage locations under one brand.
• Janitorial services with long-term contracts in offices, schools, and healthcare.
• Facilities management cleaning, where a partner brings security, catering, or maintenance expertise.

An LLP provides flexibility, allowing partners to divide responsibilities between administration, client acquisition, and service management.

Right to Manage (RTM) Company – Ideal for Managing Communal Area Cleaning

Tenants or leaseholders form an RTM company to manage their residential building. While an RTM cannot operate as a commercial cleaning business, it can hire contractors or manage an in-house cleaning team.

Best suited for:

• Ensuring service quality and cost efficiency in apartment blocks and flats.
• Cleaning and maintenance of communal areas in residential buildings (hallways, staircases, gardens).

Although RTM companies don’t offer commercial cleaning services, they are crucial in ensuring high cleaning standards for their properties.

Property Management Company – Ideal for Overseeing Multiple Cleaning Contracts

A property management company provides comprehensive maintenance services, including cleaning services, for multiple properties. Unlike an RTM, a property management company can expand into the commercial cleaning sector and offer services to multiple landlords.

Best suited for:

• Providing in-house cleaning staff or outsourcing contracts to cleaning companies.
• Coordinating cleaning services for residential and commercial properties.
• Facilities management cleaning (SIC 81.10), including janitorial services, security, and building maintenance.

Property management companies can offer cleaning as part of a larger service package or register a separate cleaning business under their company structure.

What type of cleaning services should I offer? 

One of the first steps in starting a cleaning business is deciding whether to offer residential or commercial services. Choosing the right niche is essential for shaping your business model, pricing, and operations.

• Residential cleaning focuses on family homes, apartments, and rental properties. Services typically include routine housekeeping, deep cleaning, and move-in or move-out cleans.
• On the other hand, commercial cleaning operates on a larger scale—serving offices, retail spaces, and industrial buildings. It often involves specialised equipment, larger teams, and more flexible scheduling, including overnight work.

Understanding the differences between these markets will help you tailor your services, choose the right tools, and meet the expectations of your ideal clients.

How do I set up a cleaning company and choose an ideal business structure?

Registering a limited company with Your Virtual Office London ensures liability protection and professional business identity for your cleaning business from day one. The process is simple: provide a preferred business name, shareholding details, company officials' information, and the relevant SIC code. 

The Privacy Package covers all essential registration requirements, including incorporation fees, a registered office address, and a director’s service address, giving you a fully compliant and professional setup with minimal hassle.

Alternatively, you can purchase a cleaning franchise, which provides everything you need to launch successfully. With a franchise, you benefit from an established brand reputation, essential tools, and comprehensive training, allowing you to bypass many of the challenges of starting from scratch. This option offers built-in credibility, proven business systems, and a ready-made customer base. It is an excellent choice for those looking to reduce risk and start with a competitive advantage.

What is the cost to start a cleaning venture?

The cost of starting your own cleaning business depends on your preferred business structure and the specific services you plan to offer. You don't need a significant upfront investment—many successful cleaning ventures start small and grow steadily over time.

Below is a breakdown of estimated startup costs based on different business models and types of cleaning services.

Business Registration Costs 

• Limited Company Formation: The cost starts at £68, including Companies House fees and everything required to register your business legally.
• Sole Trader: Registration is free, making it the most cost-effective way to start a cleaning business.

Cleaning Supplies and Tool

Once you’ve identified your cleaning niche, you can plan for the cost of equipment and tools based on the type of cleaning services you intend to offer.

Residential Cleaning (SIC 81.21) – Estimated Cost: £1,250

For a general residential cleaning business, expect to budget:

• £550 – Essential cleaning equipment (vacuum cleaner, mops, buckets, cleaning solutions, gloves).
• £700 – Website and marketing expenses to attract clients.
• £200 – Small business liability insurance to cover potential damages or accidents.

Industrial & Specialised Cleaning (SIC 81.22, SIC 81.29) – Estimated Cost: £3,000+‍ 

For industrial, commercial, and specialised cleaning, additional equipment may be required, including:

• £1,200+ – Floor cleaning machines for large-scale surface cleaning.
• £800+ – Carpet cleaning machines for deep cleaning.
• £300+ – Janitor cart for organising cleaning tools and supplies.

Other Essential Cleaning Tools – Estimated Cost: £150+

Regardless of your niche, you may need additional tools, such as:

• £25 – Feather duster for dusting surfaces.
• £30 – Micro-fiber towels for streak-free cleaning.
• £50+ – Various disinfectants and cleaning chemicals for specialised jobs.

Licensing costs for specialised cleaning business leaning

You may need licenses for specialised cleaning services (e.g., medical, hazardous waste, or pest control under SIC 81.22 or SIC 81.29). Depending on the specific industry regulations, these can add £500–£2,000 to your startup costs.

How do I create a business plan for my business?

A business plan is essential for outlining your goals, strategies, and financial projections. If you're unsure where to start, AI tools can help you draft a professional business plan quickly and efficiently.

Simply provide details about your business type, target market, services offered, pricing, and growth strategy, and AI can generate a structured plan tailored to your needs. This can include sections on market research, competitor analysis, operational planning, and financial forecasts, helping you stay organised and attract potential investors or clients.

What license do I need to start a cleaning company in the UK?

When starting a cleaning business in the UK, you generally do not need a specific license. However, you should register your business appropriately:

• Limited Company or LLP: Register with Companies House.
• Sole Trader: Register with HMRC when your annual turnover reaches the self-assessment registration threshold of £1,000.

For general residential and small commercial cleaning, no additional licenses are required. However, if you plan to specialise in certain cleaning services, you may need specific licenses or certifications as follows

For industrial cleaning, if you plan to use hazardous chemicals such as ammonia, bleach, or other potent cleaning agents, you should:

• Supply personal protective equipment (PPE)
• Conduct a COSHH risk assessment
• Provide appropriate staff training

Paying tax for your cleaning service?

Your tax obligations depend on your chosen business structure:

• Limited Companies: Pay Corporation Tax and must file annual tax returns with HMRC.
• Sole Traders: Pay taxes through self-assessment and must register with HMRC if earnings exceed £1,000 per year.

Understanding your tax responsibilities ensures compliance and helps you manage finances effectively.