Opening a restaurant in a mega city like Dubai is everyone’s dream. Dubai, with its diverse food market, is the perfect place to start your restaurant business.
In 2019, over 2,500 restaurants were opened, as the expat population continued to grow in the city. However, the growth slowed down during the COVID-19 travel restriction. Now, it has started to speed up once again after countries open their borders to international travel.
Here’s a complete step-by-step guide for starting a restaurant in Dubai:
Requirements to Start a Restaurant in Dubai
To open a restaurant in Dubai, you must meet two types of requirements, legal and physical.
1. Legal Requirements
- Business Plan
You must create a business plan involving your vision, goals, and budget. This document must outline your intentions, along with a backup plan if you ever come across unforeseen circumstances.
- Select Region
You can choose from two regions to open your restaurant in. These include Free Trade Zone (FTZ) and Mainland Area.
FTZ is an ideal region for expats because it allows 100% ownership of their company and does not require a local sponsor.
On the other hand, Mainland Area wants you to give 51% of your company to a local Emirati who will serve as your sponsor.
- Select Location
After finalizing your business plan and region, you need to choose a location for your restaurant. This step requires a lot of thought because you need to consider several factors such as the popularity of certain cuisine in an area, commercial activity, and other things as such.
You also need to acquire several permits in advance, as mentioned below:
- Pork license.
- Alcohol license.
- Delivery permit.
- Permit for operating in Ramadan.
2. Physical Requirements
This is the second requirement that must be met before opening a restaurant. It involves presenting a map and blueprint of the eatery with the following things:
- Interior design plans.
- Location of food storage.
- Ventilation routes.
- Solutions for fire hazards.
- Entrance and exit points, including emergency exits.
Architectural Requirements
- Flooring, counter, and walls should be non-absorbent and designed to resist fire.
- Separate wash basins for cleaning meat, vegetables, and other items.
- The kitchen must account for 40% of the total area of the restaurant.
- A ventilation system in the kitchen area.
How to Get Dubai Trade License
After fulfilling all of the aforementioned prerequisites, you can apply for your trade license in Dubai. The initial step is to submit your application along with the required documents for preliminary approval.
- Choose a name for the restaurant.
- Determine the business activities.
- Complete the application and submit it to the Department of Economic Development (DED).
- Rent a suitable restaurant space and get the tenancy contract.
- Get approval for the tenancy contract from Ejari (Dubai Land Department).
- Get approval from the Department of Tourism and Commerce Marketing (DTCM).
- Submit all required documents to DED.
- Once approved, pay the Dubai trade license fees.
Once you obtain initial approval from DED, you can proceed to get your food license from the Food Safety Department. You must present your Dubai trade license and fulfill the following requirements:
- Initial approval letter from DED.
- Complete business plan.
- Tenancy contract.
- Blueprints and floor plan of the restaurant.
- Memorandum of Association with the local sponsor if you want to set up a restaurant in the Mainland Area.
Required Documents for Dubai Food License
- A copy of the trade license or primary approval from the DED (for the mainland) or relevant free zone authority (for FTZ).
- Interior design layout blueprint of the premises, which includes:
- Entry and exit passages.
- Space for processing food.
- Area for storing food.
- Windows and ventilation system.
- Location of food equipment used for preparing the food.
- Dishwashers and other supportive equipment.
Once you receive your food and trade licenses, you can open your restaurant in Dubai.
Dubai Trade License Fee and Other Expenses
The estimated cost for trade and food licenses in Dubai is between AED 10,000 and 15,000. However, the total cost of opening a restaurant in Dubai can vary depending on several factors, such as the restaurant’s location, size, necessary approvals, and ingredient and supply costs.
Some of the costs to consider while calculating the expense of a restaurant in the UAE are license fees, rent, permissions, staff training, capital expenses, staff visas, interior design, furniture, kitchen appliances, and opening stock.
Via Company Setup
