Are you thinking about Restaurant business setup in UAE ? Do you know how to open a Restaurant in Dubai? A Complete Guide Step by Step.
With its majority population of expatriates, Dubai has risen as one of the world’s most diverse food markets. This along with its status of being a global tourist destination has led to the addition of tens of thousands of new food businesses in the past few years.
In the year 2019 alone, more than 2500 restaurants established themselves in the Emirate and with the influx of more foreigners, that number is expected to grow exponentially in the coming years.
With this information now known, it is clear that start restaurant business in Dubai could be a great financial decision. The following are the requirements and steps that you need to take:
Which Restaurant License in Dubai is Required to Start a Restaurant Business?
If you want to restaurant business setup in Dubai? you will need to obtain a Dubai trade license as well as a restaurant license in Dubai. For the former, you must approach the Department of Economic Development (DED) and provide them the documents that they require.
The same process goes for the latter, this time with the Department of Food and Safety. Once you have acquired both licenses, you may proceed with the later steps. Failure to do so may result in the premature blacklisting of all of your business aspirations.
The Requirements to Open a Restaurant in Dubai
(A) Legal Requirements For Start a Restaurant in Dubai
Prior to applying for a trade license, you will need to take the following steps.
1. Finalizing a Business Plan
You need to draw up and finalize a business plan which contains your vision, aim, goals and budget. The document must state what your intentions and activities are, as well as what your back up plan is, should you face any unforeseen complications. This process is handled and supervised by the DED.
Moreover, if you plan on acquiring a pork and liquor license, you must submit a special request for them individually.
2. Select the Region
There are two regions you can choose to set up your restaurant in:
- Free trade zone
- Mainland area
Which Region Suits your Restaurant and Why?
Expats usually prefer to set up their businesses in the FTZs due to the condition that they can own 100% of their company and not require a local sponsor. On the other hand, setting up a business in the mainland requires you to allocate 51% of your company to a local Emirati who will act as your sponsor.
When it comes to restaurants, however, the popular choice is to set up in the mainland, this is because establishing a restaurant in a Free Trade Zone bounds you to operating within that specific area. Mainland’s however allow you to expand your business to any part of the nation, which is ideal if you are looking to open up multiple branches.
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