Last Updated on: 13th July 2023, 02:06 pm
How To Open A Restaurant in Dubai For Free?
Opening a restaurant in a mega city like Dubai is everyone’s dream. With its diverse food market, Dubai is the perfect place to start your catering business.
More than 2,500 restaurants opened in 2019 as the expat population in the city continued to grow. However, growth slowed during the COVID-19 travel restrictions. Now momentum is picking up again after countries opened their borders to international travel.
Here is a complete step-by-step guide on how to open a restaurant in Dubai:
Requirements To Open A Restaurant in Dubai
To open a restaurant in Dubai, two types of requirements must be met: legal and physical.
1. Legal Requirements
Business Plan
You need to create a business plan that includes your vision, goals, and budget. This document should state your intentions and include a contingency plan in case you ever encounter unforeseen circumstances.
Choose A Region
You can choose between two regions to open your restaurant. These include the Free Trade Zone (FTZ) and the Continental Zone.
The FTZ is an ideal region for ex-pats as it allows for 100% ownership of your business and does not require a local sponsor.
On the other hand, the mainland region wants him to turn over 51% of his business to a local Emirati who acts as his sponsor.
Select Location
Once you have determined your business plan and region, you need to choose a location for your restaurant. This step requires a lot of thought as you need to consider various factors such as the popularity of certain cuisines in a region, business activities, and other things.
Also, you need to purchase various permits in advance as listed below:
- Pork license
- Alcohol license
- Delivery Approval
- Permission to operate during Ramadan
2. Physical Requirements
This is the second requirement that must be met before opening a restaurant. It is about presenting a menu and a plan for the restaurant with the following elements:
- Interior layout plans.
- Storage place for food.
- Ventilation routes.
- Solutions for fire risks.
- Entry and exit points, including emergency exits.
Architectural Requirements
- The floor, counter, and walls do not need to be absorbent and fire-resistant.
- Separate sinks for cleaning meat, vegetables, and other items.
- The kitchen must occupy 40% of the total area of the restaurant.
- A ventilation system in the kitchen area.
How To Get A Business License in Dubai
After you have fulfilled all the above requirements, you can apply for your business license in Dubai. The first step is to submit your application along with the documents required for pre-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 catering space and secure the rental contract.
- Obtain lease agreement approval from Ejari (Dubai Land Department).
- Obtain approval from the Department of Tourism and Trade Marketing (DTCM).
- Submit all required documents to DED.
- Once approved, you will pay the Dubai Commercial License Fee.
Once you have received the initial DED approval, you can apply for your food license from the Department of Food Safety. You must present your Dubai business license and meet the following requirements:
- The first letter of approval from DED.
- Complete business plan.
- Rental contract.
- Plans and layout of the restaurant.
- Partnership agreement with the local sponsor if you want to start a restaurant in the continental region.
Required Documents For Dubai Food License
- A copy of the business license or master’s note from DED (for the mainland) or relevant Free Zone Authority (for the Free Zone).
- Interior layout plan of the premises, which includes:
- Entry and exit cards.
- Space for food processing.
- Food storage area.
- Windows and ventilation system.
- Location of food equipment used to prepare food.
- Dishwashers and other auxiliary equipment.
Once you get your commercial and food license, you can open your restaurant in Dubai.
Cost Of Opening A Restaurant in Dubai
The estimated cost of business and food licenses in Dubai ranges from AED 10,000 to AED 15,000. However, the total cost of opening a restaurant in Dubai can depend on several factors such as the location of the restaurant, size, required permits, and cost of ingredients and supplies.
Some of the costs to consider when calculating the expenses of a UAE restaurant include royalties, rent, permits, staff training, capital expenditures, staff visas, interior decoration, furniture, kitchen appliances, and initial inventory.
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