Restaurant License in Dubai Restaurant Business Registration in Dubai UAE
Planning to Setup Restaurant or Food Business in Dubai ?
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A remarkable amount of growth has witnessed by the food and restaurant sector of Abu Dhabi and Dubai. The market research conducted by Euromonitor International sales mentioned that there will be more than 20000 outlets to the restaurants in Dubai by 2021.
Foodies from Europe, Asia, Australia, and America contribute to the success of restaurant business in Dubai. Before one decides to open a restaurant in Dubai, they need to acquire some information and follow a code of conduct.
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To capitalise this surging sector, entrepreneurs seek professional guidance in business set-up firms for walking through the process of opening a cafeteria or restaurant in Dubai. This includes the following steps:
- You have to decide whether to open the restaurant at Dubai free zone or mainland. Seek the approval from the independent authority of a specific free zone or the department of economic development for the mainland.
- You have to create and submit the business plan for the restaurant. The plan is taken into account for the vision of your business, brand management, financial viability and contingency plans. You have to do costing for your business to estimate the capital needed for the restaurant’s initial investment and to run ads.
- You need a business license and permits to operate the business. A trade license from the free zone authority or Department of Commerce or Tourism and the Department of Economic Development (DED). You require a food license from the Food Safety Department.
- You need to comply with the food code. The comprehensive document points out the requirements that a food establishment should follow. The effort by the government ensures a world-class food safety system for residents so that millions of people visit the emirate.
The layout requirements for the restaurant in Dubai
The trade license can be issued after authorities review the construction plan for the restaurant. The food license gives the review of the layout plan for the restaurant interior. Licenses require for specific permissions like serving pork or liquor that offers delivery service to obtain a license. The restaurant owners meet the minimum set of standards to set by the Food Control Department.- The restaurant area has the 750sq ft with a kitchen area of at least 300 sq ft to 380 sq ft that depends on the presence of a tandoor oven.
- The food storage areas are fitted with stainless steel shelves.
- The washing area accommodates separate basins for fish, meat, fruits, vegetables and dishes.
- The separate basin is provided for handwashing.
- The chimney is required for the cooking area. It should extend 2 metres higher than the nearest building.
- The restaurant floor, wall and roof would be fireproof, non-absorbent and washable.
The documents needed for starting a Restaurant in Dubai
You can set up your new cafeteria or restaurant business in Dubai. The 3 main documents are essential to submit to the authorities:- The food and safety license
- The trading license
- The Non-Objection Certificate (NOC) from the local municipality of Dubai.
You can also opt for other permits such as
- The liquor permit
- The Ramadan permit
- Delivery permit
- The pork permit
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If you are a newbie and want to open a restaurant in Dubai, this may appear to you as a mammoth task. It is always better to plan each and every step carefully. Non-adherence to rules may land you in trouble with the authorities. Let's implore the steps involved while opening a restaurant in Dubai.
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Acquire Food and Trade licenses
The initial step is to get your Food and Trade license from the authorities. To procure a food license, you will have to approach the Department of Food and Safety. The trade license is obtained from the Department of Economic Development (DED), and The Department of Tourism and Commerce Marketing (DTCM). This may cost you approximately AED 10,000 to AED 12,000.Select a location
The next step is to select an appropriate location for your restaurant. And in this process, the first thing that comes is whether to select a mainland area or to operate within the free zones. In order to open your restaurant on the mainland (where the business needs the support of the local sponsor), approval of DED is mandatory. Mainland provides you with the option to trade, but the sponsor will hold 51% of the shares and the remaining 49% is vested with the owner. If you intend to set up your restaurant in the free zones of Dubai, you need to procure the consent of the corresponding free zone authorities. Free zone areas allow you to hold 100% of your shares and do not require a local sponsor. But this restricts your area of trade. Once the area is selected, you need to select the locality. This depends on the type of cuisine you intend to recreate. If your planned cuisine is Indian, or Chinese, or French, you need to select your locality such that you target the customers. It is always better to get expert advice on business consultation to get an insight idea into the local areas and the target customers.Draft the plan
Many necessary factors like SWOT analysis, preparing a financial plan, target marketing, preparing a contingency plan, cash flow projections, market survey, market research are required to set a professional restaurant business. Each factor contributes in its own way to your business growth.Estimate cost and expenditure
Finally but importantly it is necessary to have a proper financial plan ready to keep track as to how much to spend. The restaurant costs, the cost of staffing, the cost of equipment, license costs. It is better to estimate all the investments and expenditures involved in a restaurant business.Documents Required
- Before beginning your new restaurant or cafeteria business in Dubai, 3 main documents are to be submitted.
- Trading License
- Food and Safety License
- Non-Objection certificate obtained from the local municipality of Dubai
- Ramadan permit
- Liquor permit
- Delivery permit
- Pork permit
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The restaurant sector is expanding all around the world. Despite global economic swings, nothing appears to diminish our desire to eat out.
According to recent estimates, the global food service sector is worth approximately USD 3 trillion. And there are no signs of it stopping down. The tendency is similar in the United Arab Emirates. The restaurant market in the United Arab Emirates is expected to be worth USD 3.3 billion. Fast food restaurants account for over USD 1.5 billion, followed by casual dining at USD 880 million and fine dining at USD 840 million.
However, a big market isn't the only reason why the UAE's restaurant sector is so appealing. We dine out 6.75 times a week on average in the UAE, which is more than the US average of 4.2 times.
If you want to build a restaurant or a cafeteria in Dubai, now is an excellent moment to do so.
Restaurant Formation in Dubai
The creation procedure is basically the same whether you want to create a restaurant or a cafeteria in Dubai. You'll need two different licences. The first is a business permit. The Dubai Department of Economic Development (DED) or a free zone can be used to apply for this. Then you must have the food control department approve your restaurant plans. After you've finished this step, you'll be able to apply for your food license. The Dubai Municipality Food Safety Department has released this statement. You must include a copy of your trade license as well as a restaurant floor plan that includes all entrances and exits, food processing spaces, food storage areas, all windows and ventilation, all food processing equipment, and all washing equipment as part of your application. The ‘Food Code' must be followed in order for your license to stay valid. This is similar to food safety regulations in many other large nations, and it entails fulfilling specific standards for food preparation, production, and cleanliness. The regulation includes everything from food preparation and storage to ventilation and cleaning facilities, among other things. Any institution that prepares or serves food, such as restaurants, cafeterias, motels, and supermarkets, is subject to the regulation.The Application Process
While there are some extra steps to applying for a food license, the procedure for applying for a commerce license is quite straightforward. You must first define your company operations before submitting your initial application. Will you be running a café, a restaurant, a culinary kitchen, or anything similar? You should also specify the sort of cuisine you want to sell, as well as how you want to sell it: eat-in, take-out, or delivery. To minimize delays in your license application, it's critical that you include these data. You must also avoid engaging in any trading activity that is not specified on your license. Working with a company setup specialist at this point is a fantastic option because this is such a precise element of the application procedure. Now that you've settled on your trade activity, it's time to pick a firm name. There are a few additional criteria to consider in the UAE that may not apply in other parts of the world. For starters, your company name can only contain your whole name if it is utilised in its entirety. Instead of J Smith Foods or Smith Foods, John Smith Foods is used. The rest is pretty self-evident. You cannot, for example, use the name of an actual organisation like NASA or MI5, and your firm name should not contain any derogatory or blasphemous words. Finally, make sure that the name you want to use is accessible for registration. This is another phase where a business creation professional may assist you. It's now time to submit your application for a trade licence. If you want to open a business on the Dubai mainland, you must first apply to the Dubai Economic Department (DED). You can apply directly to the relevant management authority for free zone installations. In both situations, you should include the following documentation as a bare minimum:- Finished application form
- A passport copy of the potential owner or owners
- Two passport size photos in colour.
Dubai Restaurants in the Digital Age Get Restaurant License Today: In this day and age, it is quite hard to imagine what the situation would be like without food delivery apps. There are busy days at work and lazy days at home where you just might not have the time or will to cook, nevermind getting dressed to go to a restaurant for a meal. That’s where the food delivery apps come to the rescue. Most restaurants in Dubai have either partnered with the popular delivery services of the city or have their own methods of delivery. Some of the most used delivery services are Deliveroo, Uber Eats, Careem Now, Talabat and Eat Clean.
Nevertheless, any restaurant would need to undergo filling a series of applications for the restaurant license process in Dubai. One would have to get several approvals for the restaurant business to get started. The restaurant permissions and documentation include a trading license, food and safety license and a Non-Objection Certificate (NOC) from the local municipality of Dubai. Other than that, one might need other specific permissions such as a delivery license, or a pork license and even a liquor permit if the restaurant chooses to serve alcohol along with the food.
The food and public health sectors take into priority the hygiene and have devised a food code that is paralleled to the international standards of food codes. The trade licenses comprise of all the details. The space for storage, ventilation systems, washing and cleaning areas, all of these are kept in check before any license and approval can be issued.
While dining in the restaurants has its own charm, obtaining a delivery license can benefit the restaurants greatly. In the course of a pandemic, where there is so much uncertainty and no one would step outside of the home, it is impossible for the F&Bs to actually gain customers. So adapting and giving into the digital age is probably the most viable option in order for the business to survive.
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