The United Arab Emirates (UAE) is experiencing rapid economic growth, with Dubai at the forefront of this transformation. Investors from around the world are closely collaborating with Dubai-based businesses to establish a strong presence in this market. Dubai has also become a popular tourist destination, creating numerous business opportunities. Among various sectors, the restaurant industry has witnessed significant growth in recent years.
Entering the food industry can be challenging, especially with fierce competition. One practical way to start is by opening a small cafeteria in Dubai. The city has a history of supporting international businesses, offering them valuable assistance for success.
Difference Between a Cafeteria and a Restaurant License in Dubai, UAE
In Dubai, there are two types of licenses related to food service: cafeteria licenses and restaurant licenses. These licenses are issued by the Department of Economic Development (DED) and the Dubai Municipality, but they apply to different kinds of food businesses.
A cafeteria license is given to businesses that mainly offer ready-made food like sandwiches, salads, and beverages such as coffee and tea. Customers typically serve themselves in cafeterias, and you often find them in places like office buildings, hospitals, and public areas.
In contrast, a restaurant license is for businesses that provide table service and offer a broader range of food and drinks. This includes a full menu with appetizers, main courses, and desserts. Restaurants can be located in various settings like standalone buildings, shopping centers, or hotels.
Both types of licenses require businesses to follow rules and guidelines set by the Dubai Municipality and DED. These rules cover aspects such as health and safety standards, the design and layout of the establishment, and the number of staff required to operate the business.
Advantages of Establishing a Cafeteria in Dubai
Tourism is booming in Dubai, creating a higher demand for Cafeterias and Restaurants in the city, making it a great place to start a business. Setting up a business in the UAE is easy for foreign investors. The UAE offers tax-free benefits, excellent infrastructure, and simplified business setup rules. Foreign business owners can also send their money and profits abroad without any restrictions. To tap into Dubai's economic growth, just get in touch with Smart Zones® UAE. We'll assist you with business licenses, registration, visas, free zones, and more.
Permitted Activities under the Cafeteria License in Dubai, UAE
- 1. You can sell coffee, tea, and fruit juices.
- 2. You can also sell foods like pastries, brownies, cakes, pasta, noodles, hotdogs, sandwiches, and similar items. These can be either made right there in the cafeteria or prepared for people to eat within a few days.
- 3. Pre-packaged items like chocolates, candies, biscuits, chips, and drinks such as soda and soft drinks are also allowed.
While the license generally lets you sell a wide range of items in your cafeteria, it's a good idea to check the rules and regulations to make sure you're following them when adding new items to your menu.
Suitable Location for Cafeteria Business in Dubai, UAE
When deciding where to establish your Cafeteria, you have two options:
- 1. Free Zone: Many expatriate entrepreneurs favor Free Zone as they enable full ownership (100%) of the company without the need for a local sponsor.
- 2. Mainland Area: Mainland setup requires allocating 51% of your company to a local Emirati sponsor. Interestingly, for Cafeterias, the preferred choice is often the mainland. This is because, in Free Zones, your Cafeteria operations are limited to that specific zone. In contrast, the mainland allows you the flexibility to expand your Cafeteria business across the entire country, making it ideal for those planning to open multiple branches.
Steps to Obtain a Cafeteria License in Dubai, UAE
Establishing a Cafeteria business in Dubai, UAE involves several steps:
Select a name for your cafeteria business, but remember it must adhere to UAE naming regulations. It can't contain offensive language, references to religion, or initials. Smart Zones UAE will assist in registering your company name.
To operate legally, a cafeteria in Dubai requires a cafeteria license categorized under Restaurants and Coffee Shops, necessitating a professional license. Typically, a local sponsor, an Emirati citizen holding 51% of shares, partners with a foreign entrepreneur. Seeking expert guidance, like Smart Zones UAE, is advisable to navigate this process.
Approval certificates from Dubai Municipality's Food and Safety Authority, Planning Department, and the Dubai Department of Economic Development (DED) are essential for doing business in Dubai.
Selecting the ideal location for your cafeteria is crucial. You'll need to provide the tenancy contract along with other required documents for your license application. Smart Zones UAE can assist you in finding the perfect location to grow your cafeteria business.
Once you've applied for your cafeteria license, you can proceed with your visa application and corporate bank account setup. Depending on your license's terms, your visa may allow you to sponsor family and staff visas. Smart Zones UAE's experts can guide you through this vital step.
Remember that the process may vary depending on your chosen jurisdiction and activities of your cafeteria. Consulting legal and business experts familiar with Dubai's cafeteria business setup is highly recommended.
Looking for a seamless business setup experience? Trust Smart Zones® Dubai to pave the way.
Required Documents and other approvals for Cafeteria Setup in Dubai, UAE
To open a cafeteria in Dubai, you'll need specific documents. Here's what you'll need:
- An approval certificate from the Department of Economic Development (DED).
- A layout plan of the building, space, or shop.
- An approval certificate from the planning department.
- A completed license application signed by all business partners and managers.
- A Memorandum of Association (MOA) signed by all shareholders.
- The registration and approval letter for your company's name./li>
- Passport copies of business managers and employees.
For the Cafeteria's Construction Plan:
- Space for food preparation, cooking, and storage.
- Sanitary facilities.
- Details about windows and the ventilation system.
- The location of equipment used for food processing.
- If applicable, the placement of washing machines.
- Information on entry and exit passages.
Location Requirements for Starting a Small Cafeteria in Dubai
- Ensure the chosen location is suitable.
- Provide enough space for equipment and food preparation.
- Allocate space for waste disposal and smoke control.
- Separate the toilet area, placing it away from the kitchen.
- Regularly clean the walls, floors, and ceilings.
- Implement fire-resistant measures.
- Maintain separate washbasins for dishwashing, vegetables, and meat (for non-vegetarian cafeterias).
Cost of Establishing a Cafeteria Business in Dubai, UAE
The price for getting a cafeteria license in Dubai can range from AED 10,000 to AED 30,000. Determining the precise cost of launching a cafeteria in Dubai can be tricky. It depends on factors like where you set up, the type of license, how your company is structured, rent, and more. The fees for getting the necessary permissions and licenses to start your own cafeteria in Dubai also vary depending on where it's located, how big it is, and other things.
If you want to know exactly how much it'll cost, get in touch with the specialists at ® UAE. They can provide you with an accurate quote.
In Dubai, Cafeteria licenses are for businesses that mainly offer ready-made foods like sandwiches and coffee, often for self-service. Restaurant licenses cover establishments that provide table service with a wider food and drink menu, including appetizers, main courses, and desserts.
Dubai's booming tourism creates high demand for Cafeterias, making it a great business opportunity. The UAE offers tax benefits, excellent infrastructure, and simplified business setup rules for foreign investors. You can also repatriate profits with ease.
You can sell coffee, tea, fruit juices, pastries, cakes, pasta, sandwiches, chocolates, candies, biscuits, chips, soda, and more. However, it's essential to check the regulations when adding new items to your menu.
You have two location options: Free Zone or Mainland. Free Zones offer full ownership without a local sponsor, while the Mainland requires a local Emirati sponsor. Mainland Cafeterias have the advantage of operating across the entire country, making them ideal for expansion.
The steps include choosing a company name, deciding on the legal structure, obtaining initial approvals from relevant authorities, selecting the right location, and applying for your visa. The process may vary based on your chosen jurisdiction and cafeteria activities.
You'll need documents like approval certificates from the DED, a layout plan, and approvals from relevant departments. Additionally, a completed license application, MOA, and the approval letter for your company name are necessary.
The cost varies depending on factors like location, license type, company structure, and rent. The fees for permissions and licenses also vary based on cafeteria size and location. For an accurate quote, consult experts at Smart Zones® UAE.
Want to know more, talk to Smart Zones® Dubai advisory team they will be happy to help. Ready to invest in your future?
