How To Setup Kids Amusement Arcade in Dubai, UAE: Step by Step Guide

Dubai's thriving market welcomes entrepreneurs with fresh concepts. Amusement arcades cater to children's natural desire for fun & learning. Smart Zones® UAE assists with setting up your business.

  • 100% Foreign Ownership
  • Easy Business Setup
  • Thriving Family Entertainment Market
  • Tourist Hub
Start your Kids Amusement Arcade Business in Dubai, UAE - Smart Zones UAE

Kids Amusement Arcades provide dedicated spaces for children to enjoy video games, pinball machines, and similar interactive activities. Originally known as "penny arcades" due to the initial coin denomination used, these arcades have evolved significantly since their introduction in Dubai during the 19th century. Today, they are a common feature within shopping malls, offering either stand-alone shops or integrated entertainment zones. Access to these arcades typically requires a fee for the use of games and attractions.

Why You Should Start Your Kids Amusement Arcade in Dubai, UAE ?

Dubai presents a goldmine for your children's amusement arcade. A large, affluent population with a love for family entertainment creates a guaranteed customer base, bolstered by Dubai's status as a tourist hub. Beyond the market, Dubai offers a business-friendly environment with streamlined setups, a competitive 5% corporate tax rate, and 100% foreign ownership. This strategic location with year-round operation and high disposable income sets your arcade up for success.

Establishing a Kids amusement arcade in Dubai necessitates obtaining a professional license. The Department of Economic Development (DED) handles the registration process for such service-based businesses. Importantly, Dubai allows for 100% foreign ownership of amusement arcades, eliminating the requirement for a local shareholder. However, it's important to note that while a local service agent can act as a sponsor to facilitate obtaining a residency visa, the owner holds unlimited liability for the business.

Established Examples of Children's Amusement Arcades in Dubai, UAE

  • DIVR Labs UAE
  • Inflight Dubai
  • DreamScape
  • Brain Scape Games
Advantages of Establishing a Kids Amusement Arcade Business in Dubai - Smart Zones UAE

Benefits of Establishing a Kids Amusement Arcade Business in Dubai, UAE

Dubai presents a highly attractive environment for launching an amusement park, offering a multitude of benefits for investors:

  • Unparalleled Ownership and Profit Repatriation: Dubai allows for 100% foreign ownership of businesses, along with the complete repatriation of invested capital. This financial freedom is a significant advantage for international investors.
  • Favorable Tax Landscape: The UAE government prioritizes fostering a business-friendly ecosystem. Dubai boasts a low corporate tax rate of just 5% (as of April 4, 2024), coupled with a competitive 5% VAT rate. This combination makes Dubai a cost-effective location for company formation.
  • Unmatched Security and Stability: Renowned for its safety and low crime rates, Dubai offers a secure environment for businesses to operate and flourish. The city is free from social unrest and enjoys a high ranking for stability in the Middle East.
  • Strategic Location and World-Class Infrastructure: Dubai's geographical position makes it a vital hub for international trade and logistics. Its strategic location connects businesses to rapidly growing markets like Africa, India, and China. Additionally, Dubai boasts advanced infrastructure, including efficient ports and a skilled workforce, facilitating seamless global expansion.
  • Accessibility to International Markets: Dubai streamlines access to international markets with minimal bureaucracy, allowing businesses to leverage its well-developed ports and abundant workforce for global growth.
  • Thriving Family Entertainment Market: Dubai's large and affluent population prioritizes spending on family entertainment, creating a strong demand for engaging amusement park experiences.
  • Tourist Hub: Dubai attracts a significant number of tourists with families, further increasing your potential customer base.

Professional License for Your Children's Amusement Arcade in Dubai, UAE

In Dubai, establishing a children's amusement arcade requires a Professional License issued by the Department of Economic Development (DED). This license category encompasses a diverse range of activities, including business support services, sports training services, and entertainment and artistic performance.

It's important to understand the key characteristic of a Professional License: unlimited liability for the owner. This signifies that the owner bears full financial responsibility for any debts incurred by the business. Creditors may have recourse to your personal assets in the event of company insolvency.

Business Structure and Planning in Dubai, UAE

Choosing the right business structure is vital when launching a firm in Dubai. Options include:

  • 1. Free Zone Company: A free zone company provides foreign ownership, and simplified registration processes, ideal for global operations.
  • 2. Mainland Company: Mainland companies adhere to UAE laws and regulations and are suitable for businesses targeting the domestic market.

Consider factors like your business services, target market, and long-term goals when selecting a structure, and consult legal and business experts for guidance.

Steps to Launch a Kids Amusement Arcade in Dubai, UAE

Establishing a Kids Amusement Arcade in Dubai involves several steps:

Embark on the journey of opening a business in Dubai by partnering with Smart Zones® UAE. Our adept company formation specialists will guide you through the business license application and setup process, liaising with relevant government and municipal authorities on your behalf.

Secure initial approval from the Department of Economic Development (DED). This process involves filing the necessary application.

Choose a unique and appropriate name for your amusement park. Once finalized, pay the associated registration fees.

Compile all required documents, ensuring they are accurately completed, authenticated, and attested. Submit the complete package to DED for final approval.

As a service-based business, you will require a Professional License issued by DED. This license category encompasses various activities, including entertainment and artistic performance, which applies to children's amusement parks. It's important to understand that a Professional License carries unlimited liability for the owner, meaning you may be personally responsible for any company debts.

Complete the process by opening your corporate bank account for your Dubai Business with Smart Zones® UAE. This final step paves the way for the successful opening of your Business.

Remember that the process may vary depending on your chosen jurisdiction and business activities. Consulting legal and business experts familiar with Dubai's business setup landscape is highly recommended.

Operating since 2013, Smart Zones® UAE provides on-going support to obtain Business Services License in Dubai, UAE including Kids Amusement Arcade Businesses.

Looking for a seamless business setup experience? Trust Smart Zones® Dubai to pave the way.

Documents Required to Start a Kids Amusement Arcade Business in Dubai, UAE

Initiating the Approval Process for Kids Amusement Arcade in Dubai:

  • Memorandum of Association (MOA) and any other relevant agreements: These documents should be filled out accurately, notarized, and attested to ensure compliance.
  • Office Lease Agreement (Ejari): Please arrange for an Ejari to be issued in your company's name and forward a copy to us electronically.
  • Upon receipt of these documents, we can proceed with obtaining final approval from the Department of Economic Development (DED).

Submitting incorrect documents can lead to immediate rejection. Our consultants at Smart Zones® UAE ensure you have the right documents, avoiding any complications in the process.

Cost of Establishing a Kids Amusement Arcade Business in Dubai, UAE

The initial capital investment for a children's amusement arcade in Dubai varies depending on the facility's size and concept. This includes securing real estate through lease or purchase, construction or renovation costs, and acquiring essential arcade games. The initial licensing fees may vary around 30,000 AED, depending on location.

For a precise quotation, reach out to Smart Zones® UAE to obtain an updated estimate tailored to your specific requirements. This ensures that you are securing the most competitive rate for the services essential to your business.

Asked Questions (FAQs)

A Kids Amusement Arcade in Dubai offers dedicated spaces for children to enjoy interactive activities like video games and pinball machines. Setting up such an arcade involves obtaining a professional license from the Department of Economic Development (DED) and partnering with Smart Zones® UAE for streamlined setup processes.

Dubai offers a lucrative market for children's entertainment due to its affluent population, tourist influx, and business-friendly environment. With 100% foreign ownership allowed, low corporate tax rates, and a thriving family entertainment market, Dubai presents a strategic location for a successful arcade venture.

Benefits include unparalleled ownership and profit repatriation, favorable tax landscape with low corporate tax rates, unmatched security and stability, strategic location with world-class infrastructure, accessibility to international markets, and a thriving family entertainment market due to Dubai's status as a tourist hub.

A Professional License issued by the Department of Economic Development (DED) is necessary for operating a children's amusement arcade in Dubai. This license category covers entertainment and artistic performance activities, ensuring compliance with regulations.

Steps include partnering with Smart Zones® UAE for business setup assistance, obtaining initial approval from DED, selecting a unique business name, preparing and submitting required documentation, acquiring a Professional License, and opening a corporate bank account with assistance from Smart Zones® UAE.

Documents required include Memorandum of Association (MOA) and relevant agreements, an Office Lease Agreement (Ejari) issued in the company's name, and any other necessary agreements or permits as per DED regulations.

The initial capital investment varies depending on factors like facility size, concept, real estate costs, construction or renovation expenses, and licensing fees. Consulting with Smart Zones® UAE can provide a tailored estimate to ensure a competitive rate for essential services.

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Want to know more, talk to Smart Zones® Dubai advisory team they will be happy to help. Ready to invest in your future?

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