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Opening a restaurant in Dubai is a great way to showcase your culinary expertise and entrepreneurial aptitude. The first step of this journey is to obtain the necessary legal permits and a restaurant license in Dubai for your business. While this may seem relatively simple at first, numerous industry reports suggest otherwise. To make matters worse, licensing issues are known to cause delays in opening timelines, sometimes even by months.
To understand this conundrum, it’s important to get to the root of the problem. Obtaining a restaurant license in Dubai involves several government agencies, extensive documentation, and a sequential approval process. What seems simple on paper often becomes a complex maze of bureaucratic mandates.
Unfortunately, many entrepreneurs underestimate the time and effort required to obtain proper licensing and restaurant business set up.
This blog provides detailed information on the required licenses, application process, and insights on Dubai restaurant license cost, guiding you step-by-step to avoid common headaches.
When deciding the location to open a restaurant in Dubai, broadly speaking, there are two main factors or locations to consider.
Mainland:
Setting up your restaurant in the mainland area enables you to operate freely anywhere across the UAE, including direct sales in the local market. It is generally a requirement to have a local partner obtain at least a 51 percent ownership of the business. However, recent reforms have alleviated the requirements in some areas.
The mainland currently allows 100 percent foreign ownership within certain categories of business. To the other sectors that fall beyond these regulations, foreign investors will continue to be obliged to form alliances with their local holdings of at least 51 per cent of the company.
Free Zone:
Setting up in one of Dubai’s free trade zones offers benefits such as 100% foreign ownership, full repatriation of profits and capital, and exemptions from import and export duties.
It’s an attractive option for foreign investors, but it may have restrictions on trading directly with the local market.
Whichever route you choose, securing a restaurant license in Dubai is the critical step that determines your legal standing.
Opening a restaurant in Dubai requires following a structured 10-step incorporation process as mandated by the Dubai authorities. Here’s the complete, corrected sequence:
The process of opening a restaurant in Dubai begins with determining the exact nature of the restaurant, whether it will be a café, fine dining, casual dining, or catering, and aligning it with the appropriate legal form. In most cases, investors opt for a Limited Liability Company (LLC), which offers operational flexibility and safeguards personal assets. Specifying all intended activities at this stage is critical, as it dictates licensing requirements.
A unique and compliant trade name should be registered with the Department of Economic Development (DED). The name must be in compliance with UAE regulations; this should not include restricted names or mention of religion. Approval normally takes one to two working days.
Company incorporation follows with the submission of all required documentation, including passport copies of shareholders, photographs, tenancy contracts, and the completed application forms to DED. At this stage, you receive the Initial Approval Certificate confirmation that the government has no objection to your business.
A floor plan of the proposed restaurant must be submitted to the Dubai Municipality. This plan must show adherence to the space allocation, kitchen design, ventilation, storage, and seating standards. Approval of this stage precludes unnecessary and costly changes later in the process.
Approval from the Dubai Municipality’s Food Safety Department is mandatory. Applications are processed through the FoodWatch portal, requiring evidence of compliance with HACCP standards. Supporting documentation includes food handling procedures, supplier agreements, and menu details.
The Dubai Civil Defence (DCD) must inspect and approve the premises for fire safety compliance. This includes verification of fire alarms, suppression systems, emergency exits, and fire-fighting equipment. A compliance certificate is issued upon successful inspection.
All food-handling employees must undergo training at Dubai Municipality–approved centers. Certification covers food hygiene, contamination prevention, and handling protocols. These certificates are generally valid for two to three years and are reviewed during inspections.
The final inspection is conducted by Food Safety Department to ensure that all operation standards and hygiene standards have been met by the restaurant. This involves assessment of kitchen design, equipment, food storage and upholding of staff training requirements.
After clearing all inspections and approvals, the DED issues the final trade license (restaurant license in Dubai). This legalizes your operations.
Once all approvals are done, the restaurant will be allowed to start operations. Many operators conduct a soft launch prior to a formal opening to ensure smooth operations. The compliance should be continuous, and the regulations should include regular inspections and license renewals on time.
Additional considerations to remember:
Location and lease requirements
As mentioned earlier, opening a restaurant in Dubai requires obtaining a trade license and a food license to ensure legal compliance:
This is crucial for any business operating in Dubai. It legally authorizes you to carry out business activities in the area granted by the DED in Dubai. The trade license is the essential foundation of your restaurant business. Here’s what you need to know:
Required documents:
Process timeline: 5-7 working days with complete documentation.
Estimated Dubai restaurant license cost: AED 15,000-50,000 (varies by business structure and activities).
After getting initial approval from the DED, you can proceed to contact the Food Safety Department to secure your food license. This department is responsible for issuing Food Safety Licenses in Dubai. To apply, you need to have your trade license from the DED first.
First, obtain preliminary approval and your trade license from the DED as outlined earlier. Next, submit your application along with the required documents to the Food Safety Department.
Provide necessary documentation:
When you get your Food Safety License and fulfil these requirements, you can be rest assured that your restaurant is ready to legally operate within the strict food safety and hygiene regulations in Dubai. After securing the food and trade licenses, you will be allowed to open up your own restaurant within the city-state.
Opening a restaurant in Dubai does requires a significant budget. The Dubai restaurant license cost varies depending on the type, size, and location of your business.
Government Fees You Can’t Avoid:
The expenses don’t stop at the initial setup. Renewal fees for your restaurant license in Dubai typically include:
Understanding the Dubai restaurant license cost helps entrepreneurs plan finances effectively and avoid delays
As you understand the process of opening a restaurant in Dubai, including the legal requirements and an overview of what it takes, it’s clear that opening a restaurant involves multiple steps and a significant investment. However, Dubai’s vibrant food scene makes it all the worthwhile.
In 2024 alone, Dubai granted almost 1,200 new restaurant permits, which indicates the growing demand. The food service industry of the city brings about AED 15.1 billion to the economy each year and the international cuisine dominates 78 percent of the market.
Obtaining a restaurant license in Dubai can be a lengthy process; however, Stratrich Consulting is here to efficiently handle things for you. Our UAE expert will assist in turning your restaurant vision into reality, allowing you to focus on creating a symphony of flavors for an ever-growing fanbase of foodies.
Ready to open a restaurant in Dubai the smart way? Let’s get your culinary venture off the ground.
