A Step By Step Guide for Setting Up a Restaurant Business in Dubai

Starting up a restaurant in a place like Dubai is a lucrative business idea as this destination attracts approximately 4.7 million tourist visits every year. The industry is further going to flourish in the upcoming days with the advent of Expo 2020. Therefore if you are planning to set up a restaurant business in Dubai, this is the right time. Here is a step by step guide given below:

Identifying a local sponsor

If you are planning to set up your restaurant business in the Dubai mainland, it is mandatory to have a local sponsor. A local sponsor is a UAE national who acts as a representative for all government-related paperwork and approvals. It is essential to find an educated, reliable, and trustworthy local sponsor.

Applying for the trade license

Before starting a restaurant business in Dubai, one needs to obtain a trade license issued by the  Department of Economic Development (DED). Before applying for the trade license, one must first select a trade name and then file with the DED for initial approval.

Selecting a strategic location

The next step is selecting an ideal location. You need to decide where you want to set up your business-mainland, free-zone, or offshore. Choose the location based on these crucial factors such as visibility, accessibility, customer base, affordability, and proximity to suppliers. Also, confirm with the Municipality of Dubai whether the restaurant business activity is permitted in that selected area and obtain a no-objection certificate.

Special approvals

Food License:  Soon after receiving the trade license, you need to procure a food license for receiving the construction plan of your restaurant. A food license is issued by the Food Safety Department in Dubai and it is mandatory to follow the food code for ensuring food safety right from the production to the distribution stage. One needs to also obtain other selective permits such as Ramadan Permit, Liquor Permit, Pork Permit, and Delivery Permit. 

Submitting the kitchen layout

After getting the initial approval, you need to submit the kitchen layout to the Food Safety Department. 

Drafting a memorandum of association

The next step is making an LLC memorandum of association. This is a commonly agreed set of clauses between the shareholders. Both the ex-pat and local sponsor need to sign this contract in front of the Dubai court official notary public.

Issue of License

This contract will be submitted to the DED along with initial approval. After the successful completion of all processes, your restaurant license will be issued.

If you are planning to set up a restaurant business in Dubai, Corpin Consultants can make the entire process less tedious for you. We have a team of experts who will guide you in every step with continued commitment. Contact us at +971 55 843 2911 or info@corpinconsultants.com for a free consultation.