Getting your foot in the door of the food sector is no simple feat, particularly when there is a lot of competition. So what is the way for aspiring entrepreneurs eying the city for a food business? A cafeteria is ideal to be set up in mainland Dubai especially near residential areas or offices depending on the target audience, cuisines, store space required, etc. however, you need to look out for the cafeteria license cost in Dubai before setting up the business.
One of the fastest-growing economies of the Middle East, the United Arab Emirates is also a major player in the F&B industry. The UAE restaurant industry has witnessed its biggest growth in recent years. Dubai is a major player in the restaurant revolution as well. An important factor in Dubai’s development has been the global interest in the city from visitors from all over the world. Many people have turned to Dubai as a weekend vacation location, which has resulted in an exponential surge in business prospects.
To begin with, the quickest and most cost-effective method to get started in the F&B industry is to open a modest café in Dubai. The most significant benefit of starting up a food business in Dubai is that the city has always been supportive of foreign companies in the market, ensuring that they have everything they need to be successful.
Here is how you can open a cafeteria in Dubai and notch those profits.
1. Cafeteria License In Dubai
A critical step in opening a restaurant or cafeteria in Dubai is obtaining food and commercial permits. Obtaining a license is an essential procedure and missing required stages might expose your firm to legal penalties and termination. Following are some of the key licenses you need to establish a food business in Dubai.
- The Department of Tourism and Commerce Marketing in Dubai will issue the trade license.
- The Department of Economic Development (DED) gives the Cafeteria’s business license.
- The Food and Safety Department will provide the food license. Obtain clearance for building plans that must be completed in accordance with the department’s criteria.
- Choose a local sponsor who will function as your business sleeping partner.
- If you’re renting space for your cafeteria, choose an appropriate location and execute a leasing agreement with the landlord.
2. Legal Documentation To Keep In Mind
Wherever you open a restaurant or a cafe in a city, you need to follow the rules and regulations of that place. When it comes to legal documents, it can be a hassle sometimes. You can try and make a list of these documents to simplify the required legal procedures. Here is a list of legal documents to keep in mind.
(i) For The Purpose Of Obtaining A Food License
– Food Consignment release license from the authorities
– Permit for vehicles for transporting food products
– Special permit for handling and serving meat or any by-products
(ii) For The Purpose Of Obtaining A Trade License
– Application for a license approved by the company’s directors Memorandum of Association (MOA)
– Attestation of the company’s name approval letter Copies of the managers’ passports
3. Cafeteria License Cost in Dubai
Setting up and maintaining a cafeteria in Dubai successfully takes a great deal of planning, permissions, financial arrangements, overheads, investments, equipment setup, space furnishing, etc. Set aside a budget that can include license costs, permissions, certificates, office rent, early investments, and so forth.
The cost of opening a cafeteria in Dubai varies as well, based on a variety of factors. The following sections are divided within the company setup fees:
(i) Government Fee
Any and all fees, taxes, and charges imposed by State or Federal legislation, regulation, or other mandate or necessity, including universal service fees and charges, are referred to as government fees. This all includes –
– Trade Name Reservation
– Initial Approval Fees
– Memorandum of Association Typing & Translation
– Memorandum of Association Notarization Fees
– Ejari Fees (Tenancy Contract Attestation)
– Trade License Fees
– Sponsorship Fees & PRO Services Fees
– Immigration Card Fees
(ii) Additional Cost
Additional cost can include anything which is not under government fee but is required to give for other setups to other organisations. This includes-
– Market Fees (2/5 of Annual Office Rent)
– Labour File Charges
– License Amendment fees (if any)
With the increase in visitor numbers, the relaxation of visa requirements is set to encourage more expat immigration. With the ongoing Expo 2020, this potential will only expand. This is the perfect time to open a cafeteria in Dubai. Keep in mind the cafeteria license cost required to set up a cafeteria in Dubai and plan your financials accordingly.
