Did you know that over 19,000 new companies were registered in Dubai during the first half of
2024? Are you looking to set up a cafeteria in Dubai? It’s indeed a brilliant idea! Dubai is an
attractive destination for entrepreneurs eager to serve yummy meals and beverages to a people of
diverse culture.
Wondering about how much cost for cafeteria license it Dubai? Well, you’re at the right place.
In this article, we’ll help you sail through cafeteria license cost in Dubai and outline all the ins
and outs of the whole licensing process.
Key Takeaways
The cost of obtaining a cafeteria license in Dubai will range from AED 24,000 to AED
35,000.
Ensure the business follows all the labor, food safety, and hygiene regulations of Dubai
while employing all possible effective marketing strategies that will attract customers.
Breaking Down Cafeteria License Cost in Dubai
On the low side, obtaining a cafeteria license would cost you about AED 10,000 to AED 25,000.
Actually, that alone is for the license. The entire process to get the license might cost you close
to AED 24,000 to AED 35,000.
The size of your cafeteria, location, and number of people to work for you are some of the
determinants for the licensing fee in Dubai.
Let us break down the estimate just a bit more so that you do have an idea of the figure:
Let’s break it down a bit more to give you a detailed figure:
| Category | Cost ( in AED) |
|---|---|
| Cafeteria License Fee | 10,000 to 25,000 |
| Initial Approval | 220 to 420 |
| Drafting the MOA | 2000 to 3000 |
| External Approval | 5000 to 10,000 |
| Trade Name Registration | 750 |
Trade Name Registration
A trade name is your brand's first impression; registering it is an important step so that no one
can use your unique identity in the market. To register a trade name, this will cost you AED 750.
Initial Approval
This is the first official green light from the authorities to go ahead with your plans. It's just like
a thumbs-up to say, "Go ahead!" The amount you have to pay for initial approval is AED 220 to
AED 420.
Drafting the MOA (Memorandum of Association)
This document defines your business structure, particularly if you do business with partners, and
the role or function of each partner. The drafting fee for an MOA is AED 2000 to AED 3000.
External Approvals
The location of your cafeteria and what you plan to serve can require additional approvals from
various authorities. These approvals are crucial to ensure your business complies with all the
necessary regulations. The cost for these external approvals can range from AED 5,000 to AED
10,000, depending on the specific authority and requirements involved.
Cafeteria License Fee:
This is the most important license fee that will finally give you the permission to run a cafeteria.
This is your way to kick off by serving good food and great beverages in Dubai. Getting a
cafeteria license costs from AED 10,000 to AED 25,000.
Additional Considerations.
You will need to hire competent staff to operate your cafeteria. Labor laws in Dubai dictate that
you must provide your employees with an employment contract with a fully comprehensive
insurance cover for medication and other benefits. Additionally, work permits and visas have to
be processed for foreign workers.
Food Safety and Hygiene
Dubai never compromises on food safety and hygiene. As a cafeteria owner, you must ensure
that your setting and its practices are up to the standard. Dubai Municipality will take regular
visits, and falling to meet the expectations may result in fines or even closure.
The Licensing Process: A Step-By-Step Guide
Follow this step-by-step guide to enjoy a seamless process:
1: Choose a Business Structure
First things first! Before applying for a cafeteria license in Dubai, you must decide on your
business structure. Also check what are the Costs Involved in Setting Up a Business in Dubai
The main business types include:
Sole Proprietorship: Owned and operated by one individual.
Partnership: Two or more individuals.
Limited Liability Company (LLC): A more common choice of business structure that
has a minimum of two and a maximum of fifty shareholders.
So, how do you choose the appropriate and right business structure? It all depends on your
business goals, the number of partners involved, and the level of liability.
2: Choose a Location
Whether you choose a location within a busy mall, a quiet neighborhood, or any commercial
area, your cafeteria's location will largely determine its success. But make sure that it does abide
by Dubai's zoning laws.
3: Trade Name Registration
Register your trade name with the DED in Dubai. Ensure your business name does not contain
religious or political meanings or connotations.
4: Apply for Initial Approval
Upon registering a trade name, you can obtain preliminary approval from the DED. It allows one
to proceed with the licensing process but not to permit one to start doing his business.
You will be needed to give a few documents, which contain a copy of your passport, visa, and
Emirates ID. A case where you have partners, you have to provide their documents.
5: Draft the Memorandum of Association (MOA)
You should draft a Memorandum of Association (MOA) if you’re planning to
set up your business as an LLC. The MOA lists down the responsibilities and roles of all the partners and
protects their rights.
6: Obtain External Approvals
Depending on your cafeteria’s offerings, you may need to obtain external approvals from other
government bodies.
They include:
Dubai Municipality: For health and safety standards.
Department of Tourism and Commerce Marketing (DTCM): For cafeteria in a hotel
or tourist area.
Civil Defence: For fire safety measures.
7: Lease Agreement and EJARI Registration
After getting the preliminary approvals, you would have to finalize your lease agreement. You
are then supposed to get the lease agreement registered with EJARI, Dubai's officially
recognized electronic system introduced by Real Estate Regulatory Agency for registering and
regulating rental contracts.
It would be an important step into making your contract with the landlord legally binding. You
would be able to obtain your Ejari official contract from the DLD official website after creating a
first-time user account within one to two working days.
8: Apply for the Cafeteria License
After accomplishing the foregoing preliminary steps, you may now finally apply for the cafeteria
license. This is the final step of the process whereby you will submit all your documents, which
include:
Initial approval certificate
Trade name certificate
MOA (if applicable)
External approvals
EJARI registration
Passport-sized photos
The application is submitted to the DED, which reviews the documents and issues your license if
everything is in order.
Conclusion
Now that you have learned how much cost for cafeteria cost in Dubai, start planning your
budget and managing costs. If you need assistance in setting up a cafeteria business in Dubai, get
in touch with Emifast. We offer comprehensive assistance with setting up processes,
bookkeeping, auditing, and reporting. Additionally, we can also provide guidance related to
obtaining sponsor visas.
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