Starting a bakery in Dubai can be a lucrative venture due to a demand for fresh baked goods and diverse culinary tastes. Business setup in Dubai offers many benefits for entrepreneurs and can be simplified by working with a local consultant.
This guide breaks down how to set up a bakery business in Dubai, costs, and safety measures you will need to follow.
Benefits of a Bakery License in Dubai
These are some reasons why entrepreneurs and investors should consider starting a bakery business in Dubai:
- High daily demand: People in Dubai buy baked goods regularly, whether it is bread, rolls, cakes, or pastries, so you can expect a steady flow of customers.
- Diverse population: Dubai’s multicultural community has a wide range of tastes, giving you the opportunity to introduce unique, specialty, or niche bakery products.
- Growing interest in premium products: More customers are looking for gluten-free, vegan, and gourmet items, which makes specialty bakeries increasingly appealing.
- Stable business environment: The UAE’s strong economy and business-friendly regulations make it easier for you to set up a bakery business in Dubai. You can also get full ownership of your business.
- Low corporate tax: Businesses only pay a 9% corporate tax if their annual turnover exceeds AED 375,000.
Types of Business Models
When you register your bakery, you need to choose the business model and activities so you can get the right type of bakery license in Dubai. Some common options include:
Business model | Description |
Retail bakery | Sell baked products directly to customers from a physical outlet |
Bakery café | Combine bakery products with dine-in service, beverages, and light meals |
Industrial or commercial bakery | Operate a large-scale production unit that supplies restaurants, supermarkets, hotels, and catering companies |
Artisanal or specialty bakery | Focus on handcrafted or niche offerings such as organic, vegan, or gluten-free items |
Cloud kitchen bakery | Operate a delivery-only concept through online platforms |
Custom cake studio | Specialize in cakes, desserts, and event or celebration orders |
Wholesale bakery supply | Produce packaged baked items for retail distribution |
Streamline Your Business Setup Process
How to Get a Bakery License in Dubai
Working with a business setup consultant can make getting a trade license to start your bakery much easier. Here’s how the process works:
1. Choose a Location
- Your first decision will be selecting where you want to open your bakery.
- Mainland locations allow you to serve customers across the UAE, especially in areas with high footfall.
- Free zone companies can also operate in the mainland once they obtain the relevant permit from the Department of Economy and Tourism (DET) in their emirate.
2. Get Initial Approval
- You need initial approval before submitting your bakery license application.
- For mainland setups, approval comes from the DET.
- For free zone company formation, you apply through the respective free zone authority.
- You’ll also need to submit a detailed business plan and reserve your trade name before applying.
3. Apply for a Trade License
- After initial approval, you can apply for a trade license.
- Free zone licenses are usually issued faster than mainland licenses.
- Since bakeries deal with food preparation, health and safety checks may be part of the approval timeline.
4. Apply for a Food License
- In addition to your trade license, you will need a food establishment permit from Dubai Municipality.
- This includes getting approval of your bakery layout, food handling standards, and kitchen plan.
Our consultants can coordinate with municipal officials and keep you updated throughout the process.
Post-License Activities
Once you get your bakery license in Dubai, you’ll need to set up your business:
1. Submit Kitchen Layout for Approval
- Dubai Municipality will review your kitchen layout to ensure it meets hygiene and safety standards.
- You will need to show designated spaces for preparation, baking, cooling, and storage.
- Some bakery models require HACCP certification as part of compliance.
2. Open a Bank Account
- After you get your license, you can open a corporate bank account.
- You will need to choose a local banking provider and submit your application.
- We can help connect you with banks like Wio, RAKBANK, Dubai Islamic Bank, or Mashreq.
3. Design Your Bakery and Source Equipment
- You need to design your bakery in a way that creates a clean and efficient working environment.
- This includes installing equipment such as ovens, mixers, proofers, chillers, display units, and proper storage facilities.
- Your store or kitchen should also pass a Dubai Municipality health inspection before you can begin operations.
4. Hire & Sponsor Employees
- Once your trade license is issued, you can start hiring staff.
- Mainland companies usually have more flexibility in hiring compared to many free zones, which may limit the number of visas you can apply for.
- All bakery staff must complete the required food safety training and obtain a valid health card before they can work legally.
5. Start Your Operations
- After you complete all necessary approvals, you can open your bakery.
- A soft launch is a good way to introduce your products to the local community.
- You can offer samples or introductory promotions to attract your first customers. A strong brand concept and high product quality will also help you stand out in a competitive market.
Documents Required to Get a Bakery License in Dubai
You will need the following documents:
- Passport copies of owners and partners
- Business plan
- Trade name reservation
- Initial approval certificate
- Tenancy contract or Ejari
- Kitchen layout and floor plan
- Memorandum of Association
- Articles of Association
What Is the Cost of Setting Up a Bakery in Dubai?
The cost of a bakery license in Dubai ranges from AED 12,000 to AED 25,000, depending on your company structure and location.
Other initial costs include:
- Trade name reservation
- Initial approval fees
- Ejari
- Food license fees
- HACCP certification (if needed)
- Kitchen layout approval
- Bakery fit out and interior design
- Equipment purchase
- Employee recruitment and wages
The total investment you’ll need to open a bakery depends on the size you choose. If you’re planning a small bakery, you can expect to invest around AED 90,000 to AED 200,000. For a medium-sized bakery, your budget may range from AED 200,000 to AED 350,000. If you decide to go big, a large bakery will typically require anywhere from AED 400,000 to over AED 800,000.
Compliance Standards to Setup a Bakery Business in Dubai
To run a compliant bakery business in Dubai, you must meet standards related to:
- Temperature-controlled storage
- Food handling and hygiene processes
- Separate areas for preparation, baking, cooling, and packaging
- Proper ventilation, drainage, and exhaust systems
If you operate a commercial kitchen or supply large volumes of baked goods, you may need:
- HACCP certification
- Approved layout before installation of equipment
Additionally, Dubai Municipality will conduct an inspection of your premises. They will expect to see:
- Washable surfaces
- Sufficient spacing between equipment
- Grease traps and ventilation
- Waste and pest control systems
Clearly defined workflow zones
Start Your Bakery in Dubai With A&A Associate
A&A Associate is the largest business setup advisory in the UAE. Our consultants manage the entire company formation process, from initial approval and municipal permits to visa processing and bank account opening. Get in touch for a free consultation!
