With the steady rise in the economy of Dubai, there is a growing demand for investors from every industry including catering services. Any entrepreneur with a knack for providing high-quality, diverse cuisine while also exhibiting the famed hospitality of Dubai can try a hand at it. The business would be able to attract a wide range of customers that includes tourists, large and small business clientele as well as regular citizens. A catering business setup in Dubai may be the dream of many blooming entrepreneurs and A&A Associate can help you complete the process without any hassles. Here are a few basic steps that must be followed to set up a catering business in Dubai.
Steps to Start a Catering Business in Dubai
Narrow Down Your Business Activity
Select a location
Based on different factors, you must choose a location to set up your business. Keep your target audience in mind while choosing your business location. This may be in the mainland or the Freezone areas. Different rules are applicable at distinct locations. The Freezone areas would probably be a more economical choice as it incorporates tax exemptions as well as allows 100% foreign ownership. Based on the location, you must apply for a license at the Dubai Department of Economic Development or the respective freezone authority if you choose to set up a business in a Freezone area.
Decide Your Company Name
While naming your business, you must ensure that it satisfies the rules for naming a business in the UAE. Primarily, the name of the business must reflect the nature of the service it provides. As per the rules, the name should not use foul, obscene, or offensive language or take the name of God. Most importantly, the name must not be used by an existing business that provides similar services, or a government organization and must not allude to any political organizations. You must check if the chosen name is available. There are several regulations to abide by before finalizing and registering the name.
Choose a company structure
Once you have decided on the name of your business, the next step is to decide on the structure of your company. It dictates how much control you have over the working of the company. This decision must be made with much prudence as it has many legal and financial implications that would affect your business in the long term. You may either be a sole proprietor and reap 100% profit or make a shared investment. These decisions would influence the organization of the different sections of the company and your control over it. The Free zones in Dubai would allow you to gain complete ownership even if you are a foreign investor. You must also decide the scale at which you intend to provide your services.
Apply for the license
Armed with a clear structure of your catering service, you must apply for the necessary license at the respective government organizations. Once you have got your name registered, you will also have to avail a professional license at the Dubai Department of Economic Development (DED). It would be best to make note of any specific license your service would need through the Dubai Food Safety Department. If you are importing any materials or products, you will need a license for them.
You will also have to propose your detailed business plan and design to convince the authorities of your business capability. This includes presenting them with a clear and detailed floor plan of your business area, and the equipment you would use for production, sanitation, and storage. You must keep all necessary documents ready for inspection and ensure that it meets the standard requirements.
The cost of a catering license varies according to the specific nature and scale of your business.
Rent a Kitchen
The key aspect of a catering service is the food and beverages that it offers. As the food must be freshly prepared, you will need a spacious and hygienic area for cooking and storing the products for supply. You must either rent or lease a place for this purpose. Keep in mind your target audience, your scale of supply, and the range of dishes that you would be producing while choosing the place.
Open a bank account
Every registered business requires a corporate account to receive payments. This will require a valid Trade License, Certificate of Registration, Company Memorandum and Articles of Association, passport copies as well as any other supporting documents as per the requirements of respective banks. This is a crucial step in the formation of your catering business and you may depend on us to guide you throughout the process.
Conclusion
Starting up a catering service in Dubai is one of the most lucrative business choices to embark on. It is also one of the most interesting business options in Dubai. Though the process seems quite daunting initially, don’t let it hold you back from reaping profit over time. A&A Associate is a business setup consultant in Dubai that can provide adequate and timely guidance throughout the process of registering your catering business. Contact us if you feel overwhelmed by the paperwork or the formal registration process at any step on the way.
