The UAE ranks high on the global list of food & beverage spending. Both resident and tourist populations see the country as a hub for good eats and aesthetic dining experiences. Anyone wanting to start a coffee shop in Dubai should be thorough in their market research.
The food & beverage industry in the country is highly competitive, but authenticity and unique spots will always be in demand. Working with an expert consultant can make getting your business license much easier.
Why Should You Open a Café in Dubai?
There are a lot of reasons entrepreneurs and investors should consider a coffee shop Company setup in Dubai:
Multiple location options:
Dubai has a lot of locations throughout the Emirate that see high foot traffic. Picking heavily populated commercial or residential areas will guarantee some customers walking in.
Diverse, rising population:
The city welcomes thousands of tourists every year. The resident population is also diverse with high disposable incomes.
Demand for good coffee:
There is high demand for good coffee that doesn’t break the bank. Dubai residents like supporting local businesses and will be more inclined to do so if your coffee offers something unique.
Economic stability:
The UAE is one of the most economically and politically stable countries. This makes it a very business-friendly environment.
Low corporate tax:
There is only a 9% corporate tax levied on businesses in the country. Additionally, only annual turnovers above AED 375,000 have to pay this tax.
Steps to Start a Coffee Shop in Dubai
There’s a lot of regulations around getting a restaurant license in Dubai, mainly around health & safety. If you work with a local business setup consultant, they can help with the entire setup process and connect you with the right people who can help you with the non-government side of things.
1. Choose a Location
- The first decision you’ll have to make is where exactly do you want to set up your business.
- Both jurisdictions (free zones and mainland) have their own advantages, but Dubai mainland company formation will allow you trade throughout the UAE and access a larger customer base.
- However, free zone companies can now also trade with the mainland once they get a permit from the Department of Economic Development in their Emirate.
2. Get Initial Approval
- You will need initial approval from the relevant authorities before you can submit your license application.
- If you choose a Dubai mainland setup, you’ll need approval from the Department of Economy and Tourism (DET).
- For free zones, you will need to submit an application to the relevant free zone authorities.
- A coffee shop business plan in Dubai will be required for the application process.
- By the time you apply for initial approval, you will need to have registered a trade name.
3. Apply for a Trade License
- You will apply for a trade license with the same authority that you obtained initial approval from.
- Free zone licenses are generally processed faster than mainland licenses.
- However, as a coffee shop deals with serving food to the public, health & safety checks may delay the process.
- Just make sure you have all the necessary information and paperwork.
4. Apply for a Food License
- Apart from a trade license, new coffee shop businesses will also need a food license from the Dubai Municipality.
- If you work with A&A Associate’s expert consultants, they will make sure to liaise with the government officials and keep you updated throughout the process.
5. Open a Bank Account
- The last step in the business setup process will be to get a bank account.
- You will need to find a local banking service provider that suits your needs and submit an application.
- We can help open a bank account with banks like Wio, RAKBANK, Dubai Islamic Bank, or Mashreq.
6. Design Your Store & Source Supplies
- You will need to invest in designing your café to look attractive and welcoming.
- You can also add outdoor seating to take advantage of the colder months.
- You can source your supplies and equipment from local partners or import them.
- Before you launch your business, your store will need to pass a health inspection from the Dubai Municipality.
- The officials will check to see if your facility has the necessary measures in place for food safety.
- Once you pass the inspection, you will get a certification that you must display in your store.
7. Hire Employees & Sponsor Them
- You can hire employees and sponsor them once you get your trade license.
- Free zone businesses generally have limited visa quotas, but mainland businesses can hire as many employees as they want.
- The employees of your coffee shop in Dubai must have health cards from the Dubai Health Authority to be able to legally work at your business.
8. Start Your Operations
- Once you have everything set up, you can launch your coffee shop.
- Having a soft launch can help you introduce yourself to your local community.
- You can offer welcome discounts and free samples to help customers get a feel of your store.
- You should have a unique concept for your coffee shop.
- Having visually appealing interiors can make it much easier to attract customers and run marketing campaigns.
Documents for Getting a Coffee Shop License in Dubai
These are the documents you will need to submit to get a coffee shop license:
- Passport copies of owners and partners
- Business plan
- Tenancy contract
- Trade name reservation
- Initial approval certificate
- Floor plan of your store
- Memorandum of Association (attested and notarized, if necessary)
- Articles of Association (attested and notarized, if necessary)
What is the Cost of a Coffee Shop License in Dubai?
The cost of getting a coffee shop license in Dubai will range from AED 10,000 to 15,000 depending on your location and company structure. Other initial costs will include:
- Trade name reservation
- Initial approval application fees
- Attestation and notarization
- Ejari
- Food license application fees
- Interior design and fit out
- Employee recruitment and salaries
You can use our cost calculator to get an exact estimate of how much your coffee shop business will cost.
Streamline Your Business Setup Process
Open a Café in Dubai With A&A Associate
A&A Associate is the UAE’s largest business setup advisory whose expert consultants have assisted clients all over the country. We handle the entire company formation process, from getting initial approval to opening a bank account. Get in touch for a free consultation!
