Business Assistance

7 Steps to Start a Restaurant in Dubai - Complete Guide

Are you planning to start a restaurant in Dubai as a foreigner? The process may seem overwhelming and complex, but with the right guidance and knowledge, you can successfully navigate the legal formalities and open your dream restaurant. In this comprehensive guide, we will cover everything you need to know about obtaining a trade license and a food license from the municipality, along with the architectural rules you need to follow to operate your restaurant in Dubai. We encourage you to read this article till the end to get a complete understanding of the process and ensure a successful start to your restaurant business.

Step 1: Decide on your restaurant concept and location

The first step is to decide on the type of restaurant you want to open, whether it's a fast-food joint, casual dining, or fine dining. You should also consider the location of your restaurant as it will impact your target market and competition. It's crucial to research the local market, demographics, and competition in the area you plan to set up your restaurant.

Step 2: Obtain a Trade License

To operate any business in Dubai, you need to obtain a Trade License from the Department of Economic Development (DED). You can apply for a license online or visit the DED office to submit the required documents. The documents you will need to provide include:

  • Application form for the trade license
  • Copy of the passport of the owner(s)
  • No objection letter from the sponsor (if applicable)
  • Tenancy contract or Ejari (if applicable)
  • Proposed trade name
  • Business plan
  • Approval from the relevant authorities (if applicable)

Step 3: Apply for a Food License

To serve food in Dubai, you need to obtain a Food License from the Dubai Municipality. To apply for a food license, you need to submit the following documents:

  • Trade license
  • Layout plan of the restaurant
  • Menu
  • Food safety management system plan
  • Dubai Municipality Food Control Department application form

Step 4: Register with the Federal Tax Authority

As a restaurant owner, you need to register with the Federal Tax Authority (FTA) to comply with the Value Added Tax (VAT) regulations in Dubai. You need to obtain a Tax Registration Number (TRN) and file your tax returns periodically.

Step 5: Obtain necessary permits and approvals

You may need to obtain additional permits and approvals depending on the type of restaurant you plan to open. For example, if you plan to serve shisha, you need to obtain a separate permit from the Dubai Municipality.

Step 6: Hire employees

You need to hire employees to operate your restaurant. You should comply with the UAE labor laws and regulations and obtain a work permit and residence visa for your employees. You also need to register your employees with the General Authority for Pension and Social Security.

Step 7: Set up your restaurant

Once you obtain all the necessary licenses, permits, and approvals, you can start setting up your restaurant. You need to comply with the architectural rules and regulations set by the Dubai Municipality, including ventilation, drainage, and fire safety systems.

Here are the architectural rules for a restaurant in Dubai that you need to keep in mind:

  1. Kitchen Area: The kitchen area of your restaurant should be at least 300 square feet or 40% of the total area of your restaurant, whichever is greater.
  2. Ventilation and Exhaust System: You must have a proper ventilation and exhaust system in your restaurant to ensure proper air circulation and to prevent the buildup of harmful gases.
  3. Chimney Height: Your chimney should be higher than the closest building, with a minimum height of two meters.
  4. Washable Walls, Roof and Floor: All walls, roof, and floor of your restaurant should be washable and 100% fireproof.
  5. Washing Facilities: You must provide separate washing facilities for dishes, vegetables, fruits, and meat. Each washing area must have both hot and cold water options.
  6. Storage Facilities: Dry, chilled, and frozen food items require different storage facilities, so make sure you have separate storage areas for each.
  7. Drainage System: The drainage pipe of your restaurant must be at least two inches away from the walls.

Remember, these rules are important for the safety and hygiene of your customers and employees, and failure to comply with them may result in penalties or closure of your business.

In conclusion, starting a restaurant business in Dubai as a foreigner is a rewarding experience if you follow the above steps and comply with the legal formalities. It's important to research the market, obtain the necessary licenses and permits, and comply with the regulations to ensure the success of your business. Good luck!