Is it possible to set up a Restaurant or Cafeteria License in Dubai with 100% foreign ownership?
Currently, the restaurant business in the UAE is booming and has seen rapid growth for the last five years. Government spending on infrastructure continues to receive a major injection of capital. Abu Dhabi continues to develop the infrastructure required for one of the wealthiest cities in the world.
Dubai is implementing new projects for hosting World Expo in 2020; AED 30 billion will be spent on infrastructure at the Expo site and the city.
The UAE plans to spend AED Six billion on major infrastructure developments across the country, including road networks and federal buildings. Khalifa Initiative in the Northern Emirates is designed to ensure that inhabitants of these emirates enjoy the same facilities as those living in the larger emirates of Abu Dhabi and Dubai.
The UAE is also working on the Etihad Rail project, which will offer a significant leap inland transport by the year 2021.
The UAE is one of the fastest-growing economies in the world, and an additional 20,000 dining outlets are expected to complete in Dubai alone within this year. This 25th edition of Gulf food exhibition is expected to be from 16th -20th February 2020 and this will be the world's largest annual food & beverage trade exhibition, at the Dubai World Trade Centre. This is evident that the food and beverage industry is moving on an upward trend and will continue to grow.
The success of the above exhibition for the last 25 years in UAE shows, especially how Dubai and Abu Dhabi giving importance to this industry and expecting several restaurants.
In Dubai, dining is a delightful experience, worthy of all senses. The vibrant dining scene in Dubai offers food connoisseurs a chance to enjoy genuine Arabic hospitability and sample the best of local culture and cuisine from around the world. Whether it is a gourmet café, fast food joint or contemporary dining, each restaurant will mesmerize diners with flavorful offerings, amazing views, striking décor, and memorable culinary experience. With all these magnificent adoptions and realities is it indeed possible to set up a Restaurant or Cafeteria License in Dubai with 100% foreign ownership provided your local sponsor will be acting only as a local agent.
3 Things You Must Take Care Before you set up a restaurant in Dubai and Abu Dhabi
- Get the food & trade license before starting a restaurant or cafeteria.
- Select a strategic location
- Create a Business Plan
1. Get the food & trade license before setting up a restaurant or cafeteria.
Initially, before launching the restaurant or cafeteria in Dubai it is mandatory to have Food & Trade License. The Food License can be obtained through the Food & Safety Department, and the Trade License must be acquired through the Department of Economic Development & Department of Tourism and Commerce Marketing. A lot of other permits also can be added to the restaurant license through special approvals. Examples are a delivery permit, liquor permit, pork permit, Ramadan permit and more.
Hence, while the formation of a restaurant or cafeteria, it is necessary to take due care, as gaining a license is a critical part of the process. It’s important that it is done properly and on time so that you can start the business within the decided time limit. If it is inadequate or improper, the food or trade license has the potential to leave your business vulnerable to legal fines and closure. Getting your business off the ground (and keeping it profitable) means obtaining the necessary licenses, then keeping the paperwork in proper standing with the correct authorities. It is better to take professional advice before starting a Restaurant business in UAE.
2.Select a strategic location
If you are failing to select the best strategic location, then a restaurant or a cafeteria, even the best restaurant or cafeteria can suffer badly. Selecting a correct location for business is a vital element for its success. If the location is not proper, then it is not easy to get the target audience for the business. On the other hand, if you start a business where the targeted audience is located then that will help the business to become profitable without any hassles.
3.Create a Business Plan
It is mandatory to have a business plan before setting up a restaurant to avoid any last-minute changes and to complete the whole process in time. A professional business plan should cover the following areas:
- Set clear goals for the restaurant or cafeteria.
- Requirement of manpower
- Selection of strategic location
- Share Capital and working capital requirement
What are the Advantages of setting up a Business License in the UAE?
Zero tax: No corporate or personal tax- In UAE there is no corporate tax or personal tax for doing any type of business. A businessperson who is holding a license in UAE doesn’t have to pay taxes on profits or income.
Hassle-free recruitment and unlimited availability of Employment visa - Companies do not have any restrictions on applying for an employment visa from the Ministry of Labour. The eligibility of the employment visa is based on the size of the office and selection of license activity. If you have a bigger office, then you can have a greater number of visas. The investor visa or employment visa holder can also sponsor spouse, parents, children, and maid.
Limited restrictions on a minimum capital requirement: The Minimum capital requirement is only AED 300,000/- and it is not mandatory to show the bank guarantee. It is not compulsory to deposit the share capital in the bank. Also, 100% of capital repatriation is allowed for UAE companies.
Easy process: The process of setting up the company in Dubai Mainland is a straightforward process and can complete the whole company incorporation process in 3-4 working days if all the documents are in place.
Very good Infrastructural facility: Availability of office spaces with flexible rent or lease plans with the best infrastructural facilities makes the businessmen happy to do business in the UAE
Do Business anywhere: A Dubai mainland company can do business anywhere in UAE without any restrictions. How can Emirates Chartered Accountants Group support you? Emirates Chartered Accountants Group can assist in setting up a General Trading License in Dubai will include the following activities:
- Assistance with preparation of the required documentation and submission of the same at the various departments of the Department of Economic Development, Dubai Municipality, Dubai Chamber of Commerce, in order to get requisite approvals
- Other related activities required for setting up the General Trading License (including assistance with finding a local sponsor and effecting the partnership agreement)
- Registering the Company and obtaining a license from the Dubai Chamber of Commerce.
Emirates Chartered Accountants Group will work closely with the investor and the complete the company incorporation process:
- ECA will advise on every step of the process and provide the formats, proformas, forms, etc. required for the documentation at each stage.
- ECA will vet the documents before submission to ensure that all is in order.
- The fees and other direct disbursements to the authorities will be advised in advance so that the requisite funds are made available at the time of making the submission(s).
- After the applications have been submitted, ECA will follow up to ensure that the process is smooth and completed with minimum delays.
Get in touch with our team for an initial consultation on how to Set up a Restaurant License in UAE. Book a Free Consultation to Set up a Restaurant License in UAE.
Feb 29,2024UAE Corporate Tax Registration
