Restaurant Setup in Dubai: Key Regulations & Steps for a Successful Launch

Dubai’s vibrant culinary scene is a dreamland for aspiring restaurateurs, but turning that dream into reality takes more than just a passion for food. Imagine you’re an entrepreneur with a vision for the perfect restaurant—maybe a fine-dining experience overlooking the Burj Khalifa, a cozy café in Jumeirah, or a food truck serving gourmet burgers on Kite Beach. Before the first plate is served, there’s a journey ahead.

Whether you’re an aspiring restaurateur or an investor looking to tap into this profitable market, here’s everything you need to know about business setup in Dubai for the food and beverage industry.

Dubai’s growing economy, tax-friendly environment, and business-friendly policies make it one of the best places to establish a food business.

• Tax Advantages – enjoy 0% personal income tax and competitive corporate tax rates.
• Business-Friendly Regulations – Dubai’s government supports the F&B sector with streamlined company registration processes.
• Tourist & Expat Market – access a diverse clientele from all over the world.
• Advanced Infrastructure – Dubai offers world-class logistics, making it easy to source high-quality ingredients and supplies.

With thousands of restaurants and cafes thriving, the demand for new, innovative concepts is higher than ever. From fine dining to quick service restaurants and trendy coffee shops, there’s space for every kind of food venture in Dubai.

STEP 1. Choose the Right Business Model and Location

Your restaurant’s success starts with choosing the right location and business model. The right location can make or break a restaurant. Entrepreneurs should choose a space that aligns with their concept, considering factors like foot traffic, accessibility, and competition. High-end dining thrives in areas like DIFC and Downtown, while JBR and Marina attract a beachgoing crowd. Malls guarantee steady traffic but come with higher rental costs. Business Bay, a growing hub for young professionals and food enthusiasts, is also a popular choice.

Dubai also offers various business setup options, including:

• Mainland business setup: operate anywhere in Dubai with full flexibility.
• Free zone company formation: benefit from tax exemptions and full foreign ownership in specific zones like Dubai Multi Commodities Centre (DMCC) or Dubai Airport Free Zone (DAFZA).
• Franchising opportunities: open a branch of an existing successful brand.

Once the ideal space and business format are secured, registering the tenancy contract with Ejari is essential to make the lease official and comply with Dubai’s regulations.

STEP 2. Obtain the Necessary Licenses & Approvals

Dubai operates under strict regulations, and opening a restaurant requires compliance with local laws. You’ll need to obtain the following licenses and permits:

• Trade license: issued by the Department of Economic Development (DED) for mainland businesses or the respective free zone authority.
• Food and Safety Permit: approved by Dubai Municipality to ensure compliance with hygiene and safety regulations.
• Liquor License (if applicable): required if you plan to serve alcohol.
• No Objection Certificate (NOC): depending on the location and business structure.

STEP 3. Meet Dubai’s Food & Safety Regulations

Additionally, your restaurant must comply with Dubai Municipality’s food safety regulations, which cover essential aspects such as kitchen layout, food storage, hygiene standards, and ventilation systems. Obtaining the necessary approvals before signing a tenancy contract can prevent potential delays and ensure your restaurant meets Dubai’s strict F&B industry standards:

Health & Safety Approvals: the Dubai Municipality inspects kitchen layouts and food storage.
HACCP Certification: essential for food handling and safety compliance.
Employee Health Cards: required for staff handling food and beverages.
Equipment Maintenance: kitchen equipment should be checked to avoid breakdowns and ensure safety standards.

Dubai also enforces strict pork regulations under Islamic dietary laws. Pork can only be served in licensed non-Muslim restaurants and hotels, with strict storage, handling, and labelling requirements. It must be stored separately from halal food, prepared with designated utensils, and clearly labelled on menus and packaging. The Food Safety Department conducts regular inspections, and non-compliance can result in fines or business closure.

STEP 4. Register Your Business and Finalize Documentation

To open a restaurant or café in Dubai, register your business with DET or the relevant free zone authority. Choose a unique trade name that complies with UAE regulations, then submit key documents like passport copies, a business plan, Ejari, and initial approval. After paying the license fees, your business is legally established and ready for the next steps such as investor and employee visas processing and bank account opening.

• Choose a trade name following DET’s naming guidelines.
• Submit necessary documents (passport copies, business plan, Ejari, tenancy contract, initial approval).
• Pay the license fees.

STEP 5. Open a Corporate Bank Account

To manage your restaurant’s financial transactions, you must open a corporate bank account in the UAE. Choosing the right bank is crucial for smooth operations, as it impacts cash flow management, supplier payments, and employee salaries.

Several top banks in the UAE, including Emirates NBD, ADCB, and Mashreq, offer business banking solutions tailored to the food and beverage industry. Each bank has different requirements, but most demand a minimum account balance to keep the account active. Before finalizing your choice, compare transaction fees, online banking features, and customer support services to find the best fit for your restaurant’s financial needs.

Starting a restaurant or coffee shop in Dubai requires careful financial planning, as costs can vary significantly based on location, business model, and scale of operations. From obtaining a trade license to securing a prime commercial space and investing in high-quality interiors, every step involves financial commitments. Understanding these expenses in advance will help you create a realistic budget and ensure a smooth setup process.

Key costs include:

• Trade License Fees: approx. AED 10,000 – AED 30,000, depending on location.
• Rental Costs: range from AED 150,000 to AED 1M+ annually, based on size and location.
• Interior Fit-Out & Equipment: AED 300,000 – AED 1.5M, depending on your restaurant’s concept and design.
• Staffing & Operational Expenses: salaries, utilities, marketing, and daily running costs.

Navigating the complexities of business setup, licensing, and legal compliance in Dubai can be overwhelming—but you don’t have to do it alone. Expert team at My Business Consulting DMCC specializes in helping entrepreneurs like you launch successful restaurants and cafés in Dubai, ensuring a seamless setup process from start to success.

Turn your restaurant dream into reality! Contact us today for a free consultation and let’s start building your success in Dubai’s thriving F&B market.