How Much Does a Café License Cost in Dubai? A Complete 2024 Guide

cafe license cost in dubai

Introduction: Why Start a Café in Dubai?

Dubai is a city renowned for its dynamic business environment, diverse culture, and thriving economy, making it an ideal location for entrepreneurs looking to establish a café. With its vibrant café culture and a significant expat population, the city offers a lucrative opportunity for café owners to tap into a diverse clientele ranging from local residents to tourists. The café industry in Dubai continues to flourish, driven by the increasing demand for specialty coffee, unique dining experiences, and innovative concepts that cater to the city’s fast-paced lifestyle. As the city positions itself as a global hub for business and tourism, starting a café here not only promises substantial returns but also offers a chance to be part of a booming food and beverage sector.

Moreover, Dubai’s strategic location, modern infrastructure, and supportive government policies make the business setup process relatively straightforward. The city offers free zones and mainland options, each with distinct benefits for café owners. Whether you aim to create a cozy neighborhood café or a trendy downtown hotspot, Dubai’s diverse demographic and business-friendly regulations provide an ideal foundation for success. However, understanding the café license cost and the various expenses involved is crucial to making informed decisions and ensuring profitability.

Café License Cost in Dubai: A Breakdown

When starting a café in Dubai, one of the first considerations is understanding the costs involved in obtaining the required business license and the associated operational expenses. The total investment will vary depending on several factors, including the location, size, and concept of your café. Here’s a detailed breakdown of the key components of starting a café in Dubai.

License Fees

To legally operate a café in Dubai, you’ll need to secure a trade license from the Dubai Department of Economic Development (DED) or a relevant free zone authority. This trade license categorizes your business under the food and beverage sector and grants you the right to serve food and drinks to customers.

Café license costs can vary, but the general price range for a trade license falls between AED 10,000 to AED 15,000 annually. This fee includes:

• Initial Trade License Fee: The cost for obtaining the café license from DED or free zone authorities.

• Activity Fees: This covers the specific business activities allowed under your trade license, such as serving coffee, snacks, and light meals.

• Renewal Fees: Once you’ve secured your license, it will need to be renewed yearly, with renewal costs typically mirroring the initial fee.

Additionally, in some cases, obtaining a food and safety license from the Dubai Municipality is necessary, which may incur an extra charge of AED 10,000 to AED 12,000.

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    Location and Rent Costs

    The location of your café will significantly impact both its visibility and its operating costs. Dubai offers various prime locations, from bustling city centers to quieter suburban areas, each with its own set of pricing for rental spaces.

    High-Traffic Areas

    Free Zones

    Suburban or Residential Areas

    Rent is usually paid annually or biannually, and you may also need to pay a security deposit equivalent to three to six months’ rent. It’s essential to consider these costs when selecting the location that best aligns with your business goals and budget.

    Other Expenses (Permits, Fit-Out, etc.)

    Beyond license fees and rent, starting a café in Dubai involves a range of other expenses that must be factored into your budget.

    • Fit-Out and Interior Design: Transforming a rental space into a fully functioning café requires significant investment in the fit-out. Depending on the size of the space and the level of customization, interior fit-out costs can range from AED 100,000 to AED 500,000 or more. This includes costs for furniture, lighting, kitchen equipment, and design elements that contribute to the ambiance and functionality of your café.

    • Health and Safety Permits: The Dubai Municipality requires all food establishments to obtain health and safety permits to ensure compliance with local regulations. This involves an inspection of your premises and can cost between AED 3,000 to AED 5,000 depending on the size and type of your café.

    • Signage Permits: Installing external signage for your café also requires a permit from the Dubai Municipality, which typically costs around AED 2,500 to AED 5,000. The cost varies based on the size and design of the signage.

    • Utility Costs: Water, electricity, and waste management services are additional operational expenses. For a small café, utility costs may range between AED 3,000 to AED 5,000 per month, but this can fluctuate based on the size of the establishment and its consumption.

    • Marketing and Initial Launch: Finally, to create a buzz and attract customers to your new café, you’ll likely invest in marketing and promotional activities. Digital marketing campaigns, signage, and launch events can add another AED 10,000 to AED 20,000 to your initial costs.

    Understanding these costs and planning accordingly is critical to ensuring the financial stability and success of your café venture in Dubai. With the right budgeting and strategic planning, you can create a successful and profitable café that appeals to both locals and tourists alike.

    Step-by-Step Guide to Obtaining a Café License

    Setting up a café in Dubai requires you to follow a series of legal procedures to ensure your business complies with the local regulations. Below is a step-by-step guide to help you obtain the necessary café license:

    Decide whether your café will be established in a free zone or mainland Dubai. Each has its advantages:

      • Free Zones offer benefits like 100% foreign ownership but may restrict your ability to trade directly with the local market.
      • Mainland allows full access to the UAE market, but you’ll typically need a local sponsor if you’re not establishing in a free zone.

    Choose a name for your café that complies with Dubai’s naming regulations. The name should not be offensive, should not violate religious or cultural sensibilities, and should be unique to your business. The name will need to be approved by the Department of Economic Development (DED) or the free zone authority.

    Apply for initial approval from the DED or the relevant free zone authority. This step will require submitting your trade name, business activity, and passport copies of the owners. You must also ensure that your business complies with Dubai’s zoning regulations.

    If your café is in the mainland, you’ll need to draft and notarize a Memorandum of Association (MOA) with a local sponsor (unless you have 100% ownership in a free zone). The MOA outlines the ownership structure and other details about the business partnership.

    Once your location is determined, sign the lease agreement for the premises. You’ll need to submit the tenancy contract and Ejari (tenancy registration) to the relevant authority.

    After securing the location, submit your trade license application to DED or the free zone authority, including your tenancy contract, MOA, passport copies, and other relevant documents. Additionally, apply for a food license from the Dubai Municipality, which is required for any food and beverage establishment.

    The Dubai Municipality will inspect your premises for health and safety compliance. You must ensure your café meets all the hygiene standards before this inspection. Once approved, you’ll receive a health and safety permit.

    After the health inspection, you’ll receive your trade license and food license. At this point, you’re legally allowed to start operating your café in Dubai.

    Employee Visa Process

    Hiring staff to run your café is another essential step in establishing your business in Dubai. Here’s a breakdown of the employee visa process for foreign workers:

    Employee Visa Process
    Hiring staff to run your café is another essential step in establishing your business in Dubai. Here’s a breakdown of the employee visa process for foreign workers:
    Work Permit Application
    After receiving the quota approval, you’ll need to apply for work permits for each employee. Submit the necessary documents, including copies of their passports, visa photos, and employment contracts. MOHRE will review the application and issue the work permit.
    Medical Examination
    After receiving a work permit, employees must undergo a mandatory medical examination. This typically includes blood tests, a chest x-ray, and a physical examination.
    Emirates ID and Visa Stamping
    Once the medical results are clear, the next step is to apply for an Emirates ID card and submit the employee’s passport for visa stamping. The employee will then be granted a residency visa, which is typically valid for two or three years, depending on the contract.
    Labor Card
    A labor card is issued to employees after the visa process is complete, which allows them to legally work in the UAE.

    Tips for Reducing Costs When Starting a Café

    Starting a café in Dubai can be a significant financial investment, but there are ways to reduce costs without compromising quality. Here are a few tips:

    1. Consider a Shared Kitchen Space
    Instead of setting up your own kitchen from scratch, you can rent a shared commercial kitchen space. This will reduce the initial fit-out costs and can be ideal if you’re starting with a smaller operation.
    2. Start with a Smaller Space
    While a large café space may be appealing, starting small can save on rent and utilities. As your business grows, you can consider expanding to a larger venue.
    3. Free Zones for Cost-Effective Setup
    If your café doesn’t rely heavily on local clientele, setting up in a free zone can save you the cost of hiring a local sponsor and offer other financial benefits like reduced taxes.
    4. Leverage Digital Marketing:
    Instead of investing heavily in traditional advertising methods, focus on building your brand through cost-effective digital marketing. Social media platforms, local food influencers, and online promotions can help you reach a broader audience with less investment.
    Labor Card
    A labor card is issued to employees after the visa process is complete, which allows them to legally work in the UAE.

    By carefully managing your expenses and making strategic decisions, you can launch a successful café in Dubai without overspending.

    Additional Requirements for Starting a Café

    In addition to the licenses and permits, there are several other requirements and approvals to consider when starting a café in Dubai:

    • Food Code Compliance: Your café must adhere to Dubai’s stringent food safety and hygiene practices, as outlined in the Dubai Food Code. This code provides guidelines on the sourcing, storage, preparation, and handling of food.

    • Interior Design and Fit-Out Approvals: Before any fit-out work can begin, you’ll need to get the necessary approvals from the Dubai Municipality and other relevant authorities to ensure your design complies with local regulations.

    • Trade License Renewal: Trade licenses must be renewed annually. Failure to renew can lead to fines or the suspension of your business operations.

    • No Objection Certificate (NOC): If you’re hiring foreign employees, a NOC from their previous employer (if applicable) may be required before you can process their employment visas.

    Food Safety and Health Regulations

    To maintain the highest standards of food safety, the Dubai Municipality enforces strict health regulations for all food establishments, including cafés. Compliance with these regulations is not just mandatory for obtaining your café license but is essential for ensuring a safe dining experience for your customers. Here are some of the key regulations to follow:

    1. Food Safety Training: All staff members who handle food must undergo mandatory food safety training, provided by Dubai Municipality-approved institutions. This training ensures that employees are aware of proper food handling, hygiene, and sanitation practices.

    2. Proper Storage: Café operators must maintain strict standards for storing food to prevent contamination and spoilage. Cold storage units, refrigerators, and freezers must operate at the appropriate temperatures, and raw ingredients must be stored separately from cooked food.

    3. Kitchen Layout and Hygiene: The kitchen layout should be designed to minimize cross-contamination, and all surfaces must be easy to clean and disinfect. Regular inspections will ensure that your café maintains hygiene standards.

    4. Waste Management: Proper waste disposal practices must be in place to avoid the build-up of waste, which can attract pests. Waste should be stored in appropriate containers and disposed of regularly following Dubai’s regulations.

    Failure to comply with these regulations can result in hefty fines, the closure of your café, or revocation of your license.

    Why Work with Dahhan Business Services for Your Café License

    Starting a café in Dubai requires navigating a complex process of licensing, regulations, and approvals, all of which can be time-consuming and overwhelming, especially for new business owners. Dahhan Business Services is here to simplify that process and provide expert support at every step. Here’s why partnering with Dahhan Business Services is the smartest choice for obtaining your café license in Dubai:

    1. In-Depth Knowledge of Local Regulations

    Dahhan Business Services specializes in understanding Dubai’s ever-changing legal and regulatory landscape. Their team is fully versed in all the rules and regulations surrounding café licensing, ensuring your business complies with local laws. From trade name registration to securing food safety permits, Dahhan Business Services ensures that no detail is overlooked, giving you peace of mind that your café is set up correctly and in full compliance.

    2. Efficient Handling of the Licensing Process

    The process of obtaining a café license in Dubai involves multiple government departments, including the Department of Economic Development (DED), Dubai Municipality, and others. Dahhan Business Services handles all the paperwork, documentation, and approvals on your behalf. Their streamlined approach ensures that your application moves smoothly through each stage, significantly reducing the time it takes to get your café up and running. With their expertise, you avoid unnecessary delays and errors that could otherwise cost your business time and money.

    3. Error-Free Documentation

    Mistakes in documentation, such as incomplete forms or missing approvals, can result in delays or even fines. Dahhan Business Services meticulously checks and prepares all the required documents for your café license application, minimizing the risk of any errors. They manage everything from trade license applications to tenancy contracts and food safety approvals, ensuring that your application is complete and accurate.

    4. Strong Government Connection

    Prepare and submit the necessary documents, including:

    • Passport copies of business owners.

    • Lease agreement registered with Ejari.

    • No Objection Certificate (NOC) from current sponsors (if applicable).

    • Blueprints and layout plans for the restaurant’s interior.

    • Food safety and hygiene plan (for food and beverage outlets).

    5. Cost-Effective and Time-Saving

    While there’s an upfront cost to hiring PRO services, the long-term benefits far outweigh the initial investment. Dahhan Business Services helps prevent costly mistakes, delays, and potential fines, ultimately saving you both time and money. Their efficient handling of license renewals, visa applications, and ongoing regulatory compliance ensures that your business operates smoothly year after year, without the stress of managing these tasks on your own.

    6. Comprehensive Business Setup Support

    Beyond just obtaining your café license, Dahhan Business Services offers a wide range of support services to help your business thrive. They assist with everything from finding the right location and negotiating tenancy contracts to helping with branding, marketing, and vendor relationships. This comprehensive support makes Dahhan Business Services a one-stop solution for setting up your café in Dubai.

    7. Focus on Your Core Business

    By allowing Dahhan Business Services to handle the administrative aspects of your business, you can focus on building and growing your café. Instead of getting bogged down with paperwork, permits, and approvals, you’ll have more time to focus on critical tasks like developing your menu, hiring staff, and engaging with customers. Dahhan Business Services takes care of the bureaucracy, so you can focus on making your café a success.

    By partnering with Dahhan Business Services, you’re not just hiring a PRO provider—you’re gaining a dedicated team of experts who will ensure your café is set up for long-term success. With their help, you can navigate the complexities of Dubai’s business environment with ease, knowing that your licensing and regulatory requirements are in good hands.

    FAQs about Café License in Dubai

    To open a café, you will need a trade license that allows food and beverage activities, as well as a food license from the Dubai Municipality. The trade license is issued by the Department of Economic Development (DED) for mainland businesses or by the relevant free zone authority if you’re setting up in a free zone.

    Yes, foreign investors can fully own a café in a free zone. For mainland businesses, ownership is subject to local sponsorship requirements unless certain conditions, like the 100% foreign ownership law, apply.

    The licensing process typically takes between 2 to 4 weeks, depending on the completeness of your application and the responsiveness of the involved government departments.

    You will need the following documents:

    • Copies of owner(s)’ passport(s) and visa(s)

    • Approved trade name certificate

    • Initial approval authorities

    • Tenancy contract and Ejari certificate

    • Memorandum of Association (MOA), if applicable

    • Food license approval

    • (NOC) from relevant authorities, if required

    • Contact us for more details and support

    Mainland businesses allow direct access to the UAE market, but may require a local partner. Free zone setups allow for 100% foreign ownership but come with trade restrictions within the UAE mainland.

    Dubai Municipality issues the food license and ensures your café meets health and safety standards. They also inspect your premises to ensure compliance with hygiene regulations.

    Yes, your café’s interior must meet Dubai Municipality’s standards, particularly in terms of kitchen layout, hygiene, and food safety. Your layout plans must be approved before construction or fit-out work begins.

    You can cut costs by choosing a free zone setup, leasing a smaller space, buying second-hand equipment, and leveraging cost-effective marketing methods like digital campaigns.

    All food handlers in your café must undergo mandatory food safety training, and your premises must comply with Dubai’s hygiene and waste management standards. Regular inspections will be conducted by Dubai Municipality to ensure compliance.

    Yes, you can apply for employee visas once your trade license is approved. You’ll need quota approval from the Ministry of Human Resources and Emiratization (MOHRE) to proceed with visa applications.

    Yes, if you plan to serve alcohol, you will need a separate liquor license, which is subject to additional approvals from local authorities and specific eligibility criteria.

    By partnering with Dahhan Business Services, you can navigate these FAQs with ease and get the support you need to bring your café vision to life in Dubai!