Entrepreneurs who are interested in opening a tea shop in Dubai can earn a good amount of revenue with Dubai’s diverse population. This is an exciting opportunity to do business in Dubai because of the growing cafe culture and people unreluctantly relying on it.
However, opening a tea shop business in Dubai requires a range of legal, financial, and logistical considerations, especially regarding licensing. In this article, we provide complete information on the costs, requirements, and steps involved in obtaining a tea shop license in Dubai.
If you are interested in opening a tea shop in Dubai in compliance with the authorities’ regulations, Now Consultant helps in every step of getting the license for your business in Dubai. With our expertise, you can turn your tea shop dream into reality without unnecessary stress.
What Is a Cafe or Tea Shop License in Dubai?
A tea shop or a cafe license in Dubai is a legal document that allows entrepreneurs to operate a tea shop or cafe in compliance with the regulations set by the Dubai government. It lies under the “commercial license” category and includes specific permissions for preparing, selling, and serving beverages and light snacks.
This license verifies your business meets Dubai’s standards for food safety, hygiene, and operational quality. Without this license, you can not run a tea shop or cafe, as it is considered illegal. In order to protect yourself from heavy fines or penalties, your cafe business must have a commercial license in Dubai.
What Are the Types of Licenses for Tea Shops In Dubai?
There are two types of licenses for your tea shop and cafe business, depending on your business model and location. The following are the two main options:
1. Mainland License
A mainland license allows you to set up your tea shop anywhere within Dubai. This type of license offers flexibility and scalability, making it ideal for businesses aiming to target a broad audience in Dubai or planning future expansion.
- Advantages:
- Freedom to operate anywhere in Dubai.
- No restrictions on trading directly with customers.
- Access to government tenders and projects.
2. Free Zone License
A Free Zone license is issued by authorities within Dubai’s designated Free Zones. This option is best for businesses focusing on exports, operating online, or targeting specific customer demographics.
- Advantages:
- 100% ownership for foreign investors.
- Tax exemptions (corporate and personal).
- Simplified import/export processes.
Documents Required for a Tea Shop License in Dubai
The following are the documents required for the smooth application process of getting a tea shop license in Dubai:
- A completed application form.
- Copies of shareholders’ passports.
- Emirates ID copies (if applicable).
- A trade name approval certificate.
- Initial approval from the Dubai Municipality and Food Safety Department.
- Lease agreement or Ejari for the commercial space.
- A Memorandum of Association (MOA) for partnerships or companies.
- A comprehensive business plan (optional but recommended).
How Much Does a Cafeteria License Cost in Dubai?
The cost of obtaining a tea shop license in Dubai depends on whether you are set up on the mainland or in a Free Zone. Below is a detailed breakdown of potential expenses:
Mainland Setup Costs
- Trade License: AED 10,000 – AED 15,000.
- Commercial Space Rent: AED 20,000 – AED 50,000 annually.
- Food Safety and Municipality Fees: AED 5,000 – AED 10,000.
- Signboard Fees: AED 2,000 – AED 3,000.
- Visa Processing: AED 4,000 – AED 6,000 per employee.
Free Zone Setup Costs
- License Fees: AED 15,000 – AED 25,000.
- Office Space: AED 10,000 – AED 20,000 annually.
- Additional Approvals: AED 5,000 – AED 8,000.
- Visas: AED 4,000 – AED 5,000 per employee.
Additional Costs
- Utilities and Maintenance: AED 1,000 – AED 2,000 monthly.
- Marketing and Branding: AED 10,000 – AED 20,000 (one-time).
- Furniture and Equipment: AED 20,000 – AED 50,000.
How Do You Apply For a Tea Shop License In Dubai?
You can easily get a tea shop license by following the steps given below:
1. Choose Your Business Structure
The first step is to decide whether you want to establish your tea shop on the mainland or in a Free Zone. Each option has unique advantages and limitations based on your business goals.
2. Register Your Trade Name
In the second step, you need to select a unique trade name that reflects your brand identity and complies with the naming guidelines set by the Department of Economic Development (DED).
3. Secure Initial Approvals
In the third step, you need to submit your business plan and receive initial approvals from relevant authorities like the Dubai Municipality and Food Safety Department.
4. Lease a Commercial Space
In the fourth step, you need to find a location that complies with Dubai’s food safety and hygiene standards. In this step, you need to make sure you have a valid Ejari or lease agreement.
5. Submit Documentation
In the fifth step, you need to gather and submit all the required documents to the DED or Free Zone authority.
6. Pay Fees and Receive Your License
In the last step, you need to pay the applicable licensing fees, and upon approval, you receive your official tea shop license.
What Other Licenses Do You Need for a Tea Shop in Dubai?
In addition to your main tea shop license, you might need the following permits:
- Food Safety License
This ensures your tea shop complies with the Dubai Municipality’s food safety standards. - Health Permit
All employees must pass health screenings and obtain a health card. - Signboard Permit
You are required to display a signboard outside your shop. - Additional No-Objection Certificates (NOCs)
Depending on your business activities and location, you may need NOCs from various authorities.
Why Choose Dubai for Your Tea Shop Business?
Entrepreneurs who are interested in setting up a business, tea shop, or cafe in Dubai can benefit from Dubai’s growing economy, diverse population, and world-class infrastructure. The city’s high disposable income and growing cafe culture ensure a steady customer base for tea shops.
FAQs:
What Type Of Activities Can I Perform Under A Tea Shop License?
Under a tea shop license in Dubai, you can perform activities such as selling tea, coffee, and other hot or cold beverages, as well as host small events. Additionally, you can provide light snacks, pastries, sandwiches, and desserts.
Can A Foreigner Open A Tea Shop In Dubai?
Yes, foreigners can open a tea shop in Dubai. The 2021 commercial law amendments allow 100% foreign ownership in most sectors, including food and beverage businesses, either in the mainland or Free Zones.
How Long Does It Take To Get A Cafeteria License In Dubai?
The process of obtaining a cafeteria license in Dubai typically takes about 2 to 4 weeks, depending on factors such as the submission of required documents, approvals from relevant authorities, and the location of the cafeteria.
How Do I Register A Trade Name For My Tea Shop?
To register a trade name for your tea shop in Dubai, check its availability on the DED portal, submit the required documents, and pay the registration fee. Once approved, the trade name is reserved for six months.
How Can We Help You?
Undoubtedly, opening a tea shop or cafe in Dubai is an exciting opportunity, but dealing with the legalities, securing permits, and ensuring compliance with local regulations can be difficult for entrepreneurs. At Now Consultant, we specialize in simplifying the entire process for you.
From selecting the right license, whether for the mainland or a Free Zone, to handling complex requirements like food safety permits, trade name registration, and lease agreements, our experts help you at every stage in compliance with government regulations.
With our expert guidance, you can avoid costly fines, delays, or penalties. We identify and close all potential gaps, such as incomplete documentation, zoning restrictions, or regulatory approvals, that are often challenging for new business owners.
