Dubai is a global food hub where culinary diversity meets business opportunity. With millions of tourists visiting annually and a multicultural population eager to explore global cuisines, starting a restaurant business in Dubai can be both lucrative and rewarding. However, to ensure success, entrepreneurs must follow a proper legal and procedural pathway for company formation in Dubai.
This guide walks you through the complete process of LLC company formation in Dubai for your restaurant business—from planning and licensing to final approvals.
1. Why Start a Restaurant Business in Dubai?
Before diving into the process, it’s important to understand why Dubai is an ideal destination for restaurant entrepreneurs:
- Thriving Hospitality Sector: Dubai’s F&B market is projected to reach billions of dirhams annually due to tourism, luxury dining, and lifestyle changes.
- Cultural Diversity: Over 200 nationalities live in Dubai, creating high demand for global cuisines—Indian, Italian, Japanese, Arabic, and more.
- High Tourism Footfall: With Expo City, Palm Jumeirah, and Downtown Dubai attracting visitors, restaurants have steady traffic.
- Business-Friendly Policies: Dubai offers simplified procedures for LLC company formation, competitive tax rates, and 100% profit repatriation.
2. Choosing the Right Location
When planning your company formation in Dubai, location plays a key role in determining your restaurant’s success. You can choose between mainland, free zone, or offshore—though for restaurants, mainland licensing is most common.
- Mainland Dubai: Ideal for restaurants targeting local residents and tourists. You can operate anywhere in Dubai and obtain approvals from the Dubai Municipality (DM).
- Free Zone: Suitable for virtual kitchens or delivery-based restaurants. However, physical dine-in options may require additional permissions.
Popular areas for restaurants include:
Downtown Dubai, Jumeirah, Business Bay, Deira, and Dubai Marina.
3. Decide the Legal Structure: LLC Company Formation in Dubai
The most preferred structure for a restaurant is the Limited Liability Company (LLC). It provides flexibility, legal protection, and the ability to operate freely across the UAE.
Key Features of an LLC:
- Minimum of 1 and up to 50 shareholders.
- Limited liability—personal assets are protected.
- Eligibility for investor visas and family sponsorship.
- Can operate anywhere in the UAE.
- Full repatriation of profits and capital.
Setting up an LLC company formation in Dubai also ensures credibility with suppliers, landlords, and local authorities.
4. Choose a Business Name and Obtain Initial Approval
Your business name should reflect your restaurant’s brand identity and comply with the UAE’s naming conventions. Avoid offensive or religious terms and ensure uniqueness.
Steps for name reservation:
- Submit 3–5 proposed names to the Department of Economic Development (DED).
- Receive approval within a few days.
- Proceed to apply for your initial approval certificate, which allows you to begin the setup process.
5. Draft the Memorandum of Association (MoA)
The Memorandum of Association defines the ownership structure, capital investment, and responsibilities of partners.
For LLCs, the MoA must:
- Include all partners’ names and their share percentages.
- Be notarized by a public notary in Dubai.
- Align with DED regulations and your restaurant’s commercial activities.
This step is essential to legally formalize your LLC company formation in Dubai.
6. Secure a Suitable Restaurant Location and Tenancy Contract
Once your initial approval is received, you can lease or purchase your restaurant space. Dubai’s Real Estate Regulatory Agency (RERA) requires all commercial leases to be registered under the Ejari system.
Requirements:
- Ejari-registered tenancy contract.
- Floor plan layout.
- Location compliance with Dubai Municipality’s health and safety standards.
Your restaurant layout must include separate areas for dining, kitchen, storage, and waste disposal.
7. Obtain Food and Safety Approvals
The Dubai Municipality’s Food Safety Department ensures restaurants maintain high hygiene and food handling standards.
Mandatory approvals include:
- Food Control Department Approval: For restaurant layout and kitchen design.
- Food Safety License: After inspection and verification.
- Trade License: From the DED after food approval.
Documents required:
- Copy of trade name reservation certificate.
- Ejari tenancy contract.
- Detailed layout approved by Dubai Municipality.
- Passport copies of business partners.
This process ensures your restaurant meets Dubai’s strict food safety guidelines before operations begin.
8. Apply for a Trade License
To legally operate your restaurant, you must obtain a Restaurant Trade License from the Department of Economic Development (DED).
Steps:
- Submit application with all approvals (DM, Food Safety, Ejari, MoA).
- Pay license fees.
- Receive your final trade license and start operations.
Types of restaurant licenses:
- Cafeteria License – For small dining spaces or coffee shops.
- Restaurant License – For dine-in outlets.
- Fine Dining License – For luxury restaurants serving alcohol (requires special permits).
9. Apply for Additional Permits
Depending on your restaurant’s concept, you may need additional permissions:
- Liquor License: For serving alcoholic beverages.
- Entertainment Permit: For live music or performances.
- Delivery Permit: For food delivery operations.
- Signage Approval: For outdoor branding and advertising.
Each permit requires separate applications and compliance with local regulations.
10. Hire Staff and Apply for Visas
After obtaining your trade license, you can start the visa application process for employees and investors.
Steps:
- Register with the Ministry of Human Resources and Emiratisation (MOHRE).
- Obtain an establishment card from the General Directorate of Residency and Foreigners Affairs (GDRFA).
- Apply for employee and investor visas.
- Complete medical tests and Emirates ID registration.
An LLC company formation in Dubai allows you to hire foreign employees legally and expand your team as your restaurant grows.
11. Open a Corporate Bank Account
A corporate bank account is mandatory for business transactions, supplier payments, and employee salaries.
Documents required:
- Trade license.
- MoA and share certificate.
- Passport copies of shareholders.
- Proof of address and business plan.
Leading banks in Dubai include Emirates NBD, Mashreq, ADCB, and First Abu Dhabi Bank.
12. Cost of Restaurant Company Formation in Dubai
The total cost of setting up a restaurant depends on factors such as size, location, and type of cuisine.
Approximate cost breakdown:
- Trade license: AED 10,000 – AED 15,000
- Food safety approval: AED 2,000 – AED 5,000
- Ejari and tenancy: AED 15,000 – AED 50,000 (annually)
- Staff visas and insurance: AED 5,000 – AED 10,000
- Interior and equipment setup: AED 100,000 – AED 500,000
13. Benefits of LLC Company Formation for Restaurants in Dubai
Forming an LLC company in Dubai offers several key benefits for restaurant owners:
- 100% business ownership (for foreign investors).
- Access to the UAE mainland market.
- Investor and family visas.
- Flexibility to open multiple branches.
- No currency restrictions.
- Full profit repatriation.
14. Post-License Requirements
After obtaining your trade license, ensure compliance with ongoing regulations:
- Renew your trade license annually.
- Maintain hygiene standards and pass inspections.
- File VAT returns if applicable.
- Renew employee visas and insurance.
Conclusion
Setting up a restaurant in Dubai involves careful planning, documentation, and compliance with licensing authorities. Choosing the right structure—such as LLC company formation in Dubai—provides flexibility, legal protection, and access to a thriving market.
Whether you’re opening a fine dining outlet, café, or casual eatery, Dubai’s food and beverage sector promises high returns and global exposure. With proper guidance and adherence to regulations, your restaurant can quickly establish itself in one of the world’s most dynamic culinary destinations.
For a seamless and hassle-free process, Make My Firm business setup Dubai, can help you with every step—from obtaining approvals and licenses to managing documentation and visa processing. With Make My Firm’s expert assistance, you can focus on growing your restaurant while they handle the legal and procedural requirements for your company formation in Dubai.