Why Prefer UAE for Establishing a Business?

The ease of doing business, strategic location between the east and the west, political stability, secure banking system, world-class infrastructure, etc., are the reason behind the success of UAE as a must-go destination for global investors.

Entrepreneurs from across the world prefer Dubai to set up a business and settle down with family due to umpteen benefits and improved lifestyle at a lower cost than European countries.

The Free Zones in UAE are the major growth drivers of foreign investment. It offers all required support systems for entrepreneurs to easily set up their base in the region. Multi-Year Business License is an attractive offer for entrepreneurs by some of the Free Zones in UAE.

What is a Multi-Year Business License Package?

Multi-Year Business License Package is an all-inclusive company formation option offered by selected Free Zones in UAE. The Business License Fees for a minimum of three years is to be paid upfront to avail of the package.

A multi-year Business License coupled with a three year UAE Residence visa is an attractive offer that saves businesses the start-up cost significantly.

Which Free Zones Offer Multi-Year Business Licenses in UAE?

All Free Zones in UAE offer Multi-Year Business License Packages for entrepreneurs, however, the Sharjah Media City and International Free Zone Authority Dubai has the most competitive Multi-Year License Packages available in the UAE.

1. Sharjah Media City

Investors can start a company in Sharjah Media City (SHAMS) for AED 37,744 for a three-year business license with 1 Visa Quota. The fee for Visa, Emirates ID, and E-Channel registration are calculated separately.

2. International Free Zone Authority Dubai (IFZA)

The International Free Zone Authority Dubai (IFZA) has an exclusive three-year Business License Package (at 25% discount) starting from AED 40,275 for 1 visa quota.

The most evident advantage of opting for the Multi-Year business package is the cost savings at the time of setting up of business.

Then the hassle-free time to concentrate on core business activity and leaving the burden of administrative works of license renewal every year.

Company Setup in Free Zone – Things to Know

Here is a step-by-step process for applying for a company license from the Free Zone of UAE. The process is almost similar across the Free Zones with slight variations depending on the Free Zone authorities.

Steps in Setting up a Free Zone Company in UAE

• Choose the tradename and get the approval from the Free Zone authorities.
• Choose the right company structure depending on the shareholder pattern (FZC- Multiple Shareholder/FZE – Single Shareholder).
• Decide on the business activity -choose the right business activity according to the nature of your business. (Aurion Team will assist you in finalizing the exact trade activity available in the Free Zone)
• Submit the required documents (investor passport copy, photograph) and make the fee payment.
• For certain special business license categories and business activity, there needs to be approval from the department concerned.
• Identify the right office space for your business. There are various office types available in the Free Zone – Shared Office, Flexi-Desk, Executive Office, Warehouse with Office Space, and more.
• Once the required documents are submitted, the Free Zone authorities will assess the application and the business license will be issued.

After obtaining the business license, the company can sponsor the investor, director, and employees for a three-year residence visa. The Investor can also apply for a corporate bank account using the company documents.

Why Choose a Free Zone in UAE?

Investors choose a Free Zone in UAE for setting up their company due to the umpteen business benefits offered by the Free Zone to the foreign investor such as:

• Investors can completely own the company and there is no third-party involvement of any other entity or government
• Leverage the benefits of tax-free status on personal and income tax. The only tax applicable in UAE is the value-added tax of 5%.
• Wide range of business activities and business license types available for the investors that align with their business requirements
• Top-class infrastructure facilities are available for the companies to conduct meetings, client calls, conferences, daily operations, and more.
• Most Free Zones in UAE have a dedicated Customs Checkpoint and also are in proximity to Airports and Sea Ports that will facilitate easy and fast trade.

Ease of company setup in UAE Free Zones is another major factor for the popularity. Investors can set up a company in less than 2 days in most of the Free Zones of UAE.

Based on the business requirements, nature of the business activity, office requirements, budget, location; investors can choose the Free Zone for setting up the company in UAE.

Aurion will assist you with the submission of the duly filled application form, fee, and required documents to all major Free Zones in the UAE.

To know more about company formation in the UAE Free Zone, reach out to our expert Business Consultants right away!

Contact: Aurion Business Consultants

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A diverse audience from around the world, the deep-rooted culture of hospitality, and the lifestyle in Dubai are driving the restaurant growth in Dubai.

Cost of Restaurant License in Dubai

A restaurant License in Dubai can be obtained from Dubai Economy. It can be registered as LLC or a single owner entity. The cost of Restaurant License in Dubai is approx. AED 25000 (The shop rent and furnishing fees separate)

The cafes and restaurants have a place in every individual’s social life and lifestyle here in Dubai.

With the growing number of tourist and business visitors, the demand to serve the potential audience is on the high side.

The Rise of Restaurant Business in Dubai

There are enormous potential and business opportunities in the niche segment of cafes and restaurants in Dubai. A variety of cuisines are available with new concept restaurants adding to the count.

Opening a restaurant business in Dubai involves a lot of steps and approvals. The food security aspect is very stringent in Dubai.

How to get a Restaurant License in Dubai?

There are certain steps to be followed to obtain a Restaurant License in Dubai and required permits from the authorities in Dubai.

To issue the restaurant operating license, the authorities will conduct strict assessments, inspections, and issue special approvals. The health and safety of consumers are of utmost importance in Dubai.

Hence, restaurants must be adhering to the policies and guidelines to avoid fines and license cancellation.

Step-1 Acquiring the Food & Trading License

For Restaurants to sell food items in Dubai, they have to apply for a trade license from the Dubai Department of Economic Development (DED) and get the approval of the Department of Tourism, and Commerce Marketing.

Now the owner can apply for the Food License through Food & Safety Department.

To add extra items to the menu, and start home delivery, there are special permits to be obtained such as delivery permits, liquor permits, Ramadan permits, etc.

Step-2 Get Required Approvals on Construction Plans

 The food and safety department must approve the construction plan as well as issue required permits such as the:

• Food Consignment release license
• Port permit for serving pork products
• Vehicle permit for food transportation

Clearance from Food Safety Department on Architectural Installation

Also, the Food and Safety department must approve the architectural requirements such as:

• Placement of kitchen area & minimum kitchen area size
• Ventilation facility and chimney placement
• Separate basin for washing utensils, cleaning vegetables, and meat products.
• Storage facilities to preserve all types of food
• Draining pipe placement & waste management

Once the approvals are in place and the plan is approved, the owner can apply for the trade license from DED along with the other supporting documents.

Documents required for starting a Restaurant in Dubai

For Obtaining Trade License from DED/ Free Zone

• Passport Copy & Photo of the owner(s)
• Application form with list of activities chosen
• Selected Trade Name
• Shareholder agreement (MoA),
• Local Sponsor Agreement
• Office/ Retail Space and Tenancy Contract

For Approval from the Food & Safety License

• Trading License
• No-Objection Certificate from local municipality of Dubai
• Construction plan & tenancy Contract
• Special Permits, Certifications (ISO 20000, HACCP), etc.
• Approval from the Planning Department (if the restaurant is located outside of the shopping center)

Step-3 Choosing the right location for your Restaurant Business in Dubai

For restaurants, apart from the menu, the location is a crucial part of the success. The restaurant or cafe must be in an accessible area with ample parking spots, residential location, or prime commercial locations.

New or upcoming residential locations also will help the cafe in gaining popularity easily.

An LLC business setup is the right company structure for a Cafe or Restaurant as most of the residential and commercial hot spot is in the mainland of Dubai.

Street Food Truck License

The concept of food trucks is gaining popularity in Dubai among the new generation. You can obtain a license for food truck operation in Dubai from the Department of Economic Development (DED) under certain guidelines.

There are pre-approvals required from the Road Transport Authority (RTA), Dubai Electricity & Water Authority (DEWA), and Dubai Municipality to start the Food Truck Business in Dubai.

Pre-Approval for Food Truck License

Get HACCP approval to assure the safety of the food truck and the central kitchen. It will add up the credibility of your brand.

The HACCP certificates must be submitted to the government authority approvals before you get your food truck license.

Additionally, you will require to get approvals from Dubai Municipality, Road and Transport Authority, Dubai Electricity, and Water Authority.

So the first step is submitting your detailed business plan to DED and the Dubai Municipality.  As your plan is approved by both the authorities, proceed to the next step of getting all other approvals.

Food Truck License in Dubai & Regulations

• The Food Truck is allowed only to prepare ready-meals (Burgers, Sausages, French Fries) and fried items, barbeques.
• The kitchen area of the truck must be equipped with safety standards and must be suitable for the permitted activities.
• The interiors must be fire-proof, light-colored, smooth material, and easy to clean up.
• The Food truck must also have appropriate ventilation and lighting.
• The food safety standards in Dubai are very high and the food truck must maintain the hygiene and serve of food with utmost care for the safety of their customer.
• You must make arrangements for storing, and packaging, and preparation of food in a separate kitchen. It is not allowed to prepare raw materials in the mobile truck.
• The containers and items required for food preparation should be kept safely in the truck. Any contamination in food will draw penalties from the concerned authorities.

Similar to the Restaurants and Cafes, for Food Trucks also the location matters. There are only limited locations in Dubai, where the government allows the positioning of the Food Trucks.

Pick a favorite spot where a steady flow of tourists, travelers, and visitor flock, this will help in the profitability of the venture.

To know more about Restaurant business / Café / Food Truck Licenses / Foodstuff Trading License, talk to our experts!

Contact: Aurion Business Consultants

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