How to Start a Shop in Dubai

by Zaara 13, Aug 2018

How to Start a Shop in Dubai

Dubai is now firmly established as the financial, business and commercial hub of the Middle East, extremely known for its warm hospitality and rich cultural heritage. Convenient business conditions and savvy investment decisions have led to Dubai becoming one of the Gulf’s rapidly growing economy. Shops, or souks – as these are called in the Middle East – comprise one of the fastest growing industries in Dubai. Consequently, setting up a shop in Dubai is quite a promising proposition.

Shops in the retail, beauty salon and restaurant domains are the most widespread in Dubai. Let’s have a look as to how one can go about starting a shop in these fields in Dubai.

1. Retail Shop

The retail sector in Dubai is currently a major booming sector. With the Dubai shopping festival and other such events - opening a shop in Dubai could be very lucrative.

Here is the procedure to open a retail store in Dubai.

Support of a Local Partner

In Dubai as well as other parts of the UAE, it is mandatory to obtain the support of a local partner (sleeping partner) having not less than 51% of share in the business. This procedure is must unless you own a shop in the free zone or sign an investor protected contract.

Obtaining Dubai Commercial License

After deciding the type of retail store, in order to obtain the Dubai trade license, a company must be registered under the Company Register. After this step, few documents have to be submitted to the Department of Economic Development in Dubai and the UAE federal ministry of Economy for the commercial license to be issued are:

  • An application with the company's name mentioned in English and Arabic
  • The original lease contract for the registered address of the company,
  • The permit issued by the Dubai Municipality Building Department clearing the use of storage space as a business address for the retail store.
  • Payment proof of trade license issuance fee 

Shop on Rent

Hiring a shop for rent also comes with certain series of permissions required to get from Dubai Municipality and other governmental bodies.

2. Beauty Salon

Every men and woman want to look attractive in front of others. Dubai being labeled as a nation of young population, scope for beauty salons always remains at the top.  Beauty fades, until and unless there are no beauty salons.

 The steps to follow while setting up the beauty salons are listed below.

Obtaining Professional Licence

In Dubai, whoever wants to start a skill-based business is supposed to obtain a professional license from the Dubai Municipality.

Here are the documents required for obtaining the professional license:

  • A prescribed application form
  • Passport copies of the owner or partner
  • Copy of the local partner’s naturalization book
  • Letter of No objection from the sponsor for foreign partners
  • Foreign investors must submit a copy of the visit, tourist or transit visa
  • Relevant authorities must provide the initial approval for the business to be undertaken

Business Location

Find an affordable and high traffic area to run the beauty salon. It is better to get a shop near universities or tech parks so that you get more footfalls of youths into your salon.

3. Restaurant

Dubai being a favorite holiday spot for many, welcomes millions of tourists each year. So, starting a restaurant in Dubai with creative strategies could be a business-worthy decision.

Here are the key points to start your restaurant in Dubai.

Securing a Food and Trade License in Dubai

restaurant license in Dubai is a prerequisite to opening an eatery here. Food license can be obtained through the Food & Safety Department, while trade license should be acquired from the Department of Economic Development (DED) and the Department of Tourism and Commerce Marketing. If you are interested to provide an ad on options to your customers, then there are a number of special licenses you must apply for including a delivery permit, liquor permit, etc.

The documents required to obtain a food and trade license in Dubai are:

  • The first approval issued by the Department of Economic Development (DED)
  • The layout of the premises
  • Approval from the Planning Department is required if the shop is located outside a shopping centre

Best Location

Location becomes the major criterion when starting a business in Dubai. Dubai government has created many business zones such as Media city, Education city, internet city and tourist zones. It is up to you to choose the right zone according to your targeted customers and activity in your restaurants.

Apart from all this, you must set your business plan according to your budget and target customers you choose. Nevertheless, the Dubai government is making investors life easier by making business policies easier and accessible.

Business Setup Worldwide is a platform which can assist you in following the legal procedures to set up your dream shop in Dubai. Contact us for further assistance in starting your own shop in Dubai – we’d be glad to assist!