Dubai has established its reputation as the financial, commercial, and business hub of the Middle East. It is also known for its warm hospitality and its rich cultural heritage. All these along with the great business conditions make it easy to set up shop or souk in Dubai. The most common shops found in Dubai are restaurants, retail shops, and beauty salons. Read the following information when it comes to setting up such shops:
The Retail Shop
The retail shop industry is always at its all-time high. It is required to look for a local partner to be able to open a retail shop in Dubai unless the shop will be opened at a free zone or you secure an investor protected contract. It is mandatory for the partner to own not less than 51 percent of the business shares.
You have to obtain a trade license in Dubai once you have decided on the type of retail shop you intended to put up. It is important for the company to be registered under the Company Register. The following documents must also be submitted to the Department of Economic Development (DED) and the UAE Federal Ministry of Economy for obtaining the commercial license.
- Original lease contract for the company’s registered address
- Payment proof for the trade license fee
- Permit issued by Dubai’s Municipality Building Department that clear the use of storage space as the business address of the retail shop
- The application form with the company name in Arabic and English
- Several permissions from the Dubai Municipality and other government authorities are also necessary.
The Beauty Salon
Everyone wants to be attractive. Dubai has a large young population which is why beauty salons are always popular. In Dubai, it is required to acquire a professional license to be able to put up a beauty salon because this is a business that is based on skills. The professional license will be provided by the Dubai Municipality. The following are the documents required for obtaining the professional license:
- Passport copies of the owner and the partner
- Copy of the partner’s naturalization book
- For foreign investors, a copy of the transit, tourist, or visit visa
- The prescribed application form
- Letter of No Objection from the local sponsor of the foreign investor
- The authorized government bodies have to provide the initial approval for the business activity
It’s wise to choose a cheap yet high-traffic area to set up the beauty salon. Put up a shop near universities and tech parks to target the youth.
Dubai has always been a favorite tourist destination by many travelers. The country welcomes millions of tourists every year. That’s why it’s wise to put up a restaurant business with some creative strategies. It is a requirement to obtain a restaurant license before you can open an eatery in Dubai. This license can be obtained from the Food and Safety Department while a trade license is also required to be obtained from the DED and the Department of Tourism and Commerce Marketing. If you want to have more add-on options to your restaurant, there are additional licenses to obtain such as liquor permit, delivery permit, and others.
The following are some of the documents to be submitted to acquiring the food and trade licenses:
- Layout of the restaurant premises
- First approval from the Department of Economic Development (DED)
- Approval from the Planning Department when the shop is set up outside the shopping center
The restaurant’s location is a major consideration when you are starting a restaurant business. It is wise to choose among the Dubai government’s designated business zones such as internet city, media city, tourist city, and the education city. You may choose the specific zone that suits your targeted market specific business activity you plan to conduct.
A business plan is also important along with the budget plan. Dubai’s business policies are becoming more accessible and easier to follow. For other company-setup questions in Dubai, contact HBS Dubai for a prompt, professional response.