UAE Restaurant Trade License & Permits: What You Need to Know

One of the first steps to opening a restaurant in the UAE or Dubai is securing a trade license. While you may have already figured out the location, the menu, the staff, and interior designs, without the trade license you can’t function in the UAE. This blog covers the full process of getting a UAE restaurant license – costs, requirements, mistakes, and compliance.

Step-by-step Guide to Getting a Restaurant License in the UAE

Over 1,500 new food and beverage (F&B) establishments were opened last year only from January to March 2024 in Dubai. This shows that there is a high demand for restaurants, coffee shops and other F&B businesses, driven by the outing revitalization, food delivery revolution, and of course the diverse population in Dubai, looking for various cuisines, dishes and experiences. Let’s look at what a trade license is and why you need it.

It is important to know that you need to obtain the correct F&B license, depending on the type of establishment you want to operate, as well as on the emirate your business will be located in.

Here’s an overview of the general requirements and the variations across different emirates:

General Requirements for a Restaurant License in the UAE:

Restaurant Trade License: 

Restaurants wishing to commercialize food and beverages in the UAE need to comply with specific safety and health regulations standards, granted when the restaurant trade license is issued. This is the primary license required to operate any business in the UAE. For restaurants, a commercial license is typically issued by the Department of Economic Development (DED) of the respective emirate.

Food License 

Issued by the Food Safety Department, this license ensures that the establishment complies with the necessary hygiene and safety standards for running activities related to handling edible products. This applies to all types of F&B businesses, including quick service restaurants, full service restaurants, cafes, or food trucks. To acquire this license, you first need to have your trade license, and then additional documentation, which makes this process more complex:

• Food License Application: This is a completed application form submitted to the local food safety authorities. These can be the Dubai Municipality’s Food Safety Department or the Abu Dhabi Agriculture and Food Safety Authority (ADAFSA), for instance.
• Approval of Location: Here you need to show proof of approval for the business premises, ensuring the location meets zoning and health regulations. Depending on your situation, this may involve submitting a tenancy contract or lease agreement.
• Kitchen Layout Plan: You need to submit detailed drawings of the kitchen and food preparation areas, demonstrating compliance with hygiene and safety standards.
• Food Safety Training Certificates: This refers to proof that staff completed required food hygiene training.
• Menu Details: Be ready to present a comprehensive list of food and drink items that you intend to sell. These will be reviewed for compliance with local food safety regulations.
• No Objection Certificate (NOC): This is a letter from the relevant municipality or planning department stating they have no objections to the proposed food business operations at the specified location.
• Pest Control Contract: You will need to present an agreement with a certified pest control company that ensures sanitary conditions within the establishment.
• Waste Management Plan: This is a strategy for handling and disposing of waste per regulations.
• Health and Safety Certificates: You will need to show proof that your restaurant meets health, ventilation, light and safety standards.

Additional Approvals: 

Depending on the specific services offered (e.g., serving alcohol, outdoor seating, serving Iftar, etc.), additional permits may be required from relevant authorities. For instance, during Ramadan, establishments that want to serve Iftar require a Ramadan permit issued by the Islamic Affairs and Charitable Activities Department (IACAD).

Restaurant Trade License in the UAE – Costs

The cost of the restaurant license is influenced by several factors, such as the location of the F&B business, its size, or the administrative processes required in each emirate.

Restaurant Trade License Cost in Dubai

To obtain a trade license for a restaurant that will operate in Dubai you will need to invest on average AED 17,000 to over AED 18,000, which includes: initial approval fees, notary verification fees, labor card fees, license fees, Tasheel fees (for work permits), stamp of the company, etc. However, additional costs may be encountered, such as reservation for the trade name or other administrative expenses.

Restaurant Trade License Cost in Abu Dhabi

The cost for a restaurant trade license in Abu Dhabi can vary anywhere between AED 10,000 to AED 30,000. Factors such as the location (free zone or mainland), the size of the establishment, or the number of visas required will also determine the final cost of a restaurant trade license in Abu Dhabi.

Restaurant Trade License Cost in Sharjah

Opening an F&B business in Sharjah costs AED 5,000–30,000 for a trade license. The high variation driven by similar factors as the ones mentioned above. The free zone options look more advantageous, averaging at around AED 6,000 to 7,000, but this comes with pros and cons, mostly related to the location of the establishment.  

Restaurant License in the UAE Mistakes to Avoid

Opening a restaurant in the UAE is exciting, but common mistakes often stay in the way of smooth operations. One of the most common and most critical errors is neglecting to plan the right operational systems.

• Plan your POS, restaurant inventory software, accounting, and payroll systems before opening to avoid future inefficiencies.
• Choose scalable solutions: Pick systems that can grow with your restaurant.

Use a fully automated software like Polaris ERP to get a unified platform that can streamline all your operations from day one, helping you grow your F&B business, control your costs and maximize your profits.

How Restaurant Software Can Help Track Compliance Deadlines

Restaurant software can simplify tracking compliance deadlines, so you never miss important tasks like food safety inspections or employee training. By setting up automatic reminders, the software ensures you stay on top of all due dates without the hassle of manual tracking.

With everything organized in one place, it helps you focus on running your business while staying compliant. Whether it’s renewing licenses or filing taxes, Polaris ERP  makes it easy to manage deadlines and avoid penalties.

Teaming up with a restaurant software solution from the get go can be crucial for your F&B business. Choosing Polaris ERP as your tech partner links all your restaurant operations (sales, inventory, accounting, purchasing, recipe management, food cost calculations, kitchen operations, delivery, and more) into a single system. This allows your team to focus on delivering great food and excellent service, while the software automates key tasks. Polaris ERP also provides you with clear insights into your business performance at every step, along with recommendations to optimize your menu for maximum profitability.