Restaurant Licence In Dubai: Complete Setup Cost And Requirements

Who Licenses Restaurants In Dubai – Key Authorities And Their Roles

For a restaurant licence in Dubai mainland, your primary commercial regulator is the Department of Economy & Tourism (DET). Through its Business Registration & Licensing (BRL) sector, the DET issues commercial trade licences, reserves business names, records business activities and handles licence renewals and related registration services for all mainland businesses in Dubai. Your restaurant activity must be selected and approved through this BRL framework.

Choosing Compliant Premises And Registering Ejari

Your restaurant must operate from premises authorised for commercial use. The DLD’s guidance confirms that residential units may not be used as commercial offices, which in practice means you must lease a unit classified and approved for commercial or hospitality use if you want to secure a compliant restaurant licence in the Dubai mainland.

Once you sign the lease, you must register the commercial tenancy contract with the DLD via Ejari. When done online through the Dubai REST app or website, standard Ejari registration currently totals AED 177.75: AED 100 for tenancy registration, AED 10 knowledge fee, AED 10 innovation fee, plus a service partner fee of AED 55 with 5% VAT on that fee. Ejari renewals and contracts formalised or renewed by judicial decision follow similar fee structures, with the DLD indicating ranges of roughly AED 172.50–219.75 depending on the service channel.

For restaurants and food service outlets, the Dubai Building Code sets precise technical standards. Kitchen floors, walls and ceilings must be smooth, non‑absorbent, non‑combustible, non‑toxic, crack‑free and easy to clean, with intersections sealed and rounded to aid cleaning. Floors must be hard‑surfaced, waterproof, washable, drained and free of fissures, while wall finishes must be smooth, waterproof, resistant to fracture, light‑coloured and readily cleanable. Food preparation work surfaces must be stainless steel or another impervious, approved material. The Code also requires adequate sanitary, health and safety facilities and minimum kitchen areas in line with Dubai Municipality’s General Conditions for Licensing of Food Establishments.

Only once the building and fit‑out meet these standards can you obtain Dubai Municipality’s “Permit for Food Related Activities”. The Municipality’s My Food digital control system links this permit to Food Code compliance, ensuring no food activity is legally performed before the permit is granted. If your business imports or significantly modifies food products, you must additionally ensure that those products are registered in the national ZAD system in accordance with Ministerial Decree No. 239 of 2018.

Staffing Your Restaurant – MOHRE Establishment Card And Work Permits

From a labour‑law perspective, the MOHRE’s guidance for new employers sets a precise sequence: obtain a trade licence, open an establishment card with the Federal Authority for Identity, Citizenship, Customs & Port Security, and then complete establishment‑card procedures with the MOHRE. Issuance of a MOHRE establishment card requires a valid trade licence and registration of all owners, partners, service agents and authorised signatories, along with details of the business activity and location.

To hire non‑UAE workers, you must obtain federal work permits. For recruiting a worker from overseas, the MOHRE specifies an application fee of AED 50 plus a two‑year work‑permit issuance fee that depends on the establishment’s category: AED 250 for Category 1, AED 1,200 for Category 2 and AED 3,450 for Category 3 establishments. A business centre’s commission, capped at AED 72 per permit package, is added to these federal fees. Work‑permit renewals for two years follow the same category‑based structure. They can be submitted up to 60 days before expiry, while employment contracts and permits must generally be completed within 60 days of the employee’s entry or change of status.

In addition to VAT, restaurants that form part of hotels, hotel apartments and resorts may show further government‑related charges on customer bills. The UAE government portal notes that such facilities can levy municipality fees (often around 10%), city tax ranging from 6% to 10% and a 6% tourism fee, depending on the facility type and emirate. In Dubai, the Municipality offers a dedicated service for paying municipality fees on the sales of cinemas, hotel establishments, restaurants and venues that provide or serve alcoholic beverages. These payments are ongoing operating costs separate from VAT and from the 5% municipality tax on rent payable via utility bills.

Inspections, Food Safety Controls And Penalties

Dubai Municipality’s food‑safety programme is intensive and data‑driven. Through initiatives such as My Food, it regulates tens of thousands of licensed food establishments, and in 2023, it recorded over 1.5 million food‑product registrations and 65,230 inspection visits across 26,612 registered food institutions. Routine inspections and targeted campaigns, including during Ramadan and Eid, focus on storage, transportation, preparation, cooking and thermal preservation of food, as well as workers’ personal hygiene, the use of gloves and headgear and the presence of valid occupational health cards.

On the commercial‑licensing side, the Dubai Commercial Compliance Manual sets out administrative fines that directly affect restaurants. Failing to renew a trade licence within the specified time incurs a fine of AED 250. Changing or adding an authorised activity without prior approval from the DET or the relevant authority results in a AED 2,000 fine, as does exploiting a facility’s site for purposes other than the authorised activity. Operating restaurants, cafés and similar establishments during Ramadan without the appropriate permit attracts an AED 5,000 fine, and failure to comply with work‑permit conditions applicable to restaurants during Ramadan carries another AED 5,000 penalty. These figures underline the importance of maintaining licensing and operational compliance throughout the year.

If your restaurant involves construction, remodelling or fit‑out changes, a Dubai Municipality building permit and building‑completion‑certificate fees will apply, and your design must satisfy the Dubai Building Code, Al Sa’fat mandatory green‑building criteria and, where relevant, the Dubai Universal Design Code and Wosool accessibility assessments. Operationally, you must budget for the Dubai Municipality’s “Permit for Food Related Activities” and any related food‑safety approvals, as well as potential ZAD registration if you handle food products that require national registration.

Staff‑related government costs include issuing and renewing your MOHRE establishment card and paying federal work‑permit and employment‑contract fees, with overseas‑recruitment permit charges currently starting from AED 50 plus AED 250–3,450 depending on your MOHRE category, and a business‑centre commission capped at AED 72 per permit. Once your turnover justifies it, VAT registration and ongoing compliance (returns, administration) add a further regulatory layer. Finally, where applicable, you should plan for periodic payments of Dubai Municipality fees on restaurant or hotel establishment sales. All of these are separate from commercial costs such as rent level, interior design, equipment and marketing.

FAQ: Restaurant Licence In Dubai – Cost And Requirements

What is the complete setup cost of a restaurant licence in Dubai?

There is no universal figure, because costs depend on your chosen premises, size, MOHRE category and business model. However, you should expect government‑related costs for DET/BRL trade‑licence issuance and renewal, Ejari registration and 5% rent municipality tax, Dubai Municipality building and food‑activity permits, MOHRE establishment cards and work permits. Additionally, there are possible ZAD registrations, VAT compliance and any applicable municipality fees on sales, in addition to your commercial expenses.

Which approvals are needed for a restaurant licence in the Dubai mainland?

Typically you need: a DET/BRL commercial trade licence with the correct restaurant activity; a commercial tenancy registered through the DLD Ejari; building permits and a building completion certificate from Dubai Municipality where construction or fit‑out is involved; a Dubai Municipality “Permit for Food Related Activities”; a MOHRE establishment card and work permits for staff; and, once thresholds are met, VAT registration with the Federal Tax Authority. Additional approvals may apply if you operate a hotel or serve alcoholic beverages.

Is Ejari mandatory for a restaurant in Dubai?

Yes. To operate legally in the Dubai mainland, your restaurant must occupy commercially authorised premises and have a valid tenancy contract registered through the DLD’s Ejari system. Online registration via the Dubai REST app currently costs AED 177.75 for standard contracts, and Ejari details are frequently required when dealing with the DET, Dubai Municipality and utilities. Using residential property as a commercial office or restaurant contravenes DLD’s rules.

What are the MOHRE work permit fees for restaurant staff in the UAE?

For overseas recruitment, the federal work‑permit application fee is AED 50, followed by a two‑year permit‑issuance fee based on your MOHRE category: AED 250 for Category 1, AED 1,200 for Category 2 and AED 3,450 for Category 3 establishments. A business‑centre commission, capped at AED 72 per permit package, is added. Renewals for two years use the same fee bands, and applications can be filed up to 60 days before the permit expires.

When must a Dubai restaurant register for VAT?

You must register with the Federal Tax Authority if your taxable supplies and imports exceeded AED 375,000 in the previous 12 months or are expected to exceed that figure in the next 30 days. Voluntary registration is allowed once you reach AED 187,500 in taxable supplies/imports or taxable expenses. Restaurant services are generally taxable at 5%, and registration applications must be submitted within 30 days of becoming liable.

What penalties apply to restaurants without proper licences or permits in Dubai?

Under Dubai’s Commercial Compliance Manual, failing to renew a trade licence on time results in a AED 250 fine, while changing or adding an activity without approval or exploiting the premises for unauthorised purposes leads to AED 2,000 fines. Operating restaurants or cafés during Ramadan without the required permit, or breaching Ramadan‑specific work‑permit rules, can each trigger AED 5,000 penalties. Dubai Municipality can also take enforcement action where food‑safety rules and Food Code requirements are not met.