How to Start a Restaurant in Dubai 2026: Licences, Costs and Step-by-Step Setup
Everything you need to open a restaurant in Dubai in 2026: the licences and approvals, realistic licensing and fit-out costs, how long it takes, and the mistakes that delay most openings.
Quick answer: what does it take to open a restaurant in Dubai?
- You need a mainland trade licence from the Department of Economy and Tourism (DET) with restaurant activities, a Dubai Municipality food establishment permit and Civil Defence approval.
- Licensing and approvals usually cost AED 20,000 – 41,000 in the first year, before rent, fit-out and equipment.
- Most restaurants open 8 – 16 weeks after signing a lease, because fit-out and inspections take longer than the licence itself.
- Foreign investors can own 100% of a restaurant company on the Dubai mainland.
Dubai is one of the most exciting food cities in the world. Residents eat out often, tourism keeps footfall high all year, and delivery platforms make it possible to reach customers across the city from a single kitchen. That is why so many founders ask the same question: how do you start a restaurant in Dubai, and what will it really cost?
This guide walks you through the whole process for 2026: choosing the right legal setup, the licences and permits you need, realistic budgets, the order of steps, and the mistakes that most often delay an opening. Whether you are planning a 20-seat café-restaurant, a fine-dining concept or a delivery-only brand, the same building blocks apply.
Mainland or Free Zone: Where Should a Restaurant Be Licensed?
A restaurant that serves walk-in customers in Dubai needs a mainland licence from DET. Free zone companies are designed for business inside their zone or outside the UAE, so they cannot normally run a public restaurant in a mall, a street-front unit or a residential community.
Since the UAE opened most commercial activities to full foreign ownership, you can now hold 100% of a mainland restaurant company yourself. Most restaurant owners use a Limited Liability Company (LLC), which keeps personal assets separate from the business. A sole establishment is possible but leaves you personally liable for the company's debts. If you are still comparing structures, our mainland company setup service and the free jurisdiction wizard help you decide in minutes.
Some free zones and hotels have their own food and beverage outlets, but these are special cases with specific landlord and authority approvals. For a standard high-street or mall restaurant, plan for a DET mainland licence.
The Licences and Approvals You Need
Opening a restaurant involves several authorities. Each one checks a different part of the business, and each has its own fee.
| Approval | Issued by | What it covers |
|---|---|---|
| Trade licence (restaurant activity) | Department of Economy and Tourism (DET) | Your legal right to trade and the activities you may carry out |
| Trade name reservation and initial approval | DET | Confirms your company name and that the activity is allowed |
| Food establishment permit | Dubai Municipality (Food Safety Department) | Kitchen layout, hygiene, storage and food safety inspection |
| Civil Defence approval | Dubai Civil Defence | Fire suppression, exits, alarms and extinguishers |
| Tenancy registration (Ejari) | Dubai Land Department | Registers your lease; needed before the licence is issued |
| Food handler certificates | Approved training providers | Every staff member who handles food |
| Extra permits if needed | DET / Dubai Municipality / landlord | Outdoor seating, signage, shisha, alcohol (hotel and licensed venues only) |
Two details catch many first-time owners. First, Dubai Municipality reviews your kitchen drawings before fit-out, so you should not start building until the layout is approved. Second, the final licence is only issued once the inspections pass, which means your licence timeline depends on your contractor.
How Much Does It Cost to Start a Restaurant in Dubai?
It helps to split your budget into two parts: the licensing and approval costs paid to authorities, and the much larger capital costs of premises, fit-out, equipment and opening stock.
| Licensing item | Typical cost (AED) | How often |
|---|---|---|
| Trade name reservation | ~620 | One-time |
| DET initial approval | ~120 | One-time |
| DET trade licence (restaurant) | 12,000 – 20,000 | Every year |
| Dubai Municipality food permit | 5,000 – 15,000 | Every year |
| Civil Defence approval | 2,000 – 5,000 | Every year |
| Ejari registration | ~220 | On each lease |
| Food handler certificates | 300 – 600 per staff member | Every year |
| Municipality market fee | 5% of annual rent | Every year |
Indicative 2026 ranges. Your exact figure depends on activities, premises size and location.
Rent is usually the biggest recurring cost. Landlords in Dubai typically ask for rent in one to four cheques plus a security deposit, and many malls charge service fees on top. Because the Municipality market fee is 5% of your annual rent, a cheaper location also lowers your yearly licensing bill. Use our business setup cost calculator to estimate your company setup, then add your fit-out quote.
Step-by-Step: How to Open Your Restaurant
- 1Finalise your concept and business planWeeks 1 – 2
Decide your cuisine, seat count, price point and delivery strategy. This drives your activity codes, the space you need and your budget.
- 2Reserve your trade name and get initial approvalWeek 2
Apply to DET with your chosen name and restaurant activities. Initial approval lets you sign a lease and start the next steps.
- 3Find premises and sign the leaseWeeks 2 – 6
Check that the unit is zoned for food, has gas, drainage and extraction options, and that the landlord allows your concept. Register the lease through Ejari.
- 4Get kitchen drawings approvedWeeks 5 – 8
Submit layout and design drawings to Dubai Municipality and Civil Defence before fit-out begins.
- 5Fit out the premisesWeeks 7 – 14
Build the kitchen, dining area, fire systems and signage according to the approved drawings.
- 6Pass inspections and receive your licenceWeeks 13 – 16
Food safety and Civil Defence inspect the finished site. Once they sign off, DET issues the trade licence and you can apply for staff visas.
- 7Hire, train and openWeeks 14 – 16
Process visas, get food handler certificates for your team, set up POS and delivery accounts, then plan a soft opening.
Choose every activity you might need at the start: dine-in, takeaway, delivery, catering and outdoor seating. Adding activities after the licence is issued means amendment fees and sometimes new inspections.
Choosing the Right Location
Location decides your footfall, your rent and how quickly you are approved. When you view units, ask about:
- Zoning and landlord rules: some buildings do not allow cooking, grease-producing kitchens or shisha.
- Utilities: gas supply, power load, grease traps and an extraction route to the roof.
- Footfall and parking: offices give lunch trade, residential areas give evenings and weekends, malls give footfall at a premium.
- Delivery reach: if delivery will be a big share of sales, check driving times to your target neighbourhoods.
Popular choices include Jumeirah Lake Towers, Business Bay, Dubai Marina, Al Barsha, Jumeirah and the growing communities of Dubai Hills, Arjan and Jumeirah Village Circle, where rents are lower and residents order often.
Staff, Visas and Running Costs
Your licence and premises size determine how many residence visas you can sponsor. Each employee visa usually costs AED 3,000 – 5,000 including medical test and Emirates ID, plus mandatory health insurance. Every food handler needs a valid certificate, and Dubai Municipality expects at least one trained person in charge of food safety on every shift. Our visa and PRO team can process employee visas in parallel with your fit-out so staff are ready when you open.
Common monthly running costs
- Rent and service charges
- Salaries, housing or allowances
- Food and beverage stock
- Utilities (DEWA, gas, internet)
- Delivery platform commissions
- Marketing and POS subscriptions
Often forgotten costs
- Annual licence and permit renewals
- Municipality market fee (5% of rent)
- Pest control and deep-cleaning contracts
- Equipment maintenance
- Visa renewals and insurance
- VAT and corporate tax accounting
Tax and Compliance for Restaurants
Restaurants must register for VAT once taxable sales pass AED 375,000 a year, and menu prices shown to customers must include VAT. Every UAE company must also register for corporate tax; profits up to AED 375,000 are taxed at 0% and profits above that at 9%. Clean bookkeeping from day one makes both much easier, and our accounting and VAT team can set this up for you.
Do not start fit-out before your drawings are approved. Rebuilding a kitchen to meet inspection rules is the single most expensive delay for new restaurants in Dubai.
Common Mistakes to Avoid
- Signing a lease before confirming the unit can be licensed for food.
- Under-budgeting fit-out and equipment, which often cost several times more than the licences.
- Leaving delivery, catering or outdoor seating off the licence.
- Hiring staff before visas and food handler certificates can be processed.
- Ignoring working capital: plan for at least three to six months of running costs before the restaurant breaks even.
Frequently Asked Questions
Can a foreigner own a restaurant in Dubai?
Yes. Most commercial activities, including restaurants, can be 100% foreign-owned on the Dubai mainland. You no longer need a UAE national partner for a standard restaurant LLC.
How much does a restaurant licence cost in Dubai?
The DET trade licence for a restaurant typically costs AED 12,000 to 20,000 a year. With the food permit, Civil Defence approval and smaller fees, licensing usually totals AED 20,000 to 41,000 in the first year.
How long does it take to open a restaurant in Dubai?
The licence steps can move quickly, but most restaurants open 8 to 16 weeks after signing a lease because drawings, fit-out and inspections take time.
Can I open a restaurant with a free zone licence?
Not for a normal public restaurant. A restaurant serving customers in the city needs a DET mainland licence. Free zone food outlets exist only in special cases inside their own zone.
Do I need a physical location before getting my licence?
Yes. DET issues a restaurant licence for a specific registered premises, and Dubai Municipality and Civil Defence must inspect that site before the licence is final.
Is a cloud kitchen cheaper than a restaurant?
Usually yes. A delivery-only kitchen needs a smaller space, no dining area and less fit-out, so many founders start with a cloud kitchen and add a dine-in outlet once the brand proves itself.
Do restaurants in Dubai have to charge VAT?
Restaurants must register for VAT once taxable sales pass AED 375,000 a year, and displayed menu prices must include the 5% VAT.
Can I serve alcohol in my restaurant?
Alcohol can only be served in specific licensed venues, typically within hotels and approved locations, under a separate licence. Most independent restaurants operate without alcohol.
Open your Dubai restaurant with confidence
We handle your trade licence, food permit, Civil Defence approval and staff visas, with one clear quote and a dedicated advisor.
Fees are indicative for 2026 and based on published authority price lists and typical government charges at the time of writing. They change, so confirm current figures with the authority or our team before you apply.
Written by
Incorporate.ae advisory team
Company formation consultants in Dubai who have helped 1,500+ businesses set up across the UAE’s free zones and mainland.
