Food Trade License in UAE

A Food Trade License is a mandatory legal permit for any business in the UAE food sector. Issued by the Department of Economic Development (DED) in collaboration with local food authorities, such as Dubai Municipality or Abu Dhabi Agriculture and Food Safety Authority (ADACF), it allows businesses to legally import, distribute, manufacture, and sell food products.

The license ensures compliance with health, safety, and hygiene standards, protecting public health. With over 13,000 F&B outlets in Dubai alone and a market projected to surpass AED 131 billion by 2026, obtaining a Food Trade License is not just a legal requirement—it’s your entry into the UAE’s thriving food market.

The primary aim of this license is to ensure businesses meet health, safety, and hygiene standards. This protects public health effectively.

Key Functions of the License

• It legitimizes food business operations.
• It ensures adherence to official Food Trade License standards.
• It permits specific food-related activities based on the license category.

A Food Trade License is essential for a wide range of food-related activities in the UAE. Understanding who needs this license is the first step towards compliance.

Broad Applicability: Any business entity involved in preparing, storing, distributing, or selling food items must obtain a Food Trade License.  This requirement encompasses a wide range of businesses:

• Restaurants, cafes, and coffee shops.
• Catering services for events and institutions.
• Food manufacturing and processing units.
• Businesses importing and exporting food products.
• Bakeries and pastry shops.
• Foodstuff trading involves reselling packaged foods.
• Home-based food businesses (must be registered and approved).
• Food trucks offering mobile food services.

The UAE provides different food trade licenses and permits, with commercial licenses for food activities being common, but additional specific permits are often required.

• Restaurant License: For businesses that offer food and drinks on-site. Restaurant trade license includes fine dining, cafes, and quick-service restaurants.
• Catering License: For businesses providing food services for events, parties, and institutions. This allows food preparation and service at various locations.
• Food Truck License: Essential for mobile food businesses. This is a popular option in the UAE.
  • It requires a DED trade license, a Dubai Municipality food truck permit, and HACCP certification.
  • Specific rules apply: Food is usually pre-cooked in a central kitchen, operations are restricted to approved locations, menus need approval, and staff must have health cards.
• Food Manufacturing License: For businesses involved in the production, processing, and packaging of food products. This typically requires a dedicated physical space like a factory.
• Foodstuff Trading License / Food and Beverage Trading License: For businesses that resell various food items. This includes:
  • Organic and non-organic foods
  • Fresh or preserved food items
  • Dairy products
  • Meat and poultry
  • Bakery goods

This license is for those who import, export, distribute, and sell packaged or raw food products, rather than preparing meals for immediate consumption.

• Home-Based Food License: For individuals preparing and selling food from their homes. Home-based business trade license often applies to traditional foods or small-scale bakery items. In Dubai, this may require foodwatch registration.
• Cloud Kitchen License: For businesses operating kitchens solely for delivery services, without a dine-in facility.

The primary factor determining eligibility is the nature of the business activity involving food. Additionally, the business must meet general UAE company formation requirements. This might include having a local sponsor or setting up in a free zone, depending on the chosen business structure.

General Requirements for Food Trade License in UAE include:

• A comprehensive business plan.
• Approval of the business name and activity from the DED.
• A suitable commercial space that meets Municipality guidelines for kitchen layout, hygiene, etc.
• Mandatory food safety training for all staff handling food.
• A Food Safety Management System (FSMS), possibly based on HACCP principles, especially for higher-risk activities.

Jurisdiction-Based Eligibility:

• Mainland Setup:

  • May require a local sponsor (UAE national or Emirati-owned company) unless 100% foreign ownership is permitted for your specific activity.
  • Offers the flexibility to trade anywhere within the UAE, mainland business setup including directly with consumers and government entities.

• Free Zone Setup:

  • No local sponsor required, and full foreign ownership is allowed.
  • However, operations are typically restricted to within the freezone business setup or for export. To sell directly in the UAE mainland, a local distributor or agent must be appointed.
  • Suitable for central kitchens, food e-commerce fulfillment centers, and export-oriented F&B businesses.

Note: Offshore companies are not eligible for a Food Trade License in the UAE because they are not permitted to conduct physical business activities or trade within the UAE market.

Know about: Can You Own 100% of a Company in the UAE?

What is a Food Truck Trade License?

A food truck trade license is required for mobile vendors in the UAE, along with approvals from the Roads and Transport Authority (RTA). Trucks must meet specific design and safety standards.

The UAE’s comprehensive food safety laws apply to all food-related businesses, including home-based kitchens and e-commerce platforms. The requirements for a Food Trade License in UAE are broad and mandatory, regardless of business size. Failure to comply may lead to significant legal and financial repercussions.

The UAE offers a wide range of business licenses depending on your activity type. Understanding these options can help you choose the right one for your business setup or expansion:

Trade License in UAE – the foundational permit required for most commercial and professional Trade License in UAE business activities.

Company Trade License – ideal for registering a full-fledged company in the UAE, whether on the mainland or in a free zone Company Trade License setup.

Commercial Trade License – perfect for businesses engaged in trading, importing, exporting, or distributing goods and services under a Commercial Trade License.

Health Trade License – mandatory for businesses involved in food, healthcare, cosmetics, or wellness products requiring a Health Trade License.

Industrial Trade License – required for manufacturing, food processing, or any industrial-scale production activities with an Industrial Trade License.

Grocery Trade License – essential for grocery stores, supermarkets, and food retail outlets selling daily staples and packaged food under a Grocery Trade License.

Restaurant Trade License – specifically for restaurants, cafés, and dining establishments that serve food and beverages on-site with a Restaurant Trade License.

Real Estate Trade License – for businesses engaged in real estate, property management, or commercial space leasing through a Real Estate Trade License.

Pro Tip: Many food-related businesses require a combination of these licenses. For example, a supermarket might need both a Grocery and Commercial Trade License, while a food manufacturing unit may also need an Industrial Trade License.

Obtaining a Food Trade License in the UAE involves a series of steps. While there might be minor variations between emirates, the general process is similar.

Step 1: Develop a Comprehensive Business Plan

This is a foundational step. The plan should detail the business concept, target market, menu offerings, pricing strategy, and financial projections. A strong Unique Selling Point (USP) is vital. This plan is crucial for DED approval and may be needed for securing loans or attracting investors.

Step 2: Choose Legal Structure and Jurisdiction

Decide on the legal form of the business (e.g., Sole Proprietorship, Limited Liability Company (LLC), Free Zone Company (FZCO), or a branch). Also, choose the jurisdiction: Mainland or a Free Zone. Mainland operations allow trading across the UAE and, in many cases, now offer 100% foreign ownership for various business activities. Free Zones provide benefits like full foreign ownership, simplified setup, and tax advantages, but may restrict direct trade with the mainland without a local distributor. This choice directly affects ownership, liability, and operational flexibility.

Step 3: Trade Name Reservation and Initial Approval

Select a unique trade name that complies with UAE guidelines. Submit it to the DED or the relevant Free Zone authority for reservation. Then, apply for Initial Approval from the DED. This involves submitting the business plan, passport copies of the owners, and visa information.

Initial approval indicates that the authorities have no preliminary objections to the proposed business.

Step 4: Secure Premises and Get Layout Approval

Find a suitable location for the food business (e.g., shop, kitchen unit, warehouse). Obtain a tenancy contract; for mainland Dubai, an Ejari registration is required. For food businesses, the layout of the premises, especially the kitchen design, storage areas, and sanitation facilities, must be approved by the Food Control Department (FCD) of the local Municipality (e.g., Dubai Municipality). This involves submitting detailed architectural plans.

Step 5: Obtain Approval from the Food Control Department (FCD) / Municipality

This is a critical step that often occurs before the DED issues the final trade license for food-related activities. Businesses must submit a plan to the Food Safety Management System (FSMS) and Hazard Analysis and Critical Control Points (HACCP), ensure staff have health cards, and arrange a pest control contract. The premises must pass a food safety and hygiene inspection conducted by the FCD.

Step 6: Obtain the Trade License from DED

Once FCD approval is secured, submit all required documents to the DED. These include the FCD approval, Memorandum of Association (MOA) if it’s an LLC, and the tenancy contract. The DED will then issue the final trade license.

Step 7: Apply for Specific Food Permits

After receiving the trade license, apply for any other specialized permits if they were not covered by the main FCD approval. Examples include Halal certification, organic certification, or vehicle permits from the RTA for food trucks.

Step 8: Pass Final Hygiene Inspection

Before commencing operations, the FCD will typically conduct a final inspection. This assesses food handling practices, storage, preparation methods, and the overall cleanliness of the premises.

The Food Trade License registration is effectively the process of registering the business with the DED. The Food Trade License application involves submitting forms and documents to both the DED and the Municipality at various stages. Online portals are often available for these applications. To apply for a Food Trade License is a multi-agency effort.

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A comprehensive set of documents is needed to obtain a Food Trade License in the UAE.

• Completed application form, signed by all managers or legal representatives.
• Clear passport copies of all business partners, shareholders, and the appointed manager.
• Valid visa copies (e.g., residence visa, visit visa of partners, if applicable).
• Recent passport-sized photographs of partners/managers.
• Trade name reservation certificate from DED or the relevant authority.
• Initial approval receipt or certificate from DED.
• A detailed Business Plan outlining the concept, operations, and financial projections.
• Memorandum of Association (MOA), which must be notarized (required for LLCs and some other company structures).
• Tenancy contract for the business premises (shop, office, kitchen unit). For mainland Dubai businesses, Ejari registration of the tenancy contract is mandatory.
• No Objection Certificate (NOC) from the current sponsor if an applicant is on an employment visa in the UAE.
• Copies of Emirates ID for any UAE resident partners or sponsors.

Specific Documents for Food Control Department (Municipality) Approval

• Detailed premises layout plan or blueprint. This must show the kitchen design, food preparation areas, storage facilities, and sanitation areas, complying with Municipality standards.
• Food Safety Management System (FSMS) plan. This is often based on HACCP (Hazard Analysis and Critical Control Points) principles, especially for food trucks and manufacturing units.
• Valid health cards for all staff members who will handle food. These are issued after a medical screening.
• Food safety training certificates for relevant staff.
• A valid contract with a Municipality-approved pest control company.
• Information about food suppliers.
• A detailed menu of the food items to be offered.
• For food manufacturing businesses: Details of production processes, raw materials used, and packaging information.
• For import/export businesses: Product registration documents, health certificates from the country of origin, and certificates of origin for imported food products.

Managing all these documents and approvals can be complex. Safe Ledger’s PRO Services help businesses streamline the process, from submission to final approval.

The Food Trade License cost in the UAE is not a single, fixed amount. It varies based on several factors, making accurate budgeting crucial for aspiring entrepreneurs.

Variability of Costs: Key factors influencing the total cost include:

• Emirate: Costs can differ between Dubai, Abu Dhabi, Sharjah, and other emirates.
• Jurisdiction: Setting up on the Mainland versus in a Free Zone impacts costs. Free Zone fees might seem lower initially, but could involve other associated charges or operational limitations.
• Type of Food Activity: The nature of the business (e.g., restaurant, catering, food truck, manufacturing) affects licensing fees and approval requirements.
• Size of Establishment/Number of Staff: Larger operations generally incur higher costs due to visa requirements, larger premises, etc.
• Number of External Approvals: Additional approvals, such as RTA permits for food trucks, add to the cost.

Estimated Cost Breakdown for Food Trade License in Dubai/UAE

Understanding the lifecycle of a Food Trade License is crucial for sustained legal operation in the UAE. This includes its validity period, renewal process, and the formal procedure for cancellation.

Validity of Food Trade License

Typically, trade licenses in the UAE, including those for food-related businesses, are valid for one year from the date of issuance. The expiry of the Food Trade License occurs annually, necessitating timely renewal.

Food Trade License Renewal

Renewing the Food Trade License is mandatory to continue operating the business legally and avoid penalties. The renewal process generally involves the following steps:

• Preparation: Collect required documents, including the current trade license, valid tenancy contract (Ejari for mainland), passports, visas, Emirates IDs, and updated MOA if applicable.

• Application Submission: Submit the renewal application via the DED or relevant free zone online portal with accurate, up-to-date documents.

• Fee Payment: Pay the applicable renewal fees based on activity, jurisdiction, and related services.

• License Issuance: After approval and payment, the renewed license is issued; renewal should ideally start 30 days before expiry.

To simplify the annual renewal process, Safe Ledger offers Trade License Renewal services, ensuring all documentation, fee payments, and approvals are handled promptly so you never face penalties for late renewal.

Food Trade License Cancellation

If a business owner decides to cease operations, a formal Food Trade License cancellation process must be followed. Simply allowing the license to expire is not sufficient and can result in the accumulation of fines and unresolved legal liabilities. The general steps for cancellation can vary based on the legal form of the business (e.g., sole proprietorship, LLC) and the jurisdiction:

• Phase 1: Dissolution and Liquidator Appointment (primarily for companies like LLCs):

  • For companies, a liquidator may need to be formally appointed.
  • A notarized partnership termination contract or a shareholder resolution authorizing the company’s dissolution is typically required.
  • An announcement of the company’s liquidation must be published in local newspapers, allowing a period (e.g., 45 days) for any creditors to submit their claims.
  • An initial certificate for the company’s dissolution and liquidator appointment may be issued. Fees apply, such as AED 520 for this certificate in some cases.

• Phase 2: Clearances and Final Cancellation:

  • All employee labor cards and visas must be canceled through the Ministry of Human Resources & Emiratisation and the General Directorate of Residency and Foreigners Affairs (GDRFA).
  • No Objection Certificates (NOCs) or clearances must be obtained from all relevant government bodies, including utility providers and the tax authority (if the business was registered for tax).
  • A final liquidation report (for companies) and a declaration stating that no objections were received from third parties during the newspaper announcement period must be submitted.
  • All outstanding cancellation fees must be paid. For example, a license cancellation fee of AED 1,020 and a company dissolution fee of AED 2,520 have been noted.

Planning to close your food business? Safe Ledger FZCO makes license cancellation easy and compliant

Strict adherence to Food Trade License standards and all food safety regulations is not optional but mandatory in the UAE. The government places a high priority on public health and consumer protection.

Federal Law No. 10 of 2015 on Food Safety is the primary legislation governing food safety across the country. This law sets out the standards and regulations for maintaining the safety and quality of food.

Key Prohibitions & Violations

Several actions are strictly prohibited and can lead to severe penalties:

• Importing any food into the UAE for the first time without prior approval from the Ministry of Climate Change and Environment (MOCCAE).
• Dealing in food products containing pork or alcohol, or any of their by-products, without explicit permission and the necessary licenses.
• Misleading consumers by publishing false descriptions of food products or using incorrect or deceptive labels.
• Trading in adulterated, harmful, rotten, or deceptive food items.
• Violating established technical regulations related to food products.
• Failing to implement proper food safety systems (like HACCP), neglecting to notify authorities about food posing a risk to consumer health, not ensuring the medical fitness of food handling staff, or failing to withdraw unsafe food from the market.
• Operating a food business without a valid trade license or with an expired license.

Common Food Safety Violations and Potential Penalties

Obtaining a Food Trade License in the UAE offers numerous advantages beyond simply meeting legal requirements. It unlocks a range of opportunities and provides a solid foundation for business success.

• Legal Operation: Ensures the business operates legally, avoiding fines, shutdowns, and legal issues.

• Business Credibility: Confirms legitimacy and compliance with UAE regulations, building trust with customers and partners.

• Banking Access: Required to open and operate a UAE corporate bank account.

• Employee Sponsorship: Allows the business to hire staff and sponsor employee residence visas.

• Market Access: Enables trading across the UAE, with mainland licenses allowing wider market reach.

• Investment Attraction: Licensed businesses are more attractive to investors due to legal compliance.

• Government Services: Provides eligibility for government programs, initiatives, and support schemes.

• Business Growth: Creates a stable, compliant base for expansion locally and internationally.

• Legal Protection: Operates under UAE commercial laws, protecting business rights in disputes.

• UAE Market Advantages: Grants access to strong consumer demand, tourism-driven markets, advanced infrastructure, and a favorable tax environment.

The Food Trade License is more than just a regulatory hurdle; it serves as a key that unlocks the UAE’s supportive and pro-business ecosystem. The government actively encourages business and investment, and the licensing system is an integral part of this framework.