Restaurant Trade License in UAE

The UAE’s restaurant market continues its strong expansion, currently valued at around AED 61 billion in 2024 (approx. USD 16.6 billion) and projected to reach AED 185 billion by 2033, reflecting a healthy annual growth rate of roughly 12%. Growth is driven by consistent tourism, high incomes, and multicultural demands. Popular trends include luxury and health-centric dining, increased food delivery, and a focus on eco-friendly sourcing and plant-based menus.

This evolving environment presents a golden opportunity for different countries in the UAE. But success depends on differentiation, whether through regional cuisine, fusion innovation, immersive dining experiences, or strong regulatory navigation.

Safe Ledger FZCO specializes in streamlining the trade license process, helping you launch your eatery quickly, compliantly, and confidently in the UAE.

A Restaurant Trade License in the UAE is an official government-issued permit that legally authorizes an individual or company to operate a Food and Beverage (F&B) business within the country. It is, in essence, the foundational document for any restaurant, cafe, or other food establishment, validating its existence and right to conduct commercial activities.

A Commercial License is issued by the Department of Economic Development and Tourism (DET) or a similar regulatory body in the specific Emirate where the restaurant will be established. For instance:

• Dubai: The relevant authority is the Dubai Department of Economy & Tourism (DET).
• Abu Dhabi: Handled by the Abu Dhabi Department of Economic Development (ADDED).
• Sharjah: Regulated by the Sharjah Economic Development Department (SEDD).
• Ajman: Managed by the Ajman Department of Economic Development (Ajman DED).
• Umm Al Quwain: Overseen by the Umm Al Quwain Department of Economic Development (UAQ DED).
• Ras Al Khaimah: Governed by the Ras Al Khaimah Department of Economic Development (RAK DED).
• Fujairah: Controlled by the Fujairah Department of Economic Development (Fujairah DED).

A trade license is the first essential step to legally open a restaurant in the UAE, as it defines your business activity and allows commercial operation. However, this license alone does not permit food preparation or service. To begin actual restaurant operations, you must obtain several additional approvals to ensure health, safety, and regulatory compliance.

These include:

• Food Safety Approval from the Food Control Department (e.g., Dubai Municipality)
• Civil Defense Approval for fire safety compliance
• Pest Control and Health Certifications, depending on the Emirate

Understanding these requirements early on helps you plan better, avoid delays, and stay fully compliant throughout the setup process.

Securing a Restaurant Trade License is not merely a bureaucratic formality; it is an absolute necessity for several critical reasons:

1. Legal Operation

The foremost reason is that it ensures the restaurant operates legally and in full compliance with the laws and regulations of the UAE. Operating any business, especially a food establishment, without this license can lead to severe consequences, including:

• Business closure by regulatory authorities
• Heavy fines and penalties imposed by the municipality or DET
• Ineligibility for future renewals or permits
• Legal action or blacklisting of the business
• Confiscation of equipment or inventory in severe cases

Business Enablement: The trade license is the key that unlocks the ability to conduct essential business functions. Without it, a restaurant cannot:

• Open a corporate bank account, which is vital for managing finances.
• Enter into legally binding contracts, such as lease agreements for the premises or agreements with suppliers.
• Legally hire employees and process their visas and labor contracts.
• Apply for and receive utility connections (water, electricity) in the company's name.

2. Credibility and Trust:

A valid trade license significantly enhances the restaurant's credibility. It signals to customers, suppliers, investors, and other business partners that the establishment is professional, legitimate, and adheres to regulatory standards.

Avoid Penalties :

Operating without a valid trade license in the UAE can lead to heavy fines, business blacklisting, and legal trouble. In Sharjah, late renewal of an “Eitimad” license may incur AED 200 in fines, while in Dubai, penalties start from AED 5,000, plus monthly charges for delays.

Rules and penalties may vary across different emirates and free zones, so always refer to the relevant authority’s guidelines to stay compliant.

3. Additional Licenses and Permits (Beyond Trade & Core Food License)

Beyond the foundational trade license and the essential food license, restaurants in the UAE often require several other permits, depending on their specific offerings and operational model:

1. Liquor License

If a restaurant plans to serve alcohol, a liquor license is mandatory. In Dubai, it's issued by the Department of Tourism and Commerce Marketing (DTCM) with police approval, mainly for hotel or fine-dining venues. Additional taxes (like 30% on alcohol sales) and location rules apply.

2. Pork Permit

For restaurants intending to handle and serve pork products, a specific pork permit is required. This comes with stringent regulations regarding the separate storage of pork, clear labeling of dishes containing pork on the menu, and dedicated preparation areas within the kitchen to avoid cross-contamination with other food items.

3. Food Consignment Release License

If the restaurant plans to import food products directly from other countries for use in its kitchen, a food consignment release license will be necessary. This process involves compliance with UAE customs regulations and ensuring that imported food items meet local food safety standards.

4. Vehicle Permit

If your restaurant uses vehicles for deliveries or food transport, you’ll need a permit from the transport or municipal authority.

5. Food Truck License

For entrepreneurs looking to operate a mobile food truck, a dedicated food truck license is essential. This has its own set of regulations and location permissions.

6. Signboard Permit

Displaying any external signage for the restaurant requires a signboard permit, typically issued by the local Municipality.

7. Shisha (Hookah) Permit

If the restaurant intends to offer shisha services to its patrons, a specific shisha permit must be obtained. This also comes with its own health and safety guidelines.

8. Civil Defense Approval

Civil Defense approval is mandatory for all restaurants to ensure fire safety compliance. It involves submitting safety drawings and passing inspections, and may take up to 1.5 months. Approval must be obtained from the Civil Defense authority of the respective Emirate.

The UAE employs a comprehensive and multi-layered system for business licensing, with specific regulations at both the federal and individual Emirate levels. For restaurants, this means obtaining a series of approvals from different governmental bodies.

Types of Restaurant Trade License in UAE

To open a restaurant in the UAE, you must choose the right type of trade license based on how your food business will operate. Each type has different requirements and approvals.

1. Full-Service Restaurant License: For dine-in restaurants that serve food and beverages to customers at tables.

2. Cafeteria License: For smaller outlets offering quick meals, snacks, and drinks, usually with limited seating.

3. Cloud Kitchen License: Also called a virtual kitchen. These don’t have a dine-in option and work mainly through online delivery platforms.

4. Food Truck License: For mobile food businesses. This license also requires approvals related to vehicle safety, parking zones, and food hygiene.

5. Catering License: For businesses preparing and delivering food to events, offices, or homes.

Health and Safety Regulations for Restaurants

Running a restaurant isn’t just about great food; it also means keeping everything clean, safe, and up to standard. The UAE has strict health and safety rules to protect public health.

• Food Safety Approval: Restaurants must get food safety clearance from the local municipality (e.g., Dubai Municipality’s Food Control Department). This ensures proper food handling and hygiene.
• Pest Control and Cleanliness: Regular pest control is required, along with high standards of cleanliness in the kitchen, storage, and dining areas.
• Staff Hygiene & Training: All staff handling food must follow hygiene rules and may need to attend food safety training sessions.
• Civil Defense Approval: This confirms your restaurant meets fire safety requirements, like fire extinguishers, alarms, and proper kitchen setup.
• Waste Management & Ventilation: Restaurants must manage food waste responsibly and maintain proper air ventilation systems.

Key Licenses and Permits Needed

Several core licenses and permits are mandatory for any restaurant:

• Trade License (Commercial License):

This is the foundational license issued by the DET or its equivalent in the chosen Emirate (e.g., DET in Dubai, ADDED in Abu Dhabi, SEDD in Sharjah). For restaurants, this license falls under the "commercial" category and officially permits the business to engage in food and beverage-related activities.

• Food License:

This critical permit is issued by the Food Safety Department of the local Municipality (such as Dubai Municipality or Sharjah Municipality) or by a dedicated Food Safety Authority, like the Abu Dhabi Agriculture and Food Safety Authority (ADAFSA).

The food license certifies that the restaurant adheres to stringent standards for hygiene, food handling, storage, preparation, and staff training. Typically, a valid trade license is a prerequisite for applying for a food license.

• No Objection Certificates (NOCs):

These are essentially letters of approval required from various entities. Common NOCs include:

• A NOC from the Food Safety Department is often required as part of the food license application process.
• A NOC from the landlord or property developer of the chosen restaurant premises.
• An NOC from the relevant municipality or planning department confirming that the chosen location is suitable for a food business operation.

Role of Different Authorities in Providing Restaurant Trade License

Understanding the roles of the various authorities involved is key to navigating the licensing process:

• Department of Economic Development (DED) / Economic Department in each Emirate: These are the primary bodies responsible for issuing the initial trade license. Their functions include trade name registration, granting initial approvals for business activities, and ensuring the business structure complies with local commercial laws.
• Local Municipalities (e.g., Dubai Municipality, Sharjah Municipality): Municipalities play a significant role, particularly in areas of public health and safety. Their Food Control Departments are often responsible for issuing food permits, conducting health inspections, approving building and kitchen layout plans, and ensuring compliance with architectural and hygiene codes.
• Food Safety Authorities (e.g., ADAFSA): In some Emirates, like Abu Dhabi, dedicated authorities such as ADAFSA oversee all aspects of food safety. They establish and enforce regulations for food handling, storage, staff training, and hygiene, conduct inspections, and issue the necessary food licenses or permits. These authorities often base their standards on international best practices like HACCP (Hazard Analysis and Critical Control Points).
• Civil Defense: This department is crucial for ensuring the safety of the restaurant premises, particularly concerning fire prevention and emergency preparedness. Civil Defense approval is mandatory and involves inspections of:

• • Fire alarm systems
  • Emergency exits
  • Kitchen ventilation
  • Hood suppression systems
  • Structural fire safety

It ensures compliance with the UAE Fire and Life Safety Code of Practice.

While the fundamental requirement for a commercial license and food permit is consistent across the UAE, the specific procedures, responsible authorities, costs, and local regulations can vary from one Emirate to another. Entrepreneurs need to be aware of these distinctions.

• Dubai

Licensing Authorities: DET handles the trade license, and Dubai Municipality oversees food permits.
Process Highlights:

• Reserve a trade name and get initial approval via DET
• Submit kitchen layouts and building plans to the Food Control Dept
• Obtain a Food License after inspections and NOC
• Must meet strict design standards: minimum kitchen size, specific ventilation, fire-safe materials, and proper waste systems
• Regular safety inspections are enforced

Why it matters: Dubai’s regulatory framework is highly detailed and rigorously enforced to uphold public health.

• Abu Dhabi

Licensing Authorities: ADDED issues trade licenses; ADAFSA oversees food safety and inspections.
Process Highlights:

• Register trade name and business activity via ADDED
• Premises undergo thorough hygiene checks by ADAFSA
• Must comply with HACCP guidelines, food handling, staff hygiene, and packaging standards
• ADAFSA conducts proactive audits and awareness campaigns

Why it matters: Abu Dhabi places a strong emphasis on prevention, education, and strict health standards in food establishments.

• Sharjah

Licensing Authorities: SEDD for trade licenses; Sharjah Municipality (Health Control) for food permits.
Process Highlights:

• Obtain an “Eitimad” license for UAE nationals or a general restaurant license via SEDD.
• Sharjah Food Safety Program (SFSP) mandates training for food handlers and managers.
• Premises must pass a hygiene inspection and obtain food safety approval.
• Food handler training is mandatory (e.g., under SFSP in Sharjah). In many areas, health checks are now linked to Emirates ID, so separate health cards may not be needed.

Why it matters: Sharjah strongly prioritizes food handler certification and staff readiness to ensure public safety.

• Other Emirates (Ajman, Ras Al Khaimah, Fujairah, Umm Al Quwain)

Licensing Authorities: Each Emirate’s Economic Department issues trade licenses; local municipalities handle food safety.
Process Highlights:

• Name reservation and initial approval through the respective Economic Department portals
• Premises inspections by municipal food and health departments
• Requirements may include basic training, layout, hygiene standards, and Food Safety Management Systems.

Why it matters: While processes are similar, varying local regulations, fees, and inspection intensity require bespoke preparation for each Emirate.

While specific details and the exact order of some sub-steps can vary between Emirates, the following provides a general roadmap for obtaining a Restaurant Trade License in the UAE:

Step 1: Develop a Comprehensive Business Plan

The business plan is the foundation of the restaurant venture. It should include:

• Restaurant concept (e.g., fine dining, casual, quick service, or specific cuisine)
• Target market analysis
• Menu ideas and food offerings
• Financial projections (startup costs, expected revenues, and profitability)
• SWOT analysis (Strengths, Weaknesses, Opportunities, Threats)
• Operational strategy (daily operations, staffing, supply chain, etc.)

A well-crafted business plan is necessary for securing approvals and funding from banks, venture capitalists (especially for free zones).

Step 2: Choose a Legal Structure

Determine the best legal form for the restaurant. Common options include Sole Proprietorship, Limited Liability Company (LLC), or establishing a branch of an existing foreign company. An LLC is a popular choice, and recent changes to UAE law now allow for single-owner LLCs in many cases.

Recent changes to UAE law have made it even easier for foreign investors as 100% foreign ownership is now permitted in many sectors, including food and beverage. This means that, in most cases, restaurant owners no longer need a local Emirati partner to start their business.

Step 3: Select and Reserve a Trade Name

Choose a unique and catchy name for your restaurant. Make sure it follows UAE rules, it should not be offensive, religious, or too similar to an existing business name. The name should reflect your restaurant’s theme or concept clearly.

Submit the chosen name to the Department of Economic Development (DED) or the local authority in your Emirate. If approved, the name will be reserved for 6 months only. If you don’t use it within that time, you’ll need to renew the reservation or risk losing it.

Step 4: Obtain Initial Approval

Apply to the DET or its equivalent in your chosen Emirate to get initial approval. This means the authorities have preliminarily accepted your business activity and trade name.

This approval is issued as a No Objection Certificate (NOC), allowing you to move forward with the rest of the setup process. However, it is important to note that this is not a license to start operating your restaurant; it simply permits you to continue the licensing steps.

Step 5: Draft MOA / LSA Agreement

For an LLC, an MOA must be drafted. This document outlines the shareholding structure, management responsibilities, and operational rules of the company, and it must be notarized by the relevant authority. In cases where you're setting up a professional license, not a commercial LLC, or establishing a branch of a foreign company, a Local Service Agent (LSA) agreement may be required.

The LSA assists with licensing and government approvals but does not hold any equity in the business. Remember, LSAs are only required for professional licenses, not for standard commercial LLCs.

Step 6: Secure a Physical Location and Lease Agreement (Ejari)

Identify and lease a commercial space that is approved for restaurant use. The premises must be zoned for food and beverage activity, and a valid tenancy contract is required.

In Dubai, the contract must be registered through the Ejari system. In Abu Dhabi, it must be registered with Tawtheeq, and in Sharjah, registration is typically done with the Sharjah Municipality. Final approval of the premises must be obtained from the local municipality before proceeding.

Step 7: Obtain Architectural and Layout Approvals

Submit detailed construction and kitchen layout plans to the local Municipality or Food Control Department for approval. These plans must follow specific guidelines to ensure compliance with local regulations.

The layout must meet health, safety, and building codes, including:

• Adequate kitchen size based on operations
• Proper ventilation systems
• Use of fire-resistant materials
• Clearly defined areas for food storage and preparation
• Efficient waste management systems

Step 8: Apply for External Approvals

Simultaneously or sequentially, apply for additional essential permits, including:

• Food License: Issued by the local Municipality's Food Safety Department or a dedicated body like ADAFSA. This requires a physical inspection of the premises.
• Civil Defense Approval: For fire safety systems and emergency preparedness.
• Other Specific Permits: Depending on the planned activities, this may include liquor, pork, or shisha permits.

Step 9: Submit All Documents and Pay Fees

Once all approvals, documents, and application forms are collected, submit them to the DED or equivalent authority. Pay all necessary licenses, permits, and administrative fees.

Note: These fees can vary depending on the Emirate and whether your restaurant is located in a mainland or free zone area. Always check the latest fee structure with the specific authority.

Step 10: Receive Final Trade License

After the authorities verify all documents and approvals, they will issue the final Restaurant Trade License.

Step 11: Post-License Formalities

After receiving the trade license, follow up with:

• Registering the company with the local Chamber of Commerce and Industry.
• Applying for establishment cards and processing staff visas, including labor cards.
• Opening a corporate bank account for the restaurant business.
• Register with MOHRE (Ministry of Human Resources & Emiratisation), depending on the number of employees.
• Set up an approved POS system to ensure VAT compliance and proper billing.

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The cost of obtaining a Restaurant Trade License in the UAE varies considerably based on several factors, including:

• The specific Emirate where the restaurant will operate
• The exact location within the Emirate (mainland areas are common for wider customer reach)
• The size of the restaurant
• The number of employee visas needed
• The complexity of operations, such as serving alcohol or pork (which requires additional approvals).

Estimated Restaurant Startup Costs in the UAE

Here's a comparison of the key cost components you'll face when opening a restaurant in Dubai, Abu Dhabi, and Sharjah:

Other Potential Costs (Across Emirates)

Beyond the primary license fees, entrepreneurs should budget for:

• Notary fees (AED 1,200 to AED 3,000) for the Memorandum of Association (MOA).
• Fees for any specific additional permits required (e.g., liquor, pork, shisha).
• Inspection fees are charged by various authorities.
• Visa processing fees for owners and staff.
• Restaurant premises rent is a significant and highly variable ongoing expense.
• Costs associated with developing compliant architectural plans and ensuring the fit-out meets all regulatory standards.

To help with budgeting, the following table provides an estimated breakdown of initial licensing-related costs.