How to start a bakery in Dubai: Cost and Requirements

Do you dream of opening your own bakery in Dubai? Sweet treats, cakes, pastries, desserts, croissants, freshly baked delicacies, healthy bread, and other baked goods are popular no matter where you operate. However, tourists and residents in Dubai are renowned for their sophisticated palate and culinary curiosity.

Opening a bakery in the United Arab Emirates is easier than you think – and it is one of the most profitable businesses you can start.

In this article, we’ll look into the following:

  • An overview of the bakery industry in the UAE
  • How to open a bakery in Dubai
  • Cost of opening a bakery in Dubai, UAE
  • Documents required to start a bakery in Dubai
  • Approvals needed to start a bakery in Dubai
  • How to grow a bakery business?
  • Working with Trade License Zone

An overview of the bakery industry in the UAE

The bakery industry in the UAE is a thriving one. Bread is one of the leading food items in the UAE, and the cosmopolitan population of Dubai and its diverse tastes means bakeries can produce a wider variety of products.

The market in Dubai is open and competitive, and quality, shelf life, and customer service rank high with buyers. Numerous bakeries specialise in regional and national food items, targeting the diverse communities and people living in Dubai.

Alongside this, niche bakeries are capitalising on this growing diversity of people living and working in Dubai.

How to open a bakery in Dubai

Opening a bakery in Dubai means following the business setup and registration process, including applying for an appropriate trade license so you can operate legally. There are seven steps to take when starting your own bakery business in the UAE:

Step 1: Partner with Trade License Zone

You might seem overwhelmed by Dubai’s business regulations and registration process. Still, by partnering with Trade License Zone, our professional team will manage all aspects of your bakery business’ registration, license application, and setup process.

Step 2: Register a company name

Choose a company name for your bakery. The company name must also adhere to the UAE’s strict naming policies. You can use your name in the bakery company’s trading name, but you must use it in full instead of only your surname or initials. The bakery name cannot include offensive or profane language or references to Allah or Islam. Trade License Zone can help you choose your startup’s name and register your bakery company’s name with the UAE’s Registry Office.

Step 3: Write a business plan

Drawing up a business plan will help you to establish your goals, the costs required for your company, and its development and growth strategy. The plan also serves as a guide and reference for potential investors to understand your business strategy and structure better.

Step 4: Choose your business activities and business jurisdiction

All businesses in the UAE must specify their activities for their trade license applications to operate legally in Dubai. There are more than 2,000 business activities, but you must select the ones pertinent to your bakery company. Failure to list all your business activities on your trade license may result in penalties.

Your business activities will determine the kind of business setup and trade license type most suitable for your company. The UAE has two main business jurisdiction types: Free Zone and Mainland company setups.

Free Zone companies are the most popular type of business setup, allowing you 100% ownership of your bakery company. However, a Free Zone company must take additional steps to trade within the UAE’s domestic market, such as opening a branch or a distributor.

A Mainland company setup allows you to trade within the UAE market without extra steps. Still, you must partner with a local sponsor (an Emirati national) who holds a 51% share of the company.

Trade License Zone will ensure that your trading license application, business setup and business activities are aligned. Contact us to help you with this critical step.

Step 5: Choose the best location

One of the essential steps for any business is its location. A bakery company’s premises must also adhere to the Department of Food and Safety’s standards and the Dubai Municipality’s regulations.

Step 6: Apply for a trade license

After you’ve completed the paperwork for your business registration, company setup, and other approvals, you must submit it to the UAE government entities for your bakery business in Dubai. Trade License Zone can streamline this process so you can avoid any errors, mistakes, or delays.

Step 7: Apply for your visa

The last step before you can begin legally trading as a bakery is to apply for your UAE residency visa. This step requires a medical test, biometric scanning, and more. Your trade license may entitle you to sponsor the visas of family and staff, depending on the specific conditions of your bakery’s trade license. For advice and assistance with this step, contact Trade License Zone’s expert team.

Cost of opening a bakery in Dubai, UAE

To open a bakery in Dubai, you need AED 30,000 to AED 50,000. The costs depend on several factors, such as rent and office space, bakery trade license, equipment, supplies, visa costs, various government approvals, marketing, advertising, and more.

For an accurate quote on the trade license and other costs to launch a bakery in Dubai, contact our team of experienced staff for a free quote and guidance. Trade License Zone can help you with all aspects of your startup, from business registration to launching the company of your dreams.

Documents required to start a bakery in Dubai

These are the documents you’ll need to submit to Dubai’s authorities to start your bakery in the UAE:

  • Copies of passports of all shareholders
  • Colour passport photos of all shareholders
  • Initial approval by the Department of Economic Development (DED)
  • Planning Department approval
  • Memorandum of Association (MoA)
  • A comprehensive business plan
  • Business name registration certificate
  • NOC from Dubai’s Food and Safety Department
  • Approval from the Dubai Municipality
  • A tenancy contract
  • Approval from the Dubai Land Department

Approvals needed to start a bakery in Dubai

To operate a bakery in the UAE, you must obtain the necessary permits from the Department of Food and Safety. You will also need approvals from the Department of Tourism and Commerce Marketing (DTCM) to set up your bakery company in Dubai. In addition, you will need to obtain initial approval from the Department of Economic Development (DED) and the Dubai Municipality.

How to grow a bakery business?

Use Dubai’s diversity as a strength for your business: produce the most popular items from each population to capture the biggest crowd for your baked treats. This way, you will be able to market your bakery to several groups of buyers instead of just one. High-quality products, long shelf-life, and excellent customer service will help your business grow sustainably in the long run.

Working with Trade License Zone

Business setup in the UAE is straightforward when you partner with a team of experts, such as Trade License Zone. We will save you from unnecessary delays or rejections, streamline the business registration and setup process and guide you through the steps required to start trading legally in the UAE.

To get started with Trade License Zone, you need to send us some basic documentation and a little information about the nature of your company and business activities.

Then, please sit back and let our team take care of the rest. We’ll manage your bakery company’s trade license and visa applications, communicate with all relevant local departments and authorities and report back to you when you’re ready to trade. It really is that simple.

Contact us to get a personalized quotation based on your business activity