How to begin Tea and coffee business in Dubai?
As the government of Dubai put constant efforts and various policies for the growth of different types of businesses, it was able to secure a top position across the world.
This compelled many of the entrepreneurs to start some sort of business in Dubai. As a result, many small businesses began to flourish here.
However, the most productive and best business to start in Dubai is always a coffee and tea shop. This particular business is a promising notion that lends you an opportunity to make fortune out of the thriving food and beverage industry.
Due to its low-risk level and high demand, this industry is steadily soaring up. So, with the right skills, knowledge, and experience you can gain a lot of profit through this area.
What are the Benefits of Setting up a Tea and Coffee Shop in Dubai?
Dubai holds multiple businesses within the food and beverage sector. However, the success rate of this will depend on the assortment of tourists in this country.
Dubai is a leading centre for coffee and tea products globally. It earns an annual profit of millions of dollars. This captures the interest of maximum foreign entrepreneurs and results in starting a business of coffee and tea in Dubai.
Besides, there are other attractive features for choosing Dubai out of other countries. The expenditure for starting a coffee and tea shop within Dubai is comparatively very less and you don’t need much space for putting it up.
Similarly, there isn’t a need for large investment for the procedure and undertaking. On the other hand, there are free trade zones that offer additional benefits such as zero taxation and could obtain 100% ownership of your business.
How to Register a Coffee and Tea Shop in Dubai?
To start your tea and coffee business, first, you have to collect the required licenses. Gaining a license for your business is a critical part of the whole process.
It’s vital to make it done suitably to open your business soon enough. Improper filing of your Food and Trade license could leave your business to confront legal fines and closure.
You can obtain your food license from the Food & Safety Department of Dubai. Similarly, you can get your Trade License from the Department of Economic Development & Department of Tourism and Commerce Marketing. Let’s dig into detail on the process to be followed.
- Choose a trading name and register to receive your trade license
- Submit a layout drawing of the shop to collect a NOC from the Dubai Municipality
- Then, submit the NOC to the Department of Economic Development (DED) for the preliminary approval
- Next, pay all the necessary fees for obtaining your license
- After your license is issued, an import and export code is required to be collected from the Dubai Customs
What are the other factors to learn before initiating this business?
Many aspire to start their small tea and coffee shop. But like any other business, there are certain measures to be taken and understood. Let’s go through the additional factors one should know before starting a business in Dubai.
- Choose the suitable Entity
There are two kinds of corporate entities suggested for setting up your coffee and tea business in Dubai. They are the sole proprietorship and the limited liability company (LLC).
This must be selected based on the size of your company and the amount of wealth you are willing to invest. You can set up your shop in either Dubai mainland or one of the free zones.
Furthermore, the company registration procedure of the coffee and tea shop should be performed with the Department of Economic Development (DED).
- Select the ideal Zone
Free Zone is indeed a lower-cost option to establish any business. However, the strict ordinances and restrictions around business indicate that the restaurant must be located here and it will not be an extremely profitable choice.
The other means to set up a restaurant will be in an on-shore Limited Liability Company (LLC). But, here a foreign investor cannot own more than 49% of the share.
Therefore, you have to partner with one or more individuals or companies, who will own 51% of the shares.
- Create a Business Plan.
Make a business plan for your tea and coffee shop describing everything related to your business. This should include how you are going to set up your business, how you are going to operate your tea and coffee shop, and lastly, how your business will respond effectively under various exigencies and negative unexpected conditions.
- Choose the accurate location.
While choosing an area for your tea and coffee shop, it must be based on your budget and goal. It is better to choose a region which is easily reachable through roads.
If there are any commercial and residential places nearby, it will help you gain a large number of customers. Also, choose an area with a fewer number of tea and coffee shops. So, you can avoid competition.
- Purchase the Required Materials and Appliances
You will need materials like Cabinets, ice containers, tables, exhaust pipes, sinks, etc. for your Tea and Coffee shop. Also, you have to purchase types of equipment like espresso makers, coffee grinders, tea brewers, ice makers, hot water dispensers, high-speed ovens, decanters, and various coffee shop accessories.
Mentioned above are a few things that you should keep in mind before opening a tea and coffee shop in Dubai.
To start a tea and coffee business in Dubai, you have to be perpetrated and have dedication for your business.
The two most important measures that will help you guide your business from the beginning is always the location you choose for your shop.
Apart from this, you have to handle your bills, hire skilled laborers and do a good market analysis before starting. If you have more doubts, seek professional help for setting up your business in Dubai.