Here is your step-by-step guide to start a bakery business in Dubai, UAE
We know you long have been planning to open your bakery in Dubai. Our simple guide is here to help you through all the steps you need to follow to get started with your bakery in UAE, including what paperwork is required, which license is needed, cost details, and more!
Dubai is a city of dreams. It is home to millions of non-nationals who come here with the ambition to start their own business and make their dreams come true. In Dubai, it is relatively easy for a non-national to set up their own business in the UAE; the government has simplified the process and made it accessible for them. Furthermore, the city’s economy is extremely conducive to entrepreneurs and businesses, providing an abundance of opportunities for growth and success. This makes it the perfect place for aspiring people who want to turn their dreams into reality. Moreover, the city offers plenty of resources and support systems that help these entrepreneurs succeed in their ventures.
How to Start Your Bakery Business in Dubai?
1: Create your bakery business plan
Due to the diverse culture, the food businesses in the UAE are already saturated. If you want to stand out from the rest, you must have some strong USPs (unique selling points) in your business structure. To make an outstanding bakery store, don’t hesitate to experiment and give shape to your wild baking ideas. Create a business plan that caters to modern-day customers.
Make the quality of food and the experience of your customers your top priority — only these two things will help you stay longer and be successful in the business.
Your business plan should be elaborated and must include all the food services you aim to provide. You need to think strategically about all like a creative business person.
Look at your competitors in the local bakery industry and take inspiration from their business modules. Along with your special bakery item(s), you can add up complementary services as well such as gift cards, special offers, birthday treats, and more. For example, if you’re selling cakes on regular basis, you can take orders for wedding cakes. Cake decoration is also quite in trend, you can add that too to your services.
2: Choose a suitable location for your store
Dubai, UAE is a city where you will find people everywhere. People from different nationalities, and cultures are living together. You need to find a location that not only goes with your budget but is also accessible to your audience based on the products you are selling. No, you also don’t have to worry about ownership. Now, opening a bakery shop in Dubai mainland gives you complete ownership.
There are tens of shopping plazas across Dubai and these are great locations to showcase your skills and attract new customers.
Note that, there is no use in opening a bakery in the free zone as you will not be allowed to do business in the local market. Contact our company formation experts if you need any help or guidance finding the location or getting done with the tenancy contract.
3: Apply for a trade license to serve cake
Every business setup in UAE needs you to apply for a business license. Without a license, you cannot operate any kind of business. For the bakery as well, there is a special bakery license in Dubai.
Firstly, you need to get preliminary approvals from Dubai municipality’s department of food and department of tourism and commerce marketing. After doing that, you are ready to get your bakery license from DED (the Department of Economic Development).
Once done, you can start and operate a bakery in your desired location in Dubai. After that, it is up to you what you want in your bakery: modern-day cake and sweets options or traditional Arabian and other Asian sweets.
4: There are more Permits
It is not necessary that each bakery activity would be included in your baking license in Dubai. If this is the case, you need to reach out to the food Dubai municipality. For import-food products, you have to get additional approvals, and our business setup consultants at Vigor can help you with this process. For a bakery sole establishment in UAE, you require extra approvals from external UAE ministries that will allow you for the local bakery scene and services.
5: Now worry about your bakery aesthetics
Before starting a baking business, the baker needs to understand what are the UAE’s regulations and food code related to foods. You need to meet a certain standard of maintenance and safety, and food quality to run a successful bakery start-up in the UAE.
Once you have gotten all the permissions and certificates, it is time to think about your bakery interior and menu. The space should be big enough to install all the basic tools and equipment and safety-ensuring system and enough space to work around and serve a good number of customers.
6: Promote your bakery
After launching your small biz, it is not only overwhelming but you get confused again about what should you do next. As there is already enough competition in the market, it would be hard to beat the older and more experienced ones, but it is not impossible.
By collaborating with other companies who are not your competitors but have similar customers, you can reach out to a lot of people. Social media is a great tool if you use it for promotion. Hop on the trends, put yourself out there, experiment, and approach the influencers as well. Moreover, you can also run promotional contests as well. Such events will increase your visibility and brand awareness.
What are the legal documents required for opening a bakery in Dubai?
Opening a bakery in Dubai requires a lot of legal documents that you need to submit to the Dubai Chamber of Commerce and Industry.
- A commercial license from DCCI
- Approval from Dubai Municipality
- Memorandum of association (MOA)
- NOC from the municipality’s department of food control
- Initial approval of trading name from the Department of Economic Development (DED)
- Attested tenancy contracted from Dubai Land Department
You should also have the necessary insurance coverage required by law. In order to make sure all these documents are in order; it is advisable that aspiring entrepreneurs seek professional advice from business experts who can help them understand the legal requirements and assist them in preparing the necessary paperwork.
What is the cost of establishing your bakery in Dubai?
Establishing a bakery in Dubai can be costly, and the answer depends on many factors. The size and scope of the business you plan, the cost of renting or purchasing the space, buying equipment and materials, hiring staff, and obtaining licenses from the local authorities, are all aspects that you should cover in your business plan.
You also have to cover expenses such as marketing to promote your business. Depending on your budget, you could also consider purchasing an existing bakery rather than starting from scratch. Ultimately, the cost of establishing your bakery in Dubai will depend on the scale of your project and how much capital you have available. However, with careful financial planning and research into UAE local regulations and market conditions, you can set up a bakery at a reasonable cost.
Start your Bakery company with us!
It is the perfect time to launch your bakery company in the ideal land of the UAE. Many home bakers who started their baking business from home have started a commercial bakery business in the UAE, you can do that too. At Vigor business setup, we can help you with the business plan, processing, and license acquiring. It is not easy to understand all the legalities of business formation in the UAE, but with us, you do not have to worry about anything!