Dubai’s diverse food and beverage scene makes it a hot spot for aspiring tea shop owners. Whether you’re planning to open a Karak chai stall, a modern bubble tea cafe, or a health-focused tea bar, you’ll need to understand the licensing process and its costs. A tea shop license is not just a legal requirement, it’s a gateway to running a successful, compliant, and profitable business in the UAE.
Understanding the Tea Shop License Cost in Dubai
Getting a tea shop up and running in Dubai involves several key steps, the most important of which is obtaining a business license. The Tea Shop license cost in Dubai can vary significantly depending on factors like the business location, type of license, shop size, and the additional permits you might need.
Let’s break down the typical components that affect the total licensing cost:
Trade License
This is the main license issued by the Department of Economic Development (DED). Costs range between AED 8,000 and AED 15,000 for a small shop in the mainland.
Food and Safety License
Dubai Municipality requires all food businesses to have this. Expect to pay around AED 2,000 to AED 5,000.
Initial Approvals & Name Reservation
These administrative steps will add around AED 1,000 to AED 1,500 to your budget.
Location and Rent
A small shop in a low-footfall area may cost AED 20,000 a year in rent, whereas a prime location could shoot up to AED 100,000 or more.
Fit-out and Signboard Fees
Depending on your store design and signage, these costs could add another AED 2,000 to AED 7,000.
Staff Costs and Visas
Each visa will cost approximately AED 3,000 to AED 7,000. Medical tests and labor cards are additional expenses.
When you factor in all elements, the overall tea shop license cost in Dubai usually falls between AED 15,000 and AED 30,000 in the initial phase.
Types of Licenses and Permits You’ll Need
To legally operate a tea shop in Dubai, several licenses and permits must be acquired:
Trade License (Mainland or Free Zone)
Issued by DED for mainland businesses or by Free Zone authorities, this license permits general trading, including food and beverages.
Food & Safety Permit
This ensures that your tea shop meets hygiene and safety standards required by Dubai Municipality. It’s non-negotiable if you’re serving food or beverages.
Location Approval
Your premises must comply with Dubai’s zoning and municipal requirements. This may involve on-site inspections and architectural plan submissions.
Signboard Permit
Every commercial sign in Dubai must be pre-approved. The fee depends on the size and location of your signage.
Ejari Registration
Your tenancy contract needs to be registered through Ejari. This typically costs AED 220 and is required for license issuance.
Mainland vs. Free Zone: Choosing the Right Business Model
Choosing where to set up your tea shop is crucial. Your options include:
Mainland Business Setup
Pros
Freedom to operate anywhere in Dubai or the UAE, including malls and busy streets.
Cons
Higher licensing and rental fees, plus more regulatory steps.
Free Zone Business Setup
Pros
Lower startup costs, faster registration, and often no need for a local sponsor.
Cons
Restricted to operating within the Free Zone or through delivery-only models.
Depending on your business goals—whether you want foot traffic or prefer a cloud kitchen, your choice will influence the overall costs and legal process.
Tips to Lower Your Setup Costs
Here’s how to cut expenses without compromising your tea shop’s potential:
Start with a Small Kiosk or Cart: Reduce rent and fit-out expenses by launching with a small model.
Choose Affordable Zones: Avoid premium areas for your first location. Business-friendly zones like Al Qouz or Al Barsha are good for low-cost entries.
Use a Business Setup Consultant: Professionals help you avoid unnecessary fees and navigate approvals smoothly.
Lease Instead of Buy Equipment: Leasing can lower upfront capital and allow flexibility if you expand later.
Who Should You Contact First?
If you’re serious about setting up a tea shop in Dubai, your first call should be to a reputable business setup agency. These professionals handle everything—from DED paperwork to securing your trade name and coordinating with Dubai Municipality. They also ensure that you meet food safety regulations, a critical part of running any beverage outlet.
Conclusion
Starting a tea business in Dubai is an exciting opportunity, but it requires careful planning and financial awareness. The tea shop license cost in Dubai varies depending on your business location, shop type, and scale, but most new owners should expect to invest between AED 15,000 and AED 30,000 to launch legally and successfully. With the right planning and professional guidance, you can turn your love for tea into a thriving venture in one of the world’s most dynamic cities.