Restaurant License UAE: Cost, Documents & Timeline 2026
Content reviewed by My Business Setup Team, Business Setup Specialists.
Getting a Restaurant License UAE is a practical route for founders who want a compliant way to start operations in the UAE. You can register on the Mainland or in a Free Zone. Timelines typically range from 6 to 14 working days once documents are ready. Initial visa quotas commonly start from 1 to 4 and scale with office allocation.
Who Should Consider a Restaurant License UAE?
- Lean founders validating demand
- SMEs expanding services or adding a new revenue line
- Operators formalizing existing work under a UAE entity
What You Can and Cannot Do
Permitted scope depends on the exact wording of the activity and the issuing authority. Some tasks require separate approvals. Confirm fit for Restaurant License UAE before applying.
How Much Does a Restaurant License UAE Cost?
For a Restaurant License UAE, expect AED 5,750 - 30,000 in a free zone and AED 15,000 - 30,000 on the mainland for year one, with the licence issued in roughly 5-10 working days once documents are ready. The lower end of each range is a single-activity licence with no staff visas in a low-cost emirate; the upper end reflects Dubai, extra activities, or a larger office.
| Item | Indicative cost | Notes |
|---|---|---|
| Free-zone licence (year one) | AED 5,750 - 30,000 | Ajman, Fujairah, Sharjah, RAK and UAQ sit at the low end; Dubai zones at the high end |
| Mainland licence (year one) | AED 15,000 - 30,000 | Excludes the tenancy, which mainland requires separately |
| Establishment / immigration card | AED 1,200 - 2,000 | One-off, needed before any visa |
| Investor or partner visa (2 years) | AED 3,500 - 5,500 | Includes medical, Emirates ID and status change |
| Employee visa (2 years) | AED 4,000 - 6,500 | Per employee, plus deposit on mainland |
| Ejari tenancy (mainland only) | from AED 15,000 / year | Not required for a free-zone flexi desk |
| Corporate tax registration | No fee | 9% applies only on taxable profit above AED 375,000 |
| Annual licence renewal | 85 - 100% of year-one licence fee | Excludes one-off formation items |
Indicative market ranges for planning, not a quote. Government fees, zone packages and external approvals change; confirm current figures before you apply.
Approvals you should budget time for
Usually none beyond the trade licence. This is the part that moves the timeline, not the licence itself.
Expect a base trade license plus immigration add-ons. Mainland vs Free Zone, shareholders, and office type (flexi/shared vs Ejari) affect price. Many packages start from ~AED 10,800 excluding optional immigration.
Good to know
- 100% foreign ownership available
- Flexi/shared office keeps overhead low
- Visa quota scales with office size
Watch out
- Choosing the wrong jurisdiction for your sales model
- Under-budgeting immigration items (establishment card, visas)
- Missing activity-specific technical approvals
Is a Restaurant Business Profitable in the UAE?
How the business makes money
| Revenue stream | Typical pricing | Share of revenue |
|---|---|---|
| Dine-in food | AED 55 - 220 average spend per cover | Covers per day and turn rate matter more than menu price |
| Beverages, non-alcoholic | AED 15 - 45 per head | High margin; a weak beverage attachment rate quietly costs the P&L |
| Alcohol, where licensed | 15 - 30% of revenue | Transforms margin but requires a venue licence and specific conditions |
| Delivery and takeaway | AED 45 - 150 per order | Platform commission makes this a different business, not extra revenue |
| Private events and catering | AED 5,000 - 80,000 per booking | Concentrated October to April |
Startup capital beyond the licence
The licence is the small number. This is what actually has to be funded before you open.
| Item | Indicative cost | Notes |
|---|---|---|
| Fit-out | AED 700,000 - 4m | Roughly AED 3,000 - 8,000 per sqm across 150 - 400 sqm |
| Kitchen equipment and extraction | AED 250,000 - 1.2m | Extraction and grease management are a common approval blocker |
| Furniture, fixtures and signage | AED 150,000 - 600,000 | Landlord specification raises this in malls |
| Licences, food permit and approvals | AED 40,000 - 150,000 | Add an alcohol licence route where applicable; it is the long pole |
| Rent deposit and advance | 3 - 6 months rent | Plus a turnover share in most mall leases |
| Pre-opening and launch | AED 100,000 - 500,000 | Menu development, trials, photography, launch |
| Working capital, 6 months | AED 400,000 - 1.5m | Restaurants fail on cash before they fail on concept |
Monthly running costs
| Cost | Indicative monthly | Notes |
|---|---|---|
| Rent | 12 - 25% of revenue | Above roughly 20% the model has no room for a weak month |
| Payroll | 22 - 32% of revenue | 15 - 50 staff including kitchen, service and management |
| Food cost | 28 - 38% of revenue | Imported product exposes you to freight and currency |
| Utilities | AED 12,000 - 50,000 per month | Kitchen plus cooling; summer is the spike |
| Delivery commission | 20 - 30% of delivery revenue | Model delivery as its own channel with its own pricing |
| Marketing | 3 - 6% of revenue | Ongoing social and partnerships |
Margins and what breaks them
A UAE restaurant that is working runs 8 to 18% net margin, and the common failure is not a bad concept but a cost structure with no slack. Watch the prime cost, meaning food plus labour: above about 65% of revenue there is nothing left to cover rent and overheads. The three recurring killers are rent agreed on optimistic covers, delivery sold at dine-in prices while paying 20 to 30% commission, and the summer trough, when much of the customer base travels. Alcohol changes the economics where you can get the licence, so establish that route before signing a lease, not after. Model August, not February.
What a lender or investor will ask for
- Prime cost, food plus labour, modelled under 65% of revenue
- Rent agreed against conservative covers, not best-case
- Extraction, grease and food safety approval route confirmed before fit-out
- Alcohol licence route established before the lease, where relevant
- Delivery priced as a separate channel with commission in the model
- Cash runway through one full summer
Indicative market ranges for planning, not a forecast. Returns depend on location, pricing, season and execution — treat these as a starting point for your own numbers, not a projection.
How to Get Started
- Choose jurisdiction (Mainland vs Free Zone)
- Reserve trade name & obtain initial approval
- Confirm office allocation (flexi/shared vs Ejari)
- Issue license & process establishment card and visas
- Medical & Emirates ID, then start operations
Documents Checklist
- Passport copy & recent photo of each shareholder
- Current visa/entry status
- 2 to 3 preferred trade names
- Brief scope & staffing plan
Restaurant License UAE FAQs
Is a physical office mandatory for Restaurant License UAE?
Many Free Zones allow flexi/shared packages. Mainland may require Ejari depending on visas and the activity.
How many visas can I start with?
Commonly 1 to 4 at the start, subject to office allocation and immigration rules.
What is included in the base cost?
Trade license and core company docs. Immigration items (establishment card, status change, medical, Emirates ID) may be bundled or itemized.
Planning your UAE setup?
Free tools and guides to set up the right way:
- Estimate your cost with the calculator
- How to start a business (step-by-step)
- Compare UAE free zones · Cheapest free zones
- Free zone vs mainland · Corporate tax
- How many visas your licence gives you
- Establishment card — cost and renewal
- Dubai customs code for importing and exporting
- Does your activity need external approval?
Last updated: October 2026
Requirements, timelines, and fees vary by jurisdiction, office setup, and external approvals. Confirm the current structure before applying.