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How to Start a Cloud Kitchen in Dubai – Licensing Guide

How to start a cloud kitchen in Dubai - step-by-step licensing guide
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If you want to start a business in a highly emerging economy like Dubai, then starting a cloud kitchen in Dubai is one of the best options that you must consider. Did you know that the food delivery market is constantly booming worldwide with an ever-increasing growth rate? The global online food delivery segment is expected to grow to 365 billion USD by the end of 2023.

In UAE, the online food delivery sector is projected to grow at a 6% annual rate offering a further promising future. Considering the shifting customer trends, changing business mechanisms, and thin growth margins of a traditional kitchen, the majority of food service associates are considering shifting to online or cloud kitchen setups in Dubai. Have you already made up your mind to start a cloud kitchen in Dubai? It is a win-win in any way! Delve into the article to learn the costs, documents required, and process of starting a cloud kitchen with ease.

What is a Cloud Kitchen?

Sometimes referred a virtual kitchen, dark kitchen, or ghost kitchen, a cloud kitchen is a delivery-only restaurant setting that anybody can operate online. Cloud Kitchen accepts orders through online portals including third-party platforms and mobile apps. A cloud kitchen is relatively easy to operate and manage that also offers higher growth margins for employers.

Starting a Cloud Kitchen in Dubai

Are you struggling with how to start a cloud kitchen in Dubai? Don’t panic! As the process of starting a cloud kitchen in Dubai is smooth and effortless. Moreover, consulting with the right business setup advisory like Avyanco makes it easier for you to start your own cloud kitchen business in no time. Avyanco is here to assist potential investors in setting up cloud kitchen businesses in Dubai offering trustworthy and expert advice.

Steps to Open a Cloud Kitchen Business in Dubai

Setting up a cloud kitchen in Dubai involves a few important things that you must keep in mind. Although, the process may get complex since one must keep in mind various laws and other requirements of opening a business in Dubai; however, with the right assistance and consultancy, you can start your cloud kitchen business without any obstacles.

Here are the steps that you must follow in order to smoothly start and run your cloud kitchen business in Dubai:

  • Select a Business Structure

First and foremost, choose a business structure among three major options for cloud kitchens in Dubai including:

  • Sole proprietorship
  • Limited liability company (LLC)
  • Free zone or mainland company

When choosing a cloud kitchen business structure keep in mind your long-term business goals, target markets, and the nature of business. Make sure to consult with a trusted business setup advisory like Avyanco to make informed decisions.

  • Get a Trade License

You will need to get a trade license for opening your cloud kitchen business in Dubai from the concerned authority. To obtain a trade license for your cloud kitchen in Dubai, you will have to submit the documents including a copy of your visa, lease agreement copy, passport, and other details. In addition to that, you may also have to obtain a food license from the Dubai Municipality to successfully operate your business.

  • Open Corporate Bank Account

The next step is to open a corporate bank account for your cloud kitchen to make transactions without any obstacles. Avyanco will assist you throughout the bank account opening process for your cloud kitchen business in Dubai.

Benefits of Starting a Cloud Kitchen in Dubai

The benefits are endless when it comes to opening a cloud kitchen in Dubai. Cloud kitchens setup in Dubai offer various advantages that make them a win-win for modern-age investors looking for new income streams.

  • Large Audience Pool

Around 70% of potential customers prefer ordering food from the cloud and online kitchens as compared to traditional ones. When you have the menu listed on your digital and cloud platforms, the masses of people can reach you and it will maximize your sales resulting in higher profits.

  • Easily Manageable

When operating a cloud kitchen in Dubai, you will relatively have a few tasks to handle. In addition to that you can effortlessly manage timely delivery of food wherever you want. This will result in enhanced user experience and customer satisfaction.

  • Low Risks – High Profits

You tone down the possible risks associated with operating a business when you set up a cloud kitchen in Dubai. You will not have to require any high overhead costs or a large operational team. Simply get a mobile application or a user-friendly website featuring your offerings and delicious menu.

Cost of Starting a Cloud Kitchen in Dubai

setting up a cloud kitchen in Dubai will require you to get a Cloud Kitchen License. In Dubai, with the assistance of a trusted and experienced business setup advisory, you can effortlessly get your business licenses. In addition, the costs of starting a cloud kitchen in Dubai may cost anywhere between 75,000 to 100,000 AED which also involves licensing and other costs. However, costs may vary due to multiple factors including the size of your cloud kitchen, services you offer, type of license, and more.

Cost of Cloud Kitchen License in Dubai

The cost of a cloud kitchen license in Dubai Mainland may range anywhere from 16,000 AED to 25,000 AED. However, it may vary as per your business’s significant requirements such as its size.

The cost of setting up a cloud kitchen in Freezones will vary depending on the size of the warehouse.

Documents Required to Open a Cloud Kitchen in Dubai

To start a cloud kitchen business in Dubai, you will need to provide a few important documents to the concerned department including:

  • Copy of your Business plan
  • Passport copy of the owner/shareholder.
  • Visa copy of the owner/shareholder
  • Few name Choices for the company reservation.
  • Lease Agreement

How Avyanco Can Help You Setup a Cloud Kitchen Business in Dubai?

Are you all set to start a cloud kitchen in Dubai? Although setting up a cloud kitchen business in Dubai is a smooth and simple process; however, you must keep in mind a few things including rules and laws associated with the business. A business setup consultant like Avyanco can help you in simplifying the cloud kitchen business setup process. Team Avyanco consists of qualified and experienced business consultants, tax advisors, and legal personnel who have in-depth knowledge and understanding of Dubai’s business landscape.

Avyanco is a trusted consultancy firm for its expert and success-oriented business consultancy services including business setup, PR services, accounting, bookkeeping, auditing, tax compliance, and more. If you still have any queries, feel free to contact us for further assistance.

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About the Author

jashvant-avyanco-business-setup-consultancy-ceo

Jashvantkumar Prajapati

(Founder and CEO of Avyanco Group of Companies; Business Setup Consultancy, Avyanco Tax and Accounting LLC, and Avyanco Auditing LLC.)

He keeps a varied portfolio with core expertise in investment management, corporate structuring, commercial law, business consultancy, lead management, business planning and market research. Aspire to help potential entrepreneurs and investors to come ahead and form their companies in highly emerging economies like UAE.