How To Setup A Bakery Business In Dubai?

If you love baking and planning to monetize your hobby, then nothing could be better than setting up a bakery business in Dubai. Baking is an art. All baked goods are made from a few basic ingredients but to make it beautiful and tempting is a challenge. Creating unique and customized cakes is in trend nowadays. Occasions like birthday, baby shower, wedding, etc are mostly incomplete without cakes. Side dishes like cup cakes, muffins, cookies, pies, pastries, etc are also in demand. Hence, baking is considered to be a very profitable business if done in the right way. This license of a bakery can be done as a sole establishment which in which Expat can be the 100 % owner of the company and UAE National can be the local agent. The second option is one can open as a civil company where there can be 2 or more expat partners and the UAE National can be the local agent. The third option is that one can open it as a limited liability company where the UAE national has 51 % of the shares and the expat has 49 % of shares. Each legal type has it’s advantages; it is vital for you to determine which is suitable for your business.

Know more about the Trade licence cost in Dubai from Flyingcolour

1. Finalize your location

Finding the right location is the most important factor as one has to find an appropriate location for the bakery as the success of the Bakery depends on the location. Good number of footfall helps in increasing the sale, also, the Dubai Municipality approval depends on your shop layout and location from walk-ins.

2. Getting a license

Finalize the Name and the Activities to be added in the license. Some examples:-

Juice & Soft Drinks Preparing	Activity Group Restaurants and coffee shops Activity Description Includes shops that provide fruits juices for immediate consumption
Baker	Activity Group Restaurants and coffee shops Activity Description Includes backing traditional bread using traditional bakeries.
Pastry Preparing	Activity Group Restaurants and coffee shops Activity Description Includes shops engaged in preparing and selling pastries directly to the public for immediate consumption, or selling un-cooked pastries to consumers in such a way that they can latter cook themselves.
Sandwich Shop	Activity Group Restaurants and coffee shops Activity Description Includes shops that provide sandwiches, juices and beverages for immediate consumption
Ice Cream Shop	Activity Group Restaurants and coffee shops Activity Description Includes shops which prepare and sell ice cream to the public for immediate consumption, factories which produce ice cream on commercial scale and in standard size packs are classified under (1520).
Sweets & Candies Preparing	Activity Group Restaurants and coffee shops Activity Description Includes shops engaged in preparing and selling oriental and European sweets, tea, soft drinks, cakes and candies directly to the public for immediate consumption.

Process

• Trade name Booking
• Initial Approval
• Getting the shop layout approved by the Municipality
• Preparing MOA
• DED signing
• Getting the Ejari ready
• Final submission
• Final inspection by Dubai Municipality

Note:-

• Area of 'Kitchen' to be Min. 250sqft or 40% of total whichever is bigger
• Wall, Floor and Ceiling to be washable , nonabsorbent, fire proof , light, colored, smooth nontoxic, no cracks. Floor properly sloped for drainage junction
• Washing facilities double sink with hot/cold water
• Stainless steel dough mixer
• An exhaust canopy over the cooking area
• Stainless Steel Hand wash basin in preparation area with hot/cold water
• Any other requirements as per Municipality

3. Prepare a Business plan

A good business plan is the key to success of all the business. From busting furniture to running the day to day activities everything need to be planed deciding the menu with its price.

4. Get your kitchen equipment’s

For a bakery to function well good quality equipment is necessary as this has a major role in increasing the speed of the cooking.

5. Hire staff

As to operate a bakery you will require help. Finding skilled staff is the biggest challenge. Operating a Bakery is team work it cannot be done by a single person. There is help required in the kitchen for preparing the items , plus keeping the Bakery clean is a big challenge. Municipality can inspect the place at any time.

6. Card cash or Card payment system

Try to get a card payment system implemented as this gives the customers a flexibility of payments.

7. Budgeting

Allocating budget for shop designing (fit out work), licensing, staffing and marketing. Helps in avoiding unexpected cost. This blog is written by Ms. Smita Thomas, Business Advisor at Flyingcolour Business Setup, VAT and Accounting Services, Dubai. If you have any query related to setting up a bakery in Dubai or anywhere across the UAE or need any kind of business related consultation then feel free to call +971 4 4542366 today for a quality consultation or please send inquiry to info[at]flyingcolour[dot]com.