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Aidina Kursantbek
Business Setup Advisor
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service 2026
A tea shop or cafeteria license in Dubai is a mandatory authorization that allows entrepreneurs to legally operate food and beverage businesses such as tea shops, cafeterias, or similar establishments. It is issued by Dubai Economy and Tourism (DET, formerly the Department of Economic Development – DED) for mainland businesses or by the relevant free zone authority, and ensures compliance with local regulations, including hygiene, food safety and municipal guidelines.
A tea shop license, often synonymous with a cafeteria license, applies to businesses that specialize in serving beverages, snacks, or light meals to customers. Basically, both of them are simply business licenses (also known as trade licenses), and the tea shop/cafeteria part specifies the particular business activities conducted under the license.
In DET’s activity classification, most tea shops and cafeterias fall under the same activity group “Restaurants and Coffee Shops”, commonly using activity code 552001. The difference between a tea shop and a cafeteria is therefore more about branding, menu and size of operations than about a completely separate legal license type.
| Business type | Key activities | Scope of operations | Example businesses |
|---|---|---|---|
| Tea shop | Serving tea, coffee, and light snacks | Limited menu, small-scale operations | Bubble tea shops, chai cafes |
| Cafeteria | Offering beverages and quick meals | Expanded menu, small to medium-sized venues | Coffee shops, casual cafeterias |
| Restaurant | Full-service dining, extensive food preparation | Comprehensive menu, large-scale operations | Fine dining restaurants, family diners |
All of the above typically fall under the “Restaurants and Coffee Shops” activity group in DET’s classification.
Choosing the right business type depends on your business concept, scale, and target audience.
You can register both free zone and non-free zone companies through the Khalifa Industrial Zone authority. KIZAD provides both zero-visa and visa-eligible packages. Company formation in KIZAD includes a remote business setup option that can be implemented via online video verification.
Determine the business activities of your future company and the corresponding license type. This is a key aspect of business setup, as choosing the wrong activity and license can lead to errors during company registration, creating problems with opening a bank account or even making such opening impossible. Note that KIZAD allows for up to 5 activities under a single license, and the business activity will be added to your company name, for example: ABC Food & Beverages Trading LTD.
Available company formation types at KIZAD include LLCs (Limited Liability Companies) or a branch of an already existing company registered in another free zone or the UAE mainland.
KIZAD requires the following documentation package:
Company registration in KIZAD requires an initial approval which takes 1-2 weeks to be completed. Initial approval is done at a fee of 500 AED. Also, this step involves paying all the registration and processing fees.
They include:
Receive the Establishment Card containing information about your company and visa quotes.
Apply for an entry permit. If you’re outside of the UAE during the processing of the entry permit, you will need to come to the country when the document is issued within 60 days to complete the medical test and biometrics for your visa. If you’re in the UAE when the entry permit is issued, a status change will be done from your previous UAE tourist/residency visa to the new one.
Undergo a medical checkup and submit documents for residence visa approval as well as your biometrics. Different registration packages may provide for a varying number of visas available for owners and employees of the company. Note that at KIZAD, you may now get initial approval from the free zone authorities based on the chosen business activity and company type. Also, health insurance will be mandatory.
Once your visa is issued, secure your Emirates ID card.
Apply to a UAE bank to open a corporate bank account. At least one shareholder of the company is required to have a UAE residency visa to be able to open a bank account for the company. Also, KIZAD does not require proof of deposit of the share capital on the corporate bank account. However, you may be asked for it depending on the chosen bank, so make sure to settle this issue with banks beforehand.
With us you can navigate this process quickly and effortlessly. You don`t even have to arrive in Dubai—the registration procedure can be completed remotely. However, you will need to visit the UAE for medical checkups, visa formalities, and account opening.
Khalifa Industrial Zone Abu Dhabi can be considered one of the most affordable zones in the UAE. Any standard package includes flexi-desk rent.
| TYPE OF LICENSE | COST |
|---|---|
| 1-visa Trading/Services license | 9,450 AED |
| 2-visa Trading/Services license | 11,150 AED |
| 3-visa Trading/Services license | 12,850 AED |
| 4-visa Trading/Services license | 14,550 AED |
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