Dubai is among the most attractive cities in the world, and its spectacular skyline makes it a favorite investment and tourist destination for foreigners. Dubai’s property business is on a long-term growth trajectory, which is characteristic of innovative firms. Nowadays, opening a business in Dubai is very advantageous, even if it is an icecream shop.
In this article, we will show you how to open a ice cream shop Dubai. A common summer tradition is enjoying ice cream with family and friends. Thus, there is a huge need for local ice cream shops. Consequently, we bring you here a step-by-step guide on how to start an ice cream shop in the alluring city of Dubai. Let us observe:
1. Know what type of business is an ice cream shop
Ice creams are a classic summertime treat that both kids and adults enjoy. In these last years we have been seeing the introduction of numerous new ice cream flavors and flavor combinations. As well as the growth of the food truck industry and the acceptance of pop-up and temporary businesses. Consequently, it is no surprise that people are looking for ways to starting this business in Abu Dhabi and all over the UAE.
An ice cream shop sells ice cream as well as other frozen treats such as milkshakes, yogurts, gelato, and sorbet. These frozen foods are usually served in a variety of ways and with a variety of toppings. One of the best things about opening an ice cream shop is that clients may order their favorite frozen treats exactly how they want them. Since ice cream is still a popular snack, especially in the summer, and since ice cream businesses do not need a big dining or kitchen area, this type of business appeals to Indian investors and entrepreneurs from all over the world.
2. Do you know the structure necessary for an ice cream in Dubai business?
To open an ice cream shop in Dubai, you can use a variety of structures when going through company formation. The decision is up to the prospective owner, and the size of the business determines it. The most common structural shapes are as follows:
2.1 Sole Proprietorship
A sole proprietorship or a sole enterprise is a company run and owned by one individual. Such a company has a lone proprietor as the owner. Subsequently, a sole proprietorship cannot be owned by a business or corporate entity. Additionally, it can only have one shareholder. In a sole proprietorship, the firm owner is solely in charge of managing it and is responsible for both its profits and liabilities.
Here are some quick facts about sole proprietorship in the United Arab Emirates:
- Lone proprietor.
- Absent shareholder.
- 100% control of the company.
- Total control of the company’s operations.
- 100% retention of profits.
- Liable only for the company’s financial commitments and liabilities.
- Low cost of startup.
- Quickly registering a business.
- No need for startup funding.
You may establish any kind of sole establishment if you are a citizen of the GCC or the UAE. It could be a business, tourist, industrial, or professional activity. In accordance with your professional license, you may also establish consultancies in a variety of fields. However, foreigners can only apply for professional licenses for their sole proprietorship.
2.2 Limited Liability Company
A limited liability company, or LLC, has a shareholding structure that includes more than one partner. This is quite common among Dubai entrepreneurs because it asks the stockholders to make a small investment. Furthermore, owners can apply to obtain as many visas as they desire.
Investors must obtain a commercial business license from the Department of Economic Development to start an LLC. With the aid of this business license, the organization is able to freely transact business both domestically and abroad.
2.3 Civil Company
A civil company is a group of two or more certified professionals in particular fields that collaborate to provide a variety of professional services; sometimes it is also referred as a civil partnership or establishment. These professionals include consultants, doctors, accountants, lawyers, and engineers. Business entrepreneurs can establish a civil business as partners and must possess formal skills in their area of specialization.
An international professional partnership may serve as one of the stockholders of a civil corporation set in Dubai. However, if the proprietor or investor is a national of a nation outside of the GCC or the United Arab Emirates, an LSA (Local Service Agent) is necessary to support the civil trading license.
2.4 Free Zone Company
In the UAE, there are now 40 free zones in operation, and more are being built. Only businesses that fall under those categories are eligible for licenses in each Free Zone, which is built around one or more commercial categories.
One of the main benefits of setting up shop in one of the UAE’s free zones is that there are no restrictions on foreign ownership, and businesses are governed by an independent Free Zone Authority (FZA) that is in charge of issuing operating permits and regulating business operations there.
Then, comes the typical business setup. This process can be difficult, however, with a business formation agency, you can start your Ice cream uae in no time. The experts in Dubai ice cream shop incorporation will help you with these problems.
3. Learn the necessary steps for opening an Ice cream Dubai business
To broker ice cream shop transactions, a company or individual must first obtain certification from the UAE Ice Cream Shop Regulatory Authority. After passing a course and acquiring an agent registration number, owners can obtain an icecream shop license.
Individuals that obtain the RERA license and work for ice cream shop companies in Dubai will get a broker’s card. Do not be afraid to contact business establishment Dubai registration professionals if you want to open an icecream shop in the Emirate.
Here are the steps to follow if you can learn how to start business in Dubai:
3.1 Step one: Choose the business model
Remember that if you want to be the sole owner of your company as a foreign entrepreneur, you will require a Free Zone business establishment license. 51% of the time, a UAE national must own most businesses in the remaining United Arab Emirates (UAE). A wide range of market formats are available in Dubai for business setup.
- The sole proprietorship is the initial type of business. Thus, here, businesses do not require any minimum capital, and just one manager is necessary.
- The owner’s one-person limited liability company falls under the second category. Therefore, in this scheme, a shareholder’s exposure is set at the stock’s market value.
- The civil company is the third type. This team of professionals could come from any nation, but if none of them are UAE citizens, they will need the assistance of a local service agent.
- The Limited Liability Company is the fourth choice, and UAE nationals must own 51% of the business.
- The fifth type is a partnership company. Consequently, it allows expatriates to be limited partners without any restrictions on ownership share but needs UAE locals to be general partners.
3.2 Step two: Register your business and obtain the license for business in UAE
You will need to select a proper name for your shop. Therefore, it would be ideal if you could use words that would help people understand what you do. As a result, you must register your company with the Department of Economic Development and reserve your trade name.
To receive final clearance, you must present the original documents along with the amended copies. You must also complete a prerequisite course offered by the Ice Cream Store Regulatory Agency in order to obtain an icecream shop license. Separate ice cream business operations call for different business licenses.
You might want to think about employing an agency to assist you with the enrollment process, visas and permits, and other associated paperwork due to the unique characteristics of the Dubai real estate market. Additionally, they could provide strategic advice for the business to help lower costs and risks.
3.3 Step three: Set up an office
This stage is very important since it gives your company respectability, specifically if you are an expatriate with no prior business experience. For this office, a landline and a cell phone number ought to be provided.
In Dubai, you can buy or rent office space from a free zone business. You can choose from offices that are 20–30 square feet on one floor up to 2,000 square feet in size. For instance, if your demands and finances permit it, you can start with a Flexi-desk. The most amazing thing about it is that you can use it on a part-time basis while maintaining your usual mailing address.
This could be a practical temporary solution while you wait for your business and funds to stabilize; at which point you will need a permanent office and staff. You can also speak with one of the Dubai-based companies if you are unsure about your geographic preference.
4. See the frequent questions about having an ice cream company in UAE
Here are some of the most frequent questions about opening and icecream shop in the United Arab Emirates:
4.1 Is an ice cream business profitable in the UAE?
Yes, the UAE is a wide region and icecream shops are very popular in the area. However, if you want to make a profit from your icecream shop you may take the following into consideration:
- If you are the sole manager: Regardless of whether you work there, you can make more money if you own and run the business than if you hired a manager.
- Whether you are open all year: Stores that close in the wintertime may have lower potential earnings, but they also incur fewer running expenses because there are no sales to cover the bills.
- Your address: Shops with strong foot traffic that may be reached on foot may have a greater earning potential.
- What makes you special: If you have a unique product or are the only ice cream shop in your community, you may be able to earn more money.
4.2 Is it better to have an icecream business in Mainland or in a Free Zone?
In Dubai and the UAE, there is no wrong or right choice when it comes to free zones against mainland. Each authority has its own advantages and disadvantages. Simply recognize their advantages and disadvantages, then decide which is ideal for your company. You can set up your icecream shop in Sharjah Free Zone or the UAE Mainland with no problem.
4.3 Can I obtain a family visa if I establish an ice cream shop in the UAE?
Yes, if you have an investor visa in the region and have your own company, you can sponsor your family to the region. Families can obtain sponsorship for residence visas by both employers and employees who have valid UAE residency visas. Unlike earlier, employees who make basic wages of AED 4,000 or AED 3,000 plus housing can sponsor their relatives regardless of their employment titles. Every new arrival who has reached the age of 18 must pass the medical fitness check.
5. Connect Middle East, your best ally for business formation
If you are looking to establish your icecream shop in the UAE, we are the best ally for you. Connect Middle East is the top business formation agency in the region. Consequently, our agents will guide you and give you the assistance you will need every step of the way. From business registration, to visas, permits, offices, and more.
