What You Need for Setting up a Bakery Business in Dubai

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The global pandemic has resulted in a bleak 2020 for many people around the world. The countrywide blockade has forced people to move into their homes for months. The light at the end of the tunnel, however, is that people are starting to rediscover their old hobbies and passions. For example, many hobby bakers improved their skills during the blockade and are now interested in setting up a business company. Dubai is a haven for businesses big and small thanks to various tax breaks, world-class infrastructure, skilled workforce, and business-friendly laws. So, if you are a baker and want to set up an offshore company in Dubai, you have come to the right place. Read on to find out more!

Why Choose Dubai for Starting a Small Business despite Covid-19 Pandemic

The Covid-19 pandemic is known to hurt investment and business growth around the world. However, as most countries continue to cope with the impact of the pandemic, the UAE government has paved the way for offshore business setups to run smoothly. Here are some reasons why Dubai is the best place to set up your cake business:

Business-Friendly Government for Businesses

The government of the United Arab Emirates has implemented various measures to support small business owners. For example, you are worried about the price of an offshore company in Dubai. In this case, you need not worry. You get immediate benefits from fee waivers, steps for company online registration, low payment structure in the form of monthly installments, and other criteria.

Profitable Tax Incentives

Foreigners can benefit significantly from Dubai’s tax incentives as they are not subject to corporate income tax, withholding tax, sales tax, export/import tax, and capital gains tax.

Basic Steps to Follow for Setting up a Bakery Business in Dubai

As with any business, there are certain steps to follow when setting a business in Dubai. Here are the steps to starting an offshore business in Dubai, from creating a fully proven business plan to deciding what types of items to sell.

Make a Business Plan

Bakers or people who want to start a bakery must first make a plan. The determinants for a good business plan include the type of goods, accessibility of the service area, experience of the management team, etc. Investors will consider the characteristics that set your business company apart from others before investing their time and resources in it. Wedding catering, for example, is very different from advertising in partnership with a nearby distributor.

Come up with a Business Structure and Model

The operating structure of the bakery may be the only business in which expatriates can fully own the business. You can also start your bakery as a civil society with two or more immigrants and local sponsors in the form of UAE citizens. Finally, the bakery can also function as a limited liability company, with a UAE citizen and former Pat holding 51% and 49% shares, respectively.

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Select Your Business Niche

Before undertaking any business it is important to identify your baking experience, costs, and objectives of Dubai offshore business. You can also explore the local market for more perspective on the subject. For example, you may find that people are constantly investing their money in bakeries that excel at making cupcakes, wedding cakes, birthday cakes, etc. If your item is of higher quality, you may add a fee.

Make Selection of Business Location and Name

The name of your bakery business should be such that it immediately catches people’s attention. Choosing a company name is very important in Dubai as you need to make sure it doesn’t violate the naming laws in the UAE. For example, you may not use blasphemous words; apply for known organizations, etc.

The location of your business is very important and plays a direct role in the amount of profit you will generate. You can choose from suburbs, industrial areas, shopping, etc. Another business model that will become popular in 2021 is product sales through website delivery services.

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The Process to Get a Bakery Business License in Dubai

A bakery license is an important aspect of starting an offshore company in Dubai. In addition, bakeries must comply with the local Food Code, an initiative of the Dubai Food Control Department, to ensure compliance with safety requirements. If you wish to receive your license, you must provide the following information:

  • Location of food parts of equipment used for food processing
  • Dishwashers and other appliances
  • The kitchen area of ​​at least 250 square meters or 40% of the total area, whichever is greater.
  • Walls, floors and ceilings must be washable, non-absorbent, fire-resistant, light, smooth, non-toxic and non-cracking. The subsurface must have a slope suitable for the drainage unit.
  • Double sink washing equipment with hot/cold water.
  • Interior design for all business premises
  • Mark all entry and exit points of your company
  • Food processing room
  • Food storage room
  • Windows and ventilation systems


Please note that the above specifications for bakery licenses are subject to change. If you have any questions about setting up a bakery business in Dubai, e.g. How to open an offshore bank account in Dubai, steps to start an offshore company, etc. Contact a professional business consultant today.

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