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How to Start a Bakery Business in Dubai?

A global pandemic resulted in a dismal 2020 for many people across the globe. Country-wide lockdowns forced people to retreat into their homes for months on end. However, the light at the end of the tunnel was that people started rediscovering their old hobbies and passions. For example, many amateur bakers have improved their skills during the lockdown and are now interested in offshore company formation. 

Dubai is a haven for large and small businesses, thanks to the abundance of tax incentives, top-notch infrastructure, skilled workforce, and business-friendly laws. So if you are a baker looking forward to offshore company formation in Dubaiyou have come to the right place. Read on to learn more!

Why is Dubai the Best Place to Start a Small Business despite the Covid-19 Pandemic? 

It is a well-known fact that the Covid-19 pandemic had a detrimental effect on investments and business growth across the world. However, as most countries continue to scrape by to counter the pandemic results, the UAE government has managed to pave the way for effortless offshore company formation. 

Here are some reasons why Dubai is the best place to start your baking business:

●Business-Friendly Government 

The UAE government has introduced a wide range of measures to help out small business owners. For example, suppose you are worried about Dubai offshore company cost. In that caseyou need not worry. You will directly benefit from fee waivers, online company registration measures, a lenient payment structure in the form of monthly instalments, and other criteria.

●Initiatives Taken Up by Banks and Other Financial Institutions 

Banks have also introduced loan repayment holidays and fee waivers to help small businesses start following the Covid-19 pandemic. In addition, prominent financial institutions such as the Dubai International Financial Centre, Abu Dhabi Global Market, etc., are financing distressed start-ups.

●Tax Incentives 

Foreigners can significantly benefit from Dubai’s tax incentives as they won’t be subjected to corporate tax, withholding tax, VAT, export/import tax, and capital gains tax.

●Much-Needed Exposure 

Dubai is home to foreign nationals from all over the world, most of whom love indulging in well-made delicacies. Thus, small business owners like bakers can significantly benefit from the feature mentioned above.

What Are the Steps for Setting Up a Bakery in Dubai? 

Like any other business, there are specific necessary steps to keep in mind while opening a business in Dubai. From creating a full-proof business plan to deciding on the types of items to sell, here are the steps to offshore company setup in Dubai.

●Create a Business Plan 

First and foremost, bakers or people hoping to start a baking company will have to come up with a plan. The deciding factors of a good business plan include the types of goods, accessibility of the service region, the management team’s experience, etc. Investors will consider the characteristics that set your business apart from others before pouring their time and resources into the same. For instance, wedding catering is entirely different from a commercial that works with distributors in nearby areas.

●Come Up with a Business Model and Structure 

A bakery’s business structure could be a sole establishment wherein expats can wholly own the company. You can also start your bakery as a civil company, which boasts two or more expats and a local sponsor in the form of a UAE national. Finally, the bakery can also serve as a limited liability company wherein the UAE citizen and ex-pat will have 51% shares and 49% shares, respectively.

●Determine Your Niche 

Before conducting any business tasks, you will need to determine your expertise in baking, Dubai offshore company costand objectives. You can also look into the local market to gain some more perspective on the matter. For instance, you may find out that people are constantly pouring their money into bakeries that excel in creating cupcakes, wedding cakes, birthday cakes, and so forth. If your items are of higher quality, you can charge a premium fee.

●Decide Upon Your Business Name and Location 

The name of your bakery business should be such that it grasps the attention of people instantaneously. Picking a business name is of great importance in Dubai, as you will also have to make sure that it does not contravene any naming laws in the UAE. For instance, you cannot use blasphemous words; refer to any popular organisation, etc.

The location of your business is of great importance and will directly play a role in the number of profits you will receive. You can take your pick from suburban neighbourhoods, industrial districts, shopping plazas, and so forth. Another business model that is gaining traction in 2021 is selling products via delivery services through a website.

How to Get Your Hands on a Bakery License in Dubai? 

A bakery license is a crucial aspect of offshore company formation in Dubai. In addition, bakeries will have to conform to the local “Food Code”, an initiative by the Dubai Municipality’s Department of Food Control to warrant implementation of safety requirements.

If you want to obtain your license, you will have to provide the following information:

  • Interior Design Layout for all the business premises
  • Highlight all the entry and exit points of your business
  • Space for processing food
  • Space for storing food
  • Windows and ventilation system
  • Location of the food pieces of equipment which will be used to process the food
  • Dishwashers and other pieces of equipment
  • The kitchen area must be a minimum of 250sqft or 40% of the total, whichever is more extensive.
  • Wall, floor, and ceiling must be washable, non-absorbent, fireproof, light-coloured, smooth, non-toxic, and with no cracks. The base shall be adequately sloped for drainage junction.
  • Washing facilities double-sink with hot/cold water.

Please note that the specifications as mentioned earlier for a bakery license are subject to change. If you have queries related to businesses in Dubai such as, how to open an offshore bank account in Dubai, steps for setting up an offshore company, and so forth, get in touch with us today!