Tea Shop License in Dubai – Complete Guide to Cost & Setup 

Dubai’s café culture is expanding, and the growing number of tea enthusiasts is searching for relaxing environments. Unique blends make opening a tea shop in the city a lucrative business opportunity. But before serving your first cup, you must understand the city’s legal, financial, and operational requirements. It is a must to know the cost of the tea shop license in Dubai. This guide will provide you with all the information about the tea shop license in Dubai. It also includes the breakdown of costs, procedures, legal requirements, and tips for running a successful business.

Why Open a Tea Shop in Dubai?

Dubai is a multicultural mixture with a rising demand for tea ranging from the traditional Karak to bubble tea, matcha, and herbal infusions. Moreover, tea drinking is habitual in this part of the world. Also, the strong presence of tourists and expats creates a constant flow of customers. For a profitable business, you have to collect information about the tea shop license in Dubai.

Starting It Off:

• Diverse demographics enjoy tea. 
• High foot traffic and tourism. 
• Support of government initiatives for SMEs. 
• Business taxes are favorable. 

What is a Tea Shop License in Dubai? 

A dedicated cafeteria permit and a food and beverage trading permit are necessary with the Department of Economic Development to sell tea and light refreshment. The license, centered on your business scope can permit you to sell both hot & cold drinks and light meals. 

Types of Available Tea Shop Licenses in Dubai  

Mainland License (DED issued)

Wider market reach enables greater customer sales.

Free Zone License  

Less expensive and quicker to establish. A better choice for businesses that deliver tea or operate as cloud kitchens.

Professional Tea  Shop License in Dubai (for specialized tea brewers or herbalists)  

All these licenses have specific advantages in terms of location, tax, and ownership flexibility.

Item	Cost (AED)
Trade Name Registration	620 – 1000
Initial Approval	120
License Fee (DED or Free Zone)	10,000 – 15,000
Immigration Card & Establishment Card	1,500 – 2,000
Local Service Agent (if applicable)	3,000 – 5,000/year
Office Space / Shop Rent	20,000 – 60,000/year
Food Safety Approval	1,000 – 2,000
Signboard Permit	250 – 500
Medical & Emirates ID (per owner)	1,000 – 2,000

Total Estimated Setup Costs: AED 35,000 to AED 70,000+

Consider that free zones such as Meydan FZ or IFZA provide less expensive licensing options for non-retail or delivery-only models.

How to Obtain a Tea Shop License in Dubai?

To obtain a tea shop license in Dubai, you must meet these needs:

Decide Your Business Jurisdiction

• Mainland (more freedom)
• Free Zone (cost-effective)

• Pick Business Activities: Select from DED’s approved list, such as “Cafeteria,” “Tea & Herbal Drink Trading,” etc.
• Register Trade Name: Get a name that is relevant and unique.
• Apply for Initial Approval: Shows no objection from the concerned bodies for you to go ahead.
• Draft & Sign MOA (if LLC): Memorandum of Association, if there are multiple shareholders.
• Choose Business Location: Lease a shop that meets municipality standards and obtain a tenancy.
• Apply for Food Safety Approval: Obtained by Dubai Municipality, forwards kitchen layouts for scrutiny and approvals.
• Submit Final Application & Pay Fees: After all the approvals, make final submission, and get the license.

Additional Requirements

Food Code Compliance

The kitchen needs to comply with hygiene requirements set in the UAE Food Code.

DED & Municipality Checks

These checks are essential for your approval.

Fire Safety

Clearance from Dubai Civil Defense is required.

Starting Up in a Free Zone: An Economic Option  

Free zones like IFZA, MEYADAN, and SHAMS offer tailored packages for startups in the F&B sector, particularly for tea businesses that specialize in:  

• E-commerce.  
• Delivery-only models.  
• Bulk trading of teas.  

With a free zone license, it is not possible to directly operate a café within the city. A local distributor would need to be appointed.  

Local Sponsorship & Ownership  

With a Mainland license, there is a need for a Local Service Agent (LSA) if the applicant is a foreign national (sole proprietor or civil company). In the case of LLCs, there is a legal requirement of at least 51% ownership by UAE nationals. There is a recent reform in the law that allows full ownership in several sectors, depending on the activity.  

What is the Duration for opening a tea shop in Dubai?  

Typically, after obtaining the required documents and approvals, it takes around 7 to 14 business days to get the license.  

FAQs

1. As a foreigner, can I open a tea shop in Dubai?  

Absolutely. Foreigners can establish a tea shop with either complete ownership in certain free zones or with a local sponsor on the mainland. 

2. What is the cheapest way to open a tea business in Dubai? 

The lowest-cost option is to set up in a free zone (like Meydan FZ or IFZA) using a delivery or e-commerce model. 

3. Is a separate license needed for selling snacks or desserts?  

If your plans include selling anything other than tea, like pastries or sandwiches, you will need to add those activities to your current license or get a cafeteria license. 

Conclusion

Opening a tea shop in Dubai is an exciting endeavor and highly profitable. If a cutting-edge product meets a thoughtfully designed customer experience, you will get a great margin. Whether you go big by launching a high-end tea lounge or starting small with a takeaway stall, legally organizing the licenses and setting up is the first step towards undeniable success. The process of getting a tea shop license in Dubai is very easy.