Starting a tea shop in Dubai? Great choice! The city’s love for tea, from traditional Karak to premium blends, makes it a profitable business idea. But you need to get a business license before you serve your first cup.
How much does a tea shop license cost in Dubai? What about Sharjah? And what’s the process to set up your business? Let’s break it all down in simple terms.
Tea Shop Business in Dubai: A Profitable Idea
Dubai is a hotspot for tea lovers. Whether it’s a small kiosk, a cozy café, or a high-end tea lounge, the demand for tea is always high. With locals and tourists looking for unique flavors and experiences, a tea shop business in Dubai can be a great investment.
But before you get started, you need the right permits.
Tea Shop License Cost in Dubai
The cost of a tea shop license in Dubai depends on different factors like location, business structure, and approvals required. Here’s a general breakdown:
Basic Costs:
- Trade License: Around AED 8,000 – AED 15,000 (varies by authority)
- Local Sponsorship (if needed): AED 5,000 – AED 10,000 per year
- Dubai Municipality Approvals: AED 2,000 – AED 5,000
- Rent and Fit-out Costs: AED 50,000+ (varies based on shop size and location)
Additional Costs to Consider:
- Visa Fees: AED 3,000 – AED 7,000 per person
- Food Safety & Health Permits: AED 2,000+
- Signage & Branding: AED 5,000 – AED 15,000
So, the total cost to start a tea shop in Dubai can range from AED 80,000 to AED 150,000, depending on your business model and location.
If you’re going for a small kiosk or takeaway counter, the cost can be lower. But if you plan to open a high-end tea lounge, expect to invest more in interior design, branding, and premium ingredients.
Tea Shop License Cost in Sharjah
Sharjah is another great location to start a tea shop business. The cost of a license here is usually lower compared to Dubai, making it an attractive option for entrepreneurs.
Estimated Costs in Sharjah:
- Trade License: AED 5,000 – AED 12,000
- Local Sponsorship (if needed): AED 4,000 – AED 8,000 per year
- Municipality Permits: AED 1,500 – AED 4,000
- Shop Rent & Setup: AED 30,000+
Overall, setting up a tea shop in Sharjah could cost AED 50,000 – AED 100,000, depending on your business plan.
6 Steps to Get a Tea Shop License in Dubai
Now that you know the costs, let’s go through the step-by-step process to get your license.
Step 1: Choose Your Business Location
- Decide whether you want to set up in a mainland or a free zone.
- Mainland shops allow you to operate anywhere in Dubai, but free zones have tax benefits.
Step 2: Get the Trade Name Approval
- Pick a name for your tea shop and submit it to the Department of Economic Development (DED) for approval.
- Avoid names that include religious or political terms.
Step 3: Apply for a Trade License
- Submit your business application to DED.
- Choose the business structure: Sole Proprietorship, LLC, or Partnership.
- Pay the initial license fees.
Step 4: Get Health & Food Safety Permits
- Apply for approval from Dubai Municipality.
- Pass inspections for food safety and hygiene standards.
Step 5: Rent a Shop & Get Interior Approvals
- Sign a lease agreement.
- Apply for Ejari registration to legalize your rental contract.
- Get approval for interior design and layout.
Step 6: Open a Business Bank Account & Apply for Visas
- Choose a UAE bank to open your business account.
- Apply for work visas if you plan to hire staff.
Once you complete these steps, you’ll get your tea shop license and can start serving customers!
Business Setup in Dubai Freezone for a Tea Shop
If you’re considering a business setup in the Dubai free zone, you can still open a tea business, but there are some key differences:
Benefits of Free Zone Setup:
- 100% foreign ownership (no need for a local sponsor).
- Tax benefits like zero corporate tax.
- Easy company registration with fewer restrictions.
Limitations:
- You can’t open a physical tea shop in mainland Dubai; you’ll need to operate within the free zone.
- Most free zones focus on trade and online businesses, so a physical tea café might not be allowed.
If your goal is to sell packaged tea or run an online tea business, a free zone setup might be a good option. But if you want a physical tea shop, a mainland license is the way to go.
Why Dubai is the Perfect Place for a Tea Shop
Dubai’s love for tea is unmatched. From Karak stalls on street corners to luxurious tea lounges in five-star hotels, tea is part of the culture. Here’s why it’s a great business idea:
- High Demand: Tea is popular among both locals and expats.
- Tourist Attraction: Visitors love trying different tea flavors from around the world.
- Profit Margins: A cup of tea costs AED 1 – AED 3 to make but sells for AED 5 – AED 20.
- Easy Expansion: Once your shop is successful, you can open more branches.
Whether you’re selling classic Karak, organic teas, or bubble tea, Dubai’s market is full of opportunities.
Tips for a Successful Tea Shop Business
Starting a tea shop business in Dubai is exciting, but competition is strong. Here’s how you can stand out:
Find a Unique Selling Point (USP)
- Offer rare and organic tea blends.
- Add a modern twist with bubble tea or iced teas.
- Create a cozy, Instagram-worthy space that attracts customers.
Partner with Delivery Services
- Sign up with Talabat, Deliveroo, or Careem to increase sales.
- Offer special discounts for online orders.
Focus on Quality & Presentation
- Serve tea in premium cups with great packaging.
- Maintain high hygiene standards to build customer trust.
Market Your Business
- Use social media to attract customers.
- Offer loyalty programs and special promotions.
With the right approach, your tea shop in Dubai can be a profitable and long-term business.
Setting up a tea shop in Dubai or Sharjah is a smart business move, but planning is key. Understanding tea shop license costs, location options, and legal steps will help you start on the right foot.
Experts like Freezoner can make things easier if you need help with the licensing process, approvals, or business setup. With the right strategy, your tea shop can become the go-to spot for tea lovers in the UAE.
Ready to get started? Let’s make your tea business a success!