Growth in the UAE’s Bakery Industry

Whether you’re an amateur baker or a legendary pro, many citizens of Dubai are finding a newfound interest in the art of baking. So it’s no surprise that many of these bakers are thinking of starting their own bakery. And while many folks are just now finding this newfound love, bakers have been an intrinsic part of the city for years, with the fields of patisseries and cake art being a tremendously advantageous market for entrepreneurs.

The UAE bakery market is expected to grow significantly over the next decade, mainly in part due to a growing population and increasing demand for gluten-free and trans-fat bakery products. With many citizens living healthy and maintaining an active diet, the demand has never been higher.

Setting up Your Bakery Business

With any company formation in Dubai, you’ll need to conduct thorough research to determine your business setup cost and whether the market is suitable for you and your product. This research should include:

1. A thorough business plan

You’ll need to develop a clear-cut business plan that takes into account your fiscal goals and the market surrounding your product.

2. Determine your business structure

A business’ legal structure will significantly determine how it handles everyday business, including its assets, profits, and losses. These include:

• Sole Proprietorship

This legal structure is for a single owner that is solely responsible for any profits and losses incurred during business operations.

• Limited Liability Company (LLC)

A limited liability company is a legal structure for businesses that have multiple shareholders. These companies are authorized to conduct commercial businesses, and their financial risks are minimized in the event of liquidation.

• Foreign Branch

A foreign branch is a legal structure for international businesses that are operating in foreign nations. Foreign branches serve as an entity that operates under the jurisdiction of the laws of their parent company.

3. Discover your niche

Before you apply for a business license, you’ll need to perform considerable research to determine the profitability of your chosen product or business. Having a good idea of the business opportunities is a great way to ensure the overall success of your company.

4. Choose your location

After you’ve performed ample research, the time has come to choose where you’ll conduct business. There are several business locations to choose from, each with its own set of advantages. These include:

• Free Zones

Dubai is home to numerous business jurisdictions known as Free Zones. These Free Zones are dedicated to companies that choose to conduct business within the UAE. These Free Zones cater to different industries, and many offer enticing business incentives like no tax responsibilities and full repatriation of profits.

• Offshore

An offshore company is a legal business entity that is formed to operate outside its registered jurisdiction. This location is advantageous to entrepreneurs hoping to enter the international market, and offshore companies are often used for foreign trades outside the UAE.

• Mainland

Mainland companies are business entities that are allowed to operate within the UAEs legal boundaries. After June of 2021, business owners in this jurisdiction are now allowed full foreign ownership.

5. Submit your business name for approval

Before you can receive your business license, you’ll need to submit a name approval request to the Department of Economic Development. Your chosen name must not already be taken and may not include profanity.

6. Submit documentation, pay fees, and collect business license

The final steps for obtaining a trade license in Dubai will include submitting your carefully gathered documents to the authorities and paying any necessary application fees. After all dues are paid, and your application is fully processed, you’ll receive your business license.

7. Food Safety and Health Inspections

To legally operate a baker in Dubai, you’ll need to conform to the local “food codes.” Dubai’s Department of Food Control enforces this code to protect consumers and ensure food safety.

8. Hire staff

If you’re going to run a business, you’re going to need some help! You will want to seek skilled professionals as bakery work is a team effort that a single person cannot perform.

9. Budgeting

Your budget should have been covered at the onset of business formation, but it’s always important to watch your overall finances. Understanding your assets, profits, and inventory is a massive aspect of finding financial success in the UAE.

Food Safety Requirements

As we’ve mentioned, any restaurant or business that sells food must submit to the Department of Food Control’s requirements. This group has a set of guidelines that every business owner will need to follow, including:

• A layout of your premises including highlights of all entry and exit points

• Ample space for food processing

• Adequate storage space

• Windows and proper ventilation systems

• Dishwashers and support equipment

• Kitchens must be a minimum of 250 sq. ft. or 40% of the building’s total floor space.

• Dedicated washing facilities with hot and cold water

• Proper location of food processing equipment

Start Your Next Business Venture with MSZ Consultancy!

If you’re thinking of forming a new business, you’ll undoubtedly want the expertise of MSZ Consultancy. Our specialists are proud to offer expert consultative services for investors and new companies entering the UAE marketplace. We have years of experience and know-how to help you navigate the confusing terrain of Emirati business formation while providing you with the insight to help your business reach maximum profitability. Whether you’re a new investor interested in business setup in Dubai, or you’re a larger corporate entity setting up a new international branch, we have the tools to streamline your business and legal affairs! Give us a call today at +971 52 544 1248 and let our team help supercharge your business and maximize profits!

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