A sip of karak while enjoying stunning views, the ritual of having tea, coffee and beverages with friends and family is deeply cherished in Dubai. If you have decided to start a café or tea shop business in Dubai, then we congratulate you as it is a great idea. From matcha to boba tea lovers, potential customers include locals, expats, tourists, youngsters, and families. However, to start a tea shop in Dubai, you need to get a business license, a food license in Dubai, and multiple permits to serve your first cup.
This brings the tea shop license cost in Dubai to around AED 19,000* in 2026.
If you need a detailed cost breakdown from our experts and process details, this guide covers everything you need to know, including some practical tips to help you launch your tea shop in Dubai with confidence.
Meaning of a tea shop license in Dubai
Dubai tea shop license (also called cafeteria license) is legal document required to run a business of light snacks and beverages, issued by the official licensing authorities in Dubai.
Imagine opening a pet-friendly cafe or a traditional Arabic tea house in Dubai, in any case you would need a tea shop license which confirms you have the skills, the preparations, and resources to offer quality food as per Dubai’s health standards.
Key points related to tea shop license in UAE:
- License official name: Cafeteria license
- Activity group: Restaurants and coffee shops
Official Dubai authorities issuing tea shop license in Dubai
- In mainland: Department of Economy and Tourism (DET).
- In free zone: Respective free zone authority (IFZA, JAFZA, Dubai South, DWTC, etc.)
However, when choosing this business, you must adhere to the food safety regulations in place and also obtain the necessary permits from the Food and Safety Department. UAE government does not take chances when it comes to food safety.
| Did you know? The tea market size in UAE is expected to reach USD 2.58 billion by 2034 remaining a top global market by size. |
What is the tea shop license cost in Dubai?
The tea shop license cost in Dubai starts from AED 12,500* (license fees only).
However, you must know that there are lot of factors that decide the final price of your business license. To get an exact price quotation, we recommend getting in touch with our business setup experts.
Complete cost breakdown of Dubai tea shop license package
The total package cost of a karak tea license in UAE usually comes with other important business setup services.
Cost breakdown (verified by Dubiz business setup consultant):
| Item | Cost* (subject to variation*) |
| Trade license (restaurant/cafeteria license) | AED 12,500 |
| Trade name reservation | AED 735 |
| Initial approval fees | AED 235 |
| Food license from the department of food and safety | AED 300 |
| NOC from civil defence department | AED 1,000 |
| Signage permit | AED 1,000 |
| Ejari registration (lease agreement) | TBD |
| Visa charges | AED 3,000 |
| Emirates ID charges | AED 400 |
| Medical tests fees | AED 400 |
| Total estimated tea shop license cost in UAE* | AED 19,570* |
Factors affecting cost of tea shop setup in Dubai
The overall cost of setting up a tea shop in Dubai depends on multiple factors, including:
1. License nature and scope:
The more activities your license covers, the higher would be the cost of license. A simple beverage kiosk license may be less costly than a full-fledged cafe license.
2. Business jurisdiction:
The tea shop cost also depends on whether the business is being established in the mainland or a free zone. Free zones tend to be affordable in comparison to the mainland.
3. Type of facility:
Your choice of space has a big impact on the overall tea shop cost. Rent vs property purchase, interiors, furniture, and kitchen equipment all add to your setup budget.
4. Staffing costs:
A tea shop typically requires baristas, waiters, cleaning staff, cashier, and supervisor. Also, foreign staff need work visa, labour cards, and all of this comes with its own charges.
5. Number of visas:
Investor visas involve application, medical test, Emirates ID, and visa stamping fees. If you need more than one visa or plan to sponsor employees, there would be more expenses.
6. Trade name reservation fees:
The fee for registering the trade name with UAE authorities depends on the uniqueness of the name, language (such as English vs. Arabic), etc.
7. Professional business setup services:
A business setup consultant in Dubai helps with lawful and faster business launch against service fee. At Dubiz Business Setup, we deliberately keep the service charges minimal to promote accessible business setup in Dubai.
8. License renewals:
Your trade license and permits have their own validity period after which they need to be renewed (typically 1 year). You must pay for renewal fees and administrative costs that time.
The process to obtain tea shop license in Dubai
The correct steps you need to follow for purchasing a new tea shop license in Dubai is as follows:
Step 1 – Understand your business scope
Every business starts with the right planning. Likewise, while starting a tea shop business in Dubai, do not forget your market research. It will help you pick what people are demanding in beverages and snacks (iced matcha, bubble tea, fruit refreshers, croissants, gluten-free bakery), major competitors, which locations have more footfall, what tea shop license cost in Dubai to expect, etc.
Step 2 – Decide between mainland and free zone
You can start your tea shop either on the mainland or in a free zone. In the mainland, you will be dealing more with DET. In the free zone, the respective zone authority will be issuing your license.
Step 3 – Reserve a trade name
Next, register a nice and catchy name for your tea shop with the DET/free zone authority. The name must also be lawful. For example, it should not contain any morally or religiously offensive terms, it should not include the name of any UAE government body, and it should not already be taken.
Step 4 – Obtain initial approval
Getting initial approval for the tea shop is very important as it enables you to move forward with the business setup process. The NOC can be obtained from either DET (for mainland) or the respective free zone authority.
Step 5 – Finalize a space for cafe
People visit tea shops to eat, chill, and create memories. Ambience and physical layout of the tea café have a huge impact on customer experience and comfort. For space, it can be either rented or purchased (if your budget allows). For rented spaces, the lease contract must be legally prepared and registered.
Step 6 – Get a food permit from food and safety department
We are talking about tea and snacks, and it is impossible not to talk about Dubai’s Food and Safety Department. There are strict regulations for food businesses in Dubai. The department would inspect your premises, methods, equipment, storage, and other aspects before issuing you a clearance certificate.
Step 7 – Get external government permits
For your cafe space, you will also need to get permit from the Civil Defence who checks safety measures, emergency systems, pest control, and signage permits. If you plan to entertain the guests with songs, you might need music performance license.
Step 8 – Apply for a trade license
Now that you have the essential approvals and permits in hand, you can confidently approach the DET or free zone authority to request your Dubai trade license. Fill in the license application form and submit it along with asked paperwork and fees. In 7-14 days, your Dubai tea shop license would be issued.
Inspections for tea shop license approval
Getting a tea shop license and permits in Dubai can be a bit tricky in a sense that you need to pass certain inspections. The inspection is conducted typically by the Food and Safety Department and Dubai Civil Defense. For example, the authorities will examine:
- Floor plan and layout of premises
- Ventilation and spacing for safe movement
- Placement and condition of equipment
- Safety and hygiene measures in place
- The methods and processes being used
- Availability of restrooms and basic facilities
- Storage conditions for food and beverages
They overall check the health, safety, and fire standards before you can get your license legally for operating. For latest regulations regarding the inspection, please check the official website of concerned authorities.
Documents needed for tea shop license application
The following documents are needed for getting tea shop license in Dubai:
- Completed license application form
- Passport copy of business owner/s
- Visa and Emirates ID copy of owner/s, if applicable
- Trade name registration certificate
- Initial approval certificate
- Lease agreement for premises
- Memorandum of Association
- Certificate from Dubai Food and Safety authority
- Civil defence approval
- Signage approval
The above list is not exhaustive and can include more documents. Consult Dubiz Business Setup for more details.
The benefits of getting tea shop license in UAE
A tea shop license in UAE offers many benefits including:
- Legal operation: Operate as per the laws and avoid penalties.
- 100% ownership: No need of local sponsor especially in freezones.
- Vibrant market: Diverse and growing demand from locals as well as tourists.
- Low taxes: Benefit from huge tax savings on profits (even 0%).
- Visa eligibility: Get visa for yourself and your staff.
- Supportive government: Save time through easy and fast licensing processes.
- Flexible business types: Choose either dine-ins, takeaways, delivery, or kiosks, as per budget.
Strategies to make tea shop successful in Dubai
Here is how to start a tea shop in Dubai successfully:
1. Understand your investment goals:
When setting up a tea shop in Dubai, ask yourself: “how much am I willing to spend”, “should I focus more on profits or creating a community?”, “what are the price trends?”. Being aware of the tea shop license cost in Dubai and the earning potential keeps your expectations realistic.
2. Focus on building experience:
You are definitely not the only one thinking of a tea shop in Dubai. So, where everyone would be selling beverages and food, you can sell experience, sense of class, and memories. Along with the quality and variety on menu, focus on the atmosphere and staff attitude. For example, a gaming cafeteria business in Dubai with themes and tournaments that gives Gen Z a reason to hang out.
3. Partner with business setup experts:
Starting a tea shop in Dubai involves approaching DET, free zone authorities, Dubai Municipality, Civil Defence, and other entities for permits. Doing it alone does not guarantee success. Thus, it is always better to partner with business Setup consultants in Dubai.
4. Be active on social media profile:
Today’s world is digital and Dubai is highly advanced with almost entire population active online. Therefore, use social media channels, create profiles for your café, and share organic and engaging content (memes for building connection!) to attract potential customers.
5. Maintain quality at any cost:
People speak about food quality. Friends recommend their favourite places. Customers return for taste and hygiene. Thus, use the latest equipment, research your recipes, and maintain cleanliness and service standards at all times.
Get your tea shop license with Dubiz
Dubiz Business Setup is ready to offer you the most helpful and professional guidance on opening a tea shop in Dubai. Nothing beats a hot cup of karak. Whether it is a headache, stress, or just the need to relax – one sip can fix it. And opening a tea shop in Dubai is an intelligent idea because the demand never stops.
Being aware of the tea shop license cost in Dubai, you will feel ready and confident. Dubiz will handle your license, permits and approvals, everything you need to operate legally in Dubai. Our experts have over 9+ years of experience in setting up a wide range of businesses in UAE, including restaurants, cafés and more.
To get your customized package, please reach out to us on any of the following:
📞 Call: +971 56 369 5485
💬 WhatsApp: +971563695485
📧 Email: info@dubiz.co
Frequently Asking Questions (FAQs)
Q1. How to get a karak tea license in UAE?
To get karak tea license in Dubai, you need to secure trade license from DET/freezone and secure necessary permits from the food safety department. The karak license cost in Dubai starts from AED 12,500*
Q2. Which places are best to open a tea shop in Dubai?
Places such as shopping malls, commercial districts, tourist attractions, business hubs are ideal for opening a tea shop in Dubai. Downtown Dubai, Jumeirah, Dubai Marina, Deira, are few prime areas for tea shops.
Q3. Is it costly to open a tea shop in Dubai?
Not necessarily. You can start a small, basic café with minimal capital investment, a shorter menu and less staff. Moreover, you can check out freezone business setup packages offering affordable pricing. Eventually, you can scale up.
Q4. What are the types of licenses needed for tea shop setup in Dubai?
To open a tea shop in Dubai, you generally require a trade license from DET/freezone, permit from Food and Safety department, civil defence permit, and a signage permit (for signboards).
Q5. Is the tea business profitable in Dubai?
Yes, the tea business is profitable in Dubai due to high demand from both locals and tourists. Along with that, you can qualify for 0% corporate tax, which makes it even more worthwhile.
Q6. How to start a tea shop in UAE?
To start a tea shop in UAE, submit your ID and company documents to us at Dubiz Business Setup after which we will secure your trade license and food permits from DET, free zone authorities, and other UAE entities.



