Last updated on April 28, 2022
Over the past years, Dubai has developed as one of the world’s notable travel and tourism destinations. The hospitality industry has been re-defined through modernization; and now offerings several investment breaks for both local as well as foreign companies desire to launch themselves in the region. In this article, we will learn how to start a hotel business in Dubai; and will try to discover the guidelines for establishing a hotel business in Dubai. And will understand about the formation of companies in the UAE; mostly we will help expat with understanding the principles and government requirements.
How to start a hotel business in Dubai
The first step to start a hotel business in Dubai is to decide the legal entity. The most frequently use profitable entity type is a Limited Liability Company, or LLC. Like most of the countries in the GCC states, commercial law in the UAE state; that an overseas financier cannot own higher than 49% of an LLC; and he will have to find a local UAE partner who will either be an individual or a company; who will as a result own at least 51% of the shares. It is time consuming and very difficult for expat investors to find a local Emirati; who they can partner with. One possibility for that purpose is to create an LLC with a local corporate sponsor as an alternative
How to open a hotel in Dubai Free Zone
It is likely to open a hotel in Dubai Free Zone; which will remove the obligation of a local partner completely for a foreign investor. At the same time starting a business in a Free Zone; may give the impression like a minor cost opportunity; it is essential to consider that there are firm rules around trading; and as a result the hotel need to be actually positioned in that particular Free Zone.
How to start hotel business in Dubai | How to open a bar in Dubai
In order to start a hotel business in Dubai; or to open a bar in Dubai; it is essential to fulfill a number of regulations; which is define by the Dubai Department of Tourism and Commerce Marketing (DTCM). For the purpose of how to open a hotel in Dubai some of the regulations include:
- A bank assurance is mandatory in advance for the trade license to be issue.
- The least possible size of any hotel area may not be less than 30 square meters.
- All packages and prices need to be properly put on show.
- Facility of an operational program to securely store visitor’s data.
Available type to open a hotel in Dubai
If you want to open a hotel in Dubai you need to obey the rules connect to the hotel classification; which says that you can only open the following type of hotel in Dubai.
- Resort setup in Dubai
- Open a bar in Dubai
- Hotel setup in Dubai
- Guest house setup in Dubai
- Youth hostel setup in Dubai
- Holiday house setup in Dubai
Hotels can additionally be categorized from one to seven stars, whereas holiday houses are distributed into average or luxurious establishments.
Legal Requirements to start hotel business in Dubai
Hotel business in Dubai has a small number of legal requirements; which are more like every other type of business. But there are particular changes when it comes to the hotel business. For example, where most businesses need a trade license for initiating a business in Dubai; to start a hotel business in Dubai, you must have a tourism license. Therefore, check this little information before making a decision; and do not basically follow the common practice. And more suitable option is to contact one of our business advisor; so that to get a proper advice on the startup.
Appoint a Manager for starting a hotel in Dubai
Every business needs a manager who grips all the requirements in the company. Likewise, a hotel business in Dubai also need a manager; with a proper training as well as a proper certification in this field. Hiring a manager at the beginning is important; because he or she can help while getting the primary approval; as well as collecting all the official papers require for the same.
Initial Approval for starting a hotel in Dubai
Once you appoint a manager; the next step in the process is to apply for the initial approval. For this purpose you need to have the following documents.
- An application form from the DED.
- Passport copy and Identifications of the owner.
- Classification card for the hotel business
- Location drawings, plot drawings and building completion certificate for the hotel property
- Passport print of the manager alongside academic certification and experience letters
- DTCM accepted certificate of noble manner
- Approval from the Dubai General Police Headquarters
Get the License to open a hotel business in Dubai
As stated before, you need to acquire a tourism license to open a hotel business in Dubai. The following official papers should be submitted to catch an approval from the authorities:
- first of all in the first place, fee receipt of the first approval
- Profession name certification and linked payment receipts
- No-Objection Certificate (NOC) in situation of an international group or brand of hotels
- At least 3 months of occupation agreement approved by the landlord
- Ejari for the hotel property
- Documents compulsory for the initial approval and valid certifications
- Agreement from the Dubai Municipality and connected judicial figures for sanitation, waste management, public health, etc.
When submitting all the above documents; the DTCM will also undergo each and every single document; that is if they do not find any ambiguity; then your license will get your hotel license in Dubai within a week. The DTCM offers e-service where you can print the hotel license in Dubai; or you can go to their office and get it printed from the counter. To sort things even at ease; you can also hire a business adviser who can do the needful things for you. We at Shams Consultant have our team of experts to support you in your company setup in Dubai. If you are preparing to start a hotel business in Dubai, then do contact us.
Planning a hotel or tourism establishment in Dubai can be a difficult task; and there are a lot of aspects to take into attention. Looking for professional advice from the team at Shams Consultant will save your time and money; and let you to devote more time in your business.
Our team specializes in the formation of companies in the UAE, comprising regulations and government association matters. For further information please contact us.