Dubai has redefined the hospitality industry through its modern infrastructure, hassle-free resource availability, breathtaking architecture, and a visionary government.
Today, the locals, as well as the foreign investors, want to set up their hotel business in Dubai and make most of the lucrative opportunities on offer. You can open the hotel of your choice in the UAE after acquiring the associated business license alongside any additional approvals.Therefore, you can legally open a hotel, resort, hotel apartments, youth hostel, guest house, and more in Dubai. Moreover, you have the flexibility to come up with innovative ideas given the multicultural orientation and high tourism rates in the Emirates. It’s better to connect with the local business consultants who provide assistance throughout the process of hotel business setup in Dubai.
How to open a hotel business in the UAE?
It’s pretty straightforward to establish a hotel business in Dubai if you’re aware of all the steps and documents involved in the business incorporation process. Here, we breakdown the procedure for you in these easy-to-follow steps:
- Decide the legal entity
What’s your desired company’s structure for your hotel business in the UAE? Do you have the list of shareholders ready, or you’re planning to go for a sole proprietorship model? You must know all this before applying for a hotel business license. You need to form a limited liability company (LLC) in case you wish to open your hotel in the Dubai mainland. Conversely, you can also establish your hotel business in any of the specialized free zones in the UAE. You’ll need a reliable local sponsor who’ll have 51% shareholding in your company to form an LLC in Dubai.
- Appoint a manager
You need to appoint a manager for your hotel business after finalizing its legal structure. Ensure that you hire a manager who’s the master of his/her craft because they have a vital role to play in freezing the requirements of a hotel business in Dubai. Therefore, it’s critical to check their qualification and experience before hiring them for your venture. Furthermore, a reliable business manager will also help in the other facets of business incorporation in the UAE.
- Secure the initial approval
The next step for hotel business setup in Dubai is obtaining the initial approval certificate from the DED or any other concerned authority. The applicant must submit the application form alongside all the required documents to obtain this certificate for their venture in the UAE. Moreover, you also need the passport copy and qualification details of your manager along with your documents. It typically takes around a week to get a confirmation on your application, and the request is approved if you have filled in the correct details and submitted the right docs.
- Acquire the business license
Once the DED grants you an initial approval certificate, it’s time to secure a relevant business license for your hotel business. Note that, unlike other businesses, you won’t need a trading license for your hotel venture in the UAE. Instead, you need to acquire a tourism license, and for that, you must submit the application form along with the list of required documents. The DTCM will then duly evaluate your submissions and issue a license within two weeks if there aren’t any discrepancies. The legal advisors at Shuraa will help you obtain this license by doing all the heavy lifting for you, so partner with us if you want to launch your hotel business in Dubai.
- Manage visas and open a corporate bank account
The last step in setting up a hotel business in Dubai is managing visas and opening a bank account for your hospitality venture. You can apply for multiple visa permits to obtain visas for your family, relatives, domestic staff, and others. All you need to do is follow a four-stage procedure that’s clearly defined by the governing bodies. Moreover, you must open a bank account for your hotel business to manage all the monetary transactions. Ensure that you partner with a reliable bank that offers sizable benefits in the longer run.
Rules and regulations for setting up your hotel business in Dubai
The investors and entrepreneurs must know the various rules and guidelines that govern the hospitality industry in the UAE. Strict action is taken against firms that fail to comply with the established policies. Some of the hotel business regulations include:
- Room size:
ensure that your hotel rooms are no less than 30 square meters. The same will be evaluated by the governing authorities and you won’t get the approvals from them if the room sizes fail to comply with the government’s minimum requirement.
- Bank Guarantee:
the Department of Tourism and Commerce Marketing (DTCM) outlines the importance of having a bank guarantee for securing the associated tourism license for launching your hotel business in Dubai. Your business license application won’t be processed further if you don’t have a bank guarantee document.
- Robust functioning:
it’s your responsibility to take care of your visitors’ data. Therefore, you must maintain a robust and encrypted program that securely manages the data of your guests. Moreover, all the packages, offers, and prices should be open to the public, and there shouldn’t be any hidden charges.
Documents required for hotel business setup in Dubai
It’s imperative to submit all the required documents to the concerned authorities within the specified timeline to launch your hotel business in Dubai as per plan. Here’s a list of documents you’ll need for the same:
- Passport copies of all the shareholders
- Building completion certificate and plot map for your hotel
- Certificate of good conduct (approve by DTCM)
- Consent from the General Police Headquarters in Dubai
- Payment receipt of the initial approval and trade name certificate
- A legal eljari certificate
- Approval from the Dubai Municipality (for waste management, healthcare, and more)
Shuraa – your business companion
Your decision to form a hotel business in Dubai is the right one because it’s a booming business sector and would continue to grow heaps and folds with time. Your next step is to partner with Shuraa Business Setup and discuss all your business aspirations in detail. Our business experts will help you decide the best location for opening your hotel in Dubai. Moreover, you also get end-to-end business assistance starting from business consultation right up to the post establishment maintenance. Be it documentation, licensing, banking, or anything else – we got you covered. So, what’s the wait for? Get in touch with Shuraa today!
