Written By Antima – 08^th August’22

Written By Antima – 22^nd March’22

Starting a Food Delivery Service Business Setup in UAE

It is widely known that the UAE’s food delivery service and beverage Business Setup in UAE is massive, and it is only projected to grow. According to estimations, the F&B market is worth roughly AED 142 billion, with growth expected to reach AED 145 billion by 2021.

Meal delivery subscriptions are becoming increasingly popular among people and families, owing to their convenience. Furthermore, unlike their fast food and restaurant delivery equivalents, food delivery service give home-cooked meals, which are healthier options.

According to a recent survey, 60% of UAE consumers use an app to order food, compared to only 18% in the United States. The recent news that Zomato has sold its UAE meal delivery business for USD 172 million highlights the market’s strength. Meanwhile, Careem, a UAE startup success story, has revealed ambitions to fund USD 150 million to launch a food delivery arm in order to get into this lucrative industry.

The meal delivery business gives a significant opportunity for entrepreneurs with the skills and know-how to see success in the food and beverage industry, based on the number and overall future trends. If that describes you, there’s more good news: applying for a food delivery license in Dubai can be simple with the correct help.

Guidelines for Starting a Food Delivery Service in the United Arab Emirates

• If a restaurant can produce 150 to 250 orders per day through online platforms, it is likely to be able to negotiate a commission rate of 15-18% of the transaction value;
• The internet platform has a vested interest in actively promoting the outlet on its platform.
• It may run above-the-line advertising with the F&B brand once more;
• To improve the customer experience, the platform monitors the restaurant’s performance through weekly MIS (Management Information System) reports and performance data.
• To promote the restaurant, even more, it may offer free delivery and commission weeks.

However, if the restaurant’s order volume is poor, the operator will be required to pay a commission of 25-30%.

Incorporating a Food Delivery Service in the United Arab Emirates

With increasing concerns about COVID-19’s impact on the food and beverage Business Setup in UAE, timely delivery is more important than ever. The following are the stages to starting a meal delivery service:

• Make a decision about the type of business you want to run. The most important factor is that your chosen activities correspond to those listed by the Department of Economic Development (DED).
• Make a decision on a commercial name. Be advised that in the UAE, you must follow a stringent set of name regulations. In a nutshell, you should refrain from using rude or obscene language. If you’re naming your company after yourself, stay away from well-known corporate names and abbreviations. You should also double-check that the name you want to use is available for registration.
• You can submit an application for a business license in UAE. You’ll need to give a few pieces of information as well as some important documents, such as:

1. 1.  Completed application form
   2.  Passport copy of the proposed owner or owners
   3.  Two-color passport size photos
      

• Finally, you’ll need to apply for a UAE residency visa unless you already have one. With the appropriate assistance, the visa application procedure, like filing for a business license, may be surprisingly simple.

Constructing a Food-Delivery App

The most important aspect of starting a food delivery service business is having a viable application. Accepting orders solely by phone or website will exclude you from a vast market, thus developing a mobile app is essential. True, developing an app incurs additional expenses, but it is money well spent given the added level of convenience it provides to your customers.

So, first and foremost, you should have a thorough understanding of the UAE and client trends. This is a good place to start your research.

The ideal solution here is to work with an established company that specializes in mobile app design unless you have app-building skills. Costs vary greatly depending on the level of functionality and design you require. The trick is to collaborate with developers who want to see you succeed.

Working with a business setup expert can help you get your food delivery service up and operating quickly. Your app could help bring a range of Dubai cuisine into people’s homes, as more people desire to avoid eating out.

Projectfrpjsc can assist you with obtaining a license for your food delivery service in the United Arab Emirates. For additional information, please contact us immediately.

Be Your boss in Dubai & How Projectfrpjsc can help?

When you utter the word “entrepreneur” out loud, it conjures up images of freedom combined with responsibility and flexibility combined with a sense of mission. It sends a message to the rest of the world that you are in command of your destiny.

Journalists, photographers, artists, and advisors have long been associated with entrepreneurship. It is now a viable choice for everyone. Anyone can be their employer, choose their working hours, and choose who they want to collaborate with.

It isn’t quite that easy. Then there’s the issue of getting a UAE trading license. To do business in the UAE, you must first get a license. In addition, your license specifies what activities you are permitted to engage in.

There are firms out there that can help you get the proper license for your business needs according to the place where you choose to operate. Every firm has different licensing needs according to the business activities being carried out, the place where your company is situated as well as various other factors that need to be considered. This is why there are a few things to think about.

Step 1: Carefully select your industry. This may be your career path for the rest of your life! Choose something that you are passionate about. It is rightly said that “You can do anything as long as you have the passion, the drive, the focus, and the support.” Remember that the majority of individuals start a business because they want to be their boss, have financial independence, and have flexibility. If you don’t love what you do, you may find it difficult to stay motivated later on.

It’s crucial to understand the market you’ll be competing in. Investigate what other businesses are doing. Is it possible for you to do it better? If so, how would you go about doing it? Is it possible to accomplish it at a lower cost? Money is a powerful incentive when it comes to attracting an audience. Taking a risk is sometimes the deciding factor as well.

Blindly entering a new market is the same as not entering it at all. You must understand where your clients will come from and how you will maintain them as customers. If you want to succeed, you must think long-term.

Step 2: Write a business strategy. Although a business plan is not always required to obtain a license, it is nevertheless one of the most important planning tools for new company creation, particularly in a competitive market like Dubai. It helps you to view things in black and white and compare your results to your forecasts later on. Every year, successful business owners will update their business plans to reflect changes in expenses, regulations, and budgets. It’s also worth remembering that if you ever need to apply for a business loan, credit card, or card-reading machine, most banks will need you to submit a business plan.

Step 3: Decide on a name for your business. So you’ve identified your target market and determined how you’ll do business. Right now, you’re probably picturing yourself sipping drinks on the beach after a long day at work. It’s almost there! It’s time to think beyond the box. The name of your firm says a lot about who you are and what you do. A company name should be distinctive, brief, and snappy but not trivial. According to some experts, a name should not include more than ten letters. Avoid using phrases like “Elite” since it implies that your services will be costly; similarly, words like “budget” or “discount” should be avoided for the opposite reason.

Step 4: Obtain a business license. This is frequently the most difficult part of starting a business. It’s fairly unusual for people to put off starting their business because they don’t want to deal with this issue. All the chaos can be avoided if a completed application and all documents are submitted. The application should also be filled in properly and correctly to avoid its rejection. Thankfully, assistance is on the way!

Step 5: Take help from experts. In matters like business setup, people tend to get confused and get in chaos due to several rules, regulations, and multiple requirements. This is the time when people tend to look for an expert. A lot of chaos can be avoided if guidance is taken from the initial state of the commencement of the business. Every venture may have unique requirements like location, customer convenience, logistical feasibility, and banking services.

We at Radiant Biz strive to understand these unique precepts and provide expert and reliable consultation to our clients with updated laws and governing regulations, awareness of their rights, and cost-effective business solutions tailor-made to their business needs and budget.

Business formation is no easy feat. There are tactics and strategies to build a brand and do business rightfully. Dubai offshore company setup has its own set of challenges. With the ever-changing policies and laws, companies and businesses need to be on the right foot; to adapt and optimize their strategy. But what are these strategies? While it may vary from company to company, here are some dos and don’ts while doing business setup in Dubai mainland.

Doing the research

Understanding the difference between Mainland, Freezone, and Offshore and the acquiring of the licenses for respectives businesses. Do the research and find out what business type suits best for your brand. Read and familiarise yourself with your competitors and most importantly go through the restrictions that comes with each type of new company formation in Dubai. 

 

Selecting the right business license

Select the appropriate business license for your business. At present Dubai offers three types of business license namely: Commercial, Industrial, and Professional License. Choose according to your requirements as there are various stipulations that are required for various licenses such as, approval from concerned authority, documentation and fee, etc.

Getting a service agent

Getting a service agent/local sponsor is not mandatory for business license in UAE. But some of the business activities may require service agent/emirati. Your service agent acts as an intermediary that manages your communication with concerned authorities and various other issues and formalities.

Opting for mainland business

While starting a business in Dubai mainland business has its perks as it allows companies to do business anywhere in the UAE. Companies under this business type enjoy great opportunity and exposure. However, under mainland company setup in Dubai  companies enjoy 100% ownership but are not allowed the advantage to carry out their business through out the UAE.

Meeting Visa eligibility requirements

Visa eligibility requirements can be easily met as the company setup in UAE is quite efficient if the documents are at hand. Once completed, checking the validity of the visa and other documents should be kept in mind as well.

Maintaining a legal contract with the service agent

Having a written document with beneficiaries provides a safe pathway for your business. Make your UAE business setup hassle free by maintaining legally acknowledged documents and contracts.  

Familarizing with banking prerequisites

Understanding the banking policies is a major step to having a successful Dubai offshore company setup as it directly affects your capital. Familiarizing yourself with these banking jurisdictions can be helpful in the long term.

Socializing and participating

Socializing in various business events gives your brand a boost and helps in networking with local and international allies, also giving your brand an edge simultaneously.

Being respectful to the local culture and traditions

UAE is a diverse country with people from all over the world. Accordingly, companies from all over the world are not uncommon in the UAE. Being courteous and empathic towards their culture and tradition is important and should always be kept in mind.

Engaging with the right business consultants

Get the right assistance and guidance for your Dubai business setup from an accredited and reliable business setup consultant. Go through the various banking, and company formation with experts and find the suitable options for a successful business venture.

Communicating with other business owners

Communicating with other business owners who have been on the same spot can be helpful as you can get extensive knowledge from a person with experience.

Following these 11 dos and don’ts accordingly can be fruitful for your business. But most importantly always do your research on what you want to pursue as it can be efficient, save you time and be overall productive for your company formation.