Over the past years, Dubai has urbanized as one of the world’s famous travel and tourism destinations. The hospitality business has been re-defined through modernization; and now offerings quite a lot of investment breaks for both local as well as overseas companies wish to launch themselves in the area. In this article, we will study how to start hotel business in Dubai; and will try to find out the guidelines for establishing a Hotel license in Dubai. And will know about the setting up of companies in the UAE; generally we will facilitate expat with understanding the principles and government requirements.
How to start hotel business in Dubai
The first stage of how to open a hotel in Dubai is to settle on the officially authorized entity. The most commonly use commercial entity type is a Limited Liability Company, or LLC. Like the majority of the countries in the GCC states, commercial law in the UAE state; that a foreign country financier cannot own higher than 49% of an LLC; and he will have to locate a local UAE partner who will either be an individual or a company; who will as a result own as a minimum 51% of the shares. It is lengthy and very difficult for overseas investors to search a local Emirati; who they can partner with. One possibility for that point is to make an LLC with a local corporate sponsor as an alternative
How to open a hotel in Dubai Free Zone
It is possible to open a hotel in Dubai Free Zone; that will take away the responsibility of a local partner entirely for an overseas investor. At the same time opening a business in a Free Zone; may give the feeling like a slight cost opportunity; it is important to consider that there are solid rules around trading; and as a result the hotel have to be essentially positioned in that particular Free Zone.
How to start hotel business in Dubai
In order to give you detail on how to start hotel business in Dubai; it is vital to fulfill a number of regulations; that 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 guarantee is mandatory in advance for the trade license to be issue.
- The minimum possible size of all hotel area may not be less than 30 square meters.
- All packages and prices require to be suitably put on show.
- Ability of an operational program to securely store visitor’s data.
Available type for hotel license in Dubai
If you want to start a hotel license in Dubai you have to comply with the rules attach to the hotel classification; that says that you can only start the following type of hotel in Dubai.
- Resort formation in Dubai
- Start a bar in Dubai
- Hotel formation in Dubai
- Guest house setup in Dubai
- Youth hostel setup in Dubai
- Holiday house formation in Dubai
Hotels can as well be categorized from one to seven stars, whereas holiday houses are distributed into average or luxurious establishments.
Legal Requirements to start hotel license in Dubai
Hotel business in Dubai has some of legal requirements; that are more like every other kind of business. But there are specific changes when it comes to the hotel business. For instance, where the majority businesses require a trade license for initiating a business in Dubai; to open a hotel license in Dubai, you should have a tourism license. Therefore, check this slight information before taking a decision; and do not basically follow the common practice. And more appropriate option is to get in touch with one of our business advisor; so that to acquire a proper advice on the startup.
Appoint a Manager for hotel license in Dubai
Each and every business needs a manager who grips all the requirements in the company. Similarly, a hotel business in Dubai also need a manager; with a proper training and a proper certification in this field. Hiring a manager at the start is important; because he or she can assist while receiving the primary approval; as well as collecting all the official papers require for the same.
Initial Approval for hotel license in Dubai
Once you appoint a manager; the next stage in the procedure is to apply for the primary approval. For this purpose you require to have the below mention documents.
- An application from the DED.
- Passport copy as well as Identifications of the owner.
- Classification card for the hotel company
- Location drawings and plot drawings as well as building completion certificate for the hotel property
- Passport print of the manager along with academic certification as well as experience letters
- DTCM accepted certificate of good manner
- consent from the Dubai General Police Headquarters
Get the License to open a hotel business in Dubai
As stated earlier, you have to obtain a tourism license to start a hotel business in Dubai. The following official papers must be submitted to take an approval from the authorities:
- first of all in the opening place, fee receipt of the first approval
- Profession name certification along with linked payment receipts
- No-Objection Certificate (NOC) in condition of an international group or brand of hotels
- no less than 3 months of occupation agreement approved by the landlord
- Ejari for the hotel property
- Documents obligatory for the initial approval and valid certifications
- Agreement from the Dubai Municipality and connected judicial figures for sanitation, waste management and public health etc.
How to open a hotel in Dubai
At the time of submitting all the above documents; the DTCM will also go through each and every single document; if they do not find any doubt; then your license will obtain your hotel license in Dubai within a week. The DTCM also offers e-service where you can print the hotel license in Dubai; or you can visit 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 perform the needful things for you. We at Shams Consultant have our team of experts to hold up you in your company setup in Dubai. If you are preparing to open a hotel business in Dubai, then do contact us.
Planning a hotel or tourism company in Dubai can be not an easy task; and there are many aspects to take into notice. Searching for professional advice from the team at Shams Consultant will defiantly save your time and money; and let you to dedicate more time to your business.
Our team is specializing in the creation of companies in the UAE, comprising regulations and government involvement matters. For further information please contact us.