• Home
  • Law
  • Establishing a restaurant business in Abudhabi

Establishing a restaurant business in Abudhabi Essay Example

  • Category:
  • Document type:
  • Level:
  • Page:
  • Words:

City and State Where Institution is Located

The best legal form of company for us to create is a public joint stock company. This is because such a company has a wide range of sources of capital including capital contribution by owners and from the public. Articles 93 and 94 of the new commercial company law provides for the funding requirements for a public joint stock company (Ejustice.gov.ae, 2015). As such, in addressing legal and financial liability for the operation, we would ensure that we have secured the minimum capital requirements before the company can start operations. In addition, we would ensure that the number of shareholders remain within the limits set by the law. Furthermore, all the legal requirements for starting the restaurant company would be strictly adhered to. Other forms of company that might exist for such a company would include a joint stock company, simple commandite company, Limited Liability Company and private joint stock company. The main disadvantages with the above alternative companies is because of the limited source of funding that they would attract. For instance, we would not be able to raise capital from the public. Furthermore, the joint stock company and the simple commandite company do not have limited liability meaning that the members would be held liable for company’s obligations especially if it fails (Ibrahim, 2013). The only form of company creation that would not be permissible legal entity for establishment of a restaurant is a civil company or a company wholly owned by the government or a free zone type of a company.

To establish the restaurant business in Abudhabi, it is necessary to undertake the following steps;

  1. Determining the economic activity to be practiced in line with DED ISIC4 in which case a decision has already been made to establish a restaurant business.

  2. Determining the legal form of the business in which case we have settled on a public joint stock company.

  3. Registering the business name in which case a decision has been made on Abudhabi restaurants international as the business name.

  4. Issuance of the initial approval after the trade name has been approved and a certificate issued (abudhabichamber.ae, 2016). We will then obtain initial approval that will enable us proceed to get approvals of concerned authorities that are required for running a restaurant business.

  5. Obtaining approval from concerned authorities to do with construction of restaurants and quality of our services.

  6. Issuance of licenses after obtaining approval from concerned authorities. This will be issued by DED after paying of the relevant fees.

None of the above steps is irrelevant for the establishment of a restaurant business in Abudhabi. There are additional permits by government agencies for a restaurant business in Abudhabi. We would need to adhere to food code provisions by food control department. We will then need to obtain a trading license from the department of tourism and commerce marketing. Then we will obtain approval for construction plans required by food control department (Pennington, 2014). This will entail such details as the space for food processing and storage, the sanitary spaces, windows and ventilation system, location of food processing equipment, the entry and exit passages as well as the location of the washing machines. The documents we will need to obtain a food license will include the first approval by the DED and the premises layout. In order to adhere to food safety requirements, we will need to appoint qualified personnel and obtain a number of licenses including the food consignment release license, pork permit for handling and serving pork products and a vehicle permit for transporting food products.


Ejustice.gov.ae, 2015, Federal Law No.2 of 2015, Retrieved on 16th November 2016, from;


Ibrahim, A2013, The new UAE commercial companies law: A comparative view, Retrieved on 16th November 2016, from;


abudhabichamber.ae,2016,Trade licenses guide, Retrieved on 16th November 2016, from;


Pennington, R2014, Abu Dhabi food authority provides clearer picture of safety rules in restaurants, Retrieved on 16th November 2016, from;