Dubai is definitely a global center for every sort of company that can be imagined in the United Arab Emirates. The country is positively blessed because of its various ex-pats, strategic position, cutting-edge infrastructure, and buildings that bring the globe to its feet.

It has developed into a tourist attraction of international renown. Innovative and creative activities have been a key component of the hotel business. It offers various prospects for investments, both for local and foreign firms wanting to set up in the region.

Legal Guidelines

Although most firms in Dubai initially require the same legal and judicial standards, the requirements are different in the hotel business, for example, most enterprises in Dubai need a commercial license, but you need a tourist license for a hotel company with your trademark logo registration.

There are a few guidelines and requirements established by the Dubai Department of Tourism and Commerce (DTCM) to get a license for your hotel company. Some of the following restrictions are:

  • Before issuing a license, a bank guarantee is necessary
  • The minimum size cannot be less than 30 m2 in any hotel room
  • Provision of efficient software to store visitor information securely
  • All packages and pricing should be shown appropriately
  • The owner or management should hold a ‘Good Conduct Certificate’

Advantages of Hotel Business in Dubai

It is claimed that Dubai Exhibition has 25 million visitors outdoors, an opportunity once in a lifetime to make this business successful. In addition, Dubai is a significant venue for multinational organizations throughout the world for all meetings, conferences, project presentations, and events.

Dubai is also a treasure trove for bright workers being a cosmopolitan city. The investor may locate all employees simply with its profile which suits his company model and target audience, from top management through service and floor staff.

Thousands of individuals travel with everyone from all economic levels to and from Dubai every day. They thus require an income-friendly method of boarding. Such kinds of customers might be aimed at hotels, motels, or small houses.

The procedure of Business setup in Dubai is easy and hassle-free. Investors may comply with the laws and regulations in order to achieve their work without knots. The principal authority which oversees the set-up procedure is the Economic Development Department (DED).

Need of a Local Sponsor

To establish your hotel business, you have to locate a local sponsor, the first step. The identification of a local sponsor is a prerequisite to be a limited liability firm for any business in Dubai. Certain categories of companies are barred from the UAE Cabinet by year-end in accordance with the new rule. A local sponsor holds 51% of your shares and 49% of your shares.

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You might consider putting your firm in a free zone if you desire full ownership of your business. However, the stringent rules of dealing in the open area must be considered, and you must realize that your hotel has to be placed in the free area physically.