Are you considering investing in or starting a manufacturing business in Dubai? This is one of the most exciting industries in the United Arab Emirates, offering foreign nationals, entrepreneurs and investors a flourishing ecosystem, supply chain, world-class infrastructure, and substantial profits.
This article shows you how to get your manufacturing license in Dubai, detailing costs and other details in the following sections:
- An overview of the manufacturing industry
- How to get a manufacturing license in Dubai
- Cost of obtaining a manufacturing business in Dubai, UAE
- Documents required to start a manufacturing business in Dubai, UAE
- Working with Trade License Zone
An overview of the manufacturing industry
The Middle East – especially the UAE – boasts a burgeoning manufacturing industry. Supplying local markets, North Africa, Europe, the Far East, and the USA, Dubai’s manufacturing industry produces goods in various sectors, including automotive, food, paper, packaging, metals, gemstones, construction, mining, beverages, textiles, marine, and more.
The manufacturing industry plays a crucial role in Dubai’s economy. The country is home to more than 250 factories, contributing significantly to the Dubai GDP. Exports of products manufactured here now exceed AED 167 billion annually – an interesting statistic for entrepreneurs considering starting a manufacturing business in Dubai. The “Made in UAE” product label stands for quality, integrity, and value, rivalling the best from Europe and the USA.
Entrepreneurs and investors are attracted to Dubai for many reasons. Setting up a business in the UAE is streamlined and offers low registration costs, business-friendly government regulations and policies, a tax-free business environment, startup support, incubator programmes, and world-class infrastructure.
How to get a manufacturing license in Dubai
Businesses in the UAE are required to have trade licenses to operate legally. Several license types are available, but if you intend to convert parts or raw materials into finished products, you’ll need a manufacturing trade license. You need to follow these six steps to get a manufacturing trade license in Dubai.
Step #1: Partner with Trade License Zone
The first step in launching a manufacturing business in Dubai is to partner with Trade License Zone. Our professional team will manage all aspects of your manufacturing company’s registration, trading license application, and setup process. We will guide you on all the documentation required for the various government authorities and agencies, helping you to begin trading soon as possible.
Step #2: Choose a company name
When choosing a company name for your manufacturing business, you must obey UAE regulations. These state that company names may not contain profane or offensive language, abbreviations of your name, or references to well-known institutions or brand names. Furthermore, your company name must have a legal entity attached to it, such as FZE or LLC. All businesses must register their company name with the Registry Office.
Step #3: Define your business activity
Trade licenses require businesses to define their business activity. The trade license enables you to carry out various activities – but only those listed on the trade license. You can select the appropriate business activities you wish to perform in Dubai from an extensive list of more than 2,000 on the government’s Department of Economic Development (DED) website. If a business performs activities other than those listed on its trade license, it will result in penalties.
You might be unsure which business activities to choose for your manufacturing trade license. In that case, the experts at Trade License Zone will help you select the right ones to ensure your license, business aims, and business activities are aligned.
Step #4: Select your business jurisdiction
Your chosen business activities determine your manufacturing business’ kind of setup and trade license. The UAE has two main business jurisdiction types: Free Zone and Mainland. Each has specific benefits, regulations, and operating guidelines.
Free Zone companies are the most popular and cost-effective of the two. This option offers foreign nationals 100% ownership of their companies. However, for a Free Zone company to trade within the UAE legally, it must take additional steps, such as opening a branch or using a distributor. There are more than 40 Free Zones to choose from, each targeting specific business and commercial activities.
A Mainland company setup allows you to trade within the UAE market without extra steps. However, a local sponsor (an Emirati national) must hold 51% of the company’s shares.
Selecting the correct business setup for your manufacturing business can seem complicated. The highly experienced consultants at Trade License Zone will help you choose the best company setup formation so that you can start trading as soon as possible.
Step #5: Get local municipality approval
To build or operate a manufacturing facility or factory, you must apply for approval from the local Dubai municipality. This step includes supplying the authorities with a detailed report on the factory, its floor plan, financing information, tool setup, and more. However, this step is not applicable if your business is in a Free Zone.
For Mainland company setups, additional approvals are required. These include approvals from the Dubai Chamber of Commerce and Industry, the Ministry of Health, and the Ministry of Environment and Water.
Step #6: Apply for your trade license
To qualify for a manufacturing trade license, your company must have either rented or purchased physical premises. Your company must have at least AED 250,000 in startup capital and a minimum of 10 employees.
Once you have completed the documents for your business registration and company setup, you can submit them to the UAE government entities for your manufacturing trade license application. For this critical step, Trade License Zone can streamline the process to avoid any errors or mistakes.
Cost of obtaining a manufacturing business in Dubai, UAE
Starting a manufacturing business in Dubai costs AED 15,000 to AED 50,000. Several factors must be considered, such as trade licenses, tools and machinery, equipment, property or warehouse rental, visas, government approvals, and staff solutions.
Documents required to start a manufacturing business in Dubai, UAE
These are the documents necessary to start a manufacturing business in Dubai:
- A completed manufacturing trade license application form
- Copies of passports of all directors/shareholders
- A comprehensive business plan
Working with Trade License Zone
Starting a business in Dubai, such as a manufacturing business, has various hurdles, including trade license application protocols, business setup details, and more.
However, business setup in the UAE is straightforward when you partner with a team of experts such as Trade License Zone. Partner with Trade License Zone, and we will save you from unnecessary delays or rejections and streamline the entire process.
The specialists at Trade License Zone can get started as soon as you provide us with some basic documentation and information about the nature of your company and business activities. Then, just sit back and let our team take care of the rest.
We’ll manage your manufacturing trade license and visa applications, communicate with all relevant local government departments, and report back to you when you’re ready to trade. It really is that simple.