Starting Your Dubai Manufacturing Company: A Complete Guide
- October 16, 2024
- Posted by: fatma zahra
- Category: Dubai Business Services
Are you thinking about investing in or launching a Dubai Manufacturing Company? This industry represents one of the most dynamic sectors in the United Arab Emirates, providing foreign nationals, entrepreneurs, and investors with a thriving ecosystem, robust supply chain, world-class infrastructure, and significant profit potential.
In this article, we will guide you through the process of obtaining a manufacturing license in Dubai, including the associated costs and necessary steps:
- Overview of the Manufacturing Industry
- How to start Dubai Manufacturing Company
- Steps to Obtain a Manufacturing License in Dubai
- Costs Involved in Starting a Manufacturing Business in Dubai, UAE
- Required Documents to Launch a Manufacturing Business in Dubai, UAE
- Collaborating with Dubai Business Service
Overview of the Manufacturing Industry- Dubai Manufacturing Company
The Middle East, particularly the UAE, has a rapidly growing manufacturing sector. Dubai Manufacturing Company caters to local markets and exports to North Africa, Europe, the Far East, and the USA, producing goods in diverse fields such as automotive, food, paper, packaging, metals, gemstones, construction, mining, beverages, textiles, and marine products.
This sector is vital to Dubai’s economy, with over 250 factories contributing significantly to the city’s GDP. In fact, manufactured product exports exceed AED 167 billion annually—an impressive figure for those looking to start a manufacturing business in Dubai. The “Made in UAE” label signifies quality, integrity, and value, competing with some of the best products from Europe and the USA.
Dubai attracts entrepreneurs and investors for many reasons. Setting up a business in the UAE is streamlined, with low registration costs, favorable government regulations, a tax-free environment, startup support, incubator programs, and top-notch infrastructure.
Steps to Obtain a Manufacturing License in Dubai- Dubai Manufacturing Company
Acquiring a trade license is essential to legally operate a business in the UAE. Depending on your operations, you will need a manufacturing trade license if you plan to transform raw materials into finished products. Follow these six steps to obtain your manufacturing trade license in Dubai.
Step 1: Partner with Dubai Business Service
The first step to starting your manufacturing business in Dubai is partnering with Dubai Business Service. Our expert team will assist you in managing the entire registration process, trade license application, and setup of your manufacturing company. We will guide you through the documentation required by various government authorities, ensuring you can start trading as soon as possible.
Step 2: Choose a Company Name for Dubai Manufacturing Company
When selecting a name for your manufacturing business, it’s important to adhere to UAE regulations. Company names should not contain offensive language, abbreviations of personal names, or references to well-known brands. Additionally, your company name must include a legal entity designation such as FZE or LLC, and all names must be registered with the Registry Office.
Step 3: Define Your Business Activity for Dubai Manufacturing Company
Your trade license requires a clear definition of your business activities. This license allows you to engage in specific operations only, so choose wisely from over 2,000 options available on the Department of Economic Development (DED) website. Operating outside the approved activities could lead to penalties. If you’re unsure about which activities to select for your manufacturing trade license, our experts at Dubai Business Service can help align your license with your business goals.
Step 4: Select Your Business Jurisdiction for Dubai Manufacturing Company
The type of business activities you choose will determine your manufacturing company’s setup and trade license. The UAE has two primary business jurisdictions: Free Zone and Mainland, each with its own benefits and regulations.
Free Zone companies are popular due to the 100% foreign ownership they offer. However, to trade within the UAE legally, additional steps may be necessary, such as establishing a branch or using a distributor. There are more than 40 Free Zones, each focusing on specific business sectors.
In contrast, a Mainland company can trade within the UAE without additional steps but requires a local sponsor (an Emirati national) to hold 51% of the shares. Our experienced consultants at Dubai Business Service can help you choose the most suitable setup for your manufacturing business.
Step 5: Get Local Municipality Approval for Dubai Manufacturing Company
To construct or operate a manufacturing facility, you must obtain approval from the local municipality of Dubai. This requires submitting detailed reports about your factory, including floor plans and financing information. Note that this step is not necessary for businesses in Free Zones. Mainland setups may need further 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 for Dubai Manufacturing Company
To qualify for a manufacturing trade license, your company must have rented or purchased physical premises and maintain a minimum startup capital of AED 250,000 with at least 10 employees. Once you have prepared the necessary business registration and setup documents, you can submit them for your manufacturing trade license application. Dubai Business Service can help streamline this process to minimize errors.
Costs of Starting a Manufacturing Business in Dubai, UAE
Starting a manufacturing business in Dubai can cost between AED 15,000 and AED 50,000. Factors influencing this cost include trade licenses, tools and machinery, equipment, property or warehouse rentals, visas, government approvals, and staffing solutions.
Required Documents to Start a Manufacturing Business in Dubai, UAE
To launch your manufacturing business in Dubai, you will need the following documents:
- A completed manufacturing trade license application form
- Copies of the passports of all directors/shareholders
- A detailed business plan
Collaborating with Dubai Business Service
Starting a Dubai Manufacturing Company involves navigating various challenges, including trade license applications and business setup details. However, partnering with Dubai Business Service simplifies the process. Our team of experts will help you avoid unnecessary delays and streamline every step of your setup.
Once you provide basic documentation and information about your business activities, our specialists will handle everything else. We’ll manage your manufacturing trade license and visa applications, liaise with local government departments, and keep you updated until you’re ready to commence trading. It’s that straightforward!