Business

How to Start a Manufacturing Business in Dubai?

Learn How to Start a Manufacturing Business in Dubai?

All a country wants is to take care of the needs of its people and guests while standing out in the crowd of leading nations worldwide. And the UAE is no exception! If you are planning to business setup in Dubai, your first step starts now. Invest 2 minutes of your time to go through the content below. It spells out how you can establish your presence in Dubai with a manufacturing business.

Manufacturing matters to the United Arab Emirates as it delivers jobs in abundance, commercial innovation (the country’s largest source), a key to trade deficit reduction, and a disproportionately colossal contribution to environmental sustainability. The manufacturing businesses that contribute the most to these four objectives are also those that have the greatest potential to uphold or expand employment in the country. Over the past several decades, the U.A.E. has evolved into a noteworthy producer of metals including aluminium and steel, and construction materials such as cement, ceramics, and glass in addition to petrochemicals, pharmaceuticals, fertilisers, food and beverages, and a wide variety of consumer goods. Most individuals prefer free zones to incept a manufacturing unit in Dubai to enjoy myriad benefits such as no customs duties on machinery and equipment, global markets in the vicinity, etc.

Understand manufacturing business in Dubai

Manufacturing can be defined as the process of producing goods with the help of labour, machinery, tools and biological or chemical processing or formulation. When we say Manufacturing in Dubai, we can either mean transforming raw materials into final or finished products on a large scale, or the production of more complicated items by selling basic goods to manufacturers for the creation of items such as fabrics, food items, toys, automobiles, aircraft, or household appliances.

To start a manufacturing firm in Dubai, UAE, one must obtain an Industrial Licence, detailing the approved commercial activities requested by them, from the relevant authority. An Industrial Manufacturing Licence in Dubai or any other emirate of the UAE is issued to those who are intending to conduct a commercial activity that is of industrial nature, such as paper recycling, assembling of goods, manufacturing or refining of petrochemicals, etc. Simply put, manufacturing, producing, assembling, altering, formulating, repairing, renovating, ornamenting, finishing, cleaning, washing, dismantling, transforming, processing, recycling, adapting or servicing of, or the research and development of, any goods, substances, food, products or articles comes under the category of Industrial Licence in the UAE.

Why manufacturing business in Dubai, UAE?

Becoming a producer or manufacturer in Dubai, UAE can be quite fruitful. Your products can be sold locally, offline or online. Thanks to the presence of plenty of free trade zones and the strategic position of the country, you can make your products reach the world vastly and expand your market share effortlessly. Myriad Dubai-based B2B portals, especially Tradeling, which is one of the world’s largest portals for manufacturers to trade with other MENA-based buyers these days, make product selling easier than ever.

Moreover, Dubai is investor-friendly and secure, for both investors and residents, making it one of the most sought-after places for investment. What’s more, zeroed on increasing the contribution of the manufacturing industry to the GDP from the existing 14% to 25% in the next 15 years, the UAE has already recognised the advantages of promoting its manufacturing sector. Therefore, if you’re wondering to make necessary or innovative products that will provide value for consumers and profits for yourself and other owners, you won’t regret your decision ever. The world is your oyster, with a manufacturing company in Dubai or any other emirate of the UAE. Just do some research work about which type of products have more demand in the region before embarking on your journey as a manufacturer, and try to keep initial costs low by renting or leasing tools and machinery.

The process to obtain the manufacturing business licence in Dubai

Starting a manufacturing company can seem daunting. But once you initiate the process of obtaining the manufacturing licence, with every step your destination appears closer. And if you are working with an experienced llc company formation in Dubai, the journey becomes a lot easier and faster. Whether you want to DIY or engage a business setup firm to acquire your industrial licence, knowing the step-by-step procedure is useful.

Process of incorporating a manufacturing business in Dubai

1: Choose the business jurisdiction, location for the office, warehouse and manufacturing unit, type of manufacturing activity, company’s legal entity and trade name.

2: Attain the initial approval from the chosen jurisdiction

3: Reserve the business name and receive the certificate

4: Rent an appropriate commercial space in Dubai and get the lease documents

5: Prepare the set of required documents, including:

  • Detailed business plan
  • Complete trade licence application form.
  • The production plant layout design
  • Process flow chart
  • List of needed equipment and machinery
  • Copy of the applicant’s passport and visa
  • Commercial lease documents (RERA attested)
  • Initial approval certificate
  • Trade name reservation proof
  • Additional approvals (if applicable)

6: Submit all the required documents along with the completed trade licence application to the authority in charge of the selected jurisdiction.

7: Pay the application fees and collect the issued industrial licence

8: Employ at least 10 workers to begin with

9: Apply for visas – for yourself and your employees, family and dependents

10: Open a corporate account with a bank in Dubai

11: Purchase business insurance, necessary equipment as mentioned in the plan, inventory, etc., and get going

12: Partake in trade expos to lure your potential clients by advertising your business. This is the best way to locate trustworthy clients who can be drop-shippers, wholesalers, distributors, exporters, and suppliers.

Eligibility Criteria for Manufacturing Licence in Dubai

To qualify for a manufacturing or industrial licence in Dubai, UAE, you must:

  • Arrange satisfactory commercial premises and tenancy agreement
  • Have at least AED 250,000 capital to invest
  • Hire at least 10 individuals
  • Be able to present a report outlining the specifics of your factory, including information about tools, finances and floor plans. However, for a free zone manufacturing company formation, you don’t need this setup
  • Have performed a feasibility study and market analysis
  • Receive specific approvals or NOCs from external authorities in Dubai to carry out specific business activities in Dubai, UAE

Setting up a manufacturing business is a huge financial commitment, and once you’ve employed people it’s also a great responsibility. Plus, it requires a lot of planning and funds initially. But the rewards and satisfaction that come with success make every single effort worth it.

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