How to Setup a Manufacturing Company in Dubai, UAE?
Manufacturing plays a pivotal role in Dubai’s business landscape, making a substantial contribution to the UAE’s GDP. The demand for a Manufacturing License in Dubai remains high among investors, as it is the essential license for conducting regional industrial activities. Moreover, the Manufacturing License category in the UAE encompasses a wide range of business activities.
What does a Manufacturing License in Dubai?
A Manufacturing License in Dubai is a crucial legal requirement for engaging in manufacturing activities within the region. Therefore, investors must apply for a Manufacturing License from the specific Free Zones or Mainland in the UAE. This license is essential for conducting various activities such as assembling, repackaging, fabrication, or any other manufacturing processes.
Dubai, known for its thriving light manufacturing sector, has experienced consistent growth and increasing demand over the years. As a result, it has become an ideal location for establishing manufacturing units to meet the rising market needs.
Dubai is the ideal destination for establishing a high-investment industrial company. Here’s why:
– The government’s business-friendly policies create a conducive environment.
– Long-term residence visas offer stability and security.
– Enjoy a low crime rate, improved lifestyle, and access to affordable labor.
– Banks provide financial support for your ventures.
– Benefit from top-notch business infrastructure.
– Global connectivity and logistics support ensure smooth operations.
Choose Dubai as your business hub and unlock unparalleled opportunities for growth and success.
Guide to Acquiring a Manufacturing License in Dubai
Obtaining a Manufacturing License in the UAE can be done through Free Zones or the Mainland. Entrepreneurs need to follow specific steps, and depending on their chosen business activity, they may require pre-approvals. The UAE’s Free Zones and Mainland offer Manufacturing Licenses at competitive rates, and the process can be made hassle-free with the assistance of business consultants.
To obtain a Manufacturing License in UAE, follow these specific steps:
1. Prepare and submit the necessary documents to either the Free Zone or Mainland Authorities. This includes submitting the application form, investor’s passport copy, and photograph.
2. Reserve the trade name for your company and obtain initial approval from the authorities.
3. Choose the appropriate business activity and company structure. LLC Companies are commonly used in the mainland, while Free Zone Companies are preferred in the Free Zone (for companies with more than 2 shareholders).
4. Prepare the shareholder certification and ensure compliance with the share capital requirements based on your chosen industrial activities. Note that certain strategic industrial sectors may require a minimum share capital ranging from AED 2 million to AED 15 million in order to allow 100% foreign ownership. Otherwise, a UAE National must act as a sponsor for registering the LLC company in the mainland.
5. Submit the industrial plan, blueprint, and business plan for operations to the authorities. Obtain the necessary approvals for your manufacturing unit.
6. Prepare the tenancy contract and required agreements for the operation of your manufacturing units, warehouse, and office space.
7. Pay the manufacturing license fee, along with any other supporting documents and permits required by the authorities to obtain the commercial license.
8. Proceed to obtain the UAE residence visa and open a bank account using the newly acquired manufacturing license.
9. With the newly opened manufacturing unit, you can start operating your business in UAE smoothly and without any hassles.
To ensure a smooth process of obtaining your Manufacturing License in UAE, follow these steps. It’s important to note that the steps are mostly similar regardless of whether you’re operating in the Mainland or Free Zones. However, there are a few variations between the business jurisdictions, such as choosing the company structure, obtaining pre-approvals, and meeting share capital requirements.
For setting up a Manufacturing Company in Dubai, it is necessary to have land for building an industrial unit or a ready-made warehouse that can accommodate the manufacturing equipment. Alternatively, a custom-made industrial unit that satisfies the production requirements can also be considered.
Therefore, it is imperative to obtain an Industrial License from UAE Free Zone or Mainland for all of the above. Additionally, the investor must carefully choose the right location based on their specific business requirements.
What makes Dubai the ideal choice for acquiring a Manufacturing License?
The Manufacturing License in Dubai offers investors a valuable opportunity to establish and expand their manufacturing units with ease. Additionally, Dubai’s strategic location makes it an ideal hub for international trading operations.
Consequently, setting up a manufacturing unit in Dubai, UAE proves highly advantageous for investors due to the region’s favorable business environment and seamless operational processes.
Investing in a Manufacturing License in Dubai presents a compelling business opportunity. By establishing a manufacturing industry with an Industrial License in UAE, investors can enjoy numerous benefits, including:
– Complete foreign ownership and unrestricted capital investment and profit repatriation.
– Absence of personal and corporate tax, with only a 5% VAT in UAE.
– Streamlined business setup process and easy acquisition of Manufacturing License in UAE.
– Long-term residence visa and the ability to sponsor dependents.
– Access to subsidized power, water, and other facilities within the Free Trade Zone.
– Availability of warehouse, land, and office space in Free Zones and Mainland, with ease.
– Flexibility to expand the business locally in UAE, GCC, and global markets.
Discover the immense potential of your manufacturing ventures in the thriving landscape of Dubai. With advanced logistics, a growing local demand, top-class infrastructure, and business-friendly environment, the UAE is the ideal choice for setting up your Manufacturing Unit.
Obtaining a Manufacturing License from Dubai opens doors to successfully establish your manufacturing unit in the region. While there are certain requirements to meet, such as large warehouses with office space, power consumption needs, and maintenance and service requirements, UAE offers all of this at a lower cost.
After obtaining the manufacturing license in UAE, you have two major business jurisdictions to choose from for setting up your industrial unit. Take advantage of this opportunity and unlock the full potential of your manufacturing ventures in Dubai.
1. Light Manufacturing Industry in Free Zone
In the UAE, there are various specialized Free Trade Zones, including the Dubai Airport Free Zone, Dubai South, Sharjah Airport Free Zone, and Hamriyah Free Zone. These zones offer state-of-the-art light manufacturing units and land space tailored for both large and small manufacturing companies.
Moreover, the Free Zone Manufacturing License in Dubai is notably more affordable compared to global markets such as the UK, US, and Singapore. Acquiring a Manufacturing License, along with a light manufacturing unit or a customized warehouse in the Dubai Airport Free Zone, amounts to approximately AED 145,000 per year.
Key Highlights of Manufacturing License in UAE Free Zones
The warehouses in DAFZA boast exceptional sophistication and offer a wide range of customizable options to cater to investors’ specific needs. They provide an ideal environment for manufacturing companies to establish their industrial units. Simply obtaining a Manufacturing License from the UAE Free Zones is all it takes.
Moreover, the UAE Free Zones are an ideal fit for various sectors including food processing, steel fabrication, automobile and aircraft parts manufacturing, pharmaceuticals, and many more. With convenient plug-and-play office spaces and warehouse facilities, these Free Zones offer seamless solutions for investors to easily set up and operate their industrial units.
What sets the UAE Free Zones apart is their streamlined company setup procedures and effortless onboarding for foreign investors. With the commercial license in hand, businesses can kickstart operations the very next day. It is this convenience that makes the UAE Free Zones a highly appealing choice for obtaining a manufacturing license.
2. Light Manufacturing Industry in UAE Mainland
Investors seeking to tap into the mainland UAE and GCC markets prefer starting a manufacturing company in the UAE mainland. By obtaining a Manufacturing License in UAE, entrepreneurs can establish an industrial unit and gain better operational control and jurisdiction. This allows customization of warehouses, office spaces, and manufacturing setups to align with the company owners’ vision.
Moreover, the respective Department of Economic Development of the emirate serves as the governing body for import-export and other company governances. Obtaining clearances and special permits from the Department of Economic Development is imperative for compliance.
Advantages of Establishing a Light Manufacturing Industry in the UAE Mainland
Setting up an Industrial Unit in the UAE Mainland offers a multitude of advantages. Investors gain superior control and flexibility in owning land and constructing their projects from the ground up. Moreover, they can actively participate in Government projects, collaborate with local UAE companies on significant ventures, and enjoy the freedom to hire employees without any visa quota restrictions. Embracing these opportunities unlocks immense potential for success and growth.
Here are some of the additional benefits of starting a light manufacturing industry in the UAE mainland:
1. Enjoy 100% foreign ownership, complete control over operations, and the ability to repatriate full profits.
2. Flexibility in choosing the location for your office space, warehouse, or industrial unit anywhere in the UAE.
3. Lower long-term maintenance costs and reduced rents.
4. Scale your business easily by hiring more staff and expanding as needed.
5. Convenient access to airports, seaports, and land transport, facilitating efficient shipping to global markets.
6. Hassle-free company setup, bank account opening, processing residence visas, and sponsoring employees.
By expanding your business operations into the mainland of the UAE, you can capitalize on these advantages to effortlessly establish and grow your light manufacturing enterprise. In a nutshell, obtaining a Manufacturing license from the UAE presents a favorable choice for foreign investors, as it offers a multitude of business benefits and a robust infrastructure to support the growth of the commercial and industrial sectors.
The industrial sector constitutes a significant portion of the UAE’s GDP contribution, making it a strategic sector for the country’s overall development. The region’s well-connected transport network, advanced industrial infrastructure, and burgeoning business opportunities are driving the demand for industrial licenses.
At Pro Consultancy UAE, we specialize in providing comprehensive assistance throughout the Company Formation Process, ensuring a seamless experience in obtaining your commercial license in the UAE, all at the most competitive cost. Waste no time and connect with our team of experts today!