UAE Manufacturing License: Costs and Requirements

Do you intend to launch a manufacturing company in Dubai or make investments there? Offering foreign nationals, entrepreneurs and investors a thriving ecosystem, supply chain, world-class infrastructure, and significant profits, this is one of the most intriguing businesses in the United Arab Emirates.

This article explains how to obtain your manufacturing license in Dubai and includes sections on expenses and other information:
A summary of the manufacturing sector;

•  Dubai manufacturing license application procedures
• Dubai, United Arab Emirates,  manufacturing business acquisition costs

Working with CIG Dubai; documents needed to launch a manufacturing company in Dubai, United Arab Emirates

An overview of the manufacturing industry

The UAE, in particular, is home to a rapidly expanding manufacturing sector in the Middle East. Dubai’s manufacturing industry manufactures commodities in a variety of sectors, such as automotive, food, paper, packaging, metals, gemstones, construction, mining, beverages, textiles, marine, and more, for local markets, North Africa, Europe, the Far East, and the United States.

Dubai’s economy is significantly influenced by the manufacturing sector. The GDP of Dubai is substantially influenced by the presence of over 250 factories in the country. The annual exports of products manufactured in Dubai now surpass AED 167 billion, which is an intriguing statistic for entrepreneurs who are contemplating the establishment of a manufacturing business in the city. The “Made in UAE” product label is a symbol of quality, integrity, and value that is comparable to the finest in Europe and the United States.

There are numerous factors why entrepreneurs and investors are drawn to Dubai. In the UAE, the process of establishing a business is simplified and offers a tax-free business environment, business-friendly government regulations and policies, startup support, incubator programs, and world-class infrastructure. Additionally, the registration costs are minimal.

How to get a manufacturing license in Dubai

In order to operate legally, businesses in the UAE are mandated to obtain trade licenses. A manufacturing trade license is required if you plan to transform raw materials or components into finished products, despite the fact that there are numerous license varieties available. In order to obtain a manufacturing trade license in Dubai, it is necessary to adhere to these six procedures.

Step #1: Partner with CIG Dubai
Partnering with CigDubai is the first step in starting a manufacturing company in Dubai. Our experienced staff will manage every stage of the setup, application for a trading license, and registration process for your manufacturing company. We will provide you thorough advice on the paperwork required for the several government departments and agencies so you may start trading as soon as is practical.

Step #2: Choose a company name

You have to follow UAE rules while naming your manufacturing company. These specify that business names cannot include references to well-known organizations or brand names, abbreviations of your name, or vulgar or unpleasant language. Moreover, your business name needs to be associated with a legal entity, such an LLC or FZE. Every corporation has to file their name with the Registry Office.

Step #3: Define your business activity

For trade licenses, businesses have to describe what they do. The trade license lets you do many things, but only the ones that are listed on the license. On the website of the government’s Department of Economic Development (DED), there is a long list of more than 2,000 business tasks that you can choose from. Penalties will be given to a business that does things that aren’t on its trade license.

Trade licenses demand that companies specify what they do. You may do many things with the trade license, but only those that are specified on it. The Department of Economic Development (DED) website of the government offers a long list of over 2,000 suitable business activities from which you can choose. Penalties await a company that engages in activities not authorized by its trade license.

You might not be sure which types of business tasks to choose for your manufacturing trade license. Then, the experts at CIG Dubai will help you pick the right ones to make sure that your license, business goals, and business operations all work together smoothly.

Step #4: Select your business jurisdiction

The setup and trade license type of your manufacturing business are determined by the business activities you have selected. Mainland and Free Zone are the two primary business jurisdiction categories in the UAE. Everyone has unique advantages, rules, and procedures.

Of the two, free zone companies are the most cost-effective and widely used. This alternative provides foreign nationals with complete proprietorship of their organizations. Nevertheless, in order for a Free Zone company to conduct business legally within the UAE, it must take additional measures, such as establishing a branch or utilizing a distributor. More than 40 Free Zones are available for selection, each of which is designed to cater to specific commercial and business activities.

A Mainland company arrangement enables you to conduct business within the UAE market without the need for additional procedures. Nevertheless, a local sponsor (an Emirati national) is required to possess 51% of the company’s shares.

It may appear to be a complex process to determine the appropriate business structure for your manufacturing business. The consultants at CIG are highly experienced and will assist you in selecting the optimal company setup formation to facilitate your trading commencing as soon as feasible.

Step #5: Get local municipality approval

A manufacturing facility or factory must be approved by the local Dubai municipality before it may be built or operated. This stage entails giving the authorities a thorough report on the factory, including its floor design, funding details, tool setup, and more. If, however, your company is located in a Free Zone, this step is not relevant.

Extra permissions are needed for setups of Mainland companies. These include clearances from the Ministries of Environment and Water, Health, and Dubai Chamber of Commerce and Industry.

Step #6: Apply for your trade license
A manufacturing trade license requires that your business have either bought or rented real estate. Starting capital of at least AED 250,000 and a minimum of 10 workers are requirements for your company.

The UAE government agencies will accept your completed business registration and firm formation paperwork for your manufacturing trade license application. Trade License Zone can help to simplify this crucial stage and prevent mistakes.

Cost of obtaining a manufacturing business in Dubai, UAE

In Dubai, launching a manufacturing company runs between AED 15,000 and AED 50,000. Trade licenses, equipment, tools and machinery, rental of property or warehouse, visas, government clearances, and personnel solutions are just a few of the things that need to be taken into account.

Documents necessary to establish a manufacturing enterprise in Dubai, United Arab Emirates

The following documents are required to establish a manufacturing firm in Dubai:

• A comprehensive business plan
• Copies of all directors/shareholders’ passports
•  A completed manufacturing trade license application form

Working with CIG

A manufacturing company, for example, must overcome a number of obstacles, including trade license application procedures and business setup specifics.

When you work with a group of professionals like CIG, though, setting up a business in the UAE is simple. Working together, we can expedite the process and spare you needless delays or rejections. The specialists at CIG can commence their work immediately upon receipt of fundamental documentation and information regarding the nature of your company and business operations. Afterward, you can relax and allow our team to handle the remaining tasks. The specialists at CIG can commence their work immediately upon receipt of fundamental documentation and information regarding the nature of your company and business operations. Afterward, you can relax and allow our team to handle the remaining tasks.