Manufacturing is a major business activity in Dubai that significantly contribute to the GDP of the UAE. A manufacturing License in Dubai is one of the most in-demand business licenses among investors.
Thus, the Manufacturing License in Dubai is the required business license to conduct any regional industrial activities. Also, there are a host of business activities under the Manufacturing License category in the UAE.
What is a Manufacturing License in Dubai?
A Manufacturing License in Dubai is a legal document for conducting any sort of manufacturing activities in the region. So, the investor must apply for a Manufacturing License from the respective Free Zones or Mainland in UAE.
Hence, a valid Manufacturing License in Dubai is mandatory to carry out assembling, repackaging, fabrication, or any manufacturing activities.
UAE’s light manufacturing sector is witnessing growing demand and steady growth over the years. As a result, Dubai is becoming the perfect choice for establishing a manufacturing unit to meet the rising demand.
All in All, there are many factors that make Dubai the right choice for starting a high investment Industrial Company. Few of them are:
- Government’s business-friendly policies
- Long-term residence visa
- Low crime rate, improved lifestyle, low cost labor availability
- Financial support from banks
- Top class business infrastructure
- global connectivity & logistics support
Steps to obtain a Manufacturing License in Dubai
Manufacturing License in UAE is obtained from the Free Zones or Mainland. So, the entrepreneur must follow the below specific steps. Also, depending on the chosen business activity, pre-approvals may be required to conduct the business.
The Free Zones and Mainland offer Manufacturing Licenses in UAE at competitive rates. The process of obtaining a Manufacturing License in the UAE is hassle-free with the help of business consultants.
The following are the specific steps to get a Manufacturing License in UAE:
- Prepare and submit the documents to Free Zone or Mainland Authorities. Submit the application form, investor’s passport copy and photograph.
- Get the trade name reserved for the company and obtain the initial approval from the authorities
- Choose the right business activity and company structure, LLC Companies are most common in the mainland, and in the Free Zone, it is the Free Zone Company ( more than 2 shareholders).
- Prepare the shareholder certification, share capital requirements depending on chosen industrial activities.
Few of the strategic industrial sectors require a minimum share capital of AED 2 million to AED 15 million to allow 100% foreign ownership, else the foreign investor must have a UAE National as the sponsor for registering the LLC company in the mainland.
- Submit the industrial plan and blueprint, business plan for the operations to the authorities, get the required approvals for the manufacturing unit.
- Prepare the tenancy contract and required agreements for the operation of the manufacturing units, warehouse, and office space
- Pay the required manufacturing license fee, other supporting documents, and permits to the authorities to obtain the commercial license.
- Proceed to obtain the UAE residence visa and opening of the bank account with the new manufacturing license obtained.
- Start operating the business in UAE from the newly opened manufacturing unit without any hassles.
It is important to note that the steps are mostly similar across the Mainland and Free Zones. However, between the business jurisdictions there are few variations. Few of them are choosing the company structure, getting the pre-approvals, the share capital requirements, etc.
Also, for setting up a Manufacturing Company in Dubai, there is a requirement for land for building an industrial unit or a ready-made warehouse that will house the manufacturing equipment or a custom-made industrial unit that will satisfy the production requirements.
Hence, for all of the above having an Industrial License from UAE Free Zone or Mainland is required. Above all, the investor has to choose the right location based on their precise business requirements.
Why choose Dubai for obtaining a Manufacturing License?
Manufacturing License in Dubai helps investors to start their manufacturing units in the country and scale up production easily. Also, Dubai is a perfect location for facilitating international trading operations.
Hence, setting up a manufacturing unit in Dubai, UAE is highly beneficial for investors due to the ease of doing business in the region.
Manufacturing License in Dubai is a lucrative business opportunity for investors. Also, establishing a manufacturing industry using the Industrial License in UAE enables the investors to experience umpteen business benefits such as:
- 100% foreign ownership and full freedom on capital investment and profit repatriation
- No personal and corporate tax, there is only a 5 % VAT in UAE.
- Easy set up of business and obtaining Manufacturing License in UAE
- Long term residence visa and sponsoring dependents
- Subsidized power, water, and other facilities from the Free Trade Zone
- Get Warehouse, land, Office Space from Free Zones and Mainland easily
- Flexibility in expanding the business to local UAE, GCC, and Global Markets
Most importantly, the advanced logistics, growing local demand, top-class infrastructure, and ease of setting up a business make UAE the perfect choice for Manufacturing Units.
Also, the Manufacturing License from Dubai enables the investor to successfully build their manufacturing unit in the region. There is a long list of requirements for a manufacturer before setting up an industrial unit.
It includes large warehouses with office space, power consumption requirements, maintenance and service requirements, etc., and UAE is the perfect place with all this available at a lower cost.
There are two major business jurisdictions to choose for setting up the industrial unit after obtaining the manufacturing license in UAE. The options for the investors are:
1. Start a Light Manufacturing Industry in Free Zone
There are specialized Free Trade Zones in UAE such as the Dubai Airport Free Zone, Dubai South, Sharjah Airport Free Zone, Hamriyah Free Zone, etc., that offer sophisticated light manufacturing units that are custom build as well as land space for large and small manufacturing companies.
After all, the Free zone Manufacturing License in Dubai is one of the cheapest when compared to global markets like UK, US, Singapore, etc. The Manufacturing License along with a light manufacturing unit or a customized warehouse in Dubai Airport Free Zone costs around AED 145,000 yearly.
Manufacturing License in UAE Free Zones – Key Highlights
The warehouses in DAFZA are of utmost sophistication and build with a lot of customizable options available for the investors to choose from based on their specific requirements.
They are perfect for Manufacturing Companies to start their Industrial units. All they have to do is to obtain a Manufacturing License from the UAE Free Zones.
Hence, getting a Manufacturing License from UAE Free Zones will be the right fit for food processing units, steel fabrication companies, automobile, aircraft parts manufacturers, pharma companies, and many more.
Also, with plug-an-play office space and warehouse facilities, the Free Zones offer the perfect solution for investors to easily set up their industrial units and start operating the business seamlessly.
Above all, the easy company setup procedures and seamless onboarding for foreign investors to set up their business operations from the next day of receiving the commercial license make UAE Free Zones an attractive choice for obtaining a manufacturing license.
2. Start a Light Manufacturing Industry in UAE Mainland
Starting a manufacturing company in the mainland of UAE is preferred by investors who want to tap into the mainland UAE and the rest of the GCC markets. Entrepreneurs can obtain a Manufacturing License in UAE and setup an industrial unit in the mainland.
Setting up a manufacturing unit on the mainland will help in gaining better control of the company’s operation and jurisdictions, customizing the warehouses, office spaces, and manufacturing setups to the desired level of the company owners.
Also, when it comes to import-export and other company governances, it is the respective Department of Economic Development of the emirate that will act as the governing body. All clearances and special permits have to be obtained from the Department of Economic Development.
Benefits of Starting a Light Manufacturing Industry in UAE Mainland
When it comes to the UAE Mainland there are numerous advantages to setting up an Industrial Unit. The investor gets better control and flexibility to own land and build the project from the scratch.
Also, on the business front, they can partner in Government projects, work with local UAE companies on large projects, and more. Another important aspect is the ability to hire employees without any restrictions on visa quota.
Following are a few of the additional benefits of Starting a Light Manufacturing Industry in the UAE Mainland
- 100% foreign ownership, full profit repatriation, and complete control on the operations
- Flexibility in choosing the office space, warehouse, industrial unit location anywhere in UAE
- Lower maintenance costs in the long run and reduce rents
- Hire more staff and expand as required easily
- Easy access to the airports, seaports, and land transport for shipping products to global markets.
- Hassle-free company setup and bank account opening, processing residence visa, and sponsoring employees
Hence, in a nutshell, obtaining a Manufacturing license from UAE is a favorable choice for foreign investors as UAE offers a host of business benefits and business infrastructure to support the growth of commercial and industrial sectors.
The industrial sector makes up a significant chunk of UAE’s GDP contribution, It is one of the strategic sectors for UAE’s growth. The well-connected transport network, industrial infrastructure, and growing business opportunities are driving the industrial license demand in the region.
Aurion will assist you with the end-to-end Company Formation Process and steps in obtaining the commercial license in UAE at the lowest cost. Connect with our expert team right away!
Contact us: Aurion Business Consultants