A comprehensive guide to manufacturing business license in Dubai

Business license in Dubai

Guiding towards greatness

Are you considering starting a business setup in Dubai? Dubai’s rapidly growing manufacturing industry offers a plethora of opportunities for entrepreneurs. Whether you’re interested in manufacturing, import/export, housekeeping, or freelancing, Dubai’s pro-business environment, strategic location, and top-notch infrastructure make it an ideal destination for your business endeavors. In this comprehensive guide, we will walk you through the process of obtaining a manufacturing trade license in the UAE, including the costs, requirements, and benefits, all with the valuable assistance of Marqueway Business Setup Consultants in Dubai. Let’s take a look at the steps to set up your manufacturing company in Dubai.

Why Choose Dubai for Your Manufacturing Business?

Dubai’s Strategic Location: Dubai’s strategic location offers easy access to international markets, making it a perfect gateway for businesses looking to expand their global reach.

Pro-Business Government Policies: The Dubai government actively supports business growth with policies such as low registration costs, favorable regulations, tax exemptions, and incubator programs for startups. These initiatives create an inviting atmosphere for international investors, especially with the guidance of Marqueway business setup consultants in Dubai.

Competitive Industrial Sector: Dubai’s manufacturing industry is a major contributor to the UAE’s GDP and is recognized as one of the most competitive in the Arab world. With the “Made in UAE” label symbolizing quality and value, Dubai stands out as a top choice for manufacturing businesses.

World-Class Infrastructure: Dubai boasts a world-class transportation, communication, and logistical infrastructure, ensuring smooth operations for manufacturing companies. This infrastructure adheres to the highest standards and facilitates the efficient transportation of products to target markets.

Talented Workforce: Dubai has a pool of skilled workers, including engineers, technicians, and laborers, capable of managing manufacturing facilities. This local talent reduces the need to source skilled labor from other countries, making it easier for companies to launch their manufacturing operations in Dubai.

How to Obtain a Manufacturing License in Dubai

To operate a manufacturing business in the UAE, you need a manufacturing trade license. Here are the essential steps to obtain it, with expert guidance from Marqueway business setup consultants in Dubai:

Department of Economic Development (DED): Begin by applying to the DED and obtaining municipality permission for plant construction.

Approvals from Various Authorities: Depending on your industry, you may need approvals from authorities such as the Ministry of Health and the Ministry of Environment and Water.

Licensing Requirements: To qualify for a manufacturing trade license, businesses must have physical premises, a minimum of AED 250,000 in startup capital, and a minimum of 10 employees.

Additional Permits and Licenses: Depending on your business activities, you may require additional permits, such as an environmental permit, fire safety approval, and a connection with the Dubai Electricity and Water Authority (DEWA). For chemical trading or manufacturing businesses, extra licenses and approvals may be necessary and having a professional guidance is recommended.

Costs of Setting up a Manufacturing Business in Dubai

The cost of starting a manufacturing business in Dubai typically ranges from AED 15,000 to AED 50,000. Factors that influence the cost include trade licenses, equipment, property or warehouse rental, visas, government approvals, and staff solutions.

The cost of obtaining an industrial license in Dubai typically ranges from AED 25,000 to AED 27,000. This includes the license application fee, registration fee, and other procedural costs. The exact cost may vary based on the nature of the industrial activity and location, but with expert help from Marqueway business setup consultants in Dubai, you can navigate this efficiently.

Benefits of Holding an Industrial License in Dubai

Industrial license holders in the UAE enjoy several perks, such as favorable terms for renting industrial space, reduced rates for land, electricity, and water, guidance on industry best practices, lower interest rates for innovative products, financial assistance during research and development, and prioritization of high-quality products by the UAE government. Marqueway business setup consultants in Dubai can guide you through maximizing these benefits.

However, industrial license holders must adhere to certain obligations, including starting construction within six months of approval, complying with laws and regulations related to land, hygiene, and industrial safety, and submitting necessary data to the DED.

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Setting Up Your Manufacturing Business in Dubai

The process of establishing a manufacturing business in Dubai involves several key steps that are listed below:

Product Selection: Determine the products you want to manufacture with expert guidance.

Trading Name: Choose a unique trading name for your business which adheres to the laws of UAE.

Document Submission: Submit the necessary documents to the DED.

Memorandum of Association: Draft the Memorandum of Association for your business.

Obtain Clearances and Licenses: Secure all the required clearances and licenses for your business.


Additional Licensing Requirements

When establishing an industrial company in Dubai, you should be aware of these additional requirements, with the support of Marqueway business setup consultants in Dubai:

Local Service Agent (LSA): You need a Local Service Agent (LSA) to act as your company’s representative in dealings with government authorities.

Comprehensive Environmental Report: Provide a detailed report on your production plant when applying for an environmental permit.

Fire Safety Compliance: Adhere to fire safety regulations set by the Dubai Civil.

DEWA Connection Guidelines: Ensure compliance with DEWA’s guidelines and regulations.


Future Prospects for Manufacturing Businesses in the UAE

The UAE’s manufacturing sector offers numerous opportunities for entrepreneurs, and with the expert guidance of Marqueway business setup consultants in Dubai, you can maximize these prospects. With the government’s commitment to increasing the sector’s contribution to GDP and the array of benefits available to manufacturing companies, the UAE presents a promising landscape for investors.


Start your business setup with Marqueway

Dubai’s business-friendly environment, world-class infrastructure, and strategic location make it an attractive destination for establishing a manufacturing business. By following the proper procedures and obtaining the required licenses, your business can thrive in this thriving industry, with invaluable support from Marqueway business setup consultants in Dubai.

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