Dubai is considered a hub of business due to its friendly policies for business, infrastructure, and amazing location. By Increasing interest in revolution and creativity this industry is playing a very important part in the economy of Dubai. This industry has seen a huge increase by contributing to the GDP of Dubai.
If you are planning to start a manufacturing business in Dubai you need to get a manufacturing license Dubai. This license will help you work in the country legally.
Geographical Advantage
The location of Dubai is at the intersection point of Asia, Europe, and Africa which provides a huge advantage for manufacturing companies by facilitating and providing easy access to the global market. Moreover, policies of government such as Free Zones, industrial parks, and incentives in taxes have also helped in boosting growth.
Need of a Manufacturing License
It is important to have a manufacturing license Dubai to start a business of manufacturing. This includes any type of product manufactured. In simple words, this license is a legal permit that helps you to do business by following all the laws.
Obtaining a manufacturing license provides multiple benefits which include.
Legal Compliance
It helps to ensure that your business operates within the legal frame and that complies with applicable regulations set by the government.
Access to Market
It allows you to legally manufacture and sell products in UAE which is a market of potential growth and huge consumer growth.
Support from Government
If you have a proper license you will get help from the government to grow your business in the form of relief from taxes, and multiple grants.
Business Growth
A proper license increases your status and helps in growing your business.
Manufacturing Company in Dubai
If you are looking to set up a manufacturing company in Dubai you need to get a manufacturing license Dubai. Follow these steps to start a manufacturing company in Dubai
Determine Business Activity
Before starting to apply for the application identify the specific manufacturing activities that your business will undertake. This step will help you categorize your business and ensure working with relevant rules.
Select a Name
Decide a name for your company that reflects the industry it belongs to. The name should follow all the rules and should not be already registered.
Choose the Right Location
You need to decide the right place to Setup your Business. If you are working on the mainland you can have access to a larger market and if you are working in a free zone you have advantages like tax benefits and full control over your business as a foreigner.
Submit Application to Regulatory Authority
After you have completed your application and attached all the documents give it to the regulatory authority. If you are working on the mainland the regulatory authority will be the Department of Economic Development (DED) and if you are working on the free then the concerned authority will be the Dubai Multi Commodities Center (DMCC).
License Issuance
Once all requirements are fulfilled the respective regulatory authority will issue the manufacturing license. This license will give you the legal right to commence manufacturing business to have manufacturing operations in the country.
Post-License Procedure
Fulfill any additional post-licensing requirements which include opening a corporate Bank Account, getting permits for labor, approvals from the government entities, and registering for relevant taxes.
Documentation Required
Following are the documents that are required to obtain a manufacturing license Dubai.
- A completed manufacturing trade license application form.
- Copies of passports of all shareholders.
- Two passport-sized copies.
- Approvals from other authorities.
- Environmental permits.
Manufacturing License Cost in Dubai
If we talk about the cost of manufacturing license Dubai it is between AED 25,000 and AED 50,000. The final price of the license may vary depending on many factors like the type of product, its manufacturing, and the type of business.
The other costs in addition to license costs are:
- Procedural cost.
- Cost of leasing warehouse.
- Cost of visas for employees.
- Equipment and machinery cost.
- Cost of obtaining approvals from authority.
Benefit of Getting a Manufacturing License Dubai
If you get a manufacturing license it gives you many advantages that can improve your operations and can help in growing your business with other businesses.
Some notable benefits of acquiring a manufacturing license include
Full Foreign Ownership
The government made a policy that benefits foreign investors in a way that they can have 100 percent ownership of their company. This policy gives full control of the business to the owner without having a local partner.
Low Tax Environment
Dubai attracts businesses, especially manufacturing companies by its tax-friendly environment.
This helps a business keep a huge part of profit for themselves which they can again invest in their business.
Dubai offers a huge and attractive tax-friendly environment for businesses which also includes manufacturing companies. This allows you to retain a large part of your profit that can be reinvested for your business growth.
Strategic Location
The location of Dubai is also playing a significant role in this business. As we know Dubai is located at a point where major trade routes intersect. These trade routes are providing easy access to global markets which makes Dubai an ideal place for exporting products as well as manufacturing.
World Class Infrastructure
Dubai is renowned for its infrastructure which includes modern ports, airports, and other transportation networks that help in facilitating supply chain management.
Talented Workforce
Dubai is considered to have the largest number of talented people including people from every field who are capable enough to do their job. This talent gathers in Dubai from all around the globe to find better opportunities.
Manufacturing License Sectors in Dubai
Dubai is home to multiple exciting manufacturing industries which cover the production of a wide range of goods. This includes
- Auto Parts.
- Aviation.
- Binding.
- Textiles.
- Sculpting.
- Metal Casting.
Conclusion
It is an exciting journey to establish a manufacturing business in Dubai, but it is important to secure a manufacturing license Dubai before starting a business. It is a crucial step but it enables you to operate legally in Dubai play a role in improving the industrial landscape and enjoy the benefits of a tax-free economy. The process may seem long and difficult and for that Al Riyady is here to help you out as it has become the leading business establishers in UAE. Al Riyady is has set up multiple business turning aspiration into reality. So what are you waiting for transform your vision into reality and make your business a success.
