The manufacturing space has a great scope in the UAE. An impressive AED 15.36 billion ($4.2 billion) has been invested in manufacturing facilities in Abu Dhabi. And they're now growing at a staggering 85.7%!
The UAE has excellent infrastructure, with modern seaports and airports that make logistics easy. It also has a solid local consumer market, so that the UAE could be promising for your manufacturing firm.
But one essential step stands in your way to set up your manufacturing firm. That is getting a manufacturing license in the UAE. This guide will show you the requirements, the perks, and the steps for getting a UAE manufacturing license. Let's get started!
Manufacturing License UAE: Understanding Cost & Requirements
A industrial manufacturing license in the UAE officially allows a firm to produce goods for various industries. The license covers many activities. Some are food processing, electronics assembly, machinery production, textile manufacturing, etc.
You can sell the finished goods in the UAE. Or you can ship them off to buyers globally. So, if you want to set up your manufacturing firm in the UAE, this license is a must.
Manufacturing in UAE: The Licensing Perks
A manufacturing license in the UAE offers many perks. They can significantly boost your business prospects. Some of them are as follows:
- Manufacturing licenses make your business legally compliant. This lowers the risk of future legal problems.
- Your firm can enjoy tax benefits. These include zero or low corporate and income taxes. You can also own 100% of your firm.
- Your firm can easily access financing from local banks and financial institutions.
- You'll need to choose a legal structure to get a manufacturing license in Dubai. This legal structure could be a Limited Liability Company (LLC), a Public Joint Stock Company (PJSC), or others, and this can legally protect your assets.
- Being licensed shows customers, partners, and investors that your firm is legal and trustworthy.
- Your firm can enjoy UAE's free trade agreements. This trade agreement raises trade opportunities and lowers import/export costs.
7 Steps to Your UAE Manufacturing License
Getting a manufacturing license in Dubai is simple and quick. Let's break it down step by step:
Step 1: Decide Your Manufacturing Company's Legal Structure
Pick the right legal structure to get a manufacturing license in the UAE. It affects how your company operates and the rules it must follow.
In the UAE, you can set up your manufacturing firm as:
- limited liability company
- public joint stock company
- private joint stock company
- branch of a GCC (Gulf Cooperation Council)
- branch of a local company
Think carefully about which structure is best for your business needs and goals.
Step 2: Register the Trade Name
The second step is registering your trade name (company's name). Here are some points to keep in mind when naming your manufacturing firm:
- Make it unique from other firms.
- Add the correct legal structure abbreviation (like LLC or PJSC).
- Make sure the name fits your chosen manufacturing activities.
- Don't use offensive words, names of rulers, government agencies, or their logos.
Step 3: Apply for Initial Approval
Seek the UAE government's initial approval for your manufacturing business. It shows that the government has no objections to your firm being in the country. (Note that it has yet to allow you to do your chosen manufacturing activity.)
Step 4: Create MOA
When you create a limited liability, public shareholding, or private shareholding company, you'll need a Memorandum of Association (MOA).
Step 5: Choose Your Business Location
Pick the mainland or a free zone for your business location, depending on your needs. Consider the following points:
- You can own or rent office space in the mainland or a free zone.
- You can even buy land for your factory or office building.
- Find a place with different facilities that work well for your firm. These include:
- well-developed infrastructure
- high-speed internet connections
- furnished/semi-furnished offices
- employee accommodations
- Ensure your business location meets the Department of Economic Development's rules.
After picking the right place, register your tenancy contract. Use the Ejari portal by the Dubai Land Department to do this.
Step 6: Submit Documents and Get Your License
Finally, let's make your manufacturing firm official. You need to submit some essential documents. Some are:
- Receipt of initial approval
- Copies of all submitted paperwork
- Duly attested copy of the lease contract
- Approvals from other government entities
Step 7: Apply for Additional Government Approvals
Depending on what precisely you manufacture, you might need more approvals. For instance:
- To make fire equipment, alarms, or safety systems, you need approval from the Ministry of Interior.
- If your manufacturing involves oil and gas, you need approval from the Supreme Petroleum Council.
- If you're doing health-related manufacturing, you'll need approval from the local health department.
- If you want to make tents, awnings, or tarps in Dubai, you'll need approval from the Environment Protection Section of Dubai Municipality.
- Ministry of Economy - Industrial License
If your business affects human life or the environment, you'll need extra approvals for your firm in the UAE. Our legal experts can help you determine if your firm requires additional approval.
When everything's in order, pay the fees and get your manufacturing license in UAE.
Manufacturing License Costs in Dubai, UAE
The initial manufacturing license cost in the UAE ranges AED 15,000 to 30,000. But the cost varies based on many factors. The main factors could be your business location and industry type. Other aspects that add to the price include approvals, equipment, renting a warehouse, and visas. And the renewal fee for manufacturing license in Dubai and the UAE falls between AED 8,000 and AED 15,000.
UAE Manufacturing License Documentation
Gather all the necessary documents before applying for your manufacturing license in Dubai or anywhere in the UAE. Having all the required paperwork ready makes the process smoother. Some of the papers are:
- Completed Application Form
- Passport Copies and Specimen Signatures of Company Shareholders and Appointed Manager
- 2 Years of Audited Financial Reports
- Board Resolution Appointing Manager/Director if applicable
- Power of Attorney Granted to Manager/Director if applicable
- Article of Association
- Share Capital Information
- Residence or Visit Visa
- 3 Name Options
Besides these, you might need more documents, and our consultants can guide you. They'll make sure your papers meet legal rules and notarization requirements.
Manufacturing License Renewal in the UAE
Getting a manufacturing license in Dubai is a one-time process. But it is required to renew it each year. Renewal of trade license keeps your company legal and in good standing. If you don't, you could get fined.
Or, you even have to stop your manufacturing firm until you renew your manufacturing license UAE. Below are the documents required for trade license renewal in Dubai, though they can vary based on the type of the license:
- Typed BR/1 Form
- Ejari Registration Certificate
- Copy of Tenancy Contract
- Copy of the Current business trade license
- Certificate of Continuity of Existence or Good Standing
- Copies of Business Partners' Passports
- No Objection Certificate from External Authorities (if applicable)
Take the First Step Today: Secure Your Manufacturing License
A manufacturing license UAE ensures manufacturing firms legally comply, get tax breaks, and enjoy many other perks. Here's what you need to do: choose a legal structure, get approvals, and submit documents. Plus, you must renew your license every year. Getting a manufacturing license in the UAE can be easy with the proper guidance.
So, do you want to start your manufacturing firm in the UAE? Let Avyancos' business setup experts guide you to getting your manufacturing license in UAE hassle-free and in no time. Our expertise ensures a more efficient application process for your manufacturing firm. Reach out to us today and confidently start a manufacturing company in Dubai!