The UAE’s thriving manufacturing sector, with AED 15.36 billion ($4.2 billion) invested in Abu Dhabi alone, is growing at an impressive rate of 85.7%. To capitalize on this booming industry, obtaining a manufacturing license in Dubai is crucial. With world-class infrastructure, modern seaports, airports, and a strong local consumer market, the UAE offers immense opportunities for investors in manufacturing.
However, a crucial hurdle must be overcome to establish your manufacturing firm in the UAE – obtaining a manufacturing license. This comprehensive guide is designed to walk you through the requirements, advantages, and the step-by-step process of acquiring a manufacturing license in UAE. Let’s dive into the details to pave the way for your successful entry into the dynamic UAE manufacturing landscape!
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Manufacturing License UAE: Understanding Cost & Requirements
A manufacturing license in UAE is a crucial authorization that permits a company to engage in the official production of goods across diverse industries. This comprehensive license encompasses a range of activities, including but not limited to food processing, electronics assembly, machinery production, and textile manufacturing.
With this license, businesses gain the flexibility to not only sell their finished goods within the UAE but also to export them to global markets. Establishing your manufacturing firm in the UAE hinges on securing this indispensable license, making it an essential requirement for those looking to enter the vibrant manufacturing landscape of the country.
Manufacturing in UAE: The Licensing Perks
Securing a manufacturing license in the UAE comes with a range of benefits that can significantly enhance your business:
Legal Compliance: A manufacturing license ensures that your business is legally compliant, reducing the risk of future legal issues.
Tax Advantages: Enjoy tax benefits, including low or zero corporate and income taxes. Additionally, you can retain 100% ownership of your firm.
Access to Financing: With a manufacturing license, your firm gains easier access to financing from local banks and financial institutions.
Legal Structure Options: When obtaining a manufacturing license in Dubai, you’ll need to choose a legal structure, such as a Limited Liability Company (LLC) or a Public Joint Stock Company (PJSC). This not only fulfills legal requirements but also protects your assets.
Credibility: Being licensed demonstrates to customers, partners, and investors that your firm is legitimate and trustworthy.
Free Trade Agreements: Your business can leverage the UAE’s free trade agreements, which expand trade opportunities and reduce import/export costs. This opens up avenues for increased growth and profitability.
7-Step Guide to Obtaining Your Manufacturing License in UAE
Obtaining a manufacturing license in Dubai involves a straightforward and swift process. Let’s break it down into seven easy steps:
Step 1: Choose Your Company’s Legal Structure
Select the appropriate legal structure for your manufacturing business in the UAE, such as a llc company dubai, public joint stock company, private joint stock company, or a branch of a GCC or local company.
Step 2: Register the Trade Name
Register your manufacturing firm’s trade name, ensuring it is unique, includes the correct legal structure abbreviation (like LLC or PJSC), aligns with your chosen manufacturing activities, and avoids offensive terms or references to government entities.
Step 3: Apply for Initial Approval
Seek initial approval from the UAE government, indicating that there are no objections to your business being in the country.
Step 4: Create Memorandum of Association (MOA)
For limited liability, public shareholding, or private shareholding companies, prepare a Memorandum of Association (MOA).
Step 5: Choose Your Business Location
Select between mainland or free zone for your business location, considering factors like ownership options, office space, land purchase for your factory, and ensuring compliance with the Department of Economic Development’s rules.
Step 6: Submit Documents and Obtain License
Submit essential documents, including the receipt of initial approval, copies of all paperwork, attested lease contract, MOA, and approvals from other government entities. Register your tenancy contract using the Ejari portal.
Step 7: Apply for Additional Approvals
Depending on your manufacturing activities, apply for specific approvals from relevant government entities, such as the Ministry of Interior for safety systems, Supreme Petroleum Council for oil and gas, local health department for health-related manufacturing, and Dubai Municipality’s Environment Protection Section for certain products.
Once all requirements are met, pay the necessary fees to secure your manufacturing license in the UAE.
Manufacturing License Costs in Dubai, UAE
The initial cost for a manufacturing license in the UAE typically falls within the range of AED 15,000 to 30,000, with variations influenced by factors such as business location and industry type. Additional components contributing to the overall cost encompass approvals, equipment, warehouse rental, and visa expenses. When it comes to renewing the manufacturing license in Dubai and the UAE, the renewal fee generally falls between AED 8,000 and AED 15,000.
Essential Documentation for Obtaining a Manufacturing License in the UAE
Prepare all the necessary documents in advance before initiating the application process for your manufacturing license in Dubai or any part of the UAE. Having the required paperwork ready streamlines the overall procedure. Key documents include:
- 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
Manufacturing License Renewal in the UAE
Securing a manufacturing license in Dubai is a one-time process, but its renewal is an annual requirement to ensure your company’s continued legal standing. Failure to renew can result in fines or a halt to your manufacturing operations.
Below are the necessary documents for trade license renewal in Dubai, though the requirements may vary depending on the type of 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 Initial Step Now: Secure Your Manufacturing License
Acquiring a manufacturing license in the UAE ensures that manufacturing firms operate within legal bounds, benefit from tax advantages, and enjoy various perks. The process involves selecting a legal structure, obtaining approvals, and submitting necessary documents. Additionally, it’s crucial to renew the license annually.
Embarking on the journey to obtain a manufacturing license in the UAE becomes more straightforward with the right guidance. Allow the experts at Company Setup Consultants to assist you in obtaining your manufacturing license in the UAE efficiently and with minimal hassle. Our expertise streamlines the application process, enabling you to confidently establish your manufacturing company in Dubai. Contact us today to kickstart your journey into the world of manufacturing in the UAE!
For comprehensive support with your business needs, whether it’s company setup in Dubai or finding a fully furnished office space for rent, our experienced consultants are here to assist you. We also offer expert guidance on the golden visa application process and trademark services. To speak with our team, call us at +971 582595164, send a WhatsApp message for chat queries on +971 582595164, or email us at info@companysetup.ae.
