Establishing a Manufacturing Business in Dubai

Establishing a Manufacturing Business in Dubai

Manufacturing is the creation of products from raw materials so that the general population can use them. Or they are made to sell them to earn a profit. By using a combination of manual labor and machines, or sometimes by just using a mixture of machines, chemicals, and biological processing commodities are manufactured. Manufacturing a product also includes many of the intermediate processes before the final product is completed. Different industries like to use different names for it; for example, the steel industry likes to call it “fabrication.”

The United Arab Emirates is an excellent place to open your very own manufacturing company. It has distinct and indisputable benefits for numerous business areas, including an exceptionally diverse business of manufacturing. Because of this, the target demographic under the manufacturing sector can also be very vast and very different. It can be products made with the intention of selling them exclusively to the international market or vice versa. 

Foreign investors and business owners who want to open a  manufacturing business in Dubai need to comply with specific regulations. 

The process is as follows:

How to Register your Manufacturing Business in Dubai?

If you want to start a manufacturing business in Dubai that manufactures new products from scratch, transforms raw materials into semi-finished products, then follow these steps.

  1. Selecting a business activity. This step is critical as it will affect what type of business license should be selected in the preceding step
  2. If you are setting your business in Dubai Mainland, then you need to choose a local sponsor for your company who will own 51% of the company’s share
  3. Get your trade name under which your business will operate under approved by the concerned authorities and apply for initial approval as well
  4. Draft a Memorandum of Association –MOA– and get a NOC (No Objection Certificate) from the Ministry of Economy to obtain authorization for your industrial project
  5. Find a well-equipped warehouse to set the manufacturing plant
  6. Attain a tenancy contract and also get an Ejari from the warehouse landlord to avoid any unpleasantness in the future
  7. Earn approval from Dubai Municipality’s Planning Division to obtain the Industrial License in Dubai.
  8. Get a NOC from the Civil Defense
  9. After the requisite process is completed and the permissions are granted, you must submit all the required documents to the Environment Department for Industrial Clearance
  10. If your business activity requires additional approvals, get them. These other approvals are typically needed for select manufacturing businesses like getting a NOC from the food control authority is necessary if you are manufacturing food products. Similarly, gaining permission from the narcotics department for chemical production, or even from Dubai Police if you plan to produce jewelry
  11. After procuring these approvals, submit the documents demanded to register your business to the Dubai Department of Economic Development (DED)
  12. Make payments and receive the Certificate of Incorporation and an Industrial License

Perks of Starting a Manufacturing Business in Dubai

To encourage you as to why it is a good idea to start a business in the UAE, particularly that of the manufacturing business setup in Dubai, here are a few benefits:

  • No or minimal taxes for factories set up in the many free zones of Dubai
  • Low cost of labor as this is the chief source of employment from under-developed and developing countries like India, Bangladesh, Philippines
  • The state-of-art infrastructure of the business is far superior to any of its peers. Besides that, it has ready-made industrial premises, rental spaces for offices, etc.
  • A favorable geographical location with easy access to the markets of Africa and Asia including pathways leading directly to India and China
  • Situated in an actively developing region, which provides new opportunities for investment and business.

Because of the lack of taxation in the United Arab Emirates and other advantages as mentioned earlier, owning a manufacturing unit makes sense not merely as a self-supporting business, but also as the cost optimizer for the final product.

The approval for other requirements demanded manufacturing business setup must also be procured from the Dubai Municipality which also imposes regulations associated with the products, which includes

  • Canning and packaging of food products
  • Labeling of food products
  • The list of ingredients of the products
  • The name of the business producing the products which must be printed on the package
  • The expiry date
  • The bar code
  • The storage and use instructions
  • The net weight of the product

Aside from this, the manufacturing business needs to follow the Food Code as given by the UAE.

  • Specific construction plans which must delimitate the ceilings, the floors and the walls for each section of the plant
  • Lighting and ventilation requirements
  • The plumbing system and manure and waste disposal lines
  • The equipment used for manufacturing food products should be kept in pristine and hygienic conditions and should be disinfected regularly

Need a Hand?

Now, moving forward alone to set up your own business in Dubai turns out to be a bit of a complicated task as this process involves a ton of documentation filled with legal jargon that is impossible for a layperson to understand. Hence, Having a guide, i.e., a business setup consultant who is well-versed and has enough experience with the business incorporation processes, turns out to be conducive as the complete process is carried out in a hassle-free way that saves both time and money.

Setting up your own business in Dubai, or the rest of the UAE has never been more straightforward or more uncomplicated. KWS Middle East takes care of all the tedious and tiresome details so that you can focus on what truly matters – making your Dubai dream into a reality!

Contact Us and book your commitment-free consultation call with our team today!

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