Production is the manufacture of products from raw materials so that people can use them. Or they were created to sell for a profit. Using a combination of manual and machine labor, or sometimes using just a mixture of devices, creates chemicals and organic products for processing. Product production also involves many intermediate processes before the final product is ready.
The United Arab Emirates is a great place to start your own production company. It has clear and undeniable benefits for a wide variety of business fields, including a very diverse manufacturing business. Hence, the target groups in the manufacturing sector can also be inclusive and very diverse. It can be a product made to sell on the international market or vice versa.
How to Start a Manufacturing company in UAE?
There are several administrative tasks that you have to complete.
The first is to finalize your company name. This process is becoming more important here in Dubai than anywhere else. It is because, in addition to the need for a catchy name that reflects the nature of your business, you must also adhere to well-defined naming conventions in the UAE.
In short, the company name in the UAE must not contain profane or offensive language, references to well-known institutions, or abbreviations of your name – although your full name is acceptable.
Your name must also include a legal entity such as FZE or LLC. It must also be associated with your company, not resemble another company name, and be available for registration.
It is essential to list all activities related to your company formation in UAE when you apply. Failure to do so could result in fines or even revocation of your license.
Once these steps are complete, apply for a manufacturing license in Dubai or elsewhere in the UAE.
Receive a permit to operate a factory from the local municipality.
If you are settling in the continental UAE, you will need to apply to the Dubai Department of Economic Development (DED) or its equivalent in your emirate.
Once you have selected the free zone setting, you need to directly contact the free zone management authority of your choice.
It is not necessary when creating a free zone, and one of the reasons why including a free site is not only the most profitable option, it is often the easiest solution for most businesses.
If approved, you get the license is usually in two weeks.
Get a Manufacturing License in Dubai, UAE
Several conditions apply to all production facilities in Dubai and the United Arab Emirates.
To be eligible for a license, you must have a physical area, not a virtual office.
You will also need to create a report detailing your plant’s specifications, including floor plans, equipment, and financing information. If you are setting up in a free zone and using an existing factory, this step is unnecessary.
You will also have to do a feasibility study on your business proposal.
Cost of Manufacturing License
A lot of costs you will require for starting a manufacturing company. Apart from the costs of materials, equipment, space, and labor, you also need to consider visas, permits, and licenses.
The cheapest way to set up is to enter your business in the free zone in UAE. It eliminates additional permit fees and allows you to use tools and space typically at a much lower price than on the mainland.
Expect to pay around AED 15,000 to 50,000 to get your manufacturing license in the UAE. In some cases, this includes the right to a visa and the use of space.
The best way to determine the cost of starting your business is to talk to a business formation specialist who can provide a quote based on your specific needs.
By following the steps above, you can get your commercial manufacturing license in Dubai, United Arab Emirates.
Seek the help of a registered business founder’s support to resolve any problems that may arise.
Business setup in uae proves to be a challenge as the process involves a lot of paperwork with legal jargon that the layman cannot understand. Hence the presence of leadership, namely. A business start-up consultant who is knowledgeable about the business integration process and has sufficient experience can prove beneficial as the whole process runs smoothly and saves time and money.