How To Get a Manufacturing License in The UAE

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How To Get a Manufacturing License in The UAE? Various industries have found a new home in the desert oasis which is the UAE. As of late, this region has become a powerhouse for commerce and trade, and a big part of this transformation is because several manufacturing companies have set up shop here. When you consider that the UAE’s location is strategic, to say the least, and back it with unmatched infrastructure, it is no wonder why the UAE has become a favored destination for entrepreneurs looking to set up a manufacturing company. If you are looking to do the same, then you are in the right place as this SetHub guide will shed light on all there is to know about securing a manufacturing license in Dubai and other emirates.

UAE Manufacturing License Explained

For your business to be legally allowed to carry out manufacturing in the UAE, you need to hold a license that allows you to do the same. If your company produces any kind of goods puts products together or transforms raw materials into an end product, then you will need to secure this license.

Is the UAE a Good Option for Manufacturing?

See below for SetHub’s list of reasons as to why the UAE is great place for a manufacturing firm:

Thanks to its location, having your firm set up in the UAE will mean that you can easily access the middle eastern markets, beyond into Asia and africa as well.

Further to this, you will also enjoy tax concessions if you set your business up in a free zone.

In the UAE, you will be met with a logistics and infrastructure network that is unmatched. This makes transport of goods and raw materials as efficient as possible.

The Government too supports manufacturing entities with initiatives such as “Make It in the Emirates” which encourages local and international manufacturers.

How to Secure a Manufacturing License in the UAE

Here are the main steps that you will need to follow to secure a manufacturing license in Dubai or other parts of the UAE

Choose Your Business Location

You will have the choice between a mainland or free zone business setup. The free zones will give you tax benefits, while minaland will give you the freedom to trade anywhere within the UAE. 

Outline Your Business Activity

Whether it’s textiles, toys or anything else, you must define what you intend to manufacture. Your business activity must be in alignment with the regulations of the mainland of free zone authority. 

Submit a Business Plan

The business plan you submit must contain all the details about how you intend to run and sustain your operations. Make sure you include details such as your financial projections and more so that the authorities can review it with ease.

Apply for Initial Approval

When looking to get your initial approval, you will need to approach the Department of Economic Development (DED) or free zone authority. Along this process, you will register your trade name and business activity.

Secure Industrial Land or Facilities

You will need to have a designated area for your plant. Look into an industrial zone or a facility inside a free zone that can handle your operations.

Obtain Environmental Clearances

The UAE has specific environmental standards that your manufacturing businesses must meet. Get the approvals from the UAE’s environmental authorities which will help in compliance for sustainability and environmental protection laws.

Apply for the Manufacturing License

Once your documents are put together, submit them to the authority concerned. After they review it and approve it, you will get your manufacturing license in the UAE.

Additional Permits

Based on what your industry is, you may have to get some extra permits. These could be anything from safety certifications to health permits and more.

What Does a Manufacturing License in the UAE Cost?

The cost to get a manufacturing license in the UAE will depend heavily on factors such as:

  • Business location
  • Scale of operations
  • Type of manufacturing activity

Expect to pay between AED 15,000 to AED 50,000. Additional costs may include leasing industrial land, equipment procurement, and hiring employees.

Key Considerations

Before you get a manufacturing license in the UAE, these points must be kept in mind.

  • The UAE has many industrial, labor, and environmental laws. As a business owner, it is your duty to stay compliant with all of them in order for you to enjoy continued business success in the UAE.
  • Do keep in mind that a business of this nature will require high capital investments in order to get your facilities up and running. Also consider the cost of raw materials, and employees as well.
  • If you are considering a mainland setup, make sure that you have a local sponsor. This sponsor will own the majority stake of your business.
  • Factor in costs and procedures for obtaining employee visas as this process can be expensive and take some time.

In Conclusion,

If you want to set up a manufacturing business in the UAE, then a manufacturing license in the UAE is the most important step. It gives you the greenlight to start your operations. Whether it’s a manufacturing license in Dubai to free zones across the UAE, you must understand the steps, costs, and benefits that can help you make informed decisions and streamline the process.

If you have come to the end of this blog, then you must be ready to take the next step! If this is where you are, then the time is now to partner with an experienced consultant who specializes in business setup in the UAE. There is no one better for this than SetHub! Over the years, we have become the preferred business setup consultant in the UAE for good reasons. We’ve helped many manufacturing firms come to life in this thriving region, all thanks to our experts who understand the nuances of business setup in the UAE.

All it takes is for you to schedule a call now, and you will hear back with some tailored advice in just one business hour!