Do you know how to set up an Industrial Company in Dubai?

An Industrial Company or manufacturing company is the company in charge of extracting the raw material and transforming it into products or goods to be marketed to the final consumer.

In recent years, there has been a boom in the creation of this type of company in Dubai, due to the various opportunities for economic growth that have been created in the Arab Emirate.

In this article, you will learn how to start an Industrial Company in Dubai, the various benefits that this kind of company brings, and also the cost of forming such companies.

1. How to set up an Industrial Company in Dubai?

2. Which activities fall under the Industrial License?

3. What is the cost of the Industrial License?

4. What is the cost of forming an Industrial Company in Dubai?

5. Benefits of forming an Industrial Company in Dubai

6. Why is Dubai the perfect place for your Industrial Company?

7. How to set up an Industrial Company in Dubai Industrial City?

8. In which way we can help you with the setup of your Industrial Company in Dubai?

1. How to set up an Industrial company in Dubai?

 

1.1 Choose an activity corresponding to the manufacturing sector

The first step for the creation of an Industrial Company is to choose the good or product you want to manufacture, in this way the legal form and the corresponding license (commercial, industrial or professional) are determined. Also, you could open a Textile Company, a printing or publishing company, a parts factory, etc.

Keep in mind that a company in Dubai can be engaged in more than one activity at a time and that the United Arab Emirates offers more than 2,000 productive activities to choose from.

1.2 Select a local partner

To carry out the process of forming an Industrial Company in Dubai, you need the support of a local agent, a national representative who will accompany you throughout the process and who will take care of all the paperwork.

1.3 Select the legal form

The legal form will depend directly on the product or the good that you are going to make and is the basis for applying the laws and regulations of your company. The investor can choose between the following legal forms:

• Limited liability company (LLC)
• Public joint-stock company (PJSC)
• Private joint-stock company (PrJSC)
• Civil company
• Local company branch
• General partnership
• Limited partnership
• Foreign company branch
• Free zone company branch
• Sole establishment
• Holding companies.

Important to realize: The legal form must coincide with the chosen productive activity

1.4 Choose a name for your Industrial Company

Firstly, every Industrial Company in Dubai must have a trade name that distinguishes your business from another, and in turn, must reflect its essence. This must be directly related to the chosen activity, cannot allude to any religion or political ideology, cannot be previously registered, and must respect the moral values ​​and laws of the United Arab Emirates.

Throughout the trade name selection process, you will be given a payment voucher or transaction number that you will need as a reference when paying.

Must be remembered: Trade names certificates are renewable and are registered by the department of economic development. While the trademark is registered by the Ministry of Economy.

1.5 Send the corresponding documents

After choosing your trade name, the legal form, and having chosen a local agent, you must register your company with the DED (Department of economic development) to obtain initial approval and other types of approvals.

1.6 Initial Approval

Afterward, your documents have been reviewed and processed, the UAE government will notify you if your application has been approved.

Receiving this approval means that the government of the United Arab Emirates accepts the creation of your Industrial Company and you can continue with the next steps of the formation process, however, it does not (yet) grant you the authority to start working.

Also, foreign investors who decide to set up an Industrial Company in Dubai must first obtain approval from the General Directorate of Residency and Foreign Affairs.

1.7 Memorandum of association

Once the first part of the formation process of an Industrial Company is completed, you must file a Memorandum of Association (MOA) signed by all the shareholders.

1.8 Submit to the Ministry of Economy

Once the Memorandum of Association has been signed, you must submit the corresponding documents to the Ministry of Economy, where you will receive authorization to continue with the formation of your manufacturing company.

1.9 Find a location

According to the laws of the United Arab Emirates, every company must have an infrastructure, a physical address where the company is located. For this reason, you should rent an office or Business Center in a beneficial location for your necessities.

Additionally, as a requirement, you must provide the official rental agreement and in Dubai, this agreement must be registered by Ejari.

1.10 Dubai Municipality

Afterward, to continue the process of forming an Industrial Company you must obtain the approval and permission of the Dubai Municipality’s planning department to obtain the Industrial license. Once the approval is received, you must complete the documentation and submit it to the environment department to obtain authorization to continue the process.

1.11 Civil defense

After obtaining permission from the Dubai Municipality, you must apply for a NOC (No Objection Certificate) from the Civil Defense, to continue with the process of forming your manufacturing company.

1.12 External Approval

In addition to the approvals shown above, some manufacturing industries in the United Arab Emirates need approval from other government departments. It is important to note that this will depend on the objects or goods that your company produces. For example: If you produce food, you need a food control permit. In the same fashion, if you decide to produce any chemical material, you need permission from the Narcotics Department.

1.13 Trade License

After receiving all the relevant approvals and necessary permits, you can submit the final documents to the Department of economic development to receive your industrial trade license. At last, make the payments of the corresponding fees and your trade industrial license will be delivered to you.

2. Which activities fall under the Industrial License?

Industrial licenses work for a large number of activities and many of them are directly related to manufacturing. For example:

• Food & beverage manufacturing
• Helicopter repair & maintenance
• Metal products coating
• Multi-dimensional images
• Sculptors
• Textile manufacturing
• Adhesive & paper slitting
• Bookbinding
• Saddle & animal, bird training requirements making
• Safety harness manufacturing
• Casting of metals
• Cards & envelopes printing
• Lathe workshop
• Magnetic technology equipment trading

To clarify, this is a general list of some activities that need the Industrial license.

Note that if your company does production, fabrication, preparation, or manufacturing of products, then you will need an industrial license as well.

3. What is the cost of the Industrial License?

Firstly, the cost of the application for an Industrial license will depend directly on the area in which you want to establish your company.

As shown above, to apply for a license, you need to comply with certain documents, obtain certain approvals from government entities and pay the corresponding fees.

In general, an Industrial License can cost between 10,000 – 25,000 AED, these prices may be different if you decide to set up your Industrial Company in a Free Zone.

4. What is the cost of an Industrial Company Formation?

Due to the growing popularity of the financial benefits that can come from investing in the United Arab Emirates, the costs to set up a manufacturing company are relatively low. As following:

• Initial Approval: AED220
• Trade name approval: 720 AED
• MOA preparation: 600 AED
• Notarization of MOA: 1800 AED
• Sponsorship Fee: AED10,000
• License: 10,000 – 25,000
• Market fee: 5% of the rent
• Environment Impact Assessment Report: 10,000

5. Benefits of forming an Industrial Company in Dubai

The exponential growth that has occurred in the United Arab Emirates in recent years has brought multiple benefits to new investors, encouraging the creation of new companies every day.

The government of the United Arab Emirates, over the years, has tried to diversify its investments to attract new entrepreneurs and position itself as the leading region when it comes to economic growth.

Due to the new regulations, investors have 100% ownership of their companies and can trade without any restrictions.

Among the benefits of an Industrial Company Formation in Dubai, we find the following:

• Business supportive regime
• Optimal chances for business growth
• Maintaining business privacy
• World-class infrastructure
• Exemplary standard of living
• Strategic location
• Excellent connectivity

6. Why is Dubai the perfect place for your new Industrial Company?

In essence, Dubai is one of the most economically attractive areas for old and new investors. It has an open environment and full support for small, medium, and large companies that allow the growth of the region’s economy.

Free-market policy, fair competition, and low taxes have been another key point to receiving multiple foreign investments each year.

Dubai is the perfect place to invest for the following reasons:

• It has a strategic geographical location, it is located in the heart of MENASA (Middle East, North Africa, and South Africa). Also, it allows trade with these regions of the world.
• It has a very stable financial and banking system
• The taxes in this region are the lowest in the world
• The economy is proactive and constantly evolving
• As an incentive for new investments, they have an entire support system to facilitate the formation of an Industrial Company.

7. How to set up an Industrial Company in Dubai Industrial City?

 

The Industrial Company Formation process in Dubai Industrial Park is very similar to the process of setting up an onshore company in Dubai.

Firstly, you must choose the productive activity of your company, select the trade name (which must be related to the productive area), prepare the memorandum of association, and take the corresponding documents to the relevant government authorities.

Then, once the documents are ready, you will be given a registration certificate and business license.

Dubai Industrial Park has, at the present time, six areas in which companies can work. Each area is dedicated to a specific productive activity, like the following:

• The transport area
• The machinery area
• The food and beverages area
• The mineral production area
• The base metal area
• The chemicals area

 7.1 What is Dubai Industrial City?

Dubai Industrial City is the free zone in Dubai that focuses on manufacturing industries. It opened in 2004 and recently its name changed to Dubai Industrial Park.

7.2 What type of Industrial Company can settle in Dubai Industrial City?

At this point, Individuals or legal entities can establish limited liability relationships in Dubai Industrial City. Subsequently, foreign companies can open extensions of their offices or enter into joint ventures with other companies in Dubai.

The industries allowed to settle in Dubai Central Park (in addition to manufacturing) are:

• Machinery
• Transportation
• Logistics
• Food and beverages

Also, Manufacturing Companies in Dubai Central Park can process metals, minerals, and even chemical materials.

8. In which way can we help you with the setup of your Industrial Company in Dubai?

When it comes to Industrial Company Formation in Dubai, Connect Zone is the perfect partner to carry out this process. We are your trusted agency that will take care of all the paperwork, legal and administrative aspects so that your only concern is to focus on the formation of your new business. Also, we will provide you with the best places to locate the headquarters of your company.

Here at Connect Zone, we care about your safety and the security of your investment, which is why we assume the role of your local agent, to guarantee a safe process.

Would you like to connect with us?  If you want to learn more about Connect Zone and how to set up an Industrial Company in Dubai, you can call us at +97143316688. Also, you can contact us via email at info@connectzone.ae, where you will speak with one of our advisors who will answer all your questions.

Besides, if you are looking for a job in the UAE and other regions, feel free to visit thetalentpoint.com. Do not worry, your information will not be shared or stored in any database.