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

Industrial Company

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.

How to set up an industrial company in Dubai?

industrial company

The diversification of Dubai’s economy opened up a gap to new methods of income. Among them, the industrial company is an important asset in this Emirate. A strategic location, state-of-the-art equipment, and a successful market set Dubai a perfect center for establishing manufacturing companies of any category.

In this article, you will learn all about setting up an industrial company in Dubai. Plus the long list of business activities you can do. On the other hand, you will find out what steps to take to make the process run smoothly. Moreover:

  1. What types of activities are manufacturing companies in Dubai engaged in?
  2. Why should you start an industrial company in Dubai?
  3. Where is the best area in Dubai to start an industrial business?
  4. How to open an industrial business in Dubai?
  5. What can you do with an industrial license in Dubai?
  6. How much will it cost to form an industrial business and obtain an industrial license?
  7. How can we help you in the UAE VAT Registration process?

1. What types of activities are manufacturing companies in Dubai engaged in?

Dubai is famous for its wide economic activities’ diversity. Foreign investors see the Golden City as a zone for establishing manufacturing companies. That is to say, enterprises aimed at manufacturing products from raw materials, focusing on the use of machinery rather than human power.

Therefore, the idea of industrial companies is to create as many goods and services as possible through automated systems using the UAE’s tech developments. On the other hand, there are multiple types of activities performed by industrial companies in Dubai. These can be:

  • Base metal engineering
  • Chemicals
  • Transportation
  • Food and beverage
  • Machinery
  • Mining
  • Energy
  • Textile

There are other types of companies that work with product manufacturing in Dubai like clothing, hardware equipment, or hydrocarbons. However, companies linked to oil, gas, and telecommunications do have some restrictions when it comes to 100% ownership. Of the rest, all manufacturing companies keep the same benefits, rights, and duties.

2. Why should you start an industrial company in Dubai?

Dubai is a world-class financial center. Any foreign entrepreneur wishing to start an industrial company in Dubai should know the following key points about business setup in Dubai:

  • Strategic location: Dubai is a city with two of the best international airports and world-class infrastructure allowing investors to access the city with ease.
  • Local and foreign talent: There is a wide range of local professionals ready to run the machinery of a manufacturing company. Furthermore, the UAE’s pro-migration policy allows entrepreneurs to access a highly trained pool of foreign talents from anywhere in the world.
  • Foreign Investors market: Dubai is one of the best investment cities in the world. Therefore, UAE authorities have flexible policies for company formation. Consequently, the rules and guidelines allow investors to establish themselves with ease and have high levels of productivity.
  • Broad customer base: Dubai’s large population, coupled with its successful market, allows access to a wide variety of customers. In addition, its strategic location allows access to consumers in the Middle East, Africa, and South Asia which may allow for future expansion into other markets

2.1 Other key points to consider are:

  • One of the lowest tax rates within the Middle East territory
  • Easy access to logistics equipment and means of transport for products and goods
  • Economical foreign and domestic labor force.
  • High-class infrastructures such as business centers, warehouses, and offices
  • Low cost of resources and energy sources. In addition, Dubai promotes green manufacturing. Resulting in an environment that seeks to promote more environmentally conscious companies.
  • Constant market development and growth. Providing new opportunities for local entrepreneurs.

3. Where is the best area in Dubai to start an industrial business?

Throughout Dubai, there are multiple Free Zones dedicated to business start-ups like Dubai Multi Commodities Centre (DMCC). However, if your vision is to start an industrial business, it is best to do it in Dubai Industrial City.

Since its launch in 2004, Dubai Industrial City (DIC) is home to more than 500 operational local and international companies. Thanks to its robust infrastructure, tech resources, and competitive enterprise structures and services, DIC aims to be a hub for manufacturing companies to grow with ease.

The DIC is located between Al Maktoum Airport and near Jebel Ali Port. In addition, the area has total free traffic driveways connected to Sheikh Mohammed Bin Zayed Road and Emirates Road. It allows access to different types of company structures such as LCC structure, branches, and subsidiaries according to the owner’s license.

Likewise, the DIC guidelines permit maintaining 100% foreign ownership; it has no personal income or corporate taxes and allows full repatriation of invested/generated assets and capital.

4. How to open an industrial business in Dubai?

Although there are very few restrictions for opening an industrial business in Dubai, the procedure is quite simple. All you have to do is to follow the next 10 steps to the letter:

4.1. Choose the type of industry

To get started in the Dubai industrial market, it is necessary to define your industry sector. In other words, choose the appropriate product you would like to develop.

4.2. Find a local partner

Secondly, you should look for a local partner to help you establish your Gulf business easily within the UAE. In this way, you will gain an ally within Dubai who can advise you 24/7.

4.3. Pick a trading name

The next step is to select a name that fits your corporate identity and Dubai’s guidelines on the subject. Remember to avoid abbreviations, religious references and, if you use a proper name, it should be that of the owner or a shareholder.

4.4. Initial approvals

To get started, you must obtain initial approval from the Department of Economic Development (DED). You will need to provide a copy of your passport and your detailed business plan to open your industrial company in Dubai. This will allow you to get approval on your trading name and future requirements.

Likewise, it is important to note that you will require some extra permits according to the type of business. For example, some industrial activities may be harmful to humans and the environment. Therefore, it is necessary to obtain additional approvals before setting up in Dubai.

4.5. Post Approval Memorandum of Association

After obtaining approval for the product and trading name, it is time to sign the Memorandum of Association (MoA). For clarification, a draft of the MoA should be taken to the notary’s office for owners and shareholders to sign before submitting it to the DED.

4.6. Get a signed NOC

After submitting the required documents, you must obtain a NOC. The No Objection Certificate will allow you to start your manufacturing company operations as soon as possible. For this, you will need a NOC from the Ministry of Economy and Trade. You can obtain it by attaching the necessary documents.

4.7. Locating a commercial space

Choosing a warehousing space or a commercial office is critical. You must choose a location and look for a space to rent or buy. One of the biggest advantages that Dubai has is the wide variety of spaces equipped for industrial businesses.

Also, remember to look for a space that meets the construction measurements according to Dubai regulations. To get a trade license further on, virtual offices are not permitted.

4.8. Ejari and tenancy contract

After choosing the commercial and warehousing space, you must obtain your Ejari registration, the tenancy contract, and a barcode for future reference. Each one will be unique and unrepeatable.

4.9. Last requirements and approvals

Depending on the type of activities and products, you will need to obtain additional permits. For example, obtain approval from the Dubai Municipality and a NOC from the civil defense. This will help you to obtain an industrial clearance.

Similarly, depending on your product, you will also need different approvals. For instance, food control, narcotics department, or Dubai police could be some of the cases.

4.10. Get a valid trade license

Once all the requirements have been met, the only thing left to do is to opt for a trade license. In the case of manufacturing companies in Dubai, the most advisable is to opt for an industrial license.

4.11. Apply for a residential visa

Because you will need a physical workspace, it is essential that you apply for a visa. Depending on your purchasing power it can be a short-term visa, i.e. 3 years, or a Golden Visa which has a longer duration.

5. What can you do with an industrial license in Dubai?

There are three different types of trade licenses in the UAE (industrial, professional, and commercial) and each covers a different set of activities.

Therefore, the industrial license allows its holder to work within the manufacturing industry with freedom focusing on sectors such as food, textiles, metallurgy, heavy equipment and engines, hydrocarbons, and paper.

Getting an industrial license is the final step before opening an industrial business in Dubai because it is the one that guarantees that the business owner has fulfilled all the requirements to operate in the UAE. The license is yearly renewable

5.1 How can you get an industrial license in Dubai?

Among the steps to follow are:

  • Obtain the appropriate permits from the Dubai authorities.
  • After three months from the receipt of the authorization, you must apply for your license through DED.
  • The DED intermediary will notify you of the status of your license within 15 days.
  • Obtain a permit from the city council to build or modify the manufacturing business space. You will also need approval from the Chamber of Commerce and Industry, the Industrial Registry, and the Ministry of Health.
  • Submit the required documents according to the specifications

6. How much will it cost to form an industrial business and obtain an industrial license?

Dubai’s policies ensure that the company formation process is fast and cost-effective for both foreigners already resident in Dubai and newcomers.

In this regard, the total cost of manufacturing company formation can vary from AED 9,000 to AED 15,000. On the other hand, the license fee can range from AED 10,000 to AED 50,000 annually.

7. How can we help you to set up an industrial company in Dubai?

To sum up, starting an industrial business in Dubai is a perfect option to enter the Emirati market. If you know your product well and have a structured business plan, it is possible to start operations in a short time. At Connect Zone we have more than 20 years of experience helping local and foreign investors to set up their business in Dubai.

Our team is ready to assist you during every stage of the company formation. In addition, we can provide you with bookkeeping services, VAT registration systems, and consultancy services. Likewise, if you are interested in long-term residency in the UAE, we also offer specialized visa services to help you obtain your residency quickly, easily, and cost-effectively.

Would you like to contact Connect Zone to help you set up an industrial business in Dubai Mainland or Free Zone? If you have any questions, call us on +97143316688. Likewise, you can email us at contact@connectzone.ae, and you will talk to one of our representatives who will answer your questions.

In addition, to receive extra information attach your CV or resume to thetalentpoint.com. There is no need to worry, your personal information will not be stored or shared.