We know that you have always dreamed of starting your own business and being your own boss. Starting your own business is the most exciting process you have ever been involved in. But at times it can also become the most stressful process as well. However, we can make it easier for you by offering various business setup services. Bizvisor is a leading business setup company that assists you in mainland company formation, offshore company formation, etc.
Dubai is a lucrative market and there are various options for you to start your own business. We have already shared blogs on how we assist you in various business setups in Dubai.
Today, let’s read how to obtain a manufacturing license in Dubai, UAE.
Dubai is the ever-expanding place to start your own business and if you are thinking of starting your manufacturing business then believe us, it is the best decision you have ever made. Dubai has been located in a place that it gets benefits from around the globe. It becomes easier for people to import and export goods. Hence, setting up a manufacturing business in Dubai can be the best decision.
Let’s read how you can obtain a manufacturing license.
- Define your business activity: The first step of every business is you have to choose which type of things you want to manufacture, such as electronic components, pharmaceuticals, cosmetics, etc. Accordingly, you need to have a license from a respected authority. In Dubai, for different things, different authorities check everything first and if they find it legitimate, they grant you a license.
- Choose Mainland or Free Zone: As you know, there are different zones in Dubai to set up your business. You have to finalize which one suits your business models and future goals. Free zones have their own benefits, like tax exemptions and 100% foreign ownership, etc. If you set up your manufacturing business in Mainland, you can trade directly with the UAE market and many more. Hence, we suggest choosing carefully which zone is best for your business setup.
- Reserve Trade Name & Determine Legal Structure: As you decide on the above-given things, the next step is to reserve a unique trade name that doesn’t harm anyone’s feelings and isn’t used by anyone. Reserve your name under the Department of Economy & Tourism (DET) for Mainland or any free zone authority.
- Seek Initial Approval & Secure Facility Lease:
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- Initial approval: You have to apply with the necessary documents, like submitting a business plan, passport copies of shareholders, and the application form, to get the initial approval. This process is followed in both the Mainland as well as the Free Zone.
- Facility Lease: To obtain a license, it is necessary to have a property or warehouse in an industrial zone. You have to provide a lease agreement as a piece of evidence.
- Obtain Additional Approval: You have to get external approvals from the respected industries you select.
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- Health and safety: If the products you manufacture are impacting health concerns, then you have to get approval from the Ministry of Health & Prevention.
- Environmental approval: If your processes release harmful chemicals, then you have to get approval from the Ministry of Environment & Water. If your businesses release extreme chemicals, then get the approval from the Environmental Impact Assessment.
- Likewise, take necessary approvals from civil defense, utilities, and specialized bodies.
- Apply for the Manufacturing License: As you get the following documents verified and approved and have a trade name and finalized legal structure, the next step is to apply for a manufacturing license. Submit all the documents to the DET for an industrial manufacturing license, SME Manufacturing License, or Specialized Manufacturing License. Submit the documents, pay the fees, and then patiently wait for your manufacturing license.
- Register with MOIAT: Once the registration process for the manufacturing license is completed, then you have to register with the Ministry of Industrial & Advanced Technology to get an Industrial Production Certificate. This registration is a must to claim your business as an industrial entity for tax customs on raw materials and machinery. Additionally, you have to submit a new license, proof that you have sufficient income to start your new business, and an overview of your business plan and production house.
- Final Site Inspection: As mentioned above, there are specific authorities for specific industries. They will physically check your premises and ensure that everything is up to par. Major concerns will be fire safety compliance, environmental concerns, and Free Zone standards.
- Commence Operation: This is the final stage to obtain a manufacturing license. At this point, you have to find employees and apply for their visas if they are not local residents. Then if you don’t have sufficient machinery, import or export it. If you have applied for or have a MOIAT certificate, you can also get a tax exemption. Once everything is done, you are all set to start your manufacturing business.
By following this process, you can easily get your manufacturing license.
Conclusion
We have shared the whole process that assists you in obtaining your manufacturing license. We understand that it is not an easy task to start something of your own but we believe that with a bit of help, it can become a little easier. At Bizvisor, we assist you with your manufacturing license process as well as finding you a space to start your business, trade name, bookkeeping and auditing, and many more services. Just reach out to us with your queries and we will do our best to assist you with your business setup process in Dubai, UAE.