Manufacturing Business Setup in Dubai – UAE

Dubai is one of the most attractive destinations for investors who want to start a manufacturing business. The emirate offers a strategic location, a diverse consumer base, a talented workforce, and a supportive government. However, a manufacturing business setup in Dubai requires careful planning and following some steps.

• Choose your business activity. You need to decide what product you want to manufacture and what market you want to target. You also need to check if your business activity is allowed in Dubai. If it requires any special approvals or licenses.
• Choose your legal form. You need to select the appropriate legal form for your business, such as a limited liability company (LLC), a branch of a foreign company, or a free zone company. The legal form determines the ownership structure, the liability, and the taxation of your business.
• Choose your trade name. Establishing a business in Dubai requires registering a trade name that matches your business activity and follows Dubai’s rules. Achieving this involves applying for the trade name through the Department of Economic Development (DED) or its website or mobile app.
• Apply for an initial approval. Before commencing your business setup, securing an initial approval from the DED or the relevant free zone authority is crucial. This initial approval confirms your eligibility to proceed with the setup, ensuring you meet the basic requirements.
• Draft a memorandum of association and a local service agent agreement. When establishing an LLC or a branch of a foreign company in mainland Dubai, it’s crucial to draft a memorandum of association (MOA) as this document defines the relationship between the partners and outlines their respective rights and obligations. You also need to appoint a local service agent (LSA) who will act as your representative and handle administrative matters on your behalf. The LSA must be a UAE national or a company owned by UAE nationals.
• Select a business location. You need to find a suitable location for your manufacturing business, such as an industrial area, a warehouse, or a factory. You also need to obtain a tenancy contract or an Ejari certificate that proves your right to use the premises.
• Get additional government approvals. Depending on your business activity and location, you may need to get additional approvals from other government entities, such as the Ministry of Economy, the Dubai Municipality, the Dubai Civil Defence, or the Dubai Electricity and Water Authority (DEWA).
• Submit documents and pay fees. In order to obtain your final trade license from the DED or the free zone authority, it’s essential to submit all the necessary documents and fulfill the required fees. These documents typically encompass passport copies, visa copies, NOC letters, MOA, LSA agreement, tenancy contract, Ejari certificate, and the initial approval certificate.
• Start your manufacturing business in Dubai. Once you receive your trade license, you can start your manufacturing business in Dubai. You also need to register with other authorities, such as DEWA, Etisalat or Du, Dubai Customs, and Federal Tax Authority (FTA).