29 September, 2021

How to start an industrial company in Dubai?

start an industrial company in dubai

Industrial companies can vary in size from big businesses to small manufacturing operations that take raw materials and turn them into finished goods. These final items can be sold directly to customers or used by other manufacturing companies to create a new product. Machines, robots, computers, and people all work together to generate a product in manufacturing firms. Over time, the UAE has established itself as the best place to start and run an industrial business. The reasons vary, but they include the ease of forming an industrial firm, high profitability, and a business-friendly climate, as well as tax and cost advantages.

Foreign investors and business owners who wish to start a manufacturing company in Dubai must adhere to strict guidelines.

Steps to start an industrial company

These are the steps to follow if you want to start an industrial company in Dubai-

1. Choosing a commercial activity to engage in. This step is crucial since it determines which sort of company license should be chosen in the previous stage.

2. Apply for initial permission as well as getting your trade name approved by the relevant authorities.

3. To get authorization for your industrial company, draft a Memorandum of Association –MOA– and get a NOC from the Ministry of Economy.

4. To start the business, locate a well-equipped warehouse.

5. To avoid future problems, obtain a lease contract as well as an Ejari from the warehouse landlord.

6. To get an Industrial License in Dubai, you must first seek permission from the Dubai Municipality’s Planning Division.

7. Obtain a letter of authorization from the Civil Defense.

8. Submit all papers to the Environment Department for Industrial Clearance when the approvals are granted.

Obtain extra permissions if your business activity needs them. These additional permissions are generally required for certain manufacturing firms, such as obtaining a NOC from the food control authority if you are producing food goods. Getting authorization from the narcotics department for chemical manufacturing, or even the Dubai Police if you want to make jewelry, is a similar process.

After obtaining these permissions, submit the required paperwork to the Dubai Department of Economic Development to register your firm (DED)

Fees need to be paid to get your Certificate of Incorporation and Industrial License.

Benefits of starting an industrial company in Dubai-

The following are some of the advantages of establishing an industrial firm in Dubai:

1. For factories located in one of Dubai free zones, there are no or low taxes.

2.  Low labor costs, as this is the primary source of employment in emerging and underdeveloped nations such as India, Bangladesh, and the Philippines.

3. The company’s cutting-edge infrastructure is considerably better than those of its competitors. It also includes ready-to-use industrial units, as well as office leasing spaces.

4. A good geographic position with excellent access to African and Asian markets, including direct routes to India and China.

5. It is located in a rapidly expanding region that offers fresh investment and commercial possibilities.

Owning an industrial firm makes sense in the United Arab Emirates because of the lack of taxation and other benefits.

The permission for additional criteria must also be obtained from the Dubai Municipality, which has its own set of rules that apply to-

  • Canning and packaging of food products
  • Labeling of food products
  • The list of ingredients of the products
  • The name of the business producing the products which must be printed on the package
  • The expiry date
  • The bar code
  • The storage and use instructions
  • The net weight of the product

The UAE’s Food Code must be followed by the industrial industry.

  • For each component of the plant, specific building designs must demarcate the ceilings, floors, and walls.
  • Needs for lighting and ventilation
  • The plumbing system, as well as the manure and waste disposal lines, are all in good working order.
  • The equipment used to make food items should be kept in a pristine, sanitary condition and cleaned on a regular basis.

How Radiant Biz helps you

In matters like business setup in Dubai, people tend to get confused and get in chaos due to several rules and requirements. This is the time when people tend to look for an expert. A lot of chaos can be avoided if guidance is taken from the very beginning. Each venture may have unique requirements like location, customer convenience, logistical feasibility, and banking services.

We at Radiant Biz strive to understand these unique precepts and provide expert and trusted business consultants to our clients with updated laws and governing regulations, awareness of their rights, and cost-effective business solutions tailor-made to their business needs and budget.