Dubai’s is a preferred destination for entrepreneurs looking to venture into the manufacturing sector. To support this industry, authorities created the Dubai Industrial City Free Zone, a dedicated zone that caters exclusively to the requirements of the manufacturing industry. Let us go through the article to learn about the benefits and the process of starting a manufacturing company in Dubai.
Benefits of Starting a Manufacturing Company in Dubai Industrial City
Here are some advantages for setting up a manufacturing business in Dubai Industrial City Free Zone:
● Access to Good Transportation
Dubai Industrial City’s free zone has one of the best transportation networks. It ensures that you can make use of it to conduct business in the neighbouring Emirates.
● Extensive Power and Water Supply
Dubai Industrial City free zone offers you ample power and water supply to meet industrial requirements. The free zone directly connects with Dubai Electricity and Water Authority (DEWA).
● Telecommunication
Dubai offers a reliable optic network that can help digitise your business.
● Strategic Location
Dubai facilitates global trade as it acts as a gateway between the East and West.
● Government Support
The government offers various incentives to support business setups in the DIC free zone.
● Tax Benefits
You can avail of competitive tax benefits by establishing your venture in the Dubai Industrial City.
Process to Setup a Manufacturing Company in DIC
To set up a manufacturing business in Dubai Industrial City free zone, you must follow the steps mentioned below:
● Decide the Business Activity
Conduct thorough research and decide on a business activity to conduct in the free zone.
● Prepare a Business Plan
The next step involves preparing a business plan. It should include a company description, market analysis, financial projections, and information about the provided products and services.
● Finalise Business Structure
Based on your goals, determine the suitable business structure. Select the one that offers you the most benefits regarding ownership and tax exemptions.
● Appoint a Local Sponsor
If the chosen legal structure requires a local sponsor in Dubai, appoint one to expedite the business setup process.
● Decide on a Business Name
Select a unique and appropriate business name by adhering to the regulations. The decided name should be registered with the relevant authority.
● Initial Approval
Submit all the necessary documents to the authorities at the Dubai Department of Economic Development (DED) for initial approval.
● Draft MoA
Draft the Memorandum of Association (MoA) and outline the company’s objectives, shareholding structure and other legal details.
● Rent a Facility
Find a suitable space to conduct manufacturing activity. Depending on the business requirements, you might need a warehouse or an industrial space.
● Open a Bank Account
To handle all your finances related to the business, open a business bank account in Dubai.
Which license is required to start a manufacturing business?
To set up a manufacturing company in Dubai, you must obtain an industrial license from the Department of Economic Development (DED), Dubai.
Documents Required for Starting a Manufacturing Business
The essential documents required to start a manufacturing business in Dubai include:
- Passport and visa copies of all shareholders.
- Copy of trade name registration certificate.
- Certificate of initial approval from the relevant authority.
- Memorandum of Association (MoA).
- Copy of rental/lease agreement
- Copy of detailed business plan.
- Copy of Approvals from all the relevant authorities.
If you are interested in setting up a manufacturing company in Dubai, the article offers you all the necessary information. In case of any doubts, you can contact the business consultants of Commitbiz LLC, a management consulting firm which specialises in business setup in Dubai and the Middle East.
