June 14, 2024

All about starting an industrial company in Dubai

industrial company

Dubai, being strategically located, is home to many business sectors. Many investors look to Dubai to invest their money in various business opportunities. Starting a business in Dubai is now very easy. It is not as complex as it seems. Entrepreneurs with innovative ideas can identify the hidden opportunities in Dubai and make their dream of business a big reality.

Entrepreneurs and investors looking to start an industrial company in Dubai can get their procedures sorted easily by getting assistance from professionals like CDA, who can get the business afloat effortlessly. Being aware of the landscape of Dubai, CDA’s professionals can guide you in selecting the best area and resources to start the industrial company. In this blog, we will enlighten you on the simple processes required to start an industrial company in Dubai.

The business environment in Dubai is favourable to the success of Industrial companies, the Ministry of Industry and Advanced Technology (MoIAT) has launched a 10-year strategy that aims to increase the industrial sector’s contribution in GDP to AED 300 billion by 2031. Along with that the Dubai Industrial strategy 2030 policy has also targeted to add AED 160 billion to the emirates GDP by 2030.

Dubai being a strategic location for industrial companies.

There are various reasons why Dubai has become the epicentre for industrial companies, making it a highly competitive and prosperous market. The factors that contribute to this prosperity include the following:

1. Prime location

The demographic location of Dubai enables it to connect with other major countries easily. Along with that, it has easy access to the global market due to the world-class transport facilities like airports, shipyards, and roadways. These factors make Dubai the best location for industrial companies.

2. Various tax benefits

The UAE as a whole provides various tax benefits to businesses as well as individuals. Till now, there are two main tax regimes prevailing: VAT and corporate tax, which have minimum rates, enabling businesses to flourish easily.

3. Best-in-class infrastructure facilities

Dubai has some of the most premium infrastructure facilities and amenities, including a great transport system, premium health centres, quality education, etc., which increases the customer perspective, resulting in the boom of industrial companies.

4. Easy access to potential talents

Dubai is home to many skilled individuals, like creative thinkers, professional engineers, innovative investors, skilled technologists, etc. These kinds of individuals, with their great vision and ideas, build a nation that provides various scopes for businesses.

5. The global attraction for investors

Dubai is the biggest attraction for potential investors from all over the globe. Every businessman looks up to investing in Dubai, making it easily accessible to foreign direct investments. The industrial companies can also easily acquire foreign investments.

6. Political stability

Dubai is also known for its political stability, which provides investors and entrepreneurs with a sense of confidence and trust, which allows them to take huge risks and start innovative industrial businesses in Dubai, UAE

7. Diverse target markets

Dubai has a diverse target market, which provides level fields to all the entrepreneurs who are planning to start industrial companies in Dubai. Due to its vast diversity, every product and service can grab a major market share in Dubai.

8. Easy business set-up procedures

All the entrepreneurs wishing to start their industrial companies in Dubai can easily get started due to the easy set-up formalities laid out by the authorities. Even professional business set-up firms like CDA assist entrepreneurs in getting the procedures done easily.

How to start an industrial company in Dubai?

Entrepreneurs and investors planning to set up an industrial company in Dubai must be aware of the below-stated general procedures, which can guide them in the startup process. Starting an industrial company for a new entrepreneur may seem intimidating, but in fact, it is not as complicated as it seems. Below are the general steps to be followed:

1. Conducting market research and deep study

Carry out a deep market study and feasibility study in Dubai to identify the hidden opportunities and potential investment areas for industrial businesses. By doing so, the investor can get a clear insight into their objectives and the products or services they will have to design for the market.

2. Select the industry for the investment.

The next step may include the selection of the industry based on the market research conducted. Investors who have past experience setting up an industrial company may find it less intimidating, whereas, for new investors, business set-up service providers can assist in selecting the most optimal and viable industry for setting up.

3. Deciding the business structure and developing a business plan

The next step that investors must keep in mind is the selection of a type of business structure based on its viability. Investors can opt for various business structures in Dubai, which include limited liability companies, free zone companies, establishments, branches, foreign companies, etc. It also includes the development of the business plan, which might include the nature of the industrial company, the target market, objectives and goals, financial targets, short-term plans, etc.

4. Getting the registration and the licenses for the industrial company

The next main step includes the registration of the industrial company that the entrepreneur has decided to set up. The entrepreneur must approach the concerned authority to get it registered, along with the submission of all the relevant documents. DED (Department of Economic Development) is the authority responsible for issuing the licenses and permits for business setups in Dubai. For the free zone companies, the concerned authorities must be approached.

5. Getting approvals from certain ministries and departments

As a part of sustainable development, Dubai has a stringent framework for industrial setups that might pose hazards to the environment and humans. Investors and entrepreneurs planning to start industrial companies that involve the generation of certain hazardous wastes must get approval from the concerned departments before getting trade licenses to avoid future consequences.

6. Getting the name of the company registered

All the documents for the setting up of the industrial company are issued under the company’s name, which must be registered with the DED along with the required documents. The selection of names must follow the regulations laid down by the authorities.

7. Creating MOA

The next process is the creation of the MOA, which includes all the details for the company, which must then be duly notarized by an authorized public notary and then submitted to DED.

8. Getting the No Objection Certificate from the Ministry of Economy and Commerce

The next step that the investors have to follow is gaining the NOC from the Ministry of Economy and Commerce by providing all the required documents as per the instructions.

9. Getting commercial space for industrial operations

The industrial company will require its commercial space for conducting industrial operations, for which the investors can either get the area or warehouse for rent or lease it. The investors must ensure that they have the correct tenancy contract, which must be registered at RERA.

10. Getting approval for Dubai municipality and NOC civil defence

The investors are also required to get approval from the Dubai municipality before they set up their industrial company, along with the NOC from the civil defence.

The above-listed are some of the key steps that investors must follow before setting up their industrial company in Dubai. These are the general steps. The procedure is subject to changes as per the changes in the regulations of the authorities.

Some other key requirements to keep in mind

There are some further aspects that entrepreneurs and investors must keep in mind while starting an industrial company in Dubai. These include:

  • Selection of the location: Select the location based on its viability.
  • Hiring the workforce: The investors must do thorough research before selecting the workforce required.
  • Ensuring compliance framework: The entrepreneurs must be sure about the (click here to know about our compliance services) compliance framework, and they must comply with all the rules and regulations of the land.
  • Adequate investments in infrastructure: industrial companies must make the required investments in innovative technologies and infrastructure to stay ahead of competitors.
  • Adequate promotional strategies: The industrial companies after the establishment must make adequate promotions to make the public aware of the product or service they produce.

These are general factors that every investor who is planning to start a business in the UAE must keep in mind, irrespective of the type of business. These factors are crucial to avoid future mishaps. Investors can approach professionals to get the process of setting up a business in Dubai simplified and sorted effortlessly to ensure their prosperity in the future.

CDA: Your business setup partner in Dubai

Get your industrial company in Dubai started without any hassle with the professional business setup service provider at CDA. Starting an industrial company in Dubai offers many advantages that attract investors around the globe. The formalities of starting a business might seem complicated. CDA’s team of experts simplifies these complexities by providing you with all the assistance you need to set up an industrial business. We can help you prepare all the required documents, get the licenses approved, get approvals from the authorities, and select strategic locations. Ensuring compliance, etc. Consider CDA as your business setup partner. To learn more about our varied business setup services in Dubai, click here