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Get Free ConsultationManufacturing industry enthusiasts, this one’s for you!
If you think that the UAE manufacturing industry is quite humble, think again. In 2021 alone, the manufacturing industry added a value of a staggering 152,501 million AED to the UAE economy. Contributing those values to the UAE economy, well, most people may not even be able to comprehend it.
But, if you are on the verge of entering the manufacturing sector, well, you may just have a chance to see it first-hand. In this blog, we have put together a guide for the most crucial step for beginning your career in the manufacturing industry- Manufacturing Licenses!
Read ahead to know how you can get yours!
A manufacturing license is like a legal permit that will allow you to manufacture goods on UAE soil. These goods can be anything, from foods and beverages, to leather products manufacturing, to electronic products, and more.
A manufacturing license will allow you to carry out all these processes and more, you can call it a formal authorization to operate your manufacturing business in any region in the UAE.
You need to comply with the UAE’s and particularly comply with regulations of the region you are thinking to start operating from, to get that formal authorization. For example, you might require a free zone manufacturing license if you plan to begin manufacturing operations in any of the free zones.
Pertaining to the nature of your business, and the kind of products you’ll be manufacturing, there can be different manufacturing licenses. The key is to understand your business thoroughly before applying for a manufacturing license.
The different types of licenses can be:
This is for smaller manufacturing units, which means there will be a limited production, as well as capacity. Now, getting an SME license means you shall have to abide by lesser stringent laws as well, so if you know that the capacity of your manufacturing “plant” or business is small, go for an SME license.
This is for the Free Zones; the underlying factor of setting up any business in the free zones is that there are tax benefits. So, if you are thinking of opening up your manufacturing business in any of the Free Zones in the UAE, apply for this.
This is the license you shall be applying for if you are operating a large-scale manufacturing unit. Since large manufacturing units take up a major number of resources, all these aspects need to be taken into consideration, as well as the environmental impacts of the same.
Specialized manufacturing licenses cover all businesses that manufacture special types of products. We can get medicinal products under this umbrella as well- since they need to meet certain standards before being subjected to clinical trials and then the market.
If you are a new entrepreneur entering the manufacturing industry, then here’s what you should know about applying for an appropriate license for your business.
The first thing when getting started with a business is to get all the basic stuff ready. This is the first step before you register your company with the Department of Economic Development (DED). You will also need to choose a legal structure for your business as well.
Keep all the required documents at the ready, these may include passport and visa details, if you are a foreign resident, in addition to a detailed business plan.
Make sure to include business details in the applications, clear goals and objectives of the manufacturing company; and include any environmental aspects if assessment is required as well. This will help you get an initial green light for your manufacturing business.
Once you get your initial approval, it is time to pay the license fees and then acquire the final approval, i.e., your manufacturing license. The fees actually depend on the type of manufacturing business you are in so pay attention to that.
Manufacturing business is booming in the UAE, and it is fair to wish for a piece of profit in this as well.
With the different types of licenses in the manufacturing sector, it is important to understand your business well and then apply for a license that suits your business needs.
The above points were a subtle guide to helping you out in your quest to capture the manufacturing industry in the UAE.
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Starting a manufacturing business in the UAE is no doubt a fantastic journey. Entrepreneurs planning to start a business in the UAE must be aware of the licensing regulations and the further compliance requirements that are to be met to get their business floating in the market. The overall process might seem to be overwhelming but don’t worry the professionals at CDA can assist you in getting the licenses issued by the authority
CDA is here to help you out! Give us a call to get the best of professionals to help you out in the manufacturing industries sphere, and also to give you an upper hand when it comes to business in the UAE!