The city of Dubai is characterized by a great diversity of investment businesses, and import and export are very prosperous in the Emirates in general. This is why many people want to open a factory in Dubai and start investment business there. Therefore, in the lines of this article, we will talk about the steps for starting up a factory in Dubai, in addition to some important information about this topic. Continue reading with us to know more details.
Starting up a factory in Dubai
In order to open a factory in Dubai, you must follow these steps:
1- Determining the nature of economic activity
The step of determining the nature of the economic activity of the factory or company helps determine the commercial license that must be obtained. For this reason, this step is considered one of the first and essential steps in this process. What you should know here is that there are some activities that the UAE allows to be carried out on its territory, and they are more than 2,000 different activities. While there are some other activities that are not allowed to be practiced at all, such as oil mining and others.
2- Determining the legal form
This step is considered very important for the process of opening companies in Dubai, as is the case for starting up a factory in Dubai. The legal form of the factory depends on its business requirements, and the legal form must match the economic activity of the factory.
3- The selection and registration of the trade name
The next step in the process of starting up a factory in Dubai is to choose the appropriate trade name for this factory, in addition to registering this name with the relevant authorities. In general, the process of selecting a trade name is subject to some laws and conditions that must be complied with, such as avoiding words offensive to religions, in addition to previously existing trade names and others. It is also worth mentioning that the factory’s trade name must be compatible with the nature of its activity.
4- Obtaining initial approval
The initial approval document means that the UAE has no legal objection to establishing the facility on its territory. For this reason, you must obtain this approval in order to be able to complete the following procedures in the process of starting up a factory in Dubai. Knowing that some activities require obtaining some government approvals before securing initial approval, such as activities related to goods and others.
5- Concluding the articles of incorporation
The articles of incorporation are usually concluded before the site for the factory is selected, but this contract can be postponed until some next step. In any case, not all activities require an incorporation contract, and some may require the conclusion of a local service agent or company agent agreement.
6- Selecting the establishment site
This step boils down to choosing the appropriate place to open the factory in the Emirate of Dubai. Knowing that the process of selecting the appropriate location for the factory is related to several different factors, the most prominent of which is the nature of the factory’s activity in the first place.
7- Obtaining the commercial license
The final step in starting up a factory in Dubai process is obtaining a trade license. The appropriate commercial license for the factory is determined primarily according to the nature of its business, and service companies can be used to secure the appropriate commercial license for each investor. It is also worth noting here that some activities require obtaining additional government approvals before obtaining a commercial license, such as the Health Authority, the Ministry of Economy, the Ministry of Justice, and others.
Are the steps for opening a factory different from the company’s?
Yes, but the difference between the steps for opening a factory in Dubai and opening a company in Dubai is rather simple. The differences between the two operations can be significant if the nature of the economic activity of the company and the factory is different.
The cost of starting up a factory in Dubai
As for the cost required to starting up a factory in Dubai, it depends on several different factors. The most important of these factors is the nature of the economic activity of this factory, in addition to the size of the factory to be opened in the emirate. Not only that, but this cost can vary depending on the commercial license that must be obtained, in addition to the location of establishing and opening the factory, the cost of operating it, and so on. For this reason, the cost required for this process cannot be determined, but rather changes from one investor to another.
Can service companies be used?
Yes, as it helps these companies better clarify the necessary steps for the process, and contributes to implementing these steps as well. One of the most prominent companies that can be cooperated with is Tdabeer Company, which has extensive experience in the field of establishing companies and businesses in Dubai and the Emirates. Do not hesitate to contact us through the links at the bottom of this article in order to benefit from our services to open your factory in Dubai as quickly and at the lowest cost.
Tdabeer company for establishing companies in Dubai
Tdabeer Company offers a wide range of different investment services related to the field of establishing companies and businesses in Dubai. One of the most prominent services that we provide is implementing all the necessary procedures for establishing companies in Dubai or the Emirates, opening commercial records, obtaining commercial licenses of various types, in addition to opening bank accounts, etc. Tdabeer also helps clarify all the steps that must be followed in order to establish establishments and businesses in the Emirates in general. Contact us through the following links in order to register for our services or for a question or inquiry about the topic of today’s article.
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