How to Start a Ceramic Business in UAE?

With the Ceramic Industry expected to boom to a whopping 12% growth rate by the end of the year 2020, manufacturers of floor tiles, ceramic panels, decorative items, and more such ceramic products have been having a jolly time in the UAE. The consecutive infrastructure developments such as Dubai International Financial Center (DIFC), Dubai Expo 2020 and Al-Habtoor – Hilton collaborative hotels and so on are increasing the demand for quality ceramic products to furnish their premises. The ceramic industry is one of a kind entity in itself as its success is subjectively complemented by the developments that take place around its operational network. The prime advantage in the case of UAE is that development is probably the most favourite word in the Emirati dictionary. Thus, the constant grind of the construction companies, hospitality service providers and event management institutions allows the ceramic industry to grow to more magnificent summits each year.

Ras Al Khaimah – The Ceramic Hotspot of UAE

Being a ceramic manufacture planning to start a branch or a new company in the UAE can be a challenge but knowing the market will provide an advantage for efficiently operating the business. Ras Al Khaimah happens to be the hub for ceramic manufacturers in the UAE. Located at the northernmost tip of the UAE, this small Emirate has a lot to offer in terms geographical advantages, tax benefits, company incorporation services, and business consultancy services (including market research, accounting, and book-keeping as well). Ras Al Khaimah is also home to RAK ceramics which happens to be the largest supplier of ceramic products to neighbouring nations such as Bangladesh, India, Singapore, and Saudi Arabia. The Emirate has housed various such large and small ceramic businesses over the years exposing new market opportunities through its increasing demand fluctuations.

Why do Business in RAK?

In Terms of Regulations

  • The simplified process of setting up business and company incorporation
  • 0% tax on imports
  • 0% tax on import of heavy equipment, spare parts, heavy machinery, and raw materials
  • Low charges on utilities such as electricity, water, and gas
  • 0% income tax on individuals
  • No restriction on currency exchange and overseas profit transfer
  • Flexible laws on immigration and residence for skilled and unskilled labour
  • No quantitative quota restrictions on imports
  • Availability of land & office and ease of renting or leasing
  • Easy resident permits for investors and family members

In Terms of Geographical Advantage

  • Marine trade simplified by the easy accessibility of ports towards the Persian Gulf and the Gulf of Oman
  • Availability of land for setting up manufacturing units
  • Road transportation accessibility and nearest to major buyers such as Dubai and Abu Dhabi
  • The geographical placement of the Port Location in RAK being a primary checkpoint for Business Tourists arriving from Europe, India, Saudi Arabia, and other eastern nations

The fact that the government is extremely supportive simplifies the legal requirements for new companies to establish a business in Ras Al Khaimah. The holistic business environment backed by flexible government regulations provides for overall industry nurturing especially for Ceramic manufacturers to consolidate deals with contractors and consortiums. The supply and distribution standards are usually decided by traditional personal negotiations with buyers and suppliers as the UAE construction market is one that consumes a ginormous amount of time. Therefore, it is essential to maintain good relations for the long term durations such as 5-year tenures or 10-year tenures.

Legal Obligations

In the business scenario of UAE, companies are differentiated based on their incorporation and establishment. They differ based on the three types of companies being - Free Zone, Mainland, and Offshore companies. The company type does not decide how successful the business will become in the future but instead, it only encompasses a few features different from the other such as taxation and banking regulations and incorporation procedures. Based on the various factors and incentives, it is sensible to suggest that mainland company type is the best suited for a Ceramic company wanting to set up business in Ras Al Khaimah. Because the company type has been decided, certain legal criteria need to be satisfied as per procedures.

Legal Obligations

  • It is crucial to find a Local Sponsor for doing business in the UAE
  • Determine the type of Economic Activity the company will operate in
  • Determine the Legal Form of the Business
  • The next step is Application Submission for Company Registration
  • Submit Proposed Name of Company to the Department of Economic Development (DED)
  • Submit Company documents to DED and Chamber of Commerce and Industry’ to obtain Trade License
  • Developing and Notarizing the Company's Memorandum of Association
  • Register the Trade Name
  • Obtain the Initial Approval
  • Get Special Approvals
  • Sign the Lease Agreement along with Memorandum of Association (MOA) in Public Notary
  • Obtain the Municipality's Approval for Location confirmation and Inspection
  • Apply for Establishment Card
  • Processing documents for issuance of Payment Voucher
  • Fulfil the Licensing Requirements
  • Acquire Trade License issued by paying License Fees
  • Get Approval from Name Board
  • Get Approval for the recruitment of employees from the Ministry of Labor
  • Acquiring Stamp on Visa from the Immigration Department

This blog aims to provide intuitive information for setting up a business in UAE, Ras Al Khaimah to be specific in terms of consulting expertise as the market ecosystem comprises of companies voyaging into to the Ceramic Industry. Though the idea might be in establishment and planning stages, we are well aware of the hectic process and legal formalities of establishing a business in an ever flourishing market such as UAE.

We at Business Setup Worldwide believe that business owners must not be burdened by formalities and should focus completely on their business idea. Therefore, do give us the opportunity to assist you in your professional journey. For any information on how to set up your company in UAE and other regions around the world, Contact us and get one step closer to establishing a healthy business.

About the Author

Taher.Shahbaz@bsworlwide.com's picture

Curious, Competitive and self-proclaimed cute, TaherShahbaz is one such individual that is always on the quest for curiosity which drives him to new destinations of knowledge. His journey across the business horizons has landed him in the creative field of digital marketing where he curates content that indulges the mind and influences the heart.