With the ceramics industry expected to grow to a massive 12% growth rate by the end of 2020, manufacturers of floor tiles, ceramic panels, decorative elements and other similar ceramic products are having fun in the UAE. Gradual infrastructure developments such as the International Financial Center in Dubai (DIFC), Dubai Expo 2020 and the Al-Habtoor – Hilton partnership hotel, etc. increase the demand for high-quality ceramic products for the furniture of your premises. Most entrepreneurs wish to set up a ceramic business in Dubai.
The ceramics industry has a unique structure because its success is subjectively complemented by developments around its operational network. The main advantage in the case of the UAE is that development is probably the favorite word in the Emirates dictionary. The constant work of construction companies, hotel service providers and event management agencies allows the ceramic industry to grow into a lace that is more and more beautiful every year.
Why Choose Ras Al Khaimah for Ceramic Business
Being a ceramics manufacturer looking to set up a new subsidiary or business in the United Arab Emirates can be challenging, but knowledge of the market is an asset to running a business effectively. Ras al-Khaimah emerged as the centre of ceramic producers in the United Arab Emirates. It is located at the northernmost tip of the United Arab Emirates. This tiny emirate has a lot to offer in terms of geographic benefits, tax breaks, business establishment professional services and business advice (including market research, bookkeeping and bookkeeping). Ras Al Khaimah is also home to RAK Ceramics, which has proven to be the largest supplier of ceramic products to neighboring countries such as Bangladesh, India, Singapore and Saudi Arabia. The emirate has played host to ceramic companies large and small over the years, and the increasing fluctuations in demand have opened up new market opportunities.
Reasons to do Business in RAK
- Simplified business incorporation and merger processes
- 0% import tax
- 0% tax on imports of heavy equipment, spare parts, heavy equipment and raw materials
- Low costs for utilities such as electricity, water and gas
- 0% income tax
- No restrictions on currency exchange and transfer of winnings abroad
- Flexible immigration and residence laws for skilled workers and helpers
- No quantitative quota limits for imports
- Availability of land and offices and ease of renting or renting
- Simple residence permit for investors and family members
The Geographical Advantage
- Simplified sea trade through easy access to ports in the Persian Gulf and the Gulf of Oman
- Availability of land for the construction of production units
- Accessibility by road and proximity to major buyers such as Dubai and Abu Dhabi
- The geographic location of the port in RAK is an important control point for business travelers from Europe, India, Saudi Arabia and other Eastern countries
A holistic business environment, supported by flexible government regulations, provides the industry, especially ceramic manufacturers, with a comprehensive feed for consolidating deals with contractors and consortia. Shipping and distribution standards are usually set through traditional face-to-face negotiations with buyers and suppliers as UAE hardware stores are very time-consuming. Therefore it is important to maintain a good relationship in the long term, for example, a period of 5 years or 10 years.
Best in Terms of Legal Obligations
In the UAE business scenario, companies are distinguished according to their formation and establishment. They differ according to three types of companies – free zone, continental and offshore companies. The type of company does not determine the future success of the company, but only consists of several different functions, such as taxation and banking regulations and formation procedures. Due to various factors and incentives, the continental type of business is believed to be best for ceramics companies wishing to establish in Ras Al Khaimah. Because the form of the company is fixed, certain legal criteria must be met according to procedures.
The Legal Obligations
- Finding local business sponsors in UAE is important
- Determine the type of economic activity in which the company will operate
- Determine the legal form of the company
- The next step is to apply for company registration
- Submitting the proposed company name to the Ministry of Economic Development (DED)
- Send company documents to the DED and the Chamber of Commerce and Industry for a trade license
- Preparation and approval of articles of association
- Register a trading name
- Get pre-approval
- Get special permission
- Signing a lease agreement with articles of association (MOA) with a notary
- Obtain approval from the city government to confirm and visit the site
- Apply for establishment cards
- Document processing for the issuance of payment receipts
- Meet the license requirements
- Obtaining a commercial license by paying royalties
- Get approval from signage
- Obtain approval to hire employees from the Ministry of Manpower
- Obtaining a visa stamp from the Immigration Office
This post aims to provide intuitive information on how to start a business in Dubai, especially in terms of consulting experience as the market ecosystem consists of companies moving into the ceramics industry. Although the idea is still in its infancy and planning stages, we are well aware of the stressful process and legal formalities involved in starting a business in an evolving market like the United Arab Emirates.