How to Get Industrial License in Dubai: A Comprehensive Guide

When doing business in Dubai, it is very important to obtain the appropriate licenses and permits. One of the important licenses to obtain is the industrial license Dubai. This license allows companies to carry out industrial activities in certain areas of Dubai. When applying for an Industrial License in Dubai, you must meet several important criteria.

This article explains what an Industrial License is, which companies need one, and how to apply for one. Read this article to learn everything you need to know about industrial license Dubai.

Importance of Obtaining an Industrial License in Dubai

• A valid industrial permit is needed to produce or manufacture goods or raw materials in an industrial environment or space. Manufacturing is the transformation of raw materials or natural resources from a raw state to a finished or refined state.
• The raw material undergoes structural or aesthetic changes and the final product becomes a semi-finished or finished product. Then, the transformation must be carried out by manual or mechanical intervention.
• The production, accumulation, industrial separation and final packaging of products are industrial activities and therefore require a valid industrial license. So, licenses are issued by the Department of Economic Development (DED).
• Industrial licensing in Dubai, UAE may require approval from other external authorities or ministries to issue the license. Basically, the license is valid according to the terms and conditions specified at the time of issuance.
• Investors wishing to set up an industry in Dubai must have a physical warehouse. And yes, this is a mandatory requirement.

Advantages of owning an Industrial License Dubai:

• UAE Special Leasing Conditions: Industrial companies benefit from special terms and conditions for leasing industrial space, providing economic benefits to investors.
• Land allocation: The government can provide subsidized or free land for the establishment of industrial companies.
• Utility discounts: Industrial companies can benefit from discounts on electricity, water and other essential utilities.
• Advice and assistance: Industry receives advice based on comparable industry practices to improve operations and competitiveness.
• Financing: Innovative products can receive financing at preferential interest rates, and industries that contribute to the national economy may be eligible for grants for research and development.
• Priority Procurement: The UAE government gives priority to quality products in all government procurement processes.

Eligibility Criteria of Obtaining an Industrial License in Dubai

To apply for an industrial license Dubai, you must meet certain requirements. This includes 51% sponsorship. The main requirement is to find a local sponsor who owns 51% of the company.

• Local License: Industrial companies require a local industrial license issued by the region in which they operate.
• Office and Warehouse: To obtain an industrial license Dubai, you must have a physical office and warehouse in Dubai. Virtual offices do not meet this requirement.
• Employees: Industrial companies require a minimum of 10 employees.
• Capital Investment: The company must have a minimum investment of 250,000 dirhams. In addition, specific equipment specifications may be required.

The government of the United Arab Emirates predicts significant growth in several sectors by 2030. Basically, millions of highly skilled, experienced and talented expatriates from around the world are migrating to Dubai, Abu Dhabi and other emirates every year.

Dubai is particularly popular due to its attractive tax regime, excellent business location and recent growth in entrepreneurship. As a result, several industries benefit from various incentives, loans and resource programs offered by the UAE government.

• Sectors expected to receive additional government support in the near future include aerospace/transportation/fisheries, medical devices, food, beverages and services.
• Industrial Machinery and Construction.
• Industrial Licenses ensure that Dubai companies receive additional support and resources from the UAE government.

Who Can Apply for an Industrial License?

All production-related activities that are systematically carried out in a region are included in industrial production. Below are some of the major activities that are part of industrial production.

• Metal and foundry industries (tool making, steel processing, etc.);
• Paper and paper products.
• Commercial food production (e.g., bread, enriched foods, bottled beverages, meat products).
• Industrial chemical synthesis and manufacturing.
• Pharmaceutical production.
• Manufacture of ceramics, majolica, porcelain and glass.
• Assembly and construction of machinery and related equipment.
• Light aircraft construction and maintenance.
• Battery production.
• Filling, organizing and packaging of products.
• Agricultural and livestock machinery.
• Waste management and disposal.

Key Qualifications and Requirements

• As an industrial company owner, you have many responsibilities. Once the permits and construction project are approved, the construction team must begin construction of the industrial site within six months.

Basically, industrial companies must be registered with the Business Registry.

• You can apply directly to the Registry for formal approval. If you change or modify your business information, you must send a letter to the DED explaining the update. You will also need to prepare your company’s employee records and send a copy to the DED.
• It is important to comply with all sanitary, health and safety regulations without exception. The UAE authorities and ministries require submission of annual reports on a regular basis. Federal law requires that at least 25% of the workforce be local Arabs.

Application Process & fees for Obtaining an Industrial License in Dubai

Dubai’s advanced and well-organized ports and airports efficiently meet the growing needs of the industrial sector. Industry takes full advantage of this logistical advantage.

Transporting raw materials, spare parts for equipment, exchanging machinery and goods, and carrying out all other related activities can be carried out smoothly and cost-effectively. Over the past decade, the UAE’s industrial sector has grown by 31%, with modest growth expected through 2027.

However, Dubai’s industrial sector has grown by 6% over the past decade and contributes significantly to GDP. Electricity, water, gas, quarrying, mining and manufacturing are Dubai’s main industries.

Step-by-Step Guide to Applying for an Industrial License

Below are the details of the process of obtaining an industrial license Dubai. Before establishing an industrial company or factory in Dubai, the first step is to obtain initial approval from the relevant authorities.

• First, the initial approval also applies to changes in specifications or current factory configuration. After receiving the initial approval, you can contact DED to apply for an industrial license Dubai. The processing time for license applications is 3 months.
• Later, the Department of Economic Development will make a final decision within a specified time period. The Department of Economic Development will send a notification to the applicant once they have approved the application.
• In reality, this may take another 15 days. To build a factory, you will need a permit from the local government. Other agencies and ministries, such as the Ministry of Health and the Chamber of Commerce and Industry, must obtain other permits.
• After that, final approval will be given within two weeks once you meet the above requirements and documentation. Obtaining a business license in Dubai can be a tedious and time-consuming task due to the large amount of paperwork involved.
• Finally, formation services have helped many companies obtain industrial licenses Dubai. Even if you have a general question about industrial licenses, you can contact our business consultants. We can help.

Documents Required for the Application Process

The documents required to obtain an Industrial License Dubai:

• First, UAE are detailed reports. A comprehensive report that documents a facility or industry, including the company’s plans, objectives, production equipment, production costs, capital expenditures, and sources of financing.

In addition, non-citizens must provide a copy of their residential address and passport.

• Second, feasibility: A feasibility study that demonstrates the viability and feasibility of a proposed industrial project.
• Later, articles of Association: Partners must have a partnership agreement.
• Relevant authorities require approval from the Ministry of Health, Ministry of Environment and Water, National Media Council, and other relevant ministries and organizations.
• Also, a copy of the balance sheet is required for financial verification.

Breakdown of Fees Associated with Obtaining an Industrial License

Obtaining an industrial license and setting up an industry in Dubai, UAE have varying costs depending on whether the business is land-based or in a free zone, as well as other relevant factors.

Depending on the type of industry you are starting, you may need additional licenses or registrations. The total cost is approximately 25,000 dirhams. However, this may change from time to time due to changes in existing pricing conditions.

However, considering the initial setup and other costs, it is more cost effective to start an industry in a free zone.

Additional Costs to Consider

• The cost of obtaining an industrial license Dubai depends on several criteria, including whether the company is located on the mainland or in a free zone. In addition, the type of industry and any additional certifications or registrations required can affect the total cost.
• The average cost of obtaining an industrial license Dubai is approximately 25,000 dirhams. However, as fees can change over time, it is important to be aware of any changes to the current pricing policy.
• Establishing an industry in a free zone may be more cost effective due to reduced initial and other related costs.

Estimated Timeline for Obtaining an Industrial License

How long does the application process take?

• The process ends with the submission of the application and supporting documents to the DED and the payment of the required fees. The total processing time for a business license application is usually 3 months.
• You will receive an official notification from the Dubai Economic Development Department regarding the approval of your application.
• You will receive a license valid for one year if we approve your application.

Expedited Processing Options

• The federal authorities have established certain obligations for industrial license Dubai. To ensure the proper functioning of the sector and prevent undesirable outcomes, individuals/organizations must adhere to these requirements.
• Follow the instructions and submit all the required information to the Dubai Economic Development Authority.
• Submit a letter to the Department of Economic Development when you are ready to start your business. The Department of Economic Development plans to issue a certificate of approval at a later date.
• However, your company needs to register in the Industrial Registry. You need to send a letter to the appropriate authorities to complete this process.

If you have made any changes or additions to your establishment’s information, please send a letter to the DED, following the provided format, and provide a detailed account of the modifications.

• The government does not allow the selling or leasing of land allocated for the establishment of industries. You must prepare the data of the employees registered in your company and send a copy to DED.
• Then, federal law requires a minimum employment rate of 25% for local Emiratis.
• Strictly follow local laws, regulations and policies. All employees must strictly observe all rules regarding health, hygiene and safety in the workplace. You must report all changes, including the appointment of directors, to DED in writing.
• In this case, both the CEO and the shareholders are responsible for all activities, compliance with the law and adherence to the company’s strict workplace safety standards. Regular reports must be submitted to the authorities.

Conclusion

Unlike starting a small business, the licensing process for industrial and manufacturing companies is very complex and complicated.

It is already a time-consuming process, including finding a location, considering forming a limited company, opening a bank account, and making sure your business complies with UAE and Dubai regulations.

However, if your timeline is giving you a headache, do not worry, you are not alone. For many entrepreneurs in Dubai, starting a business can be overwhelming and stressful.

Obtaining an Industrial License in Dubai is an important step in setting up an industrial or manufacturing company in Dubai. This comprehensive guide details the process, requirements, benefits and responsibilities associated with obtaining an industrial license.

As Dubai’s industrial sector grows and prospers, this license offers companies the opportunity to contribute to the city’s economic growth.

To ensure a smooth process and maximize the benefits of an industrial license in Dubai, consider seeking professional assistance and working with an experienced professional. Contact us to know more abut this topic.