How to Obtain an Industrial License in Dubai?

The United Arab Emirates is rapidly expanding in the corporate sector. As the business world grows, it has become mandatory to have a legal license to get a business started. At present, the UAE offers licenses in industries such as housekeeping, manufacturing, import and export, and freelancing. In this article, we will discuss How to Get an Industrial License in Dubai?  

An industrial license in Dubai is given to businesses that turn natural resources or raw materials into finished goods. This transformation can be carried out either mechanically or manually, and it can also begin with raw materials or semi-manufactured materials. 

Segregation, production, packaging, accumulation, and other industrial license activities are the most common and are issued by the DED or Department of Economic Development in general. However, the license must be approved by the Dubai Municipality and other ministries and authorities. 

The industrial license can be issued for the following business sectors:

• Textile manufacturing
• Paper manufacturing
• Food industries
• Bread manufacturing
• Manufacture of petroleum products
• The casting of the metals industry
• Engines and equipment manufacturing

Also read How Can I Get a General Trading License in Dubai? 

Conditions to Be Fulfilled to Get an Industrial License

Make sure you have fulfilled all the specifications confirmed by the UAE Ministry of Industry and Advanced Technology before you apply for an industrial license. The specifications are as listed below:

• Office Space: If you want to apply for an industrial license, your company must have  a physical warehouse and an office in the UAE. Virtual office space is not acceptable. 
• Local License: You must obtain the Industrial license from a local licensing department
• Capital: The capital of your business must be at least AED 250,000.
• Employees: Total of 10 employees at least

Documents Needed to Obtain Industrial License

• Company’s registration document
• Shareholder passport copy
• UAE local sponsor’s National Identity copy
• Memorandum of Association with the shareholders and local sponsor 
• Data report on the production costs
• The business model of the factory
• Blueprint of the Factory plans
• Land Lease Agreement for the site when approved

Procedure to Obtain an Industrial License

• Before you start a business or make changes to an existing business, you must have the permission of the Dubai authorities.
• You then have to apply to the Department of Economic Development (DED) for an industrial license once you get their approval.  
• Once your application gets accepted, the DED will contact you  
•  The Industrial Registry, the Chamber of Commerce and Industry, the Ministry of Health, and the other authorities must also approve your license. 
• You must apply the above-mentioned documents in compliance with the specifications of the relevant authorities.

Cost of Industrial License

The cost of obtaining an industrial license depends on where you are applying for an industrial license. Whether you are applying for an industrial license in the mainland or free zone determines the cost of obtaining an industrial license. Other factors include the cost of leasing space, the cost of additional permits and registrations, and the cost of the trade license. The cost of an industrial license is around AED 35,000 on average. 

Also read Top 5 Reasons to Start Business in a Freezone in Dubai. 

Privileges of Industrial License

The ministries and authorities in the United Arab Emirates have given special rights to the companies that have obtained industrial licenses. The aim of this is to encourage industries and increase investment in the industry. 

Listed below are some of the benefits of obtaining an industrial license in Dubai:

• Terms for renting space that has been specifically made to support the investor
• The government provides land at a reduced rate for developing your industry
• Water, electricity, and other necessities are available at reduced rates
• Guidance focused on the methods used by industries that are similar to yours to improve your industry
• Innovative products can qualify for a loan with less interest rates
• The government will help you financially during the R&D phase if your product is expected to improve the nation’s economy
• Exceptional quality goods will be on top priority during official procurement

Obligations of an Industrial License Holder

The federal government of the United Arab Emirates has placed some obligations on an industrial license holder in Dubai. To prevent unwelcome consequences and for the smooth operation of your business, you must adhere to the obligations. Once your project gets accepted, you must start building your industrial space within 6 months of receiving approval. 

• Submit all the necessary documents to the Department of Economic Development (DED).
• When you are all set to begin your industrial operation, you must first send a letter to the Department of Economic Development. After which DED grants an authorization certificate. 
• Your industry must be registered in the registry of industries. Send a letter to the appropriate authority requesting your registration. 
• If you need to make any changes or amendments to your company’s records, send a letter to the Department of Economic Development describing the changes in a specified format. 
• You cannot sell or lease the property given to you by the government for developing your industry. 
• The data of all the enrolled workers in your company must be created and a copy must be sent to the DED.
• All the goods and materials imported after requesting customs duty exemption must not be used unless stated otherwise. 
• Follow the land’s legislation, laws, and policies to the letter.
• All instructions for maintaining fitness, hygiene, and industrial safety must be followed to the letter.
• Reports must be submitted to the appropriate authorities on a regular basis. 

Read how business setup consultants in Dubai, UAE, can help you. 

Is your company in need of an industrial license? A&A Associate, one of the top business setup consultants in Dubai, UAE, can help you get an industrial license. Get in touch with us and get your industrial license approved!