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The charm and exclusiveness of Dubai are unparalleled. Its ultramodern vision and foundation lay the groundwork for exceptional economic success. Emirate of Dubai authorities has always encouraged and welcomed the development of the private sector carried out by international companies and entrepreneurs.
The free zones that have been established to accommodate this rapid expansion are a perfect example of this. When compared to other Arab countries, Dubai stands out as a prime location for both tourism and business thanks to its forward-thinking and flexible approach. Due to the country’s rapid development, many international companies have chosen to establish operations in Dubai, raising the stakes for obtaining a necessary industrial license.
In Dubai, an industrial license can be obtained by a company engaged in the processing of raw materials or natural resources into consumer goods. The process can be carried out manually or mechanically, and it can start with raw materials or semi-manufactured components.
Industrial licenses are typically used for production, separation, accumulation, packaging, and similar operations. Commonly, it is issued by the Dubai Department of Economic Development (DED). This license, however, cannot be issued without the approval of the Dubai Municipality and other relevant ministries and authorities.
What is a Dubai Industrial License?
Foreign entrepreneurs and businesses operating in the United Arab Emirates (UAE) must get an industrial license from Dubai’s regulatory authorities to engage in any manufacturing operations.
Industrial licenses are needed in Dubai for any sort of production, processing, or supporting operation to take place. Individuals or companies can use the industrial license to manufacture and sell finished goods in Dubai or anywhere else in the world where Dubai’s industrial license is valid.
Industries That Required an Industrial License
It is crucial to be aware of the kind of commercial ventures that require an industrial license in Dubai. As a UAE-based company, you should follow all relevant laws and regulations to avoid legal trouble. Moreover, there are advantages to acquiring this license, including access to land subsidies and utility discounts.
Some of the types of businesses that fall into this category are:
- Manufacturing of bread and food industries
- Textile manufacturing
- The metal casting industry
- Production of Machines and Power Plants
Industrial License in Dubai: Critical Considerations
Department of Economic Development, Dubai issues the industrial license. This is required if the individual wants to establish a business on the mainland of Dubai. If the entrepreneur wishes to establish a business in the free zone, he or she must secure licenses from the free zone authority. In addition to registering the firm with the Dubai Chamber of Commerce and Industry, entrepreneurs must also obtain approval from the Dubai Municipality.
It may be necessary to obtain special or exclusive permits before launching a business in Dubai if the enterprise’s primary focus is the production of exclusive goods. Funding and support will be made available through the DED, Department of Economic Development. The reason can be any of these:
- If the manufacturer produces goods that serve a national purpose and if the goods can be exported from Dubai.
- If the business is established in an area in need of industrial growth.
- If the firm’s production method makes use of locally sourced raw materials.
The Benefits of a Dubai Industrial License
Businesses operating under an industrial license in the United Arab Emirates enjoy special privileges as part of the government’s strategy to boost the economy and attract investments in the industrial sector. The best part is that not only will your business and its investors get the rewards of acquiring an industrial license, but so will the local economy and your customers.
- Attractive corporate tax structure with a minimum tax rate
- State-of-the-art facilities and equipment
- To be exempt from tariffs on both imports and exports
- Protection under the law with judicial involvement
- You can attract more clients and investors.
- New legislation allows for complete company formation with no outside investors required. The company’s owners will benefit from increased autonomy as a result.
Required Prerequisites for Obtaining an Industrial License
Before applying for an Industrial License, make sure you meet all of the requirements listed below. Here are the specific details:
First, you must acquire a physical location; virtual offices are prohibited.
- In addition to your trade license, you must also possess a local industrial license from the area in which your business works.
- A share capital payment is normally expected as well. The sum required in mainland Dubai is AED 250,000. In addition, you need to have at least ten employees to qualify for an industrial license in Dubai.
- In the end, if you want to start a business on the mainland, you may need the help of a local sponsor, whose involvement is contingent on the specifics of your firm. The local sponsor would own 51% of the company but would have no voice in day-to-day operations. Establishing your company in a free zone is the simplest approach to keeping all of the profits in your hands.
Required Documents for Obtaining an Industrial License in Dubai
- Company’s Registration Document
- Copy of the shareholder’s passport
- Copy of the local sponsor’s national identification card
- Blueprint of the Factory’s plans
- The Memorandum of Association of the Company
- The factory’s business model
- The reason and purpose for opening the factory
- Proof of financial backing
- The property lease agreement for the designated business location
- Location plan of the business
Regulatory Approvals Needed for an Industrial License
- Authorization from the Dubai Municipality Planning Department
- Validation by the Dubai Civil Defense
- Approval by the Electricity and Water Administration
- A specific license issued by the Dubai Health Ministry (any industry-related medical field)
- Authorizations from the Ministry of Climate Change and the Environment
- Acceptance by the UAE Ministry of Interior
Dubai’s Industrial License Application Procedure
The steps involved in acquiring an industrial license are as follows:
- Identify the location where you wish to establish your business as the first stage. The entrepreneur may select between Dubai Mainland or the free zones set up by the government.
- Secondly, the entrepreneur must determine the ownership structure of the organization. If the business does not fall under one of the UAE’s strategically essential sectors, the entrepreneur may choose sole proprietorship.
- Following this, you will receive the initial approval for an industrial license.
- After obtaining the necessary external approvals, the final step for the entrepreneur is to pay for the license.
Dubai is one of the most hospitable nations for the growth of entrepreneurship due to its broad vision and values. The acquisition of an industrial license in Dubai opens up a world of possibilities for the entrepreneur. They are pioneers in sophisticated manufacturing and industrial research and provide industries and investors with more opportunities to expand their businesses. The business-friendly ecosystem of Dubai draws investors and fosters the sustainable development of industries.
Get Your Industrial License in Dubai
If you wish to obtain an industrial license in Dubai but do not know where to begin, you have arrived at the correct location. To let you focus on running your business, we will get the necessary UAE industrial license on your behalf.
You can rest easy knowing that your license and visa applications are complete and error-free when you employ business setup services like ExpressPRO in Dubai. A few pieces of paperwork and a brief description of your company’s focus are all that is required to begin working with ExpressPRO in Dubai.
Then, you can relax while the professionals handle the rest, including dealing with your visa and licensing applications, talking with the appropriate government authorities, and reporting back to you when the business can begin. It’s that easy.
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