The United Arab Emirates is growing at a fast pace in the business sector. The business industries are expanding and there comes a need of having a license when you start a particular industry. Currently, the UAE provides licenses in the business sectors like manufacturing, import and export, housemaid, freelancing, etc.
This article will be covering the area of Industrial License in Dubai.
This license is emitted in Dubai for those enterprises which transform natural material or natural resources into their final products. The transformation should be done either manually or must be mechanically performed and it can start from raw materials or from semi-manufactured ones. The activities under industrial license mainly imply production, segregation, accumulation, packaging etc. It is generally issued by the Department of Economic Development (DED) Dubai. But one needs to get approval for issuance of this license from Dubai Municipality and other ministries and authorities as well.
Industrial License Sectors in Dubai
Businessmen who are into manufacturing of goods must apply for an Industrial License. Some of the sectors which fall under this category are:
- Bread manufacturing and food industries
- Textile manufacturing
- Casting of metals industries
- Equipment and engines manufacturing
- Manufacture of petroleum products
- Paper manufacturing
Conditions & Requirements to Apply for Industrial License in Dubai
Before you apply for an Industrial License make sure that you are through with all the below-mentioned requirements. They are as follows:
- Local Sponsor: Your Company must have a local sponsor who holds 51% of the shares. This is a non-negotiable pre-requisite. The rest of the 49% stake can be held by foreign investors or industrial license holder.
- Physical Office: Under this, if you want an industrial license, you must have a physical office and a warehouse present anywhere in Dubai. Virtual offices are not acceptable.
- Local License: You must also have a local industrial license from the area where your business is operating
- Capital: The capital of your company must be at least Dhs 250,000
- Workers: The company must have at least 10 workers
- You must have 5 horse power machines
Documents Required to Get the Industrial License, Dubai
- A report, which includes details about the factory, such as the factory’s plans, the reason and the purpose of opening the factory, data about the production tools, production cost and capital as well as some information about ways to finance the factory. Other details could include data about employees and any other relevant information.
- Copy of passport and residence for non-citizens, and summary of the registration of the citizen
- Feasibility Study
- Partnership Contract (if a partnership firm)
- Copy of the trade license
- Copy of Balance Sheet
- National Media Council Approval
- Ministry of Health Approval
- Ministry of Environment and Water Approval
- Ministry of Interior Approval
Procedure to Apply for Industrial License
The procedure to apply for Industrial License is simple and straight-forward.
- You must get an initial approval from the Dubai authorities before opening a factory or before making any changes to the existing factory
- Once you get an approval from them, then you can apply for the industrial license to the Department of Economic Development. The DED will consider your application and make a decision within three months of receiving it.
- If your application is approved, the DED will notify you within 15 days of the decision.
- Other than this, you must also get a consent from Municipality to construct the factory
- Other authorities who must approve for your license includes Chamber of Commerce and Industry, industrial register, Ministry of Health etc.
- You must submit the aforementioned documents as required by the concerned authorities
- The approval or disapproval is done within a week or two
It can be quite overwhelming to go through this process alone and that is where we come into picture. We at Commitbiz can help you with this process efficiently and make it hassle-free. Do contact us today- even if it’s for a friendly advice.