Industrial License in Dubai

The United Arab Emirates is growing at a fast pace in the business sector. The business industries are expanding, and there comes a need to have 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 cover the area of an industrial license in Dubai.

This license is emitted in Dubai for those enterprises which transform natural materials or natural resources into their final products. The transformation should be done either manually or must be mechanically performed, and it can start with raw materials or semi-manufactured ones. 

Sectors for the UAE Industrial License

The activities under an 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.

A List of Industrial Activities in the UAE

The following is a more thorough list of industrial operations carried out in the United Arab Emirates:

• Processing of raw materials
• Extraction of metals and petroleum
• Fabric manufacture and textile production
• The process of casting metals like iron and steel
• Production of machinery and appliances
• Production of culinary goods and bread
• Production of paper goods
• Manufacturing of metal casings, containers, and boxes
• Production of tools, steel fabrication, and structural steel
• Manufacturing of coatings, insulations, seals, and protection materials
• Waste management and disposal
• Production of furniture, wood products, and other items
• Slitting of paper and adhesive
• Production of chinaware and the glass industry
• Manufacturing of Agricultural Equipment & Accessories
• Glass repair and lens cutting
• Manufacturing of precious stone and gold cutting
• Production & maintenance of light aircraft
• Processing of meat
• Production of batteries
• Producing home appliances with plastic
• The assemblage of air conditioning units
• Manufacturing of advertising and ornamental models
• The manufacture of petroleum products
• Production of motor cars, motorbikes, and their replacement parts
• Processing of items by filling, separating, and packing.

Conditions & Requirements to Apply for An Industrial License in Dubai

Before you apply for an Industrial License in Dubai, 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 in Dubai who holds 51% of the shares. This is a non-negotiable prerequisite. 

The rest of the 49% stake can be held by foreign investors or industrial license holders.

Physical Office

Under this, if you want an industrial license, you must have a physical office and a warehouse presence 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 Dh250,000.

Workers

The company must have at least ten workers. You must have five horsepower machines.

Support from the Government for UAE Industrial License Sectors

Prior to 2030, the UAE government anticipates astronomical growth across a number of industries. As a result, every year, millions of highly skilled, accomplished, and brilliant ex-pats relocate to Dubai, Abu Dhabi, and other emirates.

Dubai is especially well-liked for its alluring tax structure, good trading position, and recent tendency toward entrepreneurship. As a result, several companies profit from the UAE government's numerous incentive programs, financing, and resources.

One option for Dubai firms to make sure they benefit from additional assistance and resources provided by the UAE government is to hold an industrial license.

How to Apply for An Industrial License in UAE?

The procedure to apply for Industrial License is simple and straightforward.

  1. Get the Initial Approval

You must get initial approval from the Dubai authorities before opening a factory or before making any changes to the existing factory. Once you get approval from them, then you can apply for the industrial license from the Department of Economic Development. 

  2. Prepare the Documents to Get the Industrial License in 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.

You must submit the aforementioned documents as required by the concerned authorities.

  3. Get Consent from the Municipality

If your application is approved, the DED will notify you within 15 days of the decision. Other than this, you must also get consent from Municipality to construct the factory.

  4. Get Approval from the Other Authorities

Other authorities who must approve your license include the Chamber of Commerce and Industry, the industrial register, the Ministry of Health, etc. The approval or disapproval is done within a week or two.

It can be quite overwhelming to go through the business setup in Dubai and the license-obtaining process alone, and that is where we come into the 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 friendly advice.