Industrial License in Dubai

Dubai has emerged as a business hub due to its infrastructure, strategic location, and straightforward company incorporation process. The authorities are opening doors to various industries with their new strategies, and many sectors are booming.  

One such sector is the industrial sector. However, starting an industrial business is not easy in Dubai as it involves various legal regulations, eligibility conditions, and obtaining an industrial license from the authorities. In this article, we will examine all that is involved in obtaining an industrial license in Dubai.             

What is an Industrial License?

An industrial license is issued to individuals and businesses that convert natural resources or alter raw materials into finished goods. The license implies activities like production, segregation, accumulation, and packaging. It is issued by the Department of Economic Development (DED) with permission from other authorities. 

Activities Permitted for Having an Industrial License in Dubai

The list of activities that are permitted for having an industrial trade license in Dubai are as follows –

• Home appliances.
• Battery production.
• Gold manufacturing.
• Plastic manufacturing.
• Precious stone cutting.
• Metalwork and casting.
• Processing raw materials.
• Commercial food production.
• Medical product manufacturing.
• Timber and furniture production.
• Paper and paper-based products.
• Textile and fabric manufacturing.
• Petroleum product manufacturing.
• Waste management and treatment.
• Insulation and sealant manufacturing.
• Mixing and producing industrial chemicals.
• Filling, organising, and packaging products.
• Light aircraft fabrication and maintenance.
• Manufacture of machines and related equipment.
• Agricultural and farming equipment manufacturing.
• Manufacture of motor vehicles, motorcycles and accessories.
• Ceramics, chinaware, tableware and glass industry manufacturing.

The above list of activities keeps on getting edited by the UAE government for increasing business opportunities and successful business setup in Dubai.

Eligibility Criteria to Apply for an Industrial License in Dubai

You need to fulfil certain conditions to apply for an industrial license in Dubai, UAE. They are as follows –

a) Local Industrial License:

You need a local industrial license to apply for the license and conduct industrial activities. The license is issued from the area of operation and is mandatory for industrial enterprises.

b) Sponsor Shareholding:

To establish an industrial business, you must find a local sponsor who holds 51 percent of the shares. The remaining 49 percent can be held by foreign investors.

c) Number of Employees:

Your industrial company must have a minimum of 10 employees.

d) Office Space:

It is mandatory for industrial businesses to have a physical office space.

e) Capital Investment:

The company needs minimum capital investment and 5HP specification machines to apply for an industrial business license in Dubai. 

Advantages of Obtaining an Industrial Business License

Let us have a look at the advantages you enjoy of having the industrial license –

i) Lease agreements designed to benefit the investor when renting industrial space.

ii) The government provides land for or at lower rates for opening an industry.
iii) You enjoy discounted rates for electricity, water, and other essential requirements.

iv) You are provided with guidance based on the mode of operation of similar industries, which helps enhance your industry.

v) You get loans at lower rates for innovative products.

vi) The government provides financial support.

What are the Documents Required for Obtaining an Industrial License in Dubai?

The documents which need to be submitted for an industrial license are as follows –

• Location plan.
• Land lease agreement.
• Cost of production data.
• Proposed factory’s blueprint.
• Passport copies of shareholders.
• Details about raw materials used.
• Information on waste generated.
• List of equipment and machinery.
• Feasibility study of the industrial unit.
• Business model for the factory facility.
• Details of technology used for manufacturing.
• MOA signed with local sponsors and partners.
• Proof of financial support for the proposed company.
• Details of environment, health, and safety arrangements.

How to Obtain an Industrial License in Dubai?

Here are the steps that you need to follow for obtaining an industrial license –

Step 1 – Obtain Initial Approval

The management of your company needs to obtain initial approval from relevant authorities before starting an industrial business in Dubai.

Step 2 – Apply for Industrial License

Apply for the license by submitting an application form to the Department of Economic Development (DED). The DED makes the final decision within three months of the prescribed time.

Step 3 – Receive Approval Notification

Now, you shall receive the approval notification from the department within 15 days. 

Step 4 – Receive Approval from other Authorities

You need to receive approvals from certain agencies and ministries to obtain an industrial license in Dubai. The Ministry of Health, Chamber of Commerce and Industry are some of them.

Once the above-mentioned requirements, documents, application forms, etc., are correctly submitted, the DED will issue final approval within two weeks, and you will obtain the respective industrial business license in Dubai.

Why Commitbiz

Applying for the UAE industrial license through Commitbiz will ensure that our experts provide you with an initial analysis, and protect your revenue transactions by adhering to legal regulations. 

While applying for an industrial license in Dubai seems daunting, contacting our consultancy firm and letting our experts guide you through the process can make it a hassle-free experience. Book a call with us today.