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Industrial license in Dubai

Industrial license in Dubai, UAE

The corporate sector in the United Arab Emirates is experiencing rapid growth. With the expanding business landscape, obtaining a license is essential for starting a new venture. One of the essential licenses is the Industrial License in Dubai. It is available across various industries, including manufacturing, import/export, housekeeping, and freelancing. 

An industrial license in the UAE is granted to businesses that convert raw or semi-manufactured materials into finished products. This transformation can be done manually or mechanically. Everyday activities under this license include production, segregation, accumulation, and packaging. 

The Dubai Department of Economic Development (DED) generally issues the license, but approvals from the Dubai Municipality and other relevant authorities may also be required. 

What is an Industrial License in Dubai? 

An Industrial License in Dubai is a legal requirement for businesses involved in manufacturing or industrial activities. Issued by the Dubai Department of Economic Development (DED), this license allows companies to produce, assemble, and process goods using raw materials. It’s essential for food production, textile manufacturing, chemical processing, and machinery assembly.  

To obtain the license, businesses must meet specific criteria, including securing a physical warehouse or factory, obtaining environmental clearances, and adhering to Dubai’s industrial regulations. This license enables businesses to operate legally and exploit the city’s robust industrial infrastructure. 

Business Activities Permitted Under an Industrial License 

Businesses engaged in manufacturing must secure an Industrial License. This license applies to a wide range of sectors, including: 

  • Bread manufacturing and food industries 
  • Textile manufacturing 
  • The casting of metals industries 
  • Equipment and engine manufacturing 
  • Manufacture of petroleum products 
  • Paper manufacturing 

Benefits of Industrial License in Dubai 

An Industrial License in UAE offers several benefits for businesses involved in manufacturing or industrial activities. Here are some key advantages: 

  • Reach More Markets: Dubai’s location helps you quickly sell products locally and globally. 
  • 100% Ownership: You can fully own your business without needing a local partner in free zones. 
  • Lower Utility Costs: You can get cheaper electricity and water for your operations. 
  • Customs Benefits: No customs duties on importing raw materials and machinery. 
  • Tax Perks: Enjoy tax exemptions and keep 100% of your profits in certain areas. 
  • Skilled Workers: Easy access to talented workers for your business. 
  • Government Support: The government provides help and business-friendly policies. 
  • Top Infrastructure: Dubai has excellent roads, ports, and facilities for smooth operations. 

Conditions to Obtain an Industrial License in UAE 

Before applying for an Industrial License in UAE, ensure you’ve met the following requirements: 

  • Local Service Agent (LSA): Your business must appoint a local service agent (LSA) to assist with all legal formalities related to obtaining an industrial license. While you maintain full ownership and operational control of your business, having an LSA is mandatory. 
  • Office Space: A physical office and warehouse in Dubai are required to apply for an industrial license. Virtual offices are not accepted. 
  • Local License: You must obtain a local industrial license specific to the region where you plan to conduct business. 
  • Capital Requirement: Your company must have a minimum capital of AED 250,000. 

Documents Required for an Industrial License in Dubai 

To obtain an industrial license in Dubai, the following documents are essential: 

  • 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 

How to Obtain an Industrial License in Dubai 

Dubai is a global industrial hub with plenty of opportunities in manufacturing and production. To operate legally, businesses must obtain an industrial license from the Department of Economic Development (DED).  

Here’s a detailed step-by-step guide to getting through the process of obtaining an industrial license in Dubai.  

Step 1: Select the Right Business Activity 

The first step is identifying the industrial activity your business will engage in. The activity must align with Dubai’s specific industrial regulations, whether manufacturing, processing, or assembling goods.  

Make sure your chosen activity is on the list of permitted industrial activities in Dubai to avoid any legal issues later. 

Step 2: Choose the Legal Structure 

Choosing the correct legal structure is essential as it impacts your business’s liability, ownership, and regulatory obligations. The most common options are: 

  • Limited Liability Company (LLC): Ideal for businesses with up to 50 shareholders. It limits the liability of each shareholder to their investment in the industry. LLC is the most popular choice among entrepreneurs. 
  • Branch of a Foreign Company: If you’re expanding from another country, you can establish a branch of your existing business. This option allows you to take advantage of Dubai’s booming industrial sector without forming a new entity. 

Step 3: Choose a Trade Name 

Choosing a trading name for your business is an important step. Make sure that the company name reflects the nature of your industrial activities and complies with DED’s naming guidelines.  

Avoiding offensive language, abbreviations, and references to religious entities. Once the name is approved, it is reserved for your business. 

Step 4: Obtain Initial Approval from DED 

Once your business name is secured, apply for an Initial Approval Certificate from the DED. This certificate confirms that the UAE government has no objections to your business setting up in Dubai and proceeding with the next steps. 

Step 5: Apply for an Industrial License 

Apply for an industrial license from DED or the relevant free zone authority and provide all the necessary documents as requested. Pay the required license fees. 

Step 6: Rent a Warehouse and Office Space 

For an industrial license, businesses must have office and warehouse space. The facility size should align with the scope of your industrial operations.  

Make sure the warehouse meets the zoning regulations specific to industrial businesses in Dubai, such as fire safety, ventilation, and structural requirements. Having a physical location is critical for license approval. 

Step 7: Obtain External Approvals 

Some industrial activities require additional approvals from other governmental bodies and ministries. Depending on your sector, you may need to obtain approvals from: 

  • Ministry of Industry and Advanced Technology: Certain industrial and technological activities are required. 
  • Dubai Municipality: For compliance with health, safety, and environmental regulations. 
  • Ministry of Health: If your business involves producing or handling pharmaceutical products or medical devices. 

Each external approval is critical to ensure your business adheres to Dubai’s standards and regulations. 

Step 8: Receive Your Industrial License 

Once you have gathered all necessary approvals, submit your application and documents to the DED. After a thorough review, the DED will issue your Industrial Trade License, allowing you to commence operations. This license is renewable annually, and you must ensure all compliance measures are met for renewals. 

Step 9: Apply for Employee and Investor Visas 

With the license issued, you can apply for residency visas for your employees and investors. The number of visas you can obtain depends on your business size and office space. Visa applications typically require medical exams, proof of employment, and other documentation. 

Step 10: Open a Corporate Bank Account 

Opening a corporate bank account in Dubai is crucial for managing your business finances. A local corporate account will help you seamlessly manage salaries, pay suppliers, and conduct other financial transactions. 

By following this guide, businesses can efficiently acquire an Industrial License in Dubai, setting the stage for growth in one of the world’s most dynamic industrial hubs. 

Cost of obtaining the industrial license 

If you apply for your industrial license on the mainland, it will determine the cost. In addition to the cost of the trade license, you can factor in the cost of additional permits and registrations, as well as the cost of leasing space. The overall cost estimate is around AED 25,000 for an industrial license in Dubai. 

Get Your Industrial License in Dubai with Shuraa’s Expertise!  

Shuraa Business Setup makes getting an industrial license in Dubai easy for new businesses. Our team knows the local rules and what paperwork is needed, so we help you fill everything out correctly and on time. We guide you through each step, from choosing the suitable business activity to getting all necessary approvals, which removes much of the stress. 

Shuraa also shares valuable information about the business scene in Dubai, helping you find good opportunities and make intelligent choices. With our support, you can avoid common mistakes and focus on growing your business. 

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