The Emirate of Dubai has pioneered the art of creating free zones to accelerate the economic growth in the region. Under the visionary leadership of the Ruler of Dubai, the Emirate has diversified its economy by liberalization, and economic reforms which were followed by developing the infrastructure necessary for starting industries and centres of business. The Dubai region expanded rapidly in terms of trade, commerce and finance due to the liberal policies on investment by foreign players.
Dubai’s Economic Diversification
Meanwhile, the Emirate of Dubai with its the strategic location in the Middle East region is focusing on attracting foreign entrepreneurs, international businesses and organisations with ease of access to the local and international market, modern infrastructure and pro-business regulations. Furthermore, the government has removed restrictions on bringing foreign technology, investment and skilled talent to Dubai for accelerating the economy and diversifying it away from oil & gas while focusing on trade, manufacturing, exports, tourism and engineering.
What is an Industrial License in Dubai?
The industrial license authorises you as an individual or a business or a company registered in Dubai or UAE to perform industrial activities such as manufacturing, processing and other allied industrial activities. According to the UAE Industries (Development & Regulations) Act 1951, it is mandatory to acquire an industrial license before starting the business operations respective to the industry.
Furthermore, the business ecosystem in UAE is regulated by the government authorities and agencies for streamlining the business processes, organizing & maintaining open industry environment by monitor the operations for violations in terms of business, environment & human resources while promoting business activities according to the sector. For getting an industrial license for your business contact us, as our expert professionals can assist you in acquiring the licensing by guiding your company through all the necessary steps while you can focus on your business goals.
According to the UAE laws, there are four main types of licenses which are mandatory to be acquired by a company or individual if they are planning to perform business, trade or industrial operations in the UAE.
- Trade License
- Industrial License
- National Industrial License
- Commercial License
- Professional License
Why do you need an Industrial License in Dubai?
An Industrial License is essential to set up an industry specialised in manufacturing, casting, moulding, assembly or processing activities including any production from raw materials to semi-finished goods and supplies. The organisation planning to set up operations focused on performing the activities mentioned above according to the statutory requirements must be registered in UAE under the Department of Economic Development Dubai (DED) and the Chamber of Commerce and Industry with an Industrial License.
How to Get the Industrial License in Dubai?
The Industrial License is mandatory for companies planning to operate in the manufacturing, assembly and processing sector. Licensing in Dubai is necessary for companies operating in the manufacturing industry. The Dubai DED issues these licenses after careful consideration of the licensing application. Furthermore, you need to register your business with the Dubai Chamber of Commerce and Industry, get approval from the Dubai Municipality.
However, as a speciality industry, you might need to get even more permits or approvals from a few other distinct ministries and agencies based on the UAE laws, which mention the exercise of the enterprise. (I.e., if you are a pharmaceutical manufacturing enterprise, you are required to get a permit from the Dubai Health Authority (DHA) and the UAE Ministry of Health before starting your operations.
Moreover, the DED may support your industrial license application by offering grants in economic terms such as operational, tax and customs privileges as a company. The application for industrial licensing shall receive these privileges if
- The company produces goods meant for national consumption along with the possibility to export outside the UAE and compete with the foreign-made goods
- Company set up in the areas earmarked by the government for industrial development
- Consumes local raw materials for manufacturing
- Depending upon the special economic importance and growth that the product produced by the company offers to the United Arab Emirates
About Industrial License in United Arab Emirates (UAE)
Industrial Licences are issued to companies who are operating in the industry or business that converts raw materials or natural resources into new products or semi-processed goods which are used further down the line in other industries under the different scope of operation. The transformation of the goods are assessed based upon the changes let it be structural, appearance, composition and the usability of the goods after the processing.
Requirements for Obtaining an Industrial License in Dubai
Physical Presence in the UAE
The applicant must have set up a physical company in UAE or must have a business registered in the United Arab Emirates for acquiring the industrial license. The DED does not entertain the company registered in UAE the company is required to have a physical presence and virtual office in any case.
1.Local Sponsor
To acquire the industrial license company in Dubai, there is a statutory requirement that the company must have a local sponsor in Dubai holding 51 per cent of the shares and foreign investors are allowed to have the remaining 49 per cent.
2.Warehouse
It is mandatory to own a physical warehouse within the country to obtain the license.
3.Local Industrial License
The company registered in the UAE must have a local industrial license to operate in the UAE market.
4.Capital Requirements
Company must have a minimum financial capital of AED 250,000.
Necessary Documents for Obtaining an Industrial License
- Company Registration or company’s founding contract
- Copy of Passport of shareholder
- Memorandum of Association (MOA) with the local sponsor and shareholders
- Blueprint of the Factory plans
- The business model of the factory
- Feasibility study containing the reason and purpose of opening the factory/plant
- Data on the production cost, capital production tools
- Proof of financial support or backing or documents supporting the ways in which the finance for the business operation is funded
- Location plan on the land in which the company's is planned to be set up
- Land lease agreement for the site if approved
Approvals Necessary after Acquiring the Industrial License
Dubai Industrial Strategy 2030
The government of Dubai is looking forward towards developing innovation and knowledge-based economy that is supported by the pioneering industrial research, and advanced manufacturing, which complements the revenue from the trade and commerce. The launch of Dubai Industrial Strategy 2030 fuses the advantages offered by Dubai's strategic location, modern infrastructure and state-of-the-art business-friendly ecosystem to achieve the goal of developing a sustainable place for industrial growth.
The reforms are carried out under the Dubai Industrial Strategy 2030 aims to leverage the country’s modern infrastructure enabling a transformative environment. In which UAE as a global manufacturing platform attracts innovative industries, international businesses, and the research & innovation hubs where the focus is primarily on knowledge, science and research forming a firm foundation for the industries in the region.
Key Focus Industries of Dubai Industrial Strategy
- Aluminium and Fabricated Metals
Even though the procedure for setting up a company in UAE with a local sponsor is streamlined, the process is elaborate as the business must be registered in the true legal sense complying with the partnership requirements for obtaining the industrial license.
In addition to this, acquiring the industrial business license by satisfying all the requirements is intricate as there are a handful of approvals, and permits are required before finally obtaining the industrial license in Dubai. We at Business Setup Worldwide can guide you in preparing all the necessary documentation, our team in Dubai can assist you in acquiring permits, approvals from governmental agencies and make the process of obtaining an industrial license for your company a smooth process. Contact us today for acquiring industrial license in Dubai in a hassle-free manner.
Activities allowed under Industrial License
The industrial licensing in Dubai is required for the individuals, businesses, and companies who are operating in the below mentioned industrial activities.
- Petroleum and metal extraction
- Fabric production & Textiles manufacturing
- The casting of metals such as iron & steel
- Appliances and machinery manufacturing
- Bread production and food products production
- Manufacturing of paper products
- Metal casing, containers & boxes manufacturing
- Structural steel, steel workshop and tool manufacturing
- Coating, insulations, seals & protection materials manufacturing
- Waste collection and treatment
- Manufacturing of wood, wood products and Furniture
- Adhesive & paper slitting
- Glass industries & chinaware manufacturing
- Agricultural equipment & accessories manufacturing
- Lenses cutting & glass repairing
- Manufacture of gold and precious stones cutting
- Light aircraft manufacturing & maintenance
- Plastic industries manufacturing home appliances
- Air conditioning units assembly
- Advertising & decorative models manufacturing
- Production of petroleum products
- Manufacture of motor vehicles, motorcycles & its spare parts
- Processing like filling, segregating and packaging of products
Moreover, the industrial licensing covers these activities, but it is not limited to the list as the government keeps updating the list of business activities under the license.
