The United Arab Emirates is amongst the fastest-growing business hubs in the world. In the last two decades, industries have expanded uninterruptedly. Therefore, it influenced the increasing demand among enterprises for a valid industrial license to start operating in a particular sector. Currently, you can obtain UAE industrial licenses in a wide range of manufacturing sectors. Industrial license is issued to enterprises in Dubai that transform natural material or natural resources into their final products, which is done either manually or mechanically. The activities covered under industrial license include – production, segregation, accumulation, packaging and more.
Here in this post, we will cover the area of Industrial License in Dubai. License is issued by the Department of Economic Development (DED) Dubai with approval from Dubai Municipality and other ministries and concerned authorities.
Industrial License Sectors in Dubai
Industrial license is for businesses that are into the manufacturing of goods. Some of the companies under this category are:
- Engine and equipment manufacturing
- Food and beverage industries
- Manufacture of petroleum products
- Paper manufacturing
- Textile and apparel manufacturing
- The metals industries and more
Necessary Conditions to Apply for Industrial License in Dubai
Before you apply for an Industrial License, make sure you are aware of all the below-mentioned essential conditions:
- Your company must have a local sponsor with 51% of the shareholding in your company. This is a non-negotiable requirement. Foreign investors or industrial license holders can secure the remaining 49% share.
- Another essential requirement is to have a physical office and a warehouse anywhere in Dubai if you want an industrial license. Virtual offices will not be acceptable under this.
- A local industrial license from the area where your business is functioning or located is necessary.
- Your company must have at least Dhs 250,000 capital.
- Minimum ten workers are necessary for the industrial license.
- Also, your company must have five horsepower machines.
Necessary Documents to Apply for the Industrial License
- You need to submit a complete detailed report about your project and its plan. It must include – the factory’s plans, the purpose of opening it, production tools details, production cost and capital, and some information about approaches to finance the factory. You could also include employees information and all other relevant data.
- Feasibility Study
- Partnership Contract (if a partnership firm)
- Copy of the trade license
- Copy of Balance Sheet
- National Media Council Approval
- Approval form Ministry of Health
- Ministry of Environment and Water Approval
- Interior Approval from Ministry
- Copy of passport and residence for non-citizens, and summary of the registration of the citizen
Application Process for Industrial License
The procedure to apply for Industrial License is straightforward.
- Initial approval from the Dubai authorities is necessary before you plan to establish a factory or before you plan to make any changes to your existing one.
- After receiving approval from them, you can apply for the industrial license to the Department of Economic Development. The DED will verify your application, and if you are found suitable for the license, it will decide within three months of application.
- If your application is accepted, you will receive an intimation from DED within 15 days of the decision.
- Additionally, you will also need consent from the Municipality to build the factory.
- The Chamber of Commerce and Industry, industrial register, Ministry of Health etc., are other authorities from where you must get approval for your license.
- Submit all the necessary documents as required by the concerned authorities
- It takes one or two weeks to approve or disapprove an application.
It can be pretty tiring for you to go through this process alone. This is when you will need to hire a professional business setup and trade licensing consultant to help you close the process conveniently and efficiently.