Industrial License in Dubai, UAE

To start an industrial business in Dubai and to pursue a career in the industrial sector, one needs an industrial license to go further. Dubai is unparalleled when it comes to superior logistics and infrastructure. The industrial sector contributes a fat part to the overall growth of Dubai and the geographical facilities are an added advantage to it.

In the last decade, the industrial sector of UAE witnessed a growth of 31% and it is expected to increase by 2027. Dubai witnessed a 6% growth in the industrial sector in the last 1o years and is a major contributor to GDP. Electricity, water and gas, quarrying, mining, and manufacturing are the major industrial sectors of Dubai.

If you are into industrial manufacturing and would like to set up an industrial company in Dubai – Industrial License is a prerequisite you need to attain.

What is meant by Industrial License?

Production or manufacture of goods or commodities in an industrial environment or space requires a valid Industrial License. Production, accumulation, Industrial segregation, and final packaging of products – all come under Industrial activity and therefore require a valid Industrial License.

The license issuance is carried out by the Department of Economic Development or DED. The approvals and permissions from other external agencies and ministries may be required for license issuance when it comes to Industrial licenses in Dubai, UAE. The license is issued with validity in compliance with the terms and conditions specified at the time of issuance. For investors who are planning to set up an industry in Dubai, it is mandatory to possess a physical warehouse.

What are the prerequisites to apply for an industrial license in Dubai?

The prerequisites an investor needs to accomplish before applying for an Industrial License in Dubai are listed below.

1. 51% sponsor share – You should find a local sponsor for your company who can hold 51% of the company share and the remaining 49% goes to the foreign investor.
2. Local license – A local industrial license is mandatory for industrial concerns.
3. Office and warehouse – A physical office space and a warehouse in Dubai are mandatory to obtain Industrial License.
4. Employees – A minimum of 10 employees is mandatory.
5. Capital Investment – Minimum of Dhs 250,000 and 5HP specification machines are mandatory as the capital of your company.

What are the documents needed for an Industrial license in Dubai?

The documents needed to attain an Industrial License in Dubai are mentioned below.

1. A detailed report – You should submit a detailed report of the industry that comprises the plan, objectives, information about the equipment used, manufacturing cost, capital involved, and source of finance. Non-citizen employees are supposed to submit their residence and passport copies.
2. Feasibility study
3. Partnership contracts
4. National Media Council Approval
5. Approval from the Ministry of Health
6. Copy of the Balance Sheet
7. Approval from the Ministry of Environment and Water

How much will the UAE Industrial License cost?

The cost of obtaining an industrial license in Dubai depends on many factors including the location. You may need additional approvals and registrations regarding the type of industry you are establishing. The total cost may be approximately AED 25K and this may vary with changes in existing pricing rules.

How to get an Industrial License in Dubai?

The process involved in the issuance of an Industrial License in Dubai is listed below.

Obtaining Initial Approval from the concerned authorities is the first step. Initial Approval is also applicable when it comes to altering the present company specifications or settings.

After that, one can apply for an Industrial License to DED. DED will make the final decision within 3 months.

The applicant will receive the Application Approval notification from DED within 15 days after finalization.

If the setup involves factory construction, one needs to get prior permission from the Municipality. One also needs approvals from the Ministry of Health, Chamber of Commerce and Industry, etc.

If all the requirements and documents are done, the final approval shall be issued within two weeks.

Attaining an Industrial License in Dubai can be a time-consuming and tiring task. However, consulting with an experienced business consultancy can make these procedures easy. Bizvise is an experienced professional consultancy that has assisted several organizations in acquiring Industrial licenses in Dubai. We will help you attain licenses that suit your business needs. For more queries, connect with us.