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Dubai’s industrial scene is booming enticing businesses with loads of perks. But if you want to
be part of the buzz nailing the right licenses and permits is critical. A biggie is the industrial
license giving companies the green light to do industrial work in certain Dubai areas. But hey, to
obtain one, you’ve got some boxes to tick.
In this post, we are breaking down what an industrial license in Dubai is, who needs it, its cost,
and the steps to apply.
Key Takeaways
- Industrial license is a must for manufacturing and processing businesses in Dubai.
- Key requirements: 51% local sponsor, physical office, warehouse, and 10+ employees.
- Costs range: AED 25,000–35,000; cheaper in free zones.
- Perks include discounted utilities, land allocation, and government procurement
- preference.
What Is an Industrial License?
To engage in the production or manufacture of goods in an industrial setting in Dubai, you’ll
need a valid industrial license. This license is essential when transforming raw materials into
finished or refined products.
These transformations involve changes to the materials’ structure or appearance and can result in
either semi-fabricated or fully fabricated goods, achieved through manual or mechanical
processes. This license allows you to do stuff like making clothes, working with oil products,
shaping metal, making paper, producing food, and building machines.
You need to get this industrial license from the Department of Economic Development (DED).
But, to get it, you might need a thumbs-up from other places and government departments, which
depends on what your business does. The license is issued with specific validity terms and
conditions set at the time of issuance. It’s crucial for investors planning to set up an industrial
business in Dubai to have a physical warehouse—this is a mandatory requirement.
Which Business Sectors Require an Industrial License in the UAE?
Various business activities fall under the industrial license sectors in Dubai. These sectors
include:
- Adhesive and paper slitting
- Bookbinding
- Metal casting
- Cards and envelopes printing
- Food and beverage manufacturing
- Helicopter repair and maintenance
- Lathe workshops
- Magnetic technology equipment trading
- Metal product coating
- Multi-dimensional image production (holograms)
- Pharmaceuticals packaging
- Saddle, animal, and bird training equipment manufacturing
- Safety harness fabrication
- Sculptors
- Textile manufacturing
Document Requirements for an Industrial License in Dubai
To acquire an industrial license in Dubai, entrepreneurs need the following documents:
- A comprehensive business report outlining the business plans, including goals, reasons
- for establishing the factory, details of production tools, total production costs, and
- financial information
- Copy of passport and residence
- Feasibility study
- Partnership contract (if applicable)
- Approvals from the Ministry of Health, Ministry of Environment and Water, and
- Ministry of Interior
- Copy of trade license
- Copy of balance sheet
- Approval from the National Media Council
Eligibility Criteria for Obtaining an Industrial License in Dubai
- If you’re looking to grab an industrial license in Dubai, make sure you tick all the boxes for eligibility
- Need Local Backing: Yup, a local partner who owns more than half—51% of the biz.
- Got the Right Paperwork: Your industrial gig must have a local industrial license from where your operations are.
- Virtual Won’t Cut It: Physical office and warehouse is a must-have; no virtual offices will do.
- How Many on the Team? At least 10 employees should be on your payroll for industrial
- outfits.
- Show Them the Money: You’ll need at least AED 250,000 tucked in your investment pocket, and your gear has to meet the mark for your trade.
Steps to Obtain an Industrial License in Dubai
Step 1: Eligibility Check
Begin by making sure your business activities match the key criteria, like manufacturing,
assembly, or processing. Meeting these rules from the start will make your application process
smoother and increase your chances to get approved.
Step 2: Preparation of Documentation
After you’ve checked that you’re eligible, collect all the needed documents. These include a
thorough business plan, proof that you have a good business location in Dubai, papers showing
ownership, and approvals from the right authorities for your specific industry.
Step 3: DED Submission, Evaluation, and Approval
Hand in your finished application and all backup papers to the Dubai Department of Economic
Development (DED). This kicks off the process to get your industrial license. The DED will
check your application to make sure it meets all rules and safety standards. After a full review,
they’ll let you know their choice.
Step 4: Sign up with the Dubai Chamber of Commerce and Industry
Once the DED gives you the go-ahead, your next move is to sign up with the Dubai Chamber of
Commerce and Industry (DCCI). This sign-up matters because it puts your company on the map
in Dubai’s business world and boosts your credibility.
Step 5: Dubai Municipality Approval
Getting the green light from the Dubai Municipality is another key step. They’ll check your
business to make sure it meets health, safety, and environmental rules. When you pass this
check, you’re one step closer to getting your industrial license.
Step 6: Getting Your Industrial License
The last step is to go back to the DED with proof that the Dubai Municipality has approved your
business. Once you’ve met all the requirements, the DED will give you your industrial license.
This license allows you to run the specific industrial activities you applied for.
Step 7: What to Do After You Get Your License
Getting your industrial license doesn’t mean you’re done with responsibilities. You need to keep
up with ongoing duties to maintain it. This often means you have to renew your license on a
regular basis, turn in reports to show you’re following the rules, and stick to any special terms
that come with your license.
What are the Costs of an Industrial License in Dubai?
Securing an industrial permit in Dubai will hit your wallet based on a few things. If you’re setting
up on the mainland or chilling in any Dubai’s free zones, that’s gonna play a big role. What your
industry’s all about and any extra stuff you need like certifications or registrations? Yeah, that’ll
bump up the price too. You’re looking at shelling out somewhere between AED 25,000 and
35,000 on average.
But hey, don’t snooze on the cost of industrial license in Dubai, they’re always on the move.
Now, if you’re thinking of kicking it in a free zone, you might just save some cash since the
startup costs and other charges tend to be on the low side there.
Benefits of Holding an Industrial License in Dubai, UAE
- Exclusive Rent Terms: Enjoy specially formulated rental terms for industrial spaces,
providing financial benefits.
- Land Allocation: Access subsidized land or free land for establishing industrial
businesses.
- Utility Discounts: Benefit from reduced rates on essential utilities like electricity and
water.
- Guidance and Support: Receive operational guidance from similar industries,
enhancing business efficiency.
- Financial Support: Access to low-interest loans for innovative products and financial
aid during research and development for industries contributing to the national economy.
- Government Procurement Preference: High-quality products receive priority in
government procurement processes.
Conclusion
Getting your industrial license in Dubai requires getting through several approvals and sticking
to certain rules. Teaming up with a reliable firm that helps set up businesses in Dubai can make
things easier steering you clear of mistakes and hold-ups.
Want to grab your industrial license without a fuss? Emifast’s got your back serving up top-notch
help without burning a hole in your pocket. Our expertise lies in slashing taxes crafting smart
investment plans, handling wealth management, securing dual residencies, and gifting
entrepreneurs, investors, freelancers, and folks with a hefty bank balance a newfound sense of
liberty.
Connect with our consultants or visit our website to enhance your knowledge about business
setup in the UAE!