Dubai is a country with one of the rarest charms and appeal. It has an ultramodern outlook and ground for exemplary economic growth. The Emirate of Dubai has always been supportive of the growth induced by foreign corporations and entrepreneurs in their country. The free zones created to welcome such accelerated growth are the prime example of this. The outlook of Dubai and its liberalized viewpoints have made it an ideal destination for tourism as well as business when compared to the rest of the Arab countries. The intense growth of the country has attracted many foreign businesspersons to set up their activity in Dubai; hence the requirement for an industrial license has escalated.
There are four main types of licenses in Dubai:
- Trader License
- Industrial License
- Commercial License
- Professional License
What is an Industrial License in Dubai?
An industrial license is a mode of permission from the regulatory authorities of Dubai; given to foreign entrepreneurs or businesses who have registered business in UAE to perform their industrial activities. The manufacturing, processing and other auxiliary activities require an industrial license to carry on their work in Dubai. The industrial license also permits individuals or business corporations to convert natural resources and raw materials into products and sell them either in Dubai or internationally.
How to Obtain an Industrial License in Dubai?
With a Dubai industrial license, one can start a business importing raw materials, manufacture, assemble, package and sell the complete goods. These are some of the industries which can start a business in Dubai:
- Textile manufacturing
- Fabric Manufacturing
- Machinery Manufacturing
- Metal Extraction and Casting
- Foodstuff Production
The industrial license is issued by the Department of Economic Development, Dubai. This is in case the individual wants to set up business in mainland Dubai. If the entrepreneur wants to set up their business enterprise in the free zone, then licenses have to be acquired from the respective zonal authority. The business should be further registered with the Dubai Chamber of Commerce and Industry and also entrepreneurs have to get approval from the Dubai Municipality.
If the business activity deals with the manufacturing of special products, it might require special or exclusive permits to commence business activities in Dubai. The Department of Economic Development or DED will provide grants and assistance:
- If the manufacturer produces goods that are of national utility and also if it is viable for exports from Dubai.
- If the company is set up in an area which requires industrial development
- If the company uses local raw materials for their manufacturing process.
The Advantages of an Industrial License
The advantages of setting up business in Dubai :
- Attractive corporate taxes and zero percent tax rate
- World-class infrastructure and machinery
- Exemption from imports and export tariffs
- Legal safeguard with judicial intervention
- You can attract more customers and investors.
- According to recent developments, the company can be constituted with 100% ownership. This will help the owners to have better discrepancy on their company affairs.
Requirements for Obtaining an Industrial License in Dubai
- A UAE visa is a necessary requirement for the industrial business activities. The application can be placed along with the business license application.
- The prospective entrepreneur or individual can either be physically present in Dubai or there is also an option to do the same through online presence but it comes along with complexities and hindrances on few related compliances.
- The company registered in UAE should have a local industry license.
- The company should have a physical warehouse in Dubai.
Documents to Obtain an Industrial License in Dubai
- Company's Registration Document
- Shareholder's Passport Copy
- The local sponsor's national identity card's copy
- Blueprint of the Factory's plans
- The Memorandum of Association of the Company
- The factory's business model
- The reason and purpose for opening the factory
- Proof of financial support
- The land lease agreement of the approved site or location of the business
- Location plan of the business
Approvals required for an Industrial License
- Approval from Dubai Municipality Planning Department
- Approval from Dubai Civil Defense
- Approval from Electricity and Water Authority
- A special permit from Dubai Health Ministry( any industry-related medical field)
- Permits from the Ministry of Climate Change and Environmental
- Approval from UAE Ministry of Interior
Process of Obtaining an Industrial License
The process of obtaining an industrial license is as follows:
- The first step is to identify the location at which you want to set up your business. The entrepreneur can either choose the mainland of Dubai or the free zones provided by the regulatory authority.
- Secondly, the entrepreneur has to fix the mode of ownership with which the company is constructed. The entrepreneur can decide on sole proprietorship if their business doesn't come under the strategically important sector of the UAE.
- After this, you will get the first approval for an industrial license.
- Once you get the required external approvals after that the entrepreneur can complete the last step, the payment for the license.
Dubai has got an international face and ideologies and is one of the most welcoming countries for entrepreneurial development. Obtaining an industrial license in Dubai creates a window of opportunities for the entrepreneur. They are pioneers of advanced manufacturing, and industrial research and provide greater avenues for industries and investors to enhance their business. Dubai's business-friendly ecosystem attracts investors and creates space for the sustainable growth of industries.