Industrial License in Dubai, UAE

The superior and wide-spread logistics and infrastructure of Dubai facilitate industrial growth. Being a trading hub that connects the east to the west, Dubai has a geographical advantage too. If you are into industrial manufacturing and would like to set up an industrial concern in Dubai or UAE – it is a prerequisite to attain an Industrial License. Getting an industrial license in Dubai facilitates manufacturing and industrial businesses to produce semi-manufactured or fully-manufactured items. The activities under industrial license in Dubai essentially indicate production, segregation, collection, packaging, etc. The industrial trade license in the UAE requires the business to have a physical warehouse inside the nation. The license is commonly granted by the Department of Economic Development (DED) Dubai. As a company owner, you need to get approval from the Dubai Municipality and other concerned authorities for the issuance of this license.

  • Dubai Industrial License Sector
    The sophisticated and well-organized seaports and airports in Dubai effectively cater to the growing needs of the industrial sector. The industrial sector utilizes this logistics advantage in the best possible manner. The transport of raw materials, equipment spare-parts, machinery and exchange of goods and all other associated activities can be performed smoothly and in a cost-effective manner. In the last decade, the industrial sector of UAE witnessed a growth of 31% and it is predicted to achieve a marginal increase by 2027. Dubai witnessed a 6% growth in the industrial sector in the last decade and is a major contributor towards the GDP. Electricity, water and gas, quarrying, mining and manufacturing are the major industrial sectors of Dubai.
  • 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 can be termed as the transformation of raw materials or natural resources from the crude state to the final or refined state. Here the raw materials are subjected to structural or appearance-oriented transformation and the end product could either be in the semi-manufactured or fully-manufactured state. The transformation must be carried out via manual or mechanical intervention. Production, accumulation, Industrial segregation, and final packaging of products – all come under Industrial activity and therefore necessitates 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 License in Dubai, UAE. The license is issued with validity in compliance with the terms and condition specified at the time of issuance. The investors who are planning to set up an industry in Dubai should possess a physical warehouse. And yes – it is a mandatory requirement.
  • Activities that come under Industrial production

    The entire manufacturing-related activities systematically performed in an area of land come under Industrial production. Some of the major activities that come under industrial production are listed below:

    Manufacturing of textile

    Paper Production

    Petroleum products manufacturing

    Metal casting

    Food production

    Manufacture of equipment and appliances

  • Prerequisites to apply for an industrial license in Dubai.
    There are certain prerequisites that an investor needs to accomplish before applying for an Industrial License in Dubai. And they are listed below.

    51% sponsor share – You should find a local sponsor for your company. The local sponsor holds 51% of the company share and the remaining 49% goes to the foreign investor.

    Local license – A local industrial license is mandatory for industrial concerns. And the local license is issued from the area of operation.

    Office and warehouse – A physical office space and a warehouse in Dubai is mandatory to obtain Industrial License. Having a virtual office in Dubai will not serve the purpose here.

    Employees – A minimum of 10 employees or workers is mandatory.

    Capital Investment – Minimum Dhs 250,000 must be set aside as the capital of your company. 5HP specification machines are mandatory.
  • Documents needed for Industrial license in Dubai.

    Certain Ministries and external agencies are involved in the License issuance. Here are the documents needed to attain an Industrial License in Dubai.

    A detailed report – You should submit a detailed report of the factory or industry that comprises the plan, objectives behind factory setup, information about the equipment involved in the production, manufacturing cost, capital involved and source of finance. You may furnish the employee details too. Non-citizens are supposed to submit the residence and passport copy.

    Feasibility study

    Partnership contract in case of partnership firms

    National Media Council Approval

    Approval from the Ministry of Health

    Copy of the Balance Sheet

    Approval from the Ministry of Environment and Water

  • How to get an Industrial License in Dubai?

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

    Obtaining the Initial Approval from the concerned authorities is the very first procedure prior to setting up of industrial concern or factory in Dubai. Initial Approval is also applicable when it comes to altering the present factory specifications or settings.

    After you get the Initial approval, you may get in touch with the DED and apply for the Industrial License.

    The processing time of the license application is 3 months. DED makes the final decision within the prescribed time.

    The applicant shall receive the Application Approval notification from DED after the decision has been made. And this may take another 15 days.

    When it comes to factory construction, you need to get prior permission from the Municipality.

    You need to get other approvals from agencies and Ministries like the Ministry of Health, Chamber of Commerce and Industry etc.

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

    Getting an Industrial License in Dubai can be a time-consuming and tiring task because of the overload of formalities. Kiltons Business Setup Services have assisted several establishments for acquiring Industrial License in Dubai. Please contact our business consultants, even if it is a general query regarding Industrial License. We’re pleased to help you.

  • Privileges of Firms with Industrial License

    The authorities in the UAE have extended some privileges to the firms with an industrial license. Envisaged to promote industries and attract more investments in the sector.

    The privileges of having industrial license in Dubai are:

    • Terms for renting industrial space exclusively formulated to benefit the investor
    • The government will provide land at a subsidised rate or free of cost for establishing your industry
    • Discounted rates for electricity, water and other essential requirements
    • Guidance based on modus operandi of similar industries, to enhance your industry
    • Innovative products can get a loan at reduced rates 
    • If your product is expected to strengthen the national economy, the government will support you financially during the course of R&D
    • The products with exceptional quality will be given priority by the UAE government during official procurement

  • How Much the UAE Industrial License will Cost?

    The cost of obtaining an industrial license in Dubai, UAE and setting up industry will depend on whether your business is in the Mainland or Free Zone and other relevant factors. You may need additional approvals and registrations according to the type of industry you are establishing. The total cost may be approximately AED 25K. However, this may vary from time to time, with amendments in existing pricing rules. 

    Considering the initial set up charges and other costs, starting an industry in the Free Zone jurisdiction would be more budget-friendly. 
  • Obligations of an Industrial License Holder

    The federal authorities have specified certain obligations for the industrial license holder in Dubai. You must abide by the same for the smooth functioning of your industry and for avoiding unwanted repercussions.  

    Once your project is approved, you must commence construction of the industrial space within six months of receipt of the approval 

    • Submit all the requisite data to the Department of Economic Development (DED), Dubai, as directed
    • A letter to be submitted to the DED as and when you are ready to start the industrial activity. The DED will issue a certificate of authorization subsequently
    • Your industry must be included in the register of industries. Submit a letter to the concerned authority for the same.
    • In case of any alterations or amendments in the data pertaining to the factory, submit a letter, in the prescribed format, to the DED detailing the changes
    • You are unauthorized sell or lease the property that has been allocated by the government for establishing the industry
    • The data of employees enrolled in the company has to be prepared and a copy of the same must be submitted to the DED
    • All the products and materials imported after claiming exemption from customs duties shouldn’t be used unless specified during the import
    • Federal laws stipulate a minimum of 25% employment for local Emiratis
    • Strictly follow the rules, regulations and policies of the land
    • All the directives to maintain hygiene, health conditions and industrial safety must be pursued without fail
    • Any changes, including the appointment of a director, must be informed to the DED in writing. In that case, the shareholders along with the director will be responsible for all the activities, law enforcement, and maintaining stringent regulations for the industrial safety of the company
    • Reports have to be submitted to the authorities on a regular basis.

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Frequently Asked Questions On Industrial License in Dubai

  • What are the documents needed for an industrial license in Dubai?
    • The documents required while applying for the industrial license are: -

      Documents indicating company registration

      Copies of passports of shareholders

      National identity card and family book of the Emirati sponsor

      Notarized Memorandum of Association (MOA)

      Business plans, and blueprint of the industry - Info detailing the product costs, setting up expenses and other financial aspects

      Land lease agreement

      Location plan of the envisaged industrial establishment

      Other documents sought by the authorities

  • What is the purpose of the Industrial License in Dubai?
    • Industrial license is a mandatory requirement if you are planning a manufacturing or production factory in Dubai. You will have to register your firm with the industrial license to the DED and Dubai Chamber of Commerce and Industry.

  • What are the key focus industries specified by the federal government in the UAE?
    • With a vision to elevate the country to the next level by 2030, the government has formulated some key focus industries. The companies aiming to set up industries in the subject sector are expected to get better support from the government than other sectors. 

      Aerospace and aviation industry

      Maritime industry

      Medical equipment and pharmaceuticals

      Machineries/ Equipment

      Aluminium and other fabrication metal industry

      Food and beverage sector

  • Is there any additional support given by the government?
    • Yes, the government in the UAE extends additional support to the companies that prefer the following:

      Using indigenous raw materials and components

      The business is in the area specified by the government

      The industry can be instrumental in the economic development and strengthening of the nation

      Products are for national consumption

      The products are of international quality and can compete with products from the international arena

  • What are the essential requirements for obtaining an industrial license?
    • The essential requirements for obtaining an industrial license in Dubai, UAE are detailed below:

      You must set up an industry physically in Dubai. Alternately, you can register a business and seek an industrial license

      51% of the share of the company will be on the name of the local Emirati sponsor

      Your industry must have a warehouse, physically established in the emirates

      The company must meet the minimum capital requirements i.e. AED 250K

Types of activities that can be done with an Industrial License in Dubai

  • Magnetic technology equipment trading
  • Metal products coating
  • Multi-dimensional image production (hologram)
  • Pharmaceuticals packaging
  • Saddle & animal, bird training requisites making
  • Safety harness fabrication
  • Sculptors
  • Textile manufacturing
  • Adhesive & paper slitting
  • Books binding
  • Casting of metals
  • Cards & envelopes printing
  • Food & beverage manufacturing
  • Helicopter repair & maintenance
  • Lathe workshop

Benefits of Obtaining an Industrial License

  • Authenticity and genuineness are provided by the industrial license. Obtaining an industrial license is a simple process that will take time to complete. Additionally, it will convey to the clients that Dubai's government authorities have already examined and reviewed the company's records. It serves as evidence that the company is authorized to operate in Dubai.
  • Access to government contracts: Only those who already possess an industrial license are eligible to participate in government projects and contracts. Therefore, having an industrial license is ideal in order to start growing and expanding your business.
  • Enhanced Credibility: A license that has been approved by the authorities is the only thing that can truly value your authenticity and sincerity. An industrial license is a guarantee that the license holder will provide reliable services. The company's reputation is established in the eyes of both current and potential customers.
  • Possibility of sponsoring workers: Only owners of legitimate industrial licenses will be permitted to sponsor workers for visas. The license and the office space will directly affect how many visas the company is permitted to issue.
  • Access to locations: The mainland and free zones in the United Arab Emirates and Dubai are the two options available for business establishments. Especially in some free zones like Dubai Media City and Dubai Silicon Oasis, industrialists who establish a business must have a license in order to operate there.
  • Tax and legal benefits: Industrial businesses must possess an industrial license in order to qualify for the various tax breaks and rebates. Additionally, the legality increases the business setup's visibility significantly.
  • Acts as market entrant: Industrial licenses come with a lot of perks and help the business enter the market without any issues. More and more prospective investors in the industrial sector can be part of the growing economy of Dubai.
  • Networking Possibilities: Having an industrial license will make it easier for the company to establish connections with complementary businesses that will aid in its expansion.

Requirements for an Industrial License in Dubai

The UAE government has promulgated a convenient and hassle-free industrial business setup procedure. These lenient regulations are helpful to ex-pat entrepreneurs to start an industrial venture, as well as, business anywhere in the country. At the same time, it is of exceptional support to hire a trusted business setup service like Kiltons. The expert professionals will aid in establishing the industry and kick-starting the activities quickly.

For starting an industry in Dubai, the investor should submit a report detailing the operations planned, the reason for choosing the specific sector, the plans ahead, etc. The proposal should contain the specifications regarding the type of equipment and tools that would be used, the expected production cost of the items and the technical data regarding the facilities being integrated.

All the info about the financial status of the company, fund availability, and financing taken from third parties should be elaborated in the business report. The authority would ascertain the company’s economic standard and possible prospects from the data shared. The approval for setting up the industry in the proposed location would be based on the business report only. The owner can go ahead with the procedure for the industrial license in Dubai subsequently.

Documents Required for Industrial License in Dubai

The Department of Economy and Tourism (DET) is the authority for issuing industrial licenses in Dubai Mainland. The following documents are required to be submitted along with the industrial license application in Dubai:

  • Business report elaborating the operations planned, equipment to be used, facilities related to the industrial project, the number of employees etc.
  • Copy of Emirates ID or copy of passport of the owner and shareholders
  • Passport-size photographs of owner and shareholders
  • Company formation documents
  • Location plan with the specifications of the industrial unit planned, with all the units marked clearly

You may get in touch with us if you need specialized support for an industrial license in UAE.

Why an Industrial License Required in Dubai

Any industry in Dubai, UAE mandates an industrial license. Companies or firms are not supposed to establish production, manufacturing or any other industrial activity without the subject license. By registering the business with the DET and obtaining an industrial license, the firm is included in the books. Thus, it can get all the help and support from all the authorities and departments concerned.

The reasons that make it of paramount importance to get an industrial license in Dubai include:

  • The industrial license will ensure that your business is included in the books of the official authority. That would aid in getting additional support whenever required.
  • An industry operating without a proper license is liable to legal actions and the owner (s) may face severe punishments.
  • In case of any unfortunate incident, the actions from the authority will not be severe if the industry is a licensed one following all the stated procedures.
  • A licensed industry can explore all the potential markets in the UAE and explore export and import options as required.

Dos and Don’ts for Industries in UAE

The companies operating in the UAE need to abide by the regulations and comply with the safety rules. Not pursuing the laid down rules can lead to the cancellation of the industrial license in UAE or such other punitive measures.

  • Dos

o Construction of the manufacturing plant must commence within six months of obtaining approval from the DET.

o The approval to start operations can be gained subsequent to the construction of the production center and commissioning of the facilities.

o Industrial operations mentioned in the license only be undertaken.

o Apply for inclusion of the industry in the industrial register.

o Observe all the safety precautions all the time.

o Maintain a record of employees working in the industry all the time.

o Appointment of new Director (s) must be intimated to the DET through the proper channel.

  • Don’ts

o Do not undertake any industrial activity that is not approved by the DET.

o Avoid hiring unqualified workers or technical personnel.

o Do not hide accidents or incidents that occur in the industrial unit from the authority.

o Using raw materials and items for uses other than specified is not allowed.

o Hiring fewer employees than required will lead to actions from the authorities. Make sure that you have enough workers for the intended industrial process.

o Not to be involved in any industrial activity that might harm the workers or may lead to accidents.

An industrial license in Dubai is issued for companies to be involved in operations in the safest manner legally. You can expect remarkable growth by establishing your industry in Dubai and implementing the right marketing and production measures.

Steps to Obtaining an Industrial License in Dubai

Here's the step-by-step procedure for obtaining an industrial license in Dubai:

  • Getting assistance from a good business setup consultant in Dubai. This collaboration will help you make the process of obtaining an industrial license in Dubai easier. Taking the service of a business setup consultant in Dubai like Kiltons, it will help you be more focused in getting your business in order while Kiltons will take care of the rest.
  • Creating a business plan is indeed important as the business plan will help decide and this plan needs to be submitted for obtaining the industrial license as well. The business plan will include the industrial activity that you are planning to take up, the marketing strategy and so on.
  • Administrative proposals have to be obtained if you are planning a manufacturing industry and you have to see the factory requirements and the location for the factory as well. 
  • The next step is to submit the application for the industrial license in Dubai. If you want to take the location of your business in the mainland of Dubai, then you need to take up the application to the Department of Economic Development. If you are planning to set your business in the free zones, then you need to submit the application to relevant authorities of the freezone. Kiltons will help you in choosing the right location for your business setup.
  • You will also require to get additional approvals from the Chamber of Commerce and Industry, Industrial Register, and The Ministry of Health.
  • Visas also need to be applied right along with the application for the industrial license in Dubai. It is a necessity to have a visa to comply with the business operations in Dubai. 

Industrial license cost in Dubai

When it comes to determining the costs of obtaining an industrial license in Dubai, location is crucial. Mainland and free zones have different expenses for starting an industrial business. On average, the cost of getting an industrial license will be somewhere around AED 25,000. Free zones can give you much better packages and tax rebates, so make sure to ask your consultant about the perks of starting a business in a free zone. 

Setting up an industrial business in Dubai is one of the most lucrative opportunities to come by. The explicit growth that Dubai showcases makes it a fresh ground to start with industrial businesses. The rules and regulations are fairly simple but strictly carried out by authorities, which makes it a safe ground to do business away from all other fraudulent practices. 

Avail the services of established business setup consultants like Kiltons, who can help you go over the entire procedure hassle-free. All our experts are trained to match the regular updates and requirements in the industry. 

Kiltons – Your Reliable Business Setup Services in Dubai

We have been the most trusted business setup services in Dubai, UAE for about two and a half decades. Established in 1999, we have been rendering comprehensive services committedly. We are fortunate to be the right support behind many industrialists across the country.

The factors that make us your ideal support include:

  • Transparent dealings
  • Experienced professionals offering exclusive services
  • Affordable business setup services
  • End-to-end support for setting up the industry and commencing business operations
  • Dedicated team delivering assistance throughout
  • Close contact with the higher echelons of the authority, which helps us in obtaining proper assistance for our clients
  • Exhaustive knowledge regarding company formation

If you are looking for an industrial license in Dubai or any other assistance for company formation in UAE, call us right away. We would be happy to render you all the assistance, guidance, and support.

Dial us now.