How to get Industrial License in Dubai, UAE

An industrial license offered in Dubai is a type of license that allows business starters to produce manufactured or semi-manufactured goods. In other words, a product may be made fully from raw elements, with the help of processing, that is, assembling, and packaging it.

The industrial sector of the UAE is currently expanding. For a company to engage in a manufacturing business in the UAE, it is necessary to have a manufacturing license in Dubai.

In the content of this blog, the importance of application of an industrial license in Dubai, the types of business activities, necessary documentation for obtaining a license, and the initiation, implementation, and associated expenses of the entire procedure will be covered in detail.

Table of Contents

What is an Industrial Licence in Dubai?

One must register business and obtain the necessary permit from the relevant authority to start trading in Dubai.

As it relates to business licensing, the United Arab Emirates provides these categories of commercial permits:

Those entrepreneurs wishing to set up a manufacturing unit in the UAE will obviously require an industrial license. Every type of food industry, textile industries, metals industry, machinery, and engineering industries are needed to obtain an industrial license to conduct their business activities.

Which business sectors require an industrial license in the UAE?

In Dubai, there are many business activities associated with industries requiring an industrial license. These activities or business sectors include the following:

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

Industrial License Requirements in Dubai

The conditions for securing a license for industrial output in Dubai are not the same as those that are employed for professional or commercial licenses. Engaging plan development professionals in Dubai would provide practical advice. That said, shown below are some of the essential terms and conditions necessary for issuance of Industrial license in Dubai:

Physical Office & Warehouses

Before issuance of an industrial license, it is required to have a real physical office and warehouse in Dubai. Industrial license does not accept the operation of virtual offices. Therefore, you have to enter a tenancy agreement for your office and warehouse and also have it registered by Ejari – the official rental contract registration system in Dubai.

Number of Workers and Machinery

An industrial license requires that your manufacturing unit should have a minimum of ten employees. Besides this, you will also need to have a minimum of five heavy duty machines that are able to run the manufacturing processes.

Advantages of Obtaining an Industrial License in Dubai

The Benefits of Getting an Industrial License in UAE Are Abound, Here Are Some of Those:

Preferential Rental Terms: Companies having an industrial license have the right to rent a special area for industrial activities on preferential terms.
Reduced Land Rates: Government allocates lands for industrial growth lessening the rates at which they are presented making it easier to establish and/or expand factories.
Discounted Utilities: When an industrial company is approved for an industrial license, more affordable utilities costs come along with it, for example water and electricity.
Industry-Specific Guidance: Licensed industrial companies are given information about the methods and technologies that are used by successful firms in the related sector.
Low-Interest Loans for Innovative Products: Companies manufacturing innovative products are able to obtain low cost interest loans to develop such products.
Financial Support for Research and Development: The government provides financial assistance during the R & D phase, mostly in the interest of projects that contribute to the betterment of the national wealth.
Priority in Government Procurement: Companies producing high-quality goods are given priority in official procurement processes.

Procedure for Applying for an Industrial License

Select a Business Activity
Identify an Appropriate Legal Structure
Reserve a Company Name with DED
Obtain DED’s Initial Approval Certificate
Sign the Memorandum of Association (MoA)
Rent a Warehouse and Office Space
Get External Approvals from Ministries and Government Bodies
Receive Trade License
Apply for Visas
Open a Bank Account

Documents Required for Obtaining an Industrial License in Dubai

Investors seeking to obtain an industrial license in Dubai must provide a comprehensive set of documents to the Department of Economic Development (DED). Here is a list of the mandatory documents you need to submit when applying for an industrial license on the Dubai mainland:

Passport Copies of Shareholders: The shareholding members/partners will be required to provide clear passport photocopies.
Memorandum of Association (MoA): MoA attested by the local partners and the sponsor to be submitted.
Proposed Factory’s Blueprint: Detailed architectural and engineering drawings of the envisaged factory should be attached.
Business Model for the Factory Facility: The factory business model should comprehensively estimate the operation and economic viability of the factory..
Feasibility Study of the Industrial Unit: Submit a detailed feasibility study containing technical & financial aspects of the industrial project.
Cost of Production Data: The figure relates to the provided cost data and includes the corresponding production cost estimates, including, among other overheads, materials costs as well as labor.
Proof of Financial Support: Attach supporting documentation to show how the proposed company will be funded including, but not limited to, bank statements, financial guarantees, and letters of credit.
Location Plan: Provide site layout of the factory & geographical location.
Land Lease Agreement: Present the land lease where the development of the factory site will be augmented which should be verified by Ejari.
Details of Environmental, Health & Safety Arrangements: Explain the arrangement on how the relevant policies on environmental health and safety will be implemented.
Details About Raw Materials Used: Describe the different raw materials to be used to manufacture goods.
List of Equipment & Machinery: A complete listing of all equipment and machines to be installed in the factory.
Information on Waste Generated: Describe the nature and estimated amount of waste that will be produced; and management options for the waste. Looking for Business Setup Consultant in Dubai?

Special Approvals for Obtaining an Industrial License

Just as when applying for an industrial business license in Dubai, you will be required to get the necessary approvals from several ministries and government departments in order to ensure that your business complies with all the regulations. Approvals Needed:

UAE Ministry of Economy (MoE) Approval
Dubai Municipality: Approval
Dubai Electricity and Water Authority (DEWA) Approval
Dubai Health Ministry (if manufacturing pharmaceuticals) Approval
UAE Ministry of Interior Approval ( manufacturing of hazardous materials)

Call +971 56 658 2477 for Obtaining a industrial license in Dubai UAE

Acquiring an industrial license in UAE Dubai is followed by several approvals from the concerned authority. Enlisting the services of a business setup consultancy can help you obtain your manufacturing license with ease, without making any errors or suffering delays.