Industrial License in Dubai 

Dubai is renowned for its business-friendly environment, strategic location, and robust infrastructure, making it an ideal destination for industrial enterprises. An industrial license in Dubai is a crucial requirement for businesses involved in manufacturing, processing, and industrial activities. This guide provides a detailed overview of the industrial license, including its benefits, requirements, application process, and the advantages of setting up an industrial business in Dubai.

Filings.ae can help you obtain an Industrial License in Dubai and streamline the entire process, ensuring your business is set up efficiently and in compliance with local regulations.

What is an Industrial License in Dubai?

An industrial license in Dubai is a legal permit required for businesses involved in manufacturing, processing, logistics, and related industrial activities within the mainland of Dubai. The Dubai Department of Economic Development (DED) is the authorised body responsible for issuing industrial licenses. This license is crucial for ensuring that businesses operate legally and comply with all regulatory requirements set forth by the Dubai government.

Advantages of Obtaining an Industrial License in Dubai

Here are some of the key benefits of obtaining an industrial license in Dubai:

• Preferential Rental Terms: Companies with an industrial license can rent space specifically designed for industrial use at favorable terms.  
• Reduced Land Rates: The government offers land for industrial development at reduced rates, making it more affordable to establish and expand industrial facilities.  
• Discounted Utilities: Businesses with an industrial license benefit from reduced rates on essential utilities such as water and electricity.
• Industry-Specific Guidance: Licensed industrial companies receive expert guidance on best practices and methods used by similar industries.
• Low-Interest Loans for Innovative Products: Companies producing innovative products can qualify for loans with lower interest rates.
• Financial Support for Research and Development: The government provides financial assistance during the research and development phase, particularly for projects that have the potential to enhance the nation's economy.
• Priority in Government Procurement: Companies producing high-quality goods are given priority in official procurement processes.

Business Activities Permitted Under an Industrial License

To get a comprehensive understanding of the activities allowed under an industrial license, consulting with business experts in Dubai is highly recommended. Below are some of the key activities that an industrial license in Dubai permits:

• Processing of Raw Materials
• Extraction of Petroleum and Metals
• Textile Manufacturing
• Metal Casting
• Manufacturing of Appliances and Machinery
• Production of Food Products
• Glass Manufacturing
• Wood, Wood Products, and Furniture Manufacturing
• Plastic Industries
• Motor Vehicle Manufacturing
• Meat Processing
• Light Aircraft Manufacturing

These activities represent the wide range of industrial operations that can be conducted with an industrial license in Dubai.

Industrial License Requirements in Dubai

The requirements for obtaining an industrial license in Dubai differ from those for commercial or professional licenses. Consulting with experienced business setup advisors in Dubai can provide detailed guidance. Meanwhile, here are some of the key requirements for an industrial license in Dubai:

Physical Office & Warehouses

To obtain an industrial license, you must have a physical office and warehouse in Dubai. Virtual offices are not permitted for industrial licenses. You are required to sign a tenancy contract for your office and warehouse spaces and get the contract attested through Ejari, which is the official registration system for lease contracts in Dubai.

Number of Workers and Machinery

An industrial license mandates that your manufacturing unit must employ at least 10 workers. Additionally, you must have a minimum of five powerhouse machines installed to support your manufacturing operations.

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: Provide clear copies of the passports of all shareholders involved in the business.
• Memorandum of Association (MoA): Submit the MoA signed with the local sponsor and partners.
• Proposed Factory's Blueprint: Include detailed architectural and engineering blueprints of the proposed factory.
• Business Model for the Factory Facility: Provide a comprehensive business model that outlines the operational plan and economic viability of the factory.
• Feasibility Study of the Industrial Unit: Submit a detailed feasibility study assessing the technical and financial aspects of the industrial project.
• Cost of Production Data: Include data on the estimated costs associated with production, such as material costs, labour, and overhead expenses.
• Proof of Financial Support: Provide evidence of financial backing for the proposed company, such as bank statements, financial guarantees, or letters of credit.
• Location Plan: Submit a plan detailing the geographical location and site layout of the factory.
• Land Lease Agreement: Provide a copy of the lease agreement for the land where the factory will be established, ensuring it is attested through Ejari.
• Details of Technology Used for Manufacturing: Include a description of the technologies and equipment
• Details of Environmental, Health & Safety Arrangements: Provide information on the measures that will be taken to comply with environmental, health, and safety regulations.
• Details About Raw Materials Used: List the raw materials that will be used in the production process.
• List of Equipment & Machinery: Provide a detailed list of all equipment and machinery that will be used in the factory.
• Information on Waste Generated: Include details on the types and quantities of waste that will be generated, as well as plans for waste management and disposal.

The Procedure for Applying for an Industrial License in Dubai

The Department of Economic Development (DED) in Dubai has established a clear procedure for obtaining an industrial license.  Here are the essential steps for incorporating a company and obtaining an industrial license on the Dubai mainland:

Select a Business Activity

Identify the specific industrial activities you intend to conduct. This step is crucial as it determines the type of license and regulatory requirements applicable to your business.

Identify an Appropriate Legal Structure

Choose the legal structure that best suits your business model, such as a limited liability company (LLC), sole proprietorship, or partnership. The legal structure will influence compliance requirements and operational flexibility.

Reserve a Company Name with DED

Choose and reserve a unique company name with the DED. Ensure the name complies with DED naming conventions and does not conflict with existing registered names.

Obtain DED's Initial Approval Certificate

Submit your business plan and required documents to the DED for approval. This certificate confirms that your business activities are permissible and meet preliminary regulatory requirements.

Sign the Memorandum of Association (MoA)

Draft and sign the MoA, which outlines the company's objectives, shareholder details, and operational framework. The MoA must be notarised by a public notary in Dubai.

Rent a Warehouse and Office Space

Secure physical premises for your business by renting or leasing warehouse and office space. Ensure the tenancy contract is registered with Ejari, the official lease registration system in Dubai.

Get External Approvals from Ministries and Government Bodies

Depending on the nature of your business, obtain necessary approvals from relevant ministries and government bodies, such as the Ministry of Health or the Ministry of Environment and Water.

Receive Trade License

After fulfilling all requirements and securing necessary approvals, submit your documents to the DED to obtain your industrial trade license, which allows you to commence business operations legally.

Apply for Visas

Apply for employment and residence visas for yourself and your employees. This process involves medical tests, visa stamping, and residency permits.

Open a Bank Account

Open a corporate bank account in Dubai. Submit the required documentation, including your trade license, MoA, and proof of business address, to facilitate financial transactions and manage business finances.

By following these steps, you can efficiently navigate the process of obtaining an industrial license in Dubai.

Special Approvals for Obtaining an Industrial License

To obtain an industrial license in Dubai, you must secure approvals from various ministries and government departments to ensure your business meets all regulatory requirements. Here are the key approvals needed:

• UAE Ministry of Economy (MoE): Required for compliance with national economic and industrial regulations.
• Dubai Municipality: Approval is needed for land use, building permits, and environmental regulations.
• Dubai Electricity and Water Authority (DEWA): Approval for setting up necessary electrical and water infrastructure.
• Dubai Health Ministry (if manufacturing pharmaceuticals): Approval for ensuring health and safety standards in pharmaceutical production.
• UAE Ministry of Interior: Necessary for activities involving public safety and handling hazardous materials.

These approvals help ensure that your industrial business operates legally and safely in Dubai.

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