adminDubai’s infrastructure and logistics are unparalleled, providing ample support for industrial growth. As a vital trading center connecting the East and West, Dubai enjoys a strategic geographic advantage. If you want to start a new business in industrial manufacturing and you wish to establish a company in Dubai or the United Arab Emirates, obtaining an Industrial License is an absolute prerequisite. Obtaining an industrial license in Dubai enables you to set up businesses engaged in manufacturing and industry that can trade semi-processed and fully manufactured goods.
An industrial license is a permit issued by the Department of Economic Development (DED) in Dubai that allows businesses to carry out industrial or manufacturing activities within the Emirate. The license grants the holder the right to use industrial land, hire employees, and import raw materials and equipment for industrial purposes.
What is an Industrial License?
An industrial license in Dubai is an authorization given by the Dubai Department of Economic Development (DED) that enables companies to conduct manufacturing or industrial operations in the Emirate. This license authorizes the holder to utilize industrial land, recruit workers, and import raw materials and equipment for industrial use.
Types of Industrial Licenses in Dubai
There are two types of industrial licenses in Dubai:
- General industrial license
- Specific industrial license
A general industrial license in Dubai allows businesses to carry out any industrial activity, whereas a specific industrial license limits the business to a particular industrial activity.
Business sectors for which industrial licenses can be issued
Individuals must obtain an Industrial License in order to work in the manufacturing sector. This category includes the following industries:
- Textile manufacturing
- Manufacture of petroleum products
- Paper manufacturing
- The casting of metals industries
- Food industries
- Equipment and tools manufacturing
- Engines manufacturing
Requirements for obtaining an Industrial license in Dubai
- Business Activities
Businesses must decide what kind of industrial activity they want to conduct and make sure it is approved by the DED by checking the list of permitted activities.
- Industrial Land
Investors should have a physical warehouse if they intend to establish an industry in Dubai.For businesses to conduct their industrial activities, they need access to industrial land. This can be accomplished by renting or purchasing land from the public or private sectors.
- Business Address
To obtain an industrial license in Dubai, businesses must have a legal address. This cannot be a residential property.
- Business Plan
Companies must submit a detailed business plan outlining the proposed industrial activity, market demand, and potential revenue streams.
- Share Capital
The minimum share capital for an industrial license in Dubai is AED 2 million.
- Legal Structure
Businesses must choose a legal structure that is suitable for their needs. The most common legal structures in Dubai are a limited liability company (LLC), a free zone company, or a branch of a foreign company.
To Obtain an Industrial License in Dubai, businesses must follow these steps:
- Step 1: Choose a legal structure
Select a legal structure that is appropriate for your company’s operations. When making a decision, consider the tax implications, liability, and ownership requirements.
- Step 2: Identify Business Activities
Identify the type of industrial activity you intend to carry out and ensure that it is included in the list of permitted activities issued by the DED.
- Step 3: Obtain Industrial Land
Obtain access to industrial land by leasing or purchasing land from the government or private sector.
- Step 4: Obtain Approval from Authorities
Obtain approval from relevant authorities such as the Dubai Municipality, the Dubai Civil Defense, and the Dubai Electricity and Water Authority.
- Step 5: Submit the Application
Submit an application for an industrial license to the DED. Include a comprehensive business plan, details of shareholders and directors, and proof of share capital.
- Step 6: Obtain the License
Upon approval of the application, businesses can obtain their industrial license from the DED.
Documents required for obtaining an industrial license in Dubai
Certain Ministries and external agencies are involved in the licensing process. Here are the documents required to obtain an Industrial License in Dubai:
- A detailed business plan
- Feasibility Study
- Partnership Contract (if a partnership firm)
- Copy of the trade license
- National Media Council Approval
- Approval from the Ministry of Health
- Ministry of Environment and Water Approval
- Ministry of Interior Approval
- Copy of Balance Sheet
- Copy of passport and residence for non-citizens
Cost of obtaining an industrial license in Dubai
The cost of an industrial license depends on whether you apply on the mainland or in a free zone. In addition to the cost of the trade license, you should consider the cost of additional permits and clearances, as well as the cost of leasing industrial land. On average, an industrial license in Dubai costs around AED 35,000.
Finally, obtaining an industrial license in Dubai is a compulsory step for enterprises that aspire to function within the manufacturing or industrial domains. The authorities of Dubai have established a multitude of regulations and procedures to ensure that these companies maintain adherence to standards pertaining to safety and the environment.
At Socialite Consultancy Services, we help investors and enterprises to obtain business licenses for company formation across UAE. Contact us to talk to our expert business consultants and discuss your specific requirements.