Industrial license

The corporate sector in the United Arab Emirates is growing fast. With the rapid growth in the business world, getting a license to start a new business is important. The UAE offers licenses in different industries, such as import and export, freelancing, manufacturing and housekeeping.

Our consultants at Dubai Visa and Investment Centre will assist you in getting an industrial license in Dubai.

An industrial license is for businesses that convert natural resources or raw materials into finished goods. This production can be done mechanically or manually, and start with semi-manufactured or raw materials.

The most common business activities for people with an industrial license are production, accumulation, segregation and packaging. The Dubai Department of Economic Development (DED) issues the industrial license. However, the Dubai Municipality and other authorities and ministries must approve the license issuance.

Activities under industrial license

People working in the manufacturing industry must get an industrial license. The following are some industries under this category.

• Textile manufacturing
• Food industries and bread manufacturing
• The casting of metal industries
• Paper manufacturing
• Petroleum products manufacturing industries
• Engines and equipment manufacturing

Requirements to get an industrial license

Ensure you meet the requirement mentioned below before applying for an industrial license.

• Local service agent

  The business needs a local service agent (LSA) who will help with the legal formalities to get the industrial license in the UAE. This is a compulsory requirement. If you work with an LSA, you will still have 100% operational and business ownership.

• Office space

  Before applying for an industrial agent, you must have a warehouse and physical office in Dubai. A virtual office is unacceptable.

• Local licenses

  Getting an industrial license in the region where you will conduct the business is necessary.

• Capital

  The company’s capital must be at least Dh 250,000

Documents for an industrial license

• A report containing the plant's information, such as the factory's plans, the intent and reason for opening the factory, production cost and money, data on production tools and information on financing options. Other details may include information on the employee and other important information.
• Copy of residence and passport of non-citizens and summary of the citizen's registration
• Partnership contract if it is a partnership firm
• Copy of the trade license
• Feasibility study
• Ministry of Interior Approval
• Ministry of Environment and Water Approval
• National Media Council Approval
• Copy of Balance Sheet
• Ministry of Health Approval

Procedure for getting an industrial license

• Before setting up a business or improving your existing company, you may obtain permission from the Dubai authorities.
• The next step is applying to the Department of Economic Development (DED) for an industrial license when you get the authority’s approval. Within three months of receiving the letter, the DED will review and make a decision.
• The DED will contact you within 15 days if your application is accepted
• You also need permission from your municipality to build the plant
• The Chamber of Commerce and Industry, the Ministry of Health, the Industrial Registry and other authorities must approve your license
• You must submit the documents above and comply with the specifications from the authorities
• You will get approval or disapproval within 1 – 2 weeks

Cost of getting an industrial license

Applying for an industrial license in a freezone or on the mainland will determine its cost. You will consider the cost of additional registrations and permits, including the cost of leasing the space and trade license. An industrial license is about 35,000.

Benefits of an industrial license

The industrial license allows you to conduct industrial business activities. This also offers other benefits that make it popular among investors and entrepreneurs.

These benefits include:

• Access to world-class machinery and infrastructure
• Zero percent tax rate and minimal corporate tax rates
• 100% exemption from export and import tariffs
• 100% repatriation of profits and capital to your home country
• 100% ownership of the company for foreigners in most sectors
• Attract more investors and customers with the industrial license
• Legal safeguard through judicial intervention

Privileges

The UAE authorities have granted some rights to companies with industrial licenses. These rights aim to increase investment and encourage industries. The privileges of getting an industrial license include

• Specially designed terms for renting industrial space to support the investor
• The government provides land at a reduced rate for developing the industry
• Water, electricity and other necessities are available at reduced rates
• Innovative products may qualify for lower-interest-rate loans
• The government offers financial heal during the R and D phase if the products can improve the national economy
• Exceptional quality products are prioritised by the UAE during official procurement.
• Guidance on methods used by similar industries to improve your industry

Obligations of an industrial license holder

The government has mandated industrial license holders to carry out some duties. You must adhere to these obligations to prevent consequences and ensure the smooth running of the industry.

If you have approval for the project, you must build your industrial workspace within six months.

• Submit all necessary data to the DED.
• When you want to start your industrial operation, send a letter to the DED. The DED needs to grant an authorisation certificate.
• The registry of industries must include your industry. You can send a letter to the appropriate authority for this.
• If you make any improvements or amendments to the factory records, send the DED a letter with the specified format describing the changes
• Do not lease or sell the property the government assigned for the industry's development.
• Prepare the date of the enrolled workers in the company and send a copy to the DED.
• Do not use materials and goods imported after requesting customs duty exemptions, unless stated during the import process.
• Follow the policies, legislation and laws of the land
• Follow all instructions for maintaining fitness, hygiene and industrial safety
• You must report adjustments, such as the appointment of a director, in writing to the DED. The owner and director would be responsible for the company's operations, including following the strict industrial safety regulations and law enforcement
• Submit reports to the authorities regularly

Contact Dubai Visa and Investment Centre today at 971 544563095 to have our consultants help you get an industrial license for your business. You can also locate us at Office No. 4108, 41st floor, Churchill Tower, Business Bay, Dubai, United Arab Emirates.

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