Industrial License In Dubai, UAE

Acquire Your industrial License for Business Ventures

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.

Acquire Your industrial License for Business Ventures

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 Mean 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

Prior to the application for a commercial license in Dubai, one needs to decide on the trading activities that are going to be conducted under the same. Have a clear understanding of the type or category of your business activity before you set up a business in Dubai. Business activities related to buying and selling and certain service-oriented endeavours come under Commercial License. The major activities that come under the commercial license in Dubai, UAE are listed below.

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

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

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.