Industrial license

Industrial license

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 meant 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.

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

How to get an Industrial License in Dubai?

The process involved in the issuance of Industrial License in Dubai is listed below.

Obtaining the Initial Approval from the concerned authorities is the very first procedure prior to setting up of industrial concern or factory in Dubai. Initial Approval is also applicable when it comes to altering the present factory specifications or settings.

After you get the Initial approval, you may get in touch with the DED and apply for the Industrial License.

The processing time of the license application is 3 months. DED makes the final decision within the prescribed time.

The applicant shall receive the Application Approval notification from DED after the decision has been made. And this may take another 15 days.

When it comes to factory construction, you need to get prior permission from the Municipality.

You need to get other approvals from agencies and Ministries like the Ministry of Health, Chamber of Commerce and Industry etc.

If all the aforementioned requirements and documents are through, the final approval shall be issued within two weeks.

Getting an Industrial License in Dubai can be a time-consuming and tiring task because of the overload of formalities. Kiltons Business Setup Services have assisted several establishments for acquiring Industrial License in Dubai. Please contact our business consultants, even if it is a general query regarding Industrial License. We’re pleased to help you.