Industrial license in Dubai, UAE
In the corporate sector, the United Arab Emirates is rapidly expanding. As the business world grows, it becomes important to acquire a license in order to start a new business. Currently, the UAE offers licenses in industries such as manufacturing, import and export, housekeeping, and freelancing. This article will be covering the area of Industrial License in Dubai.
This license is given in Dubai to businesses that turn raw materials or natural resources into finished goods. The transformation can be carried out manually or mechanically, and it can begin with raw materials or semi-manufactured materials.
Production, segregation, accumulation, packaging, and other industrial license activities are the most common. The Dubai Department of Economic Development (DED) issues it in general. However, the Dubai Municipality, as well as other ministries and authorities, must approve the issuance of this license.
Business sectors for which industrial license can be issued
Those who work in the manufacturing industry must obtain an Industrial License. The following are some of the industries that fall under this category:
- Bread manufacturing and food industries
- Textile manufacturing
- The casting of metals industries
- Equipment and engines manufacturing
- Manufacture of petroleum products
- Paper manufacturing
Conditions that need to be fulfilled in order to get an industrial license
Make sure you’ve completed all of the specifications mentioned below before applying for an Industrial License. The following are the details:
- Local Sponsor: – Your business must have a local supporter who owns 51% of the stock. This is a requirement that cannot be waived. International investors or holders of an industrial license will own the remaining 49 percent of the company.
- Office Space: – If you want to apply for an industrial license, you must have a physical office and a warehouse in Dubai. Virtual offices aren’t acceptable.
- Local License: – You’ll also need a local industrial license in the region where you’re doing business.
- Capital: –The capital of your company must be at least Dh 250,000
Documents required for obtaining the industrial license
- A report that contains information about the plant, such as the factory’s plans, the reason and intention for opening the factory, data on production tools, production cost and money, and some information on financing options. Other details may include employee information and any other relevant information.
- Copy of passport and residence for non-citizens, and summary of the registration of the citizen
- Feasibility Study
- Partnership Contract (if a partnership firm)
- Copy of the trade license
- Copy of Balance Sheet
- National Media Council Approval
- Ministry of Health Approval
- Ministry of Environment and Water Approval
- Ministry of Interior Approval
The procedure required for obtaining the industrial license
- Before you open a business or make any improvements to an existing company, you must first get permission from the Dubai authorities.
- You may then apply to the Department of Economic Development for an industrial license once you’ve received their approval. Within three months of receiving your letter, the DED will review it and make a decision.
- The DED will contact you within 15 days if your application has been accepted.
- Aside from that, you’ll need to get the municipality’s permission to build the plant.
- The Chamber of Commerce and Industry, the Industrial Registry, the Ministry of Health, and other authorities must all approve your license.
- You must apply the above documents in compliance with the specifications of the relevant authorities.
- Within a week or two, approval or disapproval is given.
Cost of obtaining the industrial license
If you apply for your industrial license on the mainland or in a free zone will determine how much it costs. You can factor in the cost of additional permits and registrations, as well as the cost of leasing space, in addition to the cost of the trade license. An industrial license costs around AED 35,000 on average.
Industrial License Holders’ Privileges
The authorities in the United Arab Emirates have granted certain rights to companies that have obtained an industrial license. The aim is to encourage industries and increase investment in the industry.
The following are some of the benefits of holding an industrial license in Dubai:
- Terms for renting industrial space that has been specifically designed to support the investor
- For developing your industry, the government will provide land at a reduced rate.
- Electricity, water, and other necessities are available at reduced rates.
- Guidance focused on the methods used by similar industries to improve your own.
- Innovative products can qualify for a loan with lower interest rates.
- The government will financially help you during the R&D phase if your product is expected to improve the national economy.
- Exceptional quality goods will be prioritized by the UAE government during official procurement.
Industrial License Holder Obligations
The federal government has placed some duties on the holder of an industrial license in Dubai. For the smooth operation of your industry and to prevent unwelcome consequences, you must adhere to the same. If your project has been accepted, you must start building the industrial space within six months of receiving the approval.
- As guided, submit all necessary data to Dubai’s Department of Economic Development (DED).
- When you are ready to begin your industrial operation, you must send a letter to the DED. Following that, the DED will grant an authorization certificate.
- The registry of industries must include your industry. Send a letter to the appropriate authority requesting this.
- If there are any improvements or amendments to the factory’s records, send a letter to the DED in the specified format describing the changes.
- You are not allowed to sell or lease the property that the government has set aside for the purpose of developing the industry.
- The data of the company’s enrolled workers must be prepared, and a copy must be sent to the DED.
- Unless stated during the import process, all goods and materials imported after requesting customs duty exemption should not be used.
- Follow the land’s laws, legislation, and policies to the letter.
- All instructions for maintaining hygiene, fitness, and industrial safety must be followed to the letter.
- Such adjustments, such as the appointment of a director, must be reported in writing to the DED. In that situation, the owners, along with the director, would be responsible for all of the company’s operations, as well as law enforcement and the upkeep of strict industrial safety regulations.
- Reports have to be submitted to the authorities on a regular basis.