In the UAE, industrial and manufacturing companies must get an industrial license to run their business legally. This license is issued by the Department of Economic Development in Dubai. The companies also need to register in the official catalog of the industry ministry and finance office along with other regulatory authorities.
The industrial department has seen immense growth in recent years. By getting an industrial license, the companies get tax exemptions on raw materials, machinery, spare parts, and other industrial equipment.
This license has a particular validity period depending on compliance with requirements. It also allows you to travel to the GCC countries easily for trade and business.
What is an Industrial License in the UAE?
An industrial license is a trade license issued by the Department of Economic Development to industrial companies that deal with natural resources or raw materials. These companies manufacture capital goods and semi-manufactured products.
The job of industrial organizations is to manufacture, store, and distribute goods to their customers. In order to keep their manufactured goods, industrial companies must have a warehouse in the UAE.
Criteria for getting Industrial Trade License in UAE
There are certain conditions that investors must meet before applying for an industrial trade license in Dubai. These involve;
- The investor must have a physical office or warehouse in the UAE
- Memorandum of Association (MoA) of the firm
- The company must hire ten employees to run the business
- The company must invest a total of AED 250,000
- The company must get an industrial trade license from the relevant departments.
- The company must have a local Emirati sponsor with 51% shares of the company.
After the completion of the business setup, the Department of Economic Development will permit you to start your industrial firm legally. If you want to modify your business activities, you must report to the local DED department.
Steps to Get an Industrial Trade License in Dubai
There are certain steps involved in getting a trade license for an industrial firm, which are discussed below.
Plan Your Business
The first and foremost Industrial license in Dubai requirements is planning your business. This business plan includes selecting a legal structure, business activities, and necessary equipment and operational details. Also, keep in mind the costs and other requirements.
Get Government Approvals
In order to legally set up your industrial factory in Dubai, you’ll need to get approvals from certain government bodies. These approvals are optional if you want to run your business from a functioning site.
Submit License Application
After getting the approval, submit your application and fees to get an Industrial license in Dubai for foreigners. For mainland companies, the Department of Economic Development (DED) is responsible for license issuance, while a freezone company can submit its applications to the relevant Free Zone authorities.
Select a Manufacturing Unit/Office
Industrial companies must have a physical office and warehouses for manufacturing their products and storing them. Before starting manufacturing, the industrial units must have fire safety units, which should be checked and approved by the municipality office.
Get Additional Approvals
There are certain approvals that an industrial company needs in order to run their business in Dubai. These government bodies are The Ministry of Health, The Industrial Register, and The Chamber of Commerce and Industry. In order to smoothly handle this process, hire an expert consultant.
Apply for your Visa
An industrial license in Dubai for foreigners necessitates getting a visa before you can run your industrial company. You can also sponsor your family members as well as your relatives. The visa process can also be handled by the business consultants on your behalf.
The Cost Involved in Getting an Industrial License in the UAE
The cost of an industrial license in Dubai is approximately AED 25,000. However, the costs can vary depending on your company’s location, visa application, and other operational activities.
The costs mostly depend on the location of your industrial factory. It is also important to keep in mind the costs of business activities, licenses, and other permits.
Documents Required for Industrial Trade License
We have compiled a list of documents for getting an Industrial license in dubai for foreigners.
- Photocopies of passports (for foreigners)
- Photocopy of the lease agreement (for foreigners)
- Business feasibility study
- Photocopy of bank statement
- Registration form
- Contract of partnership (for a partnership company)
- Copy of your trade license
- Approval of Ministry of Health
- Approval of National Media Council
- Approval of Ministry of Interior
- Approval of Ministry of Environment and Water
List of Allowed Business Activities with Industrial License
Below is the list of permissible activities under your industrial trade license;
- Processing of oil & petroleum
- Manufacturing appliances and equipment
- Steel manufacturing and tools
- Refining raw materials
- Textile and Fabric
- Paper goods manufacturing
- Agricultural equipment and related accessories
- Food and beverages
- Woodwork and furniture-making
- Manufacturing Batteries and other magnetic goods
- Production of seal, insulations, and protection equipment
- Casting of metals
- Gold and precious metals crafting
- Glass industries and chinaware goods
- Manufacturing of automobiles and their parts
- Production of home appliances
There are many more activities listed by the government and relevant authorities. In order to get help with the selection of your business activity, hire an Expert Business Consultant in Dubai.
Benefits of an Industrial Trade License
The UAE government is continuously introducing services and regulations to sustain the economy. Hence, investors are attracted to manufacturing businesses and receive an abundance of benefits.
- The government of UAE provides land to manufacturing companies on a subsidy.
- Industrial firms have huge benefits from rental agreements
- The industrial trade license holders have more approach to investors and customers
- Access to world-class infrastructure, telecommunication, and e-government portals
- Approach to modern industrial infrastructure and international business market
- For innovative products and services, the option of governmental loans at lower taxes
Additionally, the government provides advanced services and guidance to industrial firms, which attracts investors from all over the world to UAE.
Final Thoughts!
The procedure of getting an industrial license in Dubai requires much more effort than it seems. There are a lot of aspects that need careful attention, like determining an appropriate location, selecting a legal structure for business, opening a bank account, meeting financial requirements, and complying with legal paperwork and regulations.
The process of starting an industrial and manufacturing firm can be made easy with the help of an expert business consulting firm like Al-Riyady! Contact us today and get expert help with all the paperwork, financial guidance, and other industrial business-related problems. We also provide expert Auditing and Accounting Services, business feasibility studies, Tax Consultancy, bookkeeping, and much more.
