What is the Cost of Industrial License in Dubai?
The manufacturing sector is currently booming in Dubai. People from different parts of the world are moving to Dubai and setting up an industrial company. With the relaxed reforms on the business licenses by the UAE government, registering a manufacturing company as well as acquiring an industrial license Dubai has become easier. Not only on licenses but the government has also relieved the tariffs on trade and other relevant activities. Therefore, foreign businesses and investors are consecutively drifting to UAE and choosing Dubai as their career path.
Since the manufacturing and trade sector in the UAE is expanding, it is important to procure a license in order to start a new business. To execute the business activities lawfully inside and outside UAE, the investor must consider fulfilling all the legal formalities regarding the business and license registration. Hence, in this article, we will share a brief overview of the industrial license including the industrial license Dubai cost, registration and documentation, and other significant factors.
Industrial License Dubai
Dubai is a trading hub that connects the east and west. This geographical advantage facilitates industrial growth across borders, thus boosting Dubai’s economy. Therefore, setting up a manufacturing company in Dubai would be a profitable idea. However, no business can survive without an authorized power. Therefore, it would be a must to get a valid industrial license in Dubai.
An industrial license Dubai is for those companies that are engaged in production and manufacturing activities. For example, turning raw materials, semi-manufactured materials, or natural resources into finished goods, manually or mechanically. Other activities like segregation, accumulation, packaging, etc. are also covered under the industrial license.
The Department of Economic Development(DED) issues the industrial license. However, the owner first needs to get approval from the Dubai Municipality and other concerned authorities to complete the issuance process. In addition, the owner needs to find a physical warehouse for setting up the manufacturing plant, which is again a mandatory task.
Activities covered under Industrial License Dubai
Industrial production includes the entire manufacturing-related activities systematically performed in an area. Some of the activities covered under the industrial license include –
- Textile manufacturing
- Metal casting
- Food and beverages industries
- Paper production
- Manufacturing of petroleum products
- Manufacturing of machinery equipment, engines, and appliances
- Medicines and pharmaceutical goods
- Cards and envelop printing
- Saddle & animal, bird training requisites
- Sculptors
- Bookbinding
- Glass industries
- Waste collection and treatment
- Manufacturing furniture and wood products
- Automobile industry
- Steel manufacturing
- Meat processing
- Plastic industries
- Manufacturing of chinaware items
- Gold and precious stone manufacturing
Apart from these activities, firms that are involved in the fabrication, preparation, production, or manufacturing of goods, acquiring an industrial license Dubai is equally important for them.
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Advantages of acquiring an Industrial license in Dubai
- Modern industrial infrastructure
- Global customer base
- Approachability to a diverse group of people
- Availability of energy resources as well as manpower at reduced rates
- Exemption from corporate and income tax
- Renewal of trade license at minimum cost
- Affordable and effective
- Creates more business opportunities
- Capital or profit transactions are safe and legal
- Attracts more investments
- Easy availability of working staff
- Extended support from the government
- Availability of loans with lower interest for innovative products
Requirements for procuring an Industrial License in Dubai
While applying for an industrial license Dubai, the owner of the manufacturing company needs to meet certain requirements, such as –
- Local sponsor – While setting up an industrial company in Dubai, the owner must seek a local sponsor who will hold 51% of the company shares. The local sponsor can be an individual or a corporate entity in UAE. The involvement of a local sponsor in company establishment is obligatory to acquire an industrial license.
- Physical office space or warehouse – The DED doesn’t entertain those businesses that do not have a physical presence in the UAE. Therefore, the owner must find a warehouse or an office area and set up a physical company in the UAE. Further, DED doesn’t allow setting up virtual offices for manufacturing services.
- Local industrial license – Before applying for an industrial license, the owner must ensure procuring a local license in the region where the company is operating.
- Capital requirement – The business must have a minimum capital of AED 2,50,000 to be eligible to get this license.
- Staff – The company must have a minimum of 10 employees or workers.
Procedure for obtaining the Industrial license
- Obtain initial approvals from the Dubai authorities, for setting up a new company or making any amendments to the existing company.
- Apply for an industrial license to the DED.
- DED will review and contact the applicant if it accepts the application.
- Seek Dubai municipality’s permission to set up the manufacturing plant.
- Get approvals from other significant departments, such as the Chamber of Commerce and Industry, the Industrial Registry, the Ministry of Health, etc.
- Submit all the requested documents and fulfill the aforementioned requirements.
- Within two weeks, the DED gives the final approval and issues the industrial license.
The whole process of industrial license acquisition can be a tedious and time-consuming task. Besides, there might be chances of errors and delays in submission. The experts of Shuraa can assist you throughout the procedure and help you get the license on time, without any chaos and confusion.
Documents required while applying for an industrial license Dubai
Since several Ministries and external agencies are involved in the License issuance, you need to be really intent while submitting the documents. Below are some of the general documents that the applicant must submit while registering for the license –
- Passport copy
- Proof of residence (for non-citizens)
- Feasibility Study
- Partnership contract, if the firm is formed in partnership
- Approvals from the Ministry of Health, Ministry of Environment and Water, and Ministry of Interior
- National Media Council Approval
- Copy of the balance sheet
- Copy of trade license
The overall industrial license Dubai cost includes the fee for additional permits and registrations and the cost of leasing office space. Since the company also needs to acquire a trade license first, the fee for the same would include in the overall industrial license cost.
Conclusion
The Dubai government looking forward to the development of the country with innovation and a knowledge-based economy. This could be possible through ground-breaking industrial research, and advanced manufacturing, which balances the revenue from trade and commerce. However, the production of goods and commodities in an industrial atmosphere like Dubai needs a valid industrial license.
Securing an industrial license Dubai can be a bit more complex task as compared to other licenses. But, with the right guidance, you can achieve your goal in less time, that too without any troubles. All you have to do is seek professional help from company formation specialists who are pros in establishing businesses in the UAE.
Shuraa Business Setup has all the answers that you need. Our seasoned team of business experts is dedicated to helping entrepreneurs set up an industrial unit in the UAE, along with obtaining all the necessary permissions from the respective agencies and departments. Moreover, they work closely with the legal team to get through the array of paperwork and everything needed to achieve the desired outcome.
If you want to know more about the manufacturing company set up in Dubai, call +97144081900 or connect on WhatsApp at +971507775554. You can also write your queries to us at info@shuraa.com.
