Dubai is arguably one of the most foreign investor-friendly cities in the world. With Expo 2020, there are expected upsurge in the Dubai business scenario. If you want to establish a business that involves manufacturing or semi manufacturing activities, you must obtain an industrial license. Good Solutions Businessmen Services provides bespoke business set up solutions and guides you in every step of the process including documentation, finding the right local service agent, determining the type of license, and provides legal support.
So what exactly is an Industrial license and who needs it?
An industrial license is a business trade license issued by the Department of
Economic Development in Dubai to companies that manufacture, assemble,
process or redesign goods using raw materials.
To give you a surface level rundown, the following industries can be classified
as business establishments that require a professional license.
- Oil and Petroleum Processing industries.
● Metallurgical Engineering industries.
● Steel manufacturing industries.
● Aluminium manufacturing industries.
● Gold and precious stones manufacturing industries.
● Mats and rugs manufacturing industries.
● Motor vehicles, motorcycles, and spare parts manufacturing industries.
● Appliances and machinery manufacturing industries.
● Water bottle manufacturing industries.
● Bread or food manufacturing industries.
● Textile manufacturing industries.
● Metal casting manufacturing industries.
● Equipment and engines manufacturing industries.
● Manufacture of petroleum products
● Paper manufacturing industries.
To ensure the smooth working of the industries, the UAE government imposes
few rules before granting the industrial license. Your business must comply
with the following prerequisites to obtain an industrial license.
- You must own a physical brick and mortar office/factory. This is a pivotal
prerequisite in obtaining an industrial license and this condition cannot be
compromised. You cannot replace a physical office with a virtual one.
● Another cardinal prerequisite is to have a local sponsor or a sleeping
agent who holds 51% stakes in your business. This condition too cannot
be compromised and is mandatory.
● Your company must have at least 10 workers.
● Your company must have a local license from the area where your
business is operating.
● Your company’s capital must be at least AED 250,000.
● You must have 5 horsepower machines.
● Your company must make housing arrangements for the labors employed.
Documents required to obtain an Industrial license
- A detailed report about the factory including factory plans, the cause for
opening the factory, production cost, and capital.
● Passport copy and residence permit of the expats and registration
summary of the UAE citizen.
● Feasibility study report.
● Partnership contract (if your company is a partnership firm)
● Trade license copy.
● Balance Sheet copy
● Approval from National Media Council
● Approval from the Ministry Of Health, Ministry Of Environment and
Water.
● Approval from the Ministry Of Interior.
Procedure to Apply for Industrial License
The procedure to apply for Industrial License is simple and straight-forward.
● An initial approval from relevant authorities before opening a physical
office/factory.
● Apply for an industrial license to the Department of Economic
Development. The DED will take three months to examine your
application and make a decision.
● If your application is approved, the DED will notify you within 15 days
of the decision.
● Obtain approval from the Municipality to construct the factory.
● Obtain approval from other authorities including Chamber of Commerce
and Industry, Industrial Register, and the Ministry of Health.
● Submit the required documents.
As an established consulting company who has been facilitating foreign
investors, entrepreneurs and SME’s for the formation of their businesses in UAE
for years, we have helped several thousands of people realize their dream. Our
intent is to provide services based on your needs.
Embark your entrepreneurial journey with Good Solutions Businessmen
Services. To get free consultation contact us now.