Dubai’s superior and extensive infrastructure and logistics play a key role in supporting industrial growth. Dubai also has a geographical advantage because it is a commerce hub that links the east and the west therefore it is of utmost necessary to get yourselves an Industrial License if you are thinking about starting a Manufacturing or Industrial Business.
Obtaining an Industrial License in Dubai, UAE allows the manufacturing and industrial businesses in Dubai to produce partially or entirely manufactured goods. Production, segregation, collecting, packaging, etc. are the main operations covered by an Industrial license in the emirates. Thus, this blog will help you gain knowledge about how you can get your Industrial License in Dubai. So, without wasting any time, let’s begin!
What is an Industrial License in Dubai?
When a commercial activity is carried out that is of an industrial nature, like the production or refinement of petrochemicals, an Industrial License in the UAE is granted to the company or a person to carry out such operations. The general rule of thumb is that if a commercial activity requires the use of specialized plant machinery, it is most likely to be classified as industrial. We have compiled a few examples of Industrial Activities which are listed below-
Business activities under a Professional license
- Metal casting
- Bottling of carbonated drinks and packaging of food items
- Production of diary and other products on a commercialized scale
- Manufacturing of Paper products
- Mixing and production of chemicals
- Machine, equipment, and engine forging and/or assembly
Is it necessary to obtain an Industrial License
An industrial License is required for all business entities engaged in manufacturing or industrial activity. There are a number of certifications and necessary approvals that must be obtained before one can apply for an Industrial Manufacturing License in Dubai, even though it is provided by the Department of Economic Development in the emirate you intend to establish your business in.
As an illustration, your industrial organization must have approved firefighting equipment in place.
You must also make sure that your employees’ health will be always protected, which frequently requires filing a thorough plan to the authorities.
Furthermore, your business location needs to have an electrical power connection that supports the continued operation of the equipment, depending on the machinery and/or plant equipment that you intend to use.
You are also in charge of making sure that your premises are electrically safe, so any failsafe electrical protection equipment (which must adhere to United Arab Emirates standards) that you intend to install must be mentioned in the Business Plan, which will be carefully examined by technical authorities with the necessary expertise.
What are the Requisites for an Industrial License in Dubai?
The requisites of an Industrial License in Dubai are as follows-
1. Explanation of Industrial Setup
You must provide a report that describes every aspect of your industrial setup, as well as the basis behind its establishment or expansion of the existing industrial operations. The latter becomes significant if you currently own an industrial establishment, but your present Industrial Manufacturing License does not cover the type of work you want to execute.
There must be as much information as possible on the manufacturing tools in this report, including precise technical details and an estimate of the production cost.
2. Financial Plan
A financial plan for this industrial operation, including whether you intend to fund its establishment on your own or with financial institution assistance, must be included in your report.
You must provide verification of finances, such as a bank statement or a letter of credit/bank guarantee from a bank or financial institution in the United Arab Emirates, as the goal of this is to ensure that you are successfully able to continue operations once you have created your unit.
3. Details of Employees
The number of people you intend to engage to run the industrial establishment should be disclosed in the report. It is crucial that your business be big enough to hold all of them. The Municipality’s approval is also required, and it must be included in your application for an Industrial Manufacturing License together with the report. Additionally, proof of your membership in the Dubai Chamber of Commerce and Industry must be enclosed.
4. Other relevant details
In addition to this, you must present all company formation documents that clearly identify the owners as well as a copy of each partner’s Emirates ID (if they are already residents of the UAE, in which case a copy of their passport would suffice).
Before you can obtain your industrial license, the location plan that shows the area where the industrial unit is to be built must also show where the various constituent units (such as cooling towers, electrical power units, and chemical storage tanks) will be. This plan must also be approved by the government.
How To Get An Industrial License In Dubai?
The first step in establishing a manufacturing or commercial enterprise in Dubai is to obtain Initial Approval from the relevant authorities. When changing the current factory specs or settings, initial approval is also necessary.
- Collaborate with a business licensing expert
- Secure administrative approvals
- Submit your application for obtaining an industrial license
- Obtain additional approvals
- Manage Visas
Due to the excessive number of regulations, obtaining an industrial license can be a time-consuming and exhausting task. Our team of Experts have assisted several Companies to obtain an industrial license. Even if you just have a general question about an industrial license, please get in touch with one of our business consultants.
How much does an Industrial License cost in Dubai?
Whether your firm is in the Mainland or Free Zone, as well as other important considerations, will affect the cost of acquiring an industrial license in UAE, and setting up your shop. Depending on the kind of industry you are starting, you could need additional approvals and registrations. An estimated AED 25,000 will be needed to cover all expenses. This might, however, change occasionally if the pricing regulations are changed. It would be less expensive to launch a business in the Free Zone jurisdiction when taking initial setup fees and other expenses into account.
Our team of enthusiastic company formation experts is committed to assisting business owners in pursuing their dream of starting their very own Company in the UAE. We assist foreign investors in completing the voluminous paperwork and other steps required to set up an industrial facility and assist with obtaining all required government agency permissions.
Thus, getting your own industrial license in Dubai can be a great decision if you wish to start your Industrial or Manufacturing Company in Dubai.