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INDUSTRIAL LICENSE
In both business and industry, the United Arab Emirates is quickly developing. However, in order to establish a new business in this city, you must first get a business license. Commercial, industrial, and professional licenses are the three primary categories of company licenses in the UAE. We will discuss how to acquire an Industrial License in Dubai in this article.
Who may apply for an Industrial License?
Investors and enterprises that use raw materials or natural resources to make finished items are granted an industrial license in Dubai. Raw materials or semi-manufactured materials are employed in the process, which can be done manually or automatically. The Dubai Municipality and other ministries have given its approval.
Industries that require an industrial license Dubai
To operate efficiently in the manufacturing business, investors must get an Industrial License. The following industries are included in this category:
Food and bread manufacturing industries
Manufacturing of machinery and engines
Petroleum product manufacturing
Manufacturing of paper
Textile production
Metal casting industries are one of the most important businesses in the world.
Application Requirements for an Industrial License
Before applying for an Industrial License, you must satisfy the following requirements:
Local Sponsor –
A local service agency or sponsor (UAE national) must possess 51% of the total stake. Foreign investors or holders of an industrial license will own the remaining 49% of the firm.
Office Space – In order to get a physical office and a warehouse in Dubai, you will need to have a physical office and a warehouse.
After obtaining an industrial license, approvals are required.
To get an Industrial Licence, approval and permissions from the following departments are required:
The Ministry of Economy and Commerce
The Department of Planning for Dubai Municipality (DM)
In some cases, special permission from Dubai Civil Defence is required.
For power, water, and other services, the Dubai Electricity and Water Authority (DEWA) is responsible.
Dubai’s Ministry of Health (if setting up a pharmaceutical manufacturing company)
Ministry of Climate Change and Environmental Permits
Documents Required by the UAE Ministry of Interior The Industrial Permit.
The following are required documentation to have on hand when applying for a license:
A report that includes information on the factory’s intentions, the rationale and purpose for opening the factory, data on production tools, production costs and capital, and information on financial assistance or funding.
Employee information, as well as any other pertinent data, might be included in the report.
For non-citizens, a copy of their passport and proof of residency is required.
Summary of the citizen’s registration
Study of Project Feasibility.
Contract of Collaboration (if a partnership firm).
a copy of the business license and a copy of the balance sheet.
Approval by the National Media Council.
Approval by the Ministry of Health.
Approval from the Ministry of the Environment and Water.
Approval from the Ministry of the Interior.
The Procedure for Obtaining an Industrial License
The following is a step-by-step guide to obtaining an Industrial License in Dubai:
Before you start a factory or make any changes to an existing one, you must first acquire clearance from the Dubai authorities.
You can then apply to the Department of Economic Development for an industrial license once you’ve received their permission. Within three months of receiving your application, 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 seek permission from the municipality to build the plant.
The Chamber of Commerce and Industry, the Industrial Register, the Ministry of Health, and other agencies must all approve your license.
You must submit the above-mentioned documentation to the appropriate authorities.
The cost is determined by a variety of factors, including the license’s location, legal structure, jurisdiction, and activities added to the license, among others. To obtain a better sense of the cost of an industrial license in Dubai,
it is best to contact a company establishment expert in Dubai. Even in acquiring your industrial license, a business setup or company formation expert may be quite beneficial. They can alleviate all of your concerns and help the procedure go more smoothly for you.
The Benefits of Having an Industrial License
The authorities provide certain privileges to enterprises that have secured an industrial license in the United Arab Emirates in order to attract businesses to invest in the nation.
Some of the advantages of having an industrial license in Dubai are as follows:-
Rental terms for industrial premises that are primarily intended to assist investors.
For the purpose of establishing a manufacturing unit, the government will offer land at a discounted cost.
Reduced prices are provided for electricity, water, and other necessities.
Advice on how to enhance your business.
Easy loans with lower interest rates can be obtained through innovative solutions.
If your product is likely to benefit the national economy, the government may also grant funding and financial assistance throughout the R&D phase.
When it comes to governmental procurement, the UAE government prioritizes items of excellent quality.
Obligations of Industrial License Holders.
Companies must satisfy the following requirements in order to apply for an industrial license in Dubai:
The federal government has declared some responsibilities for those who possess a Dubai industrial license. For your firm to run well, you must follow these guidelines. If your project has been approved, you must begin construction on the factory or manufacturing/production unit within six months of receiving approval.
Submit the required documentation to the Department of Economic Development in Dubai (DED).
When you’re ready to begin your procedure, you’ll need to write a letter to the DED asking permission. The DED will then issue an authorization certificate.
Your company must be listed in the Registry of Industries. For this, write a letter to the appropriate authority.
