How to Obtain an Industrial License in UAE
Getting a licence is becoming more and more crucial for launching a new firm as the corporate sector in the United Arab Emirates is continuously expanding. The Industrial Licence in Dubai among the different licences offered in the UAE.
Businesses that transform raw materials or natural resources into finished goods are given the Industrial Licence in Dubai. Starting with raw or semi-finished materials, this transformation can be completed manually or with the aid of machinery.
Production, separation, assembly, packing, and other industrial processes are typical activities covered by the Industrial Licence. This licence is often issued by the Dubai Department of Economic Development (DED), but it also has to receive clearance from other ministries and bodies, like the Dubai Municipality.
Industrial License can be issued for the following businesses
An industrial licence is necessary for businesses that transform natural resources or raw materials into finished products, such as: -
- Industries related to food, like bread manufacturing.
- Textile production.
- Casting industries for metal.
- Production of machinery and engines.
- Making petroleum products.
- Manufacturing of paper, and more.
Condition
The necessary conditions in order to apply for an Industrial License in Dubai
Making sure you have met every requirement is essential before applying for an industrial licence in Dubai. The following information must be considered:
Local service provider
It is required that you have a local service agent (LSA) who will help you with all the legal requirements necessary to obtain an industrial licence in Dubai. This requirement cannot be waived, and working with an LSA provides you with complete ownership of your business operations.
Office Space
You need to have a physical office and a warehouse in Dubai in order to submit an application for an industrial licence. No virtual offices are permitted. By doing this, you can be sure that your company is physically present in the area.
Local Permit
In the area where your company is headquartered, you will additionally need a local industrial licence. To make sure that your company is operating lawfully and in accordance with regional legislation, this is essential.
Capital
In order to be qualified for an industrial licence, your company must have a minimum capital of Dh 250,000. This is to make sure that your company has the resources it needs to run efficiently and is financially sound.
You may guarantee a simple and hassle-free procedure of obtaining an Industrial Licence in Dubai by adhering to these conditions.
Documents for Industrial Licence
In Dubai, a number of documents must be supplied with the application in order to receive an industrial licence -
- These consist of a comprehensive report outlining the factory's plans, which also contains data on the tools and costs used for production, possible financing solutions, employee information, and other pertinent information.
- While citizens must provide a summary of their registration, non-citizens must also provide copies of their passport and residence permit.
- Along with a copy of the partnership agreement (if applicable) and the trade licence, a feasibility study is also required.
- Additionally, consent must be obtained from the National Media Council, the Ministry of Health, the Ministry of Environment and Water, and the Ministry of the Interior.
To prevent delays or rejection, it is crucial to make sure that all required documents are presented.
Procedure for an Industrial License
Here are the key points outlining the procedure for obtaining an industrial license in Dubai -
The following are the main details of the application process for an industrial licence in Dubai
- Before starting a new business or making adjustments to an existing one, seek approval from Dubai's authorities.
- Following official clearance, submit an application for an industrial licence to the Department of Economic Development (DED).
- Your application will be reviewed by the DED within three months, and if it is approved, you will be notified within 15 days.
- Obtain approval from the municipality in order to establish the plant.
- Obtain approval from the Ministry of Health, the Industrial Registry, the Chamber of Commerce and Industry, and any other necessary regulatory bodies.
- Submit the necessary paperwork in accordance with the guidelines provided by the appropriate authorities.
- Within a week, approval or disapproval is often delivered.
Responsibilities of an Industrial License holder in Dubai
- After gaining approval, start construction on the industrial space within six months.
- Submit all necessary data to the Department of Economic Development (DED) in Dubai.
- Before beginning industrial operations, send a letter to the DED requesting a certificate of permission.
- Send a letter to the proper authority to add your industry to the list of industries.
- The land that the government has designated for industrial development may not be sold or leased.
- Prepare and submit the data of enrolled workers to the DED.
- Do not use any goods or materials imported after requesting customs duty exemption, unless stated during the import process.
- Observe all governing laws, regulations, and guidelines.
- Observe all guidelines for preserving your health, fitness, and workplace safety.
- Any alterations, including the hiring of a director, must be communicated in writing to the DED.
- Submit reports to the authorities on a regular basis.
privileges of holding an Industrial License in Dubai
The following details outline the benefits of having an industrial licence in Dubai:
- Availability of industrial space at affordable leasing rates that is specifically created to support the investors.
- Government provision of land at a reduced rate to aid in the development of your industry.
- Discounted prices for utilities like water and electricity.
- Have access to advice on how to develop your industry based on techniques employed by related sectors.
- Products that are innovative may be qualified for loans with lower interest rates.
- Government funding for the research and development stage, if your product is anticipated to boost the country's economy.
- Priority consideration for exceptional quality goods during official procurement by the UAE government.