Dubai and the UAE are quickly becoming hotspots for industrial growth and development. As more and more businesses look to establish themselves in the region, it’s essential to have a good understanding of the necessary licenses and permits required to operate in the industrial sector. You need to apply for an industrial license in Dubai to run a business here. In this blog post, we’ll provide you with everything you need to know about industrial licenses in Dubai and the UAE.
What is an Industrial License in Dubai and UAE
An industrial license in Dubai is a legal document that permits companies to conduct industrial or manufacturing activities within the Dubai mainland. This license is issued by the Dubai Department of Economic Development (DED), which is the regulatory body liable for regulating business activities in Dubai.
An industrial license allows companies to engage in the manufacturing, production, and assembly of goods or products, as well as the storage and distribution of those goods. The license is mandatory for any company that wants to operate in the industrial sector in Dubai.
The Industrial License permits companies to import raw materials, manufacture products, and export finished goods. The license also allows businesses to engage in activities such as maintenance, repair, and installation services related to their industry. With the UAE’s growing economy, obtaining an Industrial License can provide numerous opportunities for business growth and expansion.
The Process of Getting an Industrial License in Dubai and UAE
Getting an industrial license in UAE is a crucial step for any business planning to operate in the manufacturing, processing, or industrial sector in the UAE. The process for obtaining an industrial license in Dubai is straightforward, but it requires proper planning and preparation. Here are the steps to follow:
•Choose the Appropriate Legal Entity
The first step in obtaining an industrial license in Dubai is to select a suitable legal entity. There are several legal forms for industrial companies in Dubai, including limited liability companies (LLC), free zone companies, and offshore companies. Each legal form has its own advantages and disadvantages, and you must choose the one that best suits your business needs.
• Choose the Appropriate Industrial Activity
After choosing the legal entity, you need to decide on the industrial activity that you want to undertake. Dubai’s Department of Economic Development (DED) has classified industrial activities into three categories: light industry, medium industry, and heavy industry. The category of industrial activity will determine the location and requirements for obtaining an industrial license.
• Choose the Location
Once you have chosen the appropriate legal entity and industrial activity, you need to decide on the location for your business. The location of your industrial business will depend on the category of industrial activity that you have chosen. For example, heavy industries are located in designated industrial areas, while light industries can be located in commercial areas.
• Apply for Initial Approval
After choosing the legal entity, industrial activity, and location, you need to apply for initial approval from the relevant authorities. The application process for initial approval varies depending on the location and type of legal entity. For example, if you are setting up an industrial company in a free zone, you need to apply for initial approval from the free zone authority. If you are setting up an industrial company on the mainland, you need to apply for initial approval from the DED.
• Obtain a Trade License
Once you have obtained initial approval, you need to obtain a trade license from the DED. The trade license is a legal requirement for carrying out any commercial activity in Dubai, including industrial activities. The trade license application process varies depending on the type of legal entity.
• Apply for an Industrial License
After obtaining the trade license, you need to apply for an industrial license in UAE from the relevant authorities. The application process for an industrial license varies depending on the location and category of industrial activity. For example, if you are setting up a heavy industry in a designated industrial area, you need to apply for an industrial license from the Dubai Municipality. If you are setting up a light industry in a commercial area, you need to apply for an industrial license from the DED.
• Obtain Necessary Approvals and Permits
After obtaining the industrial license, you need to obtain the necessary approvals and permits from the relevant authorities. The approvals and permits required will depend on the category of industrial activity and the location of your business. For example, if you are setting up a heavy industry, you need to obtain approvals and permits from the Dubai Municipality and other relevant authorities.
Benefits of Getting an Industrial License in Dubai and UAE
• Access to a Large Market
Dubai is a commercial hub and offers easy access to the UAE’s large and growing consumer market. With an industrial license in Dubai, you can manufacture products and distribute them throughout the country and beyond. This allows you to tap into a vast market and potentially increase your revenue.
• Tax Benefits
One of the most significant benefits of setting up an industrial business in Dubai is the tax benefits. The UAE has a tax-friendly environment, and industrial businesses are exempt from paying corporate taxes for up to 50 years. This can significantly reduce your operating costs and increase your profitability.
• Infrastructure
Dubai has world-class infrastructure, including transportation, communication, and utilities. This means that your industrial business can benefit from a reliable and efficient supply chain network. Additionally, Dubai offers access to state-of-the-art technology and equipment, which can increase your productivity and competitiveness.
• Skilled Workforce
Dubai has a highly skilled and diverse workforce, with professionals from around the world. This means that you can find the right talent for your industrial business, from engineers and technicians to skilled laborers. Additionally, the UAE has a low unemployment rate, ensuring a stable labor market.
• Intellectual Property Protection
Dubai has robust laws to protect intellectual property, including patents, trademarks, and copyrights. This means that your industrial business’s intellectual property is safeguarded, ensuring that you can operate without worrying about infringement or theft.
The Cost of An Industrial License in Dubai and UAE
The cost of an industrial license in the UAE can vary depending on several factors such as the nature of the business, the location, and the size of the company. However, the Dubai government provides a general fee structure for different types of industrial licenses.
As of 2021, the cost of an industrial license in Dubai ranges from AED 10,000 to AED 50,000. The fees for a specific license depend on the activities conducted by the company. For instance, a license for manufacturing food products would cost around AED 15,000, while a license for metalworking would cost around AED 25,000.
Note that these fees do not include additional costs such as visa fees, office space rent, and other expenses that may be required to operate a business in Dubai.
Conclusion
Also Read: How Many Types of Licenses Are There in Dubai?
Obtaining an industrial license in Dubai can be a complex process, but with the right guidance and support, it can be a smooth and hassle-free experience. By following the steps outlined above, you can ensure that you have all the necessary documents and approvals in place to start your industrial business in Dubai.
