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To legally operate an industrial business, getting your industrial license in Dubai is mandatory. This license is essential for any enterprise involved in the production, manufacturing, or processing of natural resources into finished goods.

Whether you are planning to set up a factory for food production, textile manufacturing, or metal casting, securing the right industrial license is the first step. Next, we will delve into the specifics of what an industrial license entails and how you can go about obtaining one.

What is an Industrial License in Dubai?

An industrial license in Dubai is essential for businesses involved in manufacturing, production, or processing goods. Issued by the Department of Economic Development (DED), it grants legal permission to convert raw materials into finished products while ensuring compliance with local regulations and standards. This license covers activities such as production, segregation, accumulation, and packaging, making it necessary for operations in textile manufacturing, metal casting, food production, and other industrial processes.

Procurement of an industrial permit requires having a physical warehouse within the UAE, highlighting the need for a tangible presence to facilitate regulation and oversight. Businesses must also secure approvals from various authorities like Dubai municipality, to ensure regulatory compliance. Next, we will outline the steps involved in applying for UAE industrial license.

How to Apply For an Industrial License in Dubai?

The process of obtaining an industrial license involves several structured steps. Understanding these steps can help streamline the process, ensuring that your application is thorough and meets all regulatory requirements. Here is a detailed breakdown of the steps involved:

Step 1: Engage a Business Licensing Expert
Step 2: Secure Initial Approvals from Authorities
Step 3: Prepare and Submit Your Application
Step 4: Obtain Additional Approvals
Step 5: Manage Your Visa Applications
Step 6: Finalize Your Approval and Issuance
Step 7: Set Up Your Operations and Ensure Compliance

Engage a Business Licensing Expert

The first step is to engage a business formation specialist or a business licensing expert. These professionals can guide you through the entire process, ensuring that your application is complete and accurate. This step reduces the stress of starting a business and increases the chances of your application being approved.

Secure Initial Approvals from Authorities

Before you can apply for an industrial license in the UAE, you must secure initial approvals from authorities. This includes approval from the Dubai Department of Economic Development (DED) and other specific government bodies related to your industrial activities. If you plan to set up in a free zone, the authority there will handle these approvals

Prepare and Submit Your Application

Once you have obtained the necessary initial approvals, the next step is to prepare your application. This involves compiling all required documents, including a detailed business plan, feasibility study, and proof of physical premises. Submit your application to the DED if you are setting up an industrial unit on the Dubai mainland or to the relevant free zone authority if you are establishing your business in a free zone.

Obtain Additional Approvals

After submitting your application, you may need to obtain additional approvals from various bodies. These can include:

The Dubai Chamber of Commerce and Industry
The Industrial Register
The Ministry of Health
The Ministry of Environment and Water
Other relevant agencies based on the nature of your business

Manage Your Visa Applications

Concurrently with your application, you need to apply for UAE visas for yourself and any employees. This step can often be managed alongside the license application process. If you are working with a business consultant, they can handle visa applications on your behalf. Additionally, you can sponsor visas for family members, such as your spouse, children, or parents.

Finalize Your Approval and Issuance

Once all approvals are in place, the DED or relevant authority will review your application. The processing time typically takes around three months. After a thorough review, you will receive a notification of approval. The final step involves receiving your Dubai industrial license, allowing you to legally commence your manufacturing or industrial operations in Dubai.

Set Up Your Operations and Ensure Compliance

With your industrial license in hand, you can start setting up your industrial operations. Ensure that you comply with all regulatory requirements and maintain regular communication with the authorities to keep your license in good standing.

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Required Documents for Getting an Industrial License?

Business Plan:

A detailed business plan document outlining your industrial activities, goals, production processes, and financial projections.

Feasibility Study:

A feasibility study document demonstrating the viability of your industrial project, including market analysis, technical feasibility, financial feasibility, and risk assessment.

Detailed Project Report:

A comprehensive document on the proposed factory or industrial setup. This should include the layout, design, production capacity, and detailed descriptions of machinery and equipment to be used.

Proof of Physical Premises:

Documentation providing details of your physical warehouse or industrial space in Dubai, including lease agreements, property ownership documents, or rental contracts. Virtual offices are not permitted for local industrial licenses, making this a critical requirement.

Copy of Trade License:

If applicable, provide a copy of your existing trade license. This is particularly relevant if you are modifying an existing industrial operation or expanding your business activities.

Partnership Agreement:

For partnership firms, a copy of the partnership contract is required. This document should outline the roles, responsibilities, and shares of each partner involved in the business.

Passports and Residency Visas:

Copies of the passports and UAE residency visas of the business owners and key stakeholders. This includes non-citizens who are part of the company.

Balance Sheet:

A copy of your company’s balance sheet, showcasing the financial health and stability of your business.

National Media Council Approval:

Approval from the National Media Council if your industrial operations involve media or publishing-related products.

Copy of Passport and UAE Residency Visa:

Required for the business owners and stakeholders (non-citizens).

Ministry of Health Approval:

Approval from the Health Ministry if your industrial operations involve pharmaceuticals, medical equipment, or any health-related products.

Approval from the Ministry of Environment and Water:

Approval from the Ministry of Environment and Water to ensure that your industrial operations comply with environmental regulations and sustainability practices.

Approval from the Ministry of Interior:

Depending on the nature of your business, you may need approval from the Ministry of Interior, particularly if your operations have security implications.

Industrial Register Approval:

Registration and approval from the Industrial Register, a crucial step in legalizing your industrial operations and ensuring compliance with local regulations.

Additional Sector-Specific Approvals:

Depending on your specific industry, you may require additional sector-specific approvals. For instance, food production businesses might need approvals from food safety authorities, while chemical manufacturers may need clearance from relevant environmental bodies.

Which Business Setups Need an Industrial License in Dubai?

Investors Manufacturing and Production

Businesses involved in the manufacturing and industrial production of goods on a large scale must obtain an industrial license. This includes factories producing textiles, electronics, automotive parts, machinery, and consumer goods. These businesses transform raw materials into finished products through various processes such as assembly, fabrication, and packaging.

Food and Beverage Production:

Companies engaged in the production, processing, and packaging of food and beverages need an industrial license. This includes bakeries, confectioneries, dairy products, meat processing plants, and beverage manufacturers. Ensuring compliance with health and safety standards is crucial in this sector.

Metal and Chemical Manufacturing

Industries involved in metal casting, metal fabrication, and the production of chemical products such as paints, coatings, and industrial chemicals need an industrial license. These activities often require stringent adherence to environmental and safety regulations.

Textile and Apparel Manufacturing

Businesses involved in textile manufacturing, including spinning, weaving, dyeing, and garment production, require an industrial license. This also covers the production of home textiles, such as carpets and upholstery fabrics.

Pharmaceuticals and Medical Equipment

Companies that manufacture pharmaceuticals, medical devices, and related products must obtain an industrial license. This includes the production of medicines, surgical instruments, and health-related products. Compliance with health regulations and quality standards is essential in this sector.

Plastic and Rubber Products Manufacturing

Businesses engaged in the production of plastic and rubber products, including packaging materials, containers, and industrial components, require an industrial license. These activities often involve complex manufacturing processes and quality control measures.

Automotive and Aerospace Industries

Companies involved in the manufacturing of automotive parts, vehicles, and aerospace components need an industrial license. This includes assembly plants, parts suppliers, and maintenance facilities for vehicles and aircraft.

Electronics and Electrical Equipment

Manufacturers of electronic devices, electrical equipment, and related components must obtain an industrial license. This sector includes the production of consumer electronics, industrial electronics, and electrical machinery.

Construction Materials and Equipment

Industries producing construction materials such as cement, steel, glass, and building equipment require an industrial license. These businesses supply essential materials for the construction and infrastructure sectors.

Environmental and Recycling Industries

Companies involved in waste management, recycling, and the production of eco-friendly products need an industrial license. This sector focuses on sustainable practices and the transformation of waste materials into reusable products.

Woodworking and Furniture Manufacturing

Businesses engaged in woodworking, carpentry, and furniture manufacturing must obtain an industrial license. This includes the production of wooden furniture, fixtures, and custom carpentry work.

Benefits of Obtaining an Industrial License

Legal Compliance and Credibility

Access to Advanced Infrastructure

Government Incentives and Support

Strategic Geographical Location

Favorable Business Environment

Access to Skilled Workforce

Enhanced Market Opportunities

Financial Interventions and Services

Networking and Collaboration

Operational Flexibility

Priority in Government Procurement

Industrial License in Dubai

How Riz & Mona Consultancy Can Help?

Riz & Mona Consultancy is renowned as one of the top business setup consultants in Dubai, with over 15 years of experience facilitating a wide range of businesses throughout the UAE. Our deep connections with government officials and key authorities, combined with our extensive expertise in consultancy, streamline the process of establishing your business in Dubai. Additionally, we offer comprehensive financial, legal, and corporate services to support our clients throughout their business endeavors.

We are here to provide comprehensive support for your Industrial License in Dubai, from preparing your documents to completing the process. Connect with us now to begin your journey with a FREE consultation!

FAQS

What is the validity period of an industrial license in UAE, Dubai?

Industrial licenses in UAE, Dubai are typically valid for one year and must be renewed annually to ensure continued compliance with regulatory requirements.

Can foreign investors fully own an industrial business in UAE, Dubai?

Foreign investors can fully own an industrial business if they set up in a free-zone. For mainland businesses, a local sponsor holding 51% of the company shares is usually required, though recent changes in regulations may allow full ownership in certain cases.

What are the penalties for operating without an industrial permit in Dubai?

Operating without an industrial permit can result in hefty fines, legal action, and the shutdown of the business by the authorities.

How long does it take to get an industrial permit in Dubai?

The process of obtaining an industrial license typically takes around three months, depending on the complexity of the business and the time required to secure all necessary approvals.

Can an industrial license be transferred to a new owner?

Yes, an industrial permit can be transferred to a new owner, but this process requires approval from the Department of Economic Development (DED) and may involve additional documentation and fees.

Are there any specific environmental regulations that industrial businesses must comply with?

Yes, industrial businesses must comply with environmental regulations set by the Ministry of Environment and Water, including waste management, emissions control, and sustainable practices.

What support does the UAE government provide to new industrial businesses?

The UAE government offers various forms of support, including subsidized land rates, reduced utility costs, financial incentives for research and development, and assistance with regulatory compliance.

Can I change the business activities listed on my industrial license?

Yes, you can apply to amend your industrial license to include new business activities, subject to approval from the relevant authorities.

What are the working hours and labor laws applicable to industrial businesses in Dubai?

Industrial businesses in Dubai must adhere to the UAE labor laws, which include regulations on working hours, employee rights, health and safety standards, and compensation.

Is it possible to operate multiple factories under a single industrial license?

Generally, each factory or industrial unit requires its own industrial license. However, you should consult with the DED or a business setup consultant to understand specific regulations and potential exceptions.