Mainland Industrial License in UAE
If you’re planning to obtain an industrial license in Sharjah or anywhere in the UAE, here’s everything you need to know.
This license is issued to businesses involved in manufacturing, processing, or converting natural resources or raw materials into finished goods. One key requirement for this license is having a physical warehouse within the UAE.
The Sharjah Economic Department (SED) is the authority responsible for issuing the industrial license. Additionally, approvals from Sharjah Municipality and other relevant authorities are required.
Activities Covered Under an Industrial License
Some of the major business activities that fall under this license include:
✅ Textile Manufacturing
✅ Bread Manufacturing
✅ Food Production & Processing
✅ Paper Manufacturing
✅ Petroleum Product Manufacturing
✅ Metal Casting Industries
✅ Equipment & Engine Manufacturing
Required Documents for an Industrial License
- Detailed Business Plan – Includes factory layout, objectives, equipment details, capital investment, financing sources, employee information, and operational costs.
- Passport & Residency Copy (For foreign investors)
- Feasibility Study
- Partnership Agreement (If applicable)
- Approvals from Relevant Authorities, including:
- National Media Council
- Ministry of Environment and Water
- Ministry of Interior
- Ministry of Health
- Balance Sheet Copy
Key Conditions to Meet Before Applying
- Local Industrial License – Must be obtained from the specific area where your factory will operate.
- Minimum Capital Requirement – The company must have at least AED 250,000 in capital.
- Employee Requirement – A minimum of 10 workers is mandatory.
- Office & Warehouse – A physical office space and a warehouse are compulsory.
Advantages of an Industrial License in UAE
✅ Low Operational Costs – Reduced rates on electricity, water, and essential utilities.
✅ Government Incentives – Subsidized land rates for industrial establishments.
✅ Support for Innovation – Special incentives for businesses manufacturing innovative products.
✅ Priority in Government Procurement – The UAE government prioritizes high-quality local products for official purchases.
✅ Financial Assistance for R&D – Government grants for businesses contributing to the national economy.
Step-by-Step Process to Obtain an Industrial License
1️⃣ Initial Approval – Apply to the Sharjah Economic Department (SED) for initial approval.
2️⃣ License Application – Submit your application to SED (Processing time: 3 months).
3️⃣ Approval Notification – Once approved, you will receive a confirmation notification within 15 days.
4️⃣ Municipality Approval – Obtain Sharjah Municipality approval for factory construction.
5️⃣ Approvals from Other Ministries – Secure permissions from Ministry of Health, Chamber of Commerce, Industry & other agencies.
6️⃣ Final Approval – If all conditions are met, the final approval is issued within two weeks.
7️⃣ Factory Construction – Industrial space must be constructed within six months after approval.
Obligations for Industrial License Holders
📌 Report Submission – Provide industrial activity updates and obtain authorization from Sharjah Economic Department (SED).
📌 Inclusion in the Industrial Register – Submit a request for inclusion in the register of industries.
📌 Factory Modifications – Any alterations or changes must be reported to SED.
📌 Property Restrictions – Leasing or selling government-allocated property for industrial purposes is prohibited.
📌 Employee Data Submission – Maintain and submit an employee database to SED.
📌 Local Employment Requirement – As per UAE federal law, 25% of the workforce must be Emirati nationals.
📌 Compliance with Health & Safety – Strict adherence to hygiene, industrial safety, and labor laws is mandatory.
📌 Reporting Changes in Directorship – Any change in company leadership must be reported to SED in writing.
📌 Regular Reporting – Submit periodic reports to relevant authorities as per regulatory guidelines.
Need Expert Assistance?
The process of obtaining an Industrial License in the UAE can be overwhelming. Our team of business consultants is here to simplify the process and handle all the legal formalities for you.