MAINLAND INDUSTRIAL LICENSE-
The United Arab Emirates (UAE) is rapidly expanding and welcoming several entrepreneurs daily to establish their businesses. If you are someone who wants to obtain an industrial license in Dubai or the UAE here is everything you need to know. This license is given to businesses that are involved in converting natural resources or raw materials into finished goods. Also, an important condition of obtaining this license includes a physical warehouse inside the UAE. The Department of Economic Development (DED) in Dubai is responsible for issuing this license. You will also need to get approval from the Dubai Municipality and other relevant authorities too.
What is an industrial license?
The production and manufacture of raw goods and materials in an industrial space and environment requires an industrial license.
Production is the conversion of natural resources or raw materials from a crude state to a refined state.
Raw material refers to structural and appearance-oriented products. The end product is either done in a fully or semi-manufactured state and carried out mechanically or manually.
Production, industrial segregation accumulation, final packaging all come under this type of license.
Activities under industrial license:
Some of the major activities that come under this license include-
- Textile manufacturing
- Bread manufacturing
- Food industries
- Paper manufacturing
- Petroleum products manufacturing
- The casting of metals industries
- Equipment and engine manufacturing
Documents required for industrial license-
- A detailed report – information about the industry or factory consisting of the plan, objectives, equipment information, manufacturing cost, capital and source of finance, employee details, and other relevant information.
- Passport copy and residence copy
- Feasibility study
- Partnership contract (only if partnership firm)
- Approval from National Media Council
- Approval from the Ministry of Environment and Water
- Approval from the Ministry of Interior
- Approval from the Ministry of Health
- Balance Sheet copy
Conditions to follow-
You need below certain specifications before applying for this license-
- A local sponsor- Your business must have a local sponsor who owns about 51% and the remaining 49% goes to foreign nationals and investors. However, certain activities are exempted from this and you can obtain full 100% ownership. You can get in touch with our experts for more information on this.
- Local license- It is mandatory for industrial concerns and issued from the area where you will operate your activity.
- Capital-The capital of your company has a minimum of AED 250,000.
- Employees- Minimum requirement of ten employees or workers is compulsory.
- Office and warehouse- A physical office space and a warehouse are compulsory.
Advantages of industrial license-
- There are economical rates for water, electricity, and other essential requirements.
- Reduced rates available for innovative products.
- The UAE government will give priority to products with exceptional quality during official procurement.
- The government will give subsidized rates for the land where you will establish your industry.
- During R&D, the government will support you financially if your products will strengthen the national economy.
How to obtain an industrial license?
- The first step is to obtain the initial approval from the relevant authorities.
- Next, get in touch with the DED and apply for a license.
- It will take around three months to process the application.
- Once it is approved, you will get notified by receiving an application approval notification from DED which takes fifteen days.
- You need to get permission prior from the Dubai municipality when it comes to factory construction.
- You also need necessary approvals from the Ministries and agencies like the Ministry of Health, Chamber of Commerce and Industry, and so on.
- If everything goes through smoothly, then you will get the final approval within two weeks.
- Once it is approved, you need to construct the industrial space within six months.
- Submit all the data to the Department of Economic Development (DED), and also a letter stating when you will start your industrial activity. After this, the DED will also issue a certificate of authorization.
- You need to submit a letter to the concerned authorities regarding being included in the register of industries.
- If there are any alterations or amendments to be done concerning your factory, submit a letter to the DED including the changes.
- You are not allowed to lease or sell property allocated by the government for your industrial activity.
- Employees’ data of the company needs to be prepared and submitted to DED.
- According to federal laws, 25% of employment is granted to local Emiratis.
- Strict adherence to hygiene, health conditions, and other industrial safety must be maintained and is mandatory.
- Policies, rules, and regulations have to be strictly followed.
- If there is any change concerning the appointment of a director, then it must be sent to DED in writing.
- Reports need to be sent to the concerned authorities regularly.
Getting an Industrial License can be overwhelming and also very challenging. So, please get in touch with our business consultants who will guide you at every step of the way.