What is the core pillar of a manufacturing business? Logistics and connectivity with other states and countries. That’s exactly why Dubai is one of the best choices to establish industrial and manufacturing businesses. The industrial license in Dubai can open gates to the international market and the best infrastructure in the UAE.
In this blog, we will help you understand everything regarding a Dubai Industrial License: its purpose, benefits, and the step-by-step process for application. Read till the end to know the process and the Industrial License Cost in Dubai.
What Is An Industrial License In Dubai?
Dubai industrial licence is a government approval granted to companies involved in manufacturing, production, processing, or industrial activity in the emirate. It is issued by the Dubai Department of Economy and Tourism (DET) for mainland operations, or the relevant free zone authority if the business operates within a designated industrial free zone.
The Industrial License in the UAE ensures that your business complies with safety, environmental, and zoning standards set by the UAE’s federal and emirate-level authorities.
What Business Activities Are Covered In A Dubai Industrial License?
The industrial license allows you to conduct a wide range of business activities in industries like food & beverage, textile, chemical & pharmaceutical, construction, electronics, hardware products, printing, and more.
The following are the specific activities that you can do with an Industrial License in Dubai:
- Manufacturing & production
- Processing
- Packaging
- Assembly line
- Research & Development for product development
The DET and free zone authorities have hundreds of other business activities and sub-activities for specific industries. You must choose the most relevant activities for your business when applying for an industrial license.
What Are The Benefits Of An Industrial License In Dubai?
The following are a few benefits and incentives that attract global companies to Dubai for industrial projects.
100% business ownership
Any business founder or investor can open a mainland industrial company in Dubai without needing a local sponsor. This rule is applicable to the majority of the sectors except a few sensitive sectors such as security, banking, and more.
Tax benefits
One of the most lucrative benefits of getting an Industrial License in the UAE is the taxes. Industrial license holders are subject to no personal tax. Additionally, they can also be eligible for 0% corporate tax on a qualifying income bracket.
Government incentives
The government of the UAE offers various incentives to licensed industrial companies. A few of these benefits are subsidized charges for electricity, water, and land to establish a company. Additionally, an industrial project can get exempted from the taxes on import of machines and more. All of these significantly reduce your operational overheads and increase your profits.
Strategic location
UAE has become one of the most popular trading hubs due to its strategic location. Starting a manufacturing company in Dubai helps you connect with customers from Europe, Asia, and Africa. Thus, you can scale your business to grow beyond the borders of the Emirates.
With connectivity to the three big markets, logistics also becomes more efficient. Meaning, you can import and export without any delays or complex routes.
Regulatory compliance
The Dubai industrial license becomes an indicator that you adhere to the laws and function ethically. This helps you gain the trust of customers and investors.
Access to skilled labour
With an industrial license, you can attract highly talented professionals for your business. These individuals can help you optimize your operations and get the best returns. You can easily scale your operations with a well-trained staff.
How To Get An Industrial License In Dubai?
The process of obtaining an industrial license in Dubai is structured and straightforward when you have the right guidance. Below is a step-by-step process for obtaining an industrial license:
Select Business Activity & Structure
The first step is to determine your business activity. These business activities determine the flexibility of your license, incentives, exemptions, and regulatory standards that you must follow. For some business activities, you might need approval from other authorities. Therefore, choose your business activities carefully. 365 Day PRO Service can help you choose the best activities to avoid costly mistakes.
Register Your Trade Name
Submit your preferred trade name for approval through the DET’s online portal or a registered business setup service to avoid duplication. Ensure the name complies with UAE naming regulations. Your trade name shouldn’t include offensive words or symbols and must reflect the nature of your business.
Obtain Initial Approval
Once you submit the necessary documents, you will be eligible for pre-approval. This means the government has no objection to your business. Once you have initial approval, you can take further steps to start your company.
Secure A Factory Or Warehouse Lease
Then you need to find a space to get your business going: rent or buy. It could be a dedicated industrial unit, a warehouse, or a factory that can handle your scale of business. A lease contract (Ejari) is a must for the process of industrial licence. Select a location that is suitable for your business activities and is close to the infrastructure you need for your business.
Obtain External Approvals (If Applicable)
Depending on your business activity, you may require additional approvals from other emirate authorities, such as Dubai Municipality (DM), Ministry of Industry and Advanced Technology (MoIAT), Dubai Civil Defence, Environment, Health & Safety (EHS), and Dubai Health Authority (DHA). Connect with 365 Day PRO Services to know if you need any additional authority approvals.
Pay The Fees
Once all your applications are inspected, you are required to pay a fee. The Industrial License Cost in Dubai can range anywhere between AED 25,000 and AED 50,000. This cost increases based on the capital investment for the business, leasing and location, PRO service charges, and more.
License Issuance
Once your application fees are received and documents are verified, you’ll receive your industrial license in Dubai. Now you can operate without any hesitation. You must renew the license regularly to continue your business.
Visa Processing
Based on your industrial licence, you can apply for the shareholder, investor, and employee visas. This helps you in setting up your company and running it smoothly.
365 Day PRO Services ensures that you can get an industrial license in Dubai in the shortest time possible. Our team helps you collect all the necessary documents and streamline the application process. Thus, you can get your license quicker and start your business in Dubai, UAE. Contact us to learn more.
Conclusion
The industrial companies in the UAE have many benefits in terms of taxes, exemptions, efficient logistics, skilled workforce, and more. Therefore, hundreds of businesses apply for industrial licenses in Dubai to start a business in the most lucrative market ever. All you need is the right documents and a PRO company that can help you at every step in the process. 365 Day PRO Service is here to help you launch your industrial project in minimal time. Contact us to know more.
FAQs
What is an industrial license in the UAE?
An industrial license in the UAE is a government-issued permit that authorizes businesses to carry out manufacturing, production, processing, or fabrication activities within the country. It is required for any business that converts raw materials into finished or semi-finished goods, operates industrial machinery, or runs a production facility. The license is issued by the dedicated authority in the mainland or free zone.
How much is an industrial license in Dubai?
Dubai industrial licence fee can be AED 25,000 to AED 50,000. This price is subject to the business activities you do, other approvals you may require, and other administrative procedures. Note that these cost estimates do not include the cost of securing a location for your factory and the capital investment for your business.
What is the applicability of an industrial license?
Any person, partnership or corporate body wishing to manufacture, process, assemble, pack or fabricate products within the UAE requires an industrial licence. These are companies in the food and beverage production, textiles, chemicals, pharmaceuticals, electronics, building materials, rubber, plastics, printing and other fields.
What is the difference between a factory license and industrial license?
The terms ‘factory license’ and ‘industrial license’ are often used interchangeably, but they have different implications. The industrial license offers permits for specific industry activity. The factory license ensures that you are following the necessary safety, labour, and operational standards.