Industrial License in Dubai, UAE
Any activity related to manufacturing comes under the scope of an industrial license in Dubai, offered by both the mainland and the free zones. The manufacturing industry has diverse sectors within it, offering market opportunities. If you’re starting an industrial business in Dubai, you will need to get a license and establish a business setup suitable for your business activities, like a warehouse, production areas, office, etc.
Why get an industrial license in Dubai?
- Access to government incentives and industrial zones
- Easier import/export of raw materials and finished goods
- Increases credibility with suppliers, partners, and clients
- Eligibility to lease warehouses and industrial land
- Access to skilled labor and advanced infrastructure
You can import the raw materials, manufacture finished goods, and export them under this license. You can choose from a number of approved activities for your business. Establishing a company setup with an industrial license may be structured, but often requires professional assistance.
This guide walks you through everything you should know about the industrial business license in Dubai. It will help you experience a smooth process of acquisition, successfully avoiding all challenges and complications along the way.
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Difference Between Mainland & Free Zone Business Setup
- Mainland
- Free Zone
The mainland licenses are regulated by the Department of Economic Development (DED). It provides several benefits to new businesses. Here are some of the highlights:
- You can trade freely within the UAE market
- Requires approvals from DED and Dubai Municipality
- May need a local service agent
Free zones are economic zones regulated by their own authority, offering many benefits to new businesses. Some of the highlights about free zone setup include:
- 100% foreign ownership allowed
- Limited to operating within the Free Zone or exports
- License issued by Free Zone authority with simplified setup
Steps to Obtain an Industrial License in Dubai, UAE
Choose from a long list of approved activities under the license in the UAE. You can either follow your preferences or choose the ones that are trending in the market.
Select the legal structure of your company. Each structure has its specifications and benefits. Popular choices include LLC, sole proprietorship, and branch office.
Find a suitable place for your industrial activities. It could be a warehouse, production area, office, etc. Finalize the lease agreement and make the payment once you find the right fit.
Submit your plans and required information for initial approval. This approval ensures that the UAE government has no reservations towards your industrial business.
Submit the required documents. Ensure they are complete and valid, or it may cause delays. Submit the final amount of fee on time.
Many industrial activities may require additional approvals from departments and the Dubai Municipality. Find out if your operations need any more approvals and get those.
The authorities will review your application and if accepted, you will receive your industrial license, allowing you to start your business operations.
Who Can Get an Industrial License in UAE?
Industrial activities in Dubai include food and beverage processing, building materials manufacturing, and plastic product production. Other key activities are chemical manufacturing, packaging material production, and metal fabrication. You can explore and find the most suitable activity to your business goals.
Common Mistakes and Solutions
Name Already Taken
Mistake: Picking and being fixated on a that is already taken.
Solution: Always search for the name first using your emirate’s official business portal. Have backup names ready.
Using Restricted Words
Mistake: Adding terms related to religion, politics, or government.
Solution: Stick to neutral, business-appropriate words. Avoid anything controversial or misleading.
Initials or Abbreviations
Mistake: Trying to use names like “A.M. Group” or “M.K. Trading.”
Solution: Use full words or names. Initials are not allowed unless they are part of a registered brand.
Name Doesn’t Match Activity
Mistake: Choosing a name that doesn’t match what your business does.
Solution: If the authority requires it, your name should reflect your main activity (e.g., “Bright Tech Solutions” for an IT company).
Poor Arabic Translation
Mistake: Using incorrect or unclear translations.
Solution: Make sure any non-Arabic names are translated properly. You can use professional help if needed.
Delaying the License Process
Mistake: Reserving a name but not starting the licensing in time.
Solution: Use the 6-month reservation period wisely. If needed, apply for a renewal before it expires.
Benefits of an Industrial License in Dubai
Legal manufacturing
Govt. incentives
Import/export ease
Business credibility
Industrial leasing
Skilled workforce
Scalable setup
Investor appeal
Regulatory safety
Easy bank accounts
Eligibility Requirements for Manufacturing License in Dubai
- Must have a real office; no virtual offices allowed
- Trade License to sell products locally or abroad
- Safety checks by Dubai Municipality are a must
- Fire and safety system is required in all factories
- Floor plan must be submitted to Dubai Economy and Municipality
- Fire exits and wiring must pass safety checks
- All hazards and systems must be approved before starting work
- Some activities need a detailed business plan
- A business plan helps explain factory setup and goals
Required Documents to Apply for an Industrial License
- Passport copies of owners
- Emirates ID (if applicable)
- Initial approval certificate
- Tenancy contract (Ejari)
- Business name approval
- Detailed business plan
- Floor plan of facility
- No Objection Certificate (NOC) from current sponsor
- Environmental clearance
- Fire and safety approval
- Dubai Municipality approval
Regulatory Details about Companies in Dubai
Industrial License Cost
The total cost may be between AED 25,000 to 30,000, depending on several variables. The major expenses include the initial license fee, name reservation, tenancy contract, and visas. Initially, you will have to allocate extra on marketing too. The standard costs may change over time.
Renewal
The license is renewed annually in the United Arab Emirates. You have to apply before the expiry along with the required documents, information, and fees. If the date of expiry has passed and you’re late in applying, you will face penalty charges.
Cancellation
You can cancel your license anytime by applying with the required documents, information, and processing fees. Cancellation can be due to many causes. You can choose to change your operations, too, by getting a new license if switching sectors.
Get Your Industrial License in 4 Simple Steps
Book a Free Consultation
Speak with our experts to assess your business needs and license eligibility.
Leave the Paperwork to Us
We collect, prepare, and organize all your documents with precision.
We Submit the Application
Our consultants fast-track your process through strong links with UAE authorities.
Receive Your License
Get your license and visa delivered. you’re set to launch your business in the UAE!
Why Contact IBG Consultancy for Getting a Trade License in the UAE
IBG Consultancy offers it all and more, including suitable packages for a wide range of preferences. Our years of experience and networks with the authorities help us get you the best packages and processing time. Contact us today to get your industrial license smoothly!
Frequently Asked Questions
Do I need a physical workspace for approval?
Yes, setting up a manufacturing unit or facility requires a real location that meets safety and operational standards, virtual addresses are not accepted.
What types of projects qualify under this license type?
You can choose from a list of permissible business activities linked to manufacturing or industrial work, which must align with UAE regulations.
Can I operate anywhere in Dubai and the UAE with this license?
It depends on the license type. Some are limited to specific industrial areas, while others allow operations across the UAE.
How detailed does my planning need to be?
You must submit a comprehensive business plan outlining your goals, factory structure, and safety systems for approval by local authorities.
What is the estimated overall cost to begin?
The overall cost depends on factors like location, scale, and approvals, including initial setup fees and safety compliance.
Can foreigners establish a company in Dubai for such activities?
Yes, international business owners can set up a manufacturing unit in designated zones, provided they meet all local requirements.
Is it necessary to be listed on any official register?
Yes, after approval, your operations must be added to the industrial register for legal recognition and inspection clearance.
What if I want to change the structure of my facility later?
You may need to submit your business plan again for reevaluation, especially if you’re expanding your industrial operations or adding new activities.
Are there specific zones recommended for this type of work?
Yes, areas like Dubai South, Dubai Industrial City, and others are designated as industrial zones with tailored infrastructure.
How can I ensure my plan complies with UAE rules?
To make sure your application for an industrial license is successful, consult with experts familiar with industrial policies and safety checks required by Municipality
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