The industrial license in Dubai is quite popular and for varied reasons. For starters, the Emirate of Dubai is known for enacting several positive reforms to support the region’s economic growth. In addition, the infrastructure required to support new industries and commercial centres was developed as part of the expansion. Furthermore, the government of the United Arab Emirates expanded Dubai’s economic base through industrial policies and economic liberalisation.
Finally, due to its advantageous geographic location in the Middle East region, the Emirate of Dubai strongly emphasises attracting foreign entrepreneurs. And as a result of finding a home for their businesses, UK entrepreneurs and international investors have created a profitable economic opportunity. Consequently, investment in the UAE accounted for 22.2% of the nominal GDP in December 2020, up from 22.5% the previous year.
So if you are wondering whether or not you should apply for an industrial license, keep reading. This blog will help you to know about the UAE industrial license, including its activities, benefits, required documents, process, and cost.
What Is an Industrial License?
The UAE’s industrial license allows you to perform industrial tasks such as manufacturing, refining, and other activities. You can carry out this activity as a sole proprietor, a corporation, or a company based in Dubai or the United Arab Emirates. Furthermore, the UAE Industries Act 1951 states that obtaining an industrial license is required before beginning commercial operations.
Administrative authorities and councils overseeing the UAE’s corporate ecosystem are in charge of streamlining business procedures and organising and maintaining a forgiving business climate. This is accomplished by approving sector-specific commercial activity while keeping a close eye on legal violations, the workplace environment, and human resources.
What Activities are Covered Under an Industrial License?
After obtaining your industrial license in Dubai, you will be able to engage in the following activities:
- Tools, steel shops, and structural steel
- Transforming basic materials
- Extraction of metals and petroleum
- Manufacture of textiles and fabrics
- Steel and iron casting
- Manufacturing of equipment and appliances
- Making bread and other culinary products
- Production of paper products
- Manufacturing of structural steel, steel workshops, metal casings, containers, and boxes
- Manufacturing of materials for protection, insulation, sealing, and coatings
- Trash collection and treatment
- Manufacturing of wood products, furniture, and woodworking
- Paper slitting
- Manufacturing industries for glass and china
- The production of agricultural tools and accessories
- Repairing damaged glass and cutting lenses
- Manufacture of precious stone and gold cutting
- Production and upkeep of light aircraft
- Processing of meat, and many more.
More recent economic endeavours keep being added to this list by independent jurisdictions and the government of the United Arab Emirates.
What Are the Advantages of an Industrial License in Dubai?
The UAE government provides several benefits to licensing holders to promote sectors and attract additional investment. Here are a few advantages:
- Supportive terms for industrial space that is rented mainly by investors.
- The government offers discounted land to develop a manufacturing facility.
- Discounted water, electricity, and other necessities are available.
- Guidance on how to expand your business.
- Innovative products can obtain simple loans with lower interest rates.
- If your product is expected to benefit the national economy, the government will provide funding and other financial assistance during the R&D stage.
How to Get an Industrial License in Dubai?
The following is a step-by-step procedure to apply for an industrial license in UAE:
1. Select an Economic Jurisdiction
The first decision you must make when starting out in the UAE is which economic jurisdiction you want to operate in. The three economic jurisdictions in Dubai are the mainland, free zones, and offshore companies.
2. Select a Company Name
The second step in obtaining your industrial license is to select a suitable name. The rules for naming a company in the UAE must be followed when naming your business. It must also be a name that no other active entity currently uses. Experts can help you with a detailed list of naming rules to help you make an informed decision.
3. Select Business Activities
The type of industrial license you require will be determined by the type of business operations you intend to conduct in Dubai. You must select all the business operations you wish to carry out because you cannot carry out any activities you have not previously selected.
4. Obtain Initial Approvals
After deciding on these three options, you’ll need preliminary approval from Dubai’s respective departments. You will be given an application form to fill out.
5. Lease an Office Space
You must find an office space because the rental agreement and a tenancy contract are needed to obtain an industrial license from the authorised department.
6. Obtain External Approvals
The staff at Dubai’s departments which look after these approvals will mention a few external approvals from various governmental authorities and agencies.
7. Complete the Final Application
You must submit the papers and finish the final application from the respective department in Dubai once the previous procedures have been finished.
8. Pay the Bills
Once all procedures have been completed and the authorised department approves your application, you must pay the fees and obtain the requested industrial license.
What Documentation Is Required to Obtain an Industrial Licence in Dubai?
Businesses must follow the paperwork requirements set by governmental organisations in the UAE. The following papers must be supplied to apply for a Dubai industrial license:
- A copy of your passport
- Passport-size photographs
- A copy of your entry visa
You might need to submit more papers to obtain an industrial license in Dubai. The specialists at the Shuraa UK Branch can assist you with your company’s documentation.
What Is the Cost of Getting an Industrial License?
Whether you apply for your industrial license on the mainland or in a free zone will affect the cost. Along with the cost of the industrial license, you should consider the cost of any additional licenses, registrations, or space rent. An industrial license cost in Dubai is around 35,000 AED on average.
Get Your Industrial License With Shuraa
Shuraa UK branch is a team of passionate company formation professionals dedicated to assisting UK business owners in establishing operations in the UAE.
We help foreign investors with the paperwork and other requirements for establishing an industrial unit. It also entails obtaining the necessary approvals from the appropriate government departments.
If you have a vision, we can help you realise it. Therefore, if you have any questions about obtaining an industrial license in Dubai, don’t hesitate to contact our experts.