Investors who wish to carry out manufacturing, processing, logistics and other related activities must obtain an industrial license in Dubai. An industrial license in Dubai mainland is being issued by the Department of Economic Development (DED). However, as per the rules of company formation in Dubai, foreign investors must obtain approvals from concerned ministries and departments to obtain the industrial license. This complex condition can be simplified by applying for an industrial license through business setup consultants in Dubai.

Obtaining an industrial license in Dubai makes business sense as the industrial sector is the third largest sector in Dubai after Trade & Logistics. Manufacturing counts for 11-14% of Dubai’s GDP and has clocked robust growth in recent years. Read ahead for more details on a Dubai mainland industrial license.

Business Activities Permitted under Dubai Industrial License 

As per the DED definition, an industrial license authorises the activity of converting raw materials and natural resources into finished goods. The production, assembling, processing and packaging of finished goods fall within the scope of an industrial license in Dubai. Business setup consultants in Dubai can help investors choose the right activities under an industrial license. See the below list to understand some of the major activities permitted under an industrial license in Dubai:

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    • Processing of raw materials
    • Extracting petroleum and metals
    • Textile manufacturing
    • Casting of metals
    • Manufacturing of appliances & machinery
    • Production of food products
    • Paper goods manufacturing
    • Manufacturing structural steel
    • Collection of waste & treatment
    • Glass industries
    • Wood, wood products, furniture manufacturing
    • Plastic industries
    • Motor vehicles manufacturing
    • Processing of meat
    • Light aircraft manufacturing

    Main Conditions to Apply for an Industrial License in Dubai 

    Unlike other licenses, certain conditions have to be met to obtain an industrial license in Dubai mainland. Some of the conditions are:

    Local Sponsorship 

    Most of the activities under an industrial license are not eligible for 100% foreign ownership in the UAE. Foreign investors are required to appoint a UAE national as a local sponsor to set up a company in Dubai with an industrial license. The local sponsor is entitled to 51% of the shares in the company, while the foreigner can hold the rest of the 49%. Business setup consultants in Dubai can help expatriate investors find a local sponsor.

    Physical Office & Warehouses 

    As per the process of business setup in Dubai mainland, entrepreneurs need to rent or lease office spaces and warehouses. This is because the DED wants the companies to have a physical address on the mainland. The DED doesn’t permit the investors to operate from a virtual office in Dubai. The investors need to sign the tenancy contract with their landlords and get it attested through Ejari to obtain an industrial license.

    Number of Workers and Machinery 

    While setting up a manufacturing business in Dubai, the investors should be aware of the number of workers and machinery requirements. At least 10 workers should be there in a manufacturing unit. The investors also need to have five powerhouse machines. Consult with business setup advisers in Dubai for more information on such requirements.

    The Process of Getting an Industrial License in Dubai 

    Investors must undertake a series of steps set out by the DED to apply for an industrial license. Business setup consultants in Dubai can help investors to simplify some of the steps. Below are the major steps of obtaining an industrial license in Dubai:

    1. Select a business activity
    2. Identify an appropriate legal structure
    3. Reserve a company name with DED
    4. Obtain DED’s Initial Approval Certificate
    5. Sign the Memorandum of Association (MoA)
    6. Rent a warehouse and office space
    7. Get external approvals from ministries and government bodies
    8. Receive trade license
    9. Apply for visas
    10. Open a bank account

    Documents Required for Obtaining Industry License 

    Foreign investors are required to submit specific documents and information while applying for an industrial license in Dubai mainland. Any error in documentation could delay the process of business setup in Dubai. Here is a list of documents and information required to apply for an industrial license in Dubai mainland:

    • Passport copies of shareholders
    • MoA signed with local sponsor & partners
    • The proposed factory’s blueprint
    • The business model for the factory facility
    • Feasibility study of the industrial unit
    • Cost of production data
    • Proof of financial support for the proposed company
    • Location plan
    • Land lease agreement
    • Details of technology used for manufacturing
    • Details of environment, health& safety arrangements
    • Details about raw materials used
    • List of Equipment& Machinery
    • Information on Waste Generated

    Benefits of Setting up a Business in Dubai with an Industrial License

    Dubai provides an ideal location for investors to set up manufacturing units. Dubai is considered the gateway to lucrative markets in the Middle East region. The emirate offers excellent connectivity to all the major trading hubs. Apart from that, investors can enjoy the following benefits by setting up industrial businesses in Dubai:

    • Access to modern infrastructure
    • Strategic location
    • Investor-friendly policies
    • Political stability
    • No red tape to get approvals
    • Access to a diverse range of global customer base
    • Ability to hire skilled foreign workers
    • Ability to receive additional investments

    Approvals Required to Obtain Industrial License 

    As stated already, investors must obtain special approvals to start an industry in Dubai. Business setup consultants in Dubai can assist the entrepreneurs to get the approvals on time. Approvals must be obtained from the following ministries and government departments:

    • UAE Ministry of Economy
    • Dubai Municipality
    • Dubai Electricity and Water Authority (DEWA)
    • Dubai Health Ministry (for manufacturing pharmaceutical products)
    • UAE Ministry of Interior

    Benefits from Dubai Industrial Strategy 2030 

    There are various strategies and policies designed by the Dubai government to boost the emirate’s industrial prowess. Launched in 2016, the Dubai industrial strategy 2030 aims to boost the emirate’s total industrial output and value addition in the manufacturing sector. The strategy also aims to make Dubai the world’s most dynamic manufacturing hub and procure an additional investment of AED 160 billion by 2030. The key areas identified under the strategy include aerospace, maritime, aluminium and fabricated metals, pharmaceutical and medical equipment, food and beverage, machinery and equipment.

    Choose the Best Business Setup Services in Dubai 

    Obtaining an industrial license in the Dubai mainland exposes foreign investors to unparalleled opportunities and benefits. However, the rules of business setup in Dubai mainland involve some complex steps that require expert assistance. Since many approvals are involved, it is better to avail of the best business setup services in Dubai provided by Jitendra Business Consultants (JBC). JBC has a team of business setup consultants in Dubai with years of experience. We could easily handle government approvals, bank account opening and visa approvals etc. Consult with us today to start your entrepreneurial journey with the right motivation.

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