How can I Get an Industrial license in UAE?
The well-developed and comprehensive logistics and infrastructure networks of Dubai facilitate industrial growth. Dubai also has a geographical advantage since it functions as a commercial hub between the east and west.
If your firm includes the manufacture of industrial products and you want to begin a manufacturing operation, you must get an Industrial License in UAE. The purchase of an industrial license facilitates the capacity of manufacturing and industrial businesses in Dubai to produce partly or entirely manufactured goods.
The United Arab Emirates (UAE) is now accepting applications for licenses in several industries, including manufacturing, import and export, housekeeping, and freelancing. Manufacturing, sorting, aggregating, and packaging items are the most common types of activities that need a commercial license.
During the preceding decade, the industrial sector of the UAE increased by 31%, and it is projected that this growth will level out by the end of the current decade. In the last decade, Dubai’s industrial sector has grown by 6%, contributing significantly to the city’s gross domestic product (GDP). Quarrying, mining, manufacturing, and the generation of power, water, and gas are the main economic activities of Dubai’s industrial sector.
When it comes to creating an industrial unit in the UAE, investors have a varied range of business activities and company formation packages to choose from. This blog will guide you on how to get an industrial license in UAE.
What is an Industrial License in UAE?
The industrial license serves as a legitimate form of identification for businesses. As a result, it is permissible for them to do business in that area. Another benefit of obtaining this certification is that companies are aware of their whole accountability for their operations. while also making certain that we are abiding by UAE legislation.
In order to commence any corporate operations that are directly connected to industry, the UAE Industries (Development & Regulations) Act 1951 mandates that you must get the relevant industrial license. To guarantee compliance, this rule has been put in place.
You must know exactly what sort of company you intend to start before submitting an application for a business license. It is possible to turn raw materials, semi-manufactured products, or natural resources into finished items in the UAE if you have the proper industrial license.
Type of activities allowed under Industrial License in UAE
The industrial license covers a wide variety of activities, the majority of which are often associated with the manufacturing industry.
- Textile manufacturing
- Casting of Metals
- Adhesive and Paper Slitting
- Lathe workshop
- Multi-dimensional images production (hologram)
- Pharmaceuticals packaging
- Magnetic technology equipment trading
- Metal products coating
- Saddle & animal, bird training requisites making
- Safety harness fabrication
- Food & beverage manufacturing
- Helicopters repair & maintenance
- Cards & envelops printing
An industrial license is necessary if you’re involved in the fabrication, pre-production, or manufacturing of goods. Due to the umbrella word “manufacturing,” many activities are included.
Cost of an Industrial License In UAE
Whether you submit your application for an industrial license on the mainland or in a free zone will have a substantial financial effect.
In addition to the cost of the company license, you must consider the fees associated with acquiring approvals and registrations, as well as the cost of renting space. A typical industrial license will cost around 25,000 AED.
It is possible to find packages for less than this amount that include visa application fees and the use of on-site facilities. Establishing a company in a free zone is often the most cost-effective alternative.
Requirements for Industrial License in Dubai
Before submitting an application for an industrial license in Dubai, an investor is required to fulfill a number of precondition conditions first. And you may see a list of them below.
1. Physical Presence:
The applicant must have established a physical business in the United Arab Emirates or have a firm registered in the United Arab Emirates to get an industrial license. If a business is registered in the UAE, it must have both a physical and virtual office to be considered by the DED.
2. Local Sponsor
A minimum sponsor share of 51 percent is required. It is recommended that you look for a local sponsor for your firm. The local sponsor owns 51% of the corporation, while the foreign investor owns 49% of the shares in the business.
3. Local License
For industrial enterprises, there is always the need for a municipal industrial license. In addition, the local license must be obtained from the region in which the business is conducted.
4. Physical Workspace
In order to get an industrial license in Dubai, you are required to have both physical office space and a warehouse. Having a virtual office in Dubai will not be useful for doing anything in this location.
5. Employees
It is required that there be a minimum of ten workers or employees.
6. Capital
A minimum of two hundred and fifty thousand dirhams (250,000/-) is required to be put aside as the capital for your organization. The use of machines with a 5 HP standard is required.
Steps to Obtaining Industrial License in Dubai
If you are considering applying for an industrial license in the UAE, your first step should be to find a business formation specialist in the UAE like Airzone. Not only does this save you the trouble of forming a firm, but it also ensures that your application is complete and precise.
Step #1: Define your Business Activities
It is strongly recommended that you zero in on a certain audience segment of the market and maintain a commitment to serving just that demographic. As a direct result of this, you will find that marketing to your specific niche and selling the items is much simpler for you.
You will need to identify a niche in the community’s interests in order to have any chance of being successful in this endeavor. You also have the choice to promote the items on a global scale, which provides you with access to a larger pool of potential customers.
Step #2: Choose your Company Name
You are required to decide on a name for your firm before applying for an industrial license in the UAE. This is a legal requirement. As a consequence of this, you are going to want to use a trading name that is wholly original inside the United Arab Emirates.
You have the option of selecting a name that is being used by someone else in a different part of the planet. You are permitted to investigate this option so long as it is exclusive to the UAE and satisfies the requirements outlined in the legislation.
Step #3: Choose your Desired Business Location
The next step is to choose a suitable location where you want to be able to lawfully carry out your business. It can be either mainland or a free zone. Airzone has made a list below of the most favorable Free zones in the United Arab Emirates.
- Dubai Studio City (DSC)
- Dubai Airport Free Zone (DAFZA)
- Dubai Media City (DMC)
- Dubai Multi Commodities Center (DMCC)
- International Media Production Zone (IMPZ)
- Energy & Environment Park.
- Dubai Knowledge Village.
- Dubai Biotechnology & Research Park, and much more.
Step #4: Prepare your required documents
Following are the required documents to get an industrial license in UAE.
- Company Registration or company’s founding contract
- Copy of Passport of shareholder
- MOA
- Partnership contract in case of partnership firms
- National Media Council Approval
- Approval from the Ministry of Health
- Copy of the Balance Sheet
- Approval from the Ministry of Environment and Water
Step #5: Apply for UAE Visa
Once you have submitted all the above-mentioned documents and carried out all the above-mentioned steps and paid the relevant amount of money. The next step is to apply for a UAE visa.
To say it again, if you have all the right information, it might be easy to apply for a visa. The majority of companies that specialize in business formation, like Airzone, may also provide assistance with this stage of the process, in addition to assisting you with the submission of your application for a license.
Step #6: Opening bank account
The next and last step is to open a corporate bank account, which you can use to receive and send payments related to your business endeavor.
How Airzone can help in Getting Industrial and Manufacturing Licenses in UAE?
The Dubai industrial license application process has been designed to be as basic and uncomplicated as feasible. In spite of this, an in-depth study of the United Arab Emirates and its diverse laws and customs is required.
For this reason, it is usually essential to obtain the services of a business setup organization that can not only guide you through the process but also choose the most appropriate setup type for your business depending on your needs and financial limits. This is because the process of establishing a company may be complex and difficult.
Airzone assists businesses in building a foundation in the UAE. Contacting us immediately away makes it easier to get started. We can put you in touch with the proper service providers to help you build your business in the UAE.
We can put you in touch with reliable partners who can help you register a new company and receive an industrial license in Dubai. While you focus on expanding your company, we’ll connect you with the right people to handle anything from visa applications to important administrative duties.
Conclusion
UAE’s improved logistics and infrastructure, which covers the whole country, make it simpler for businesses to expand. Trade routes between the East and West are linked via UAE, making it an important economic center. If your firm includes industrial manufacturing and you wish to open an industrial facility, you’ll need to get an industrial license in UAE. Manufacturers may more easily build products that are partly or totally created in UAE by obtaining an industrial license.
If you want to learn more about how to set up a business in Dubai, we have a comprehensive guide for you. With a thorough understanding of the UAE’s business scene, you should be well prepared to establish a company in the country.