The industrial growth in Dubai is facilitated by superior and widespread logistics and infrastructure. The United Arab Emirates is rapidly expanding in the corporate sector. Manufacturing and industrial businesses are facilitated by getting an industrial license in Dubai to produce semi-manufactured or fully-manufactured items. A valid industrial license is required to produce goods or commodities in an industrial environment. This blog details how to get an industrial license in Dubai.
The transformation of the raw materials from the crude state to the refined state can be termed production. The end product could either be in the semi-manufactured or fully-manufactured state as the raw materials are subjected to structural-oriented transformation. By using manual or mechanical intervention, the transformation is carried out. The organization that converts natural resources or alters raw materials is issued Dubai industrial trade licenses.
The first step is to find business formation experts while considering applying for the industrial license in the UAE as they can manage the procedure on behalf of the investor. Business setup consultants in Dubai make the process to get an industrial license in Dubai hassle-free and effective. They ensure that the paperwork will be thorough and alleviates the stress of starting a company.
Prerequisites and Documents to Obtain Industrial License in Dubai
Before applying for an industrial license, there are certain specifications that the applicant should accomplish. A non-negotiable prerequisite is that the company should have a local sponsor who holds 51% of the shares and they help with all the legal formalities associated with the industrial license. Foreign investors or industrial license holders can take the rest of the shares.
The investor must have a physical office and a warehouse presence anywhere in Dubai if they want an industrial license. It is not acceptable for the authorities to have virtual offices. From the area where the business is operating, they should also have a local industrial license. The company should have 5 horsepower machines, at least 10 workers and the capital should be at least Dhs 250,000.
There is the involvement of certain ministries and external agencies in the issuance of the license. To attain an industrial license in Dubai, the investor should submit a detailed report to the concerned authorities. It should include the details related to the factory plans, production cost, capital, intention for opening the factory, information about the equipment involved in the production, as well as ways to finance the factory. Any other relevant information including data about the employees should also be submitted.
The investor should carry a copy of the passport, trade license, and balance sheet. They should have the approval of the National Media Council, the Ministry of Health, the Ministry of Environment and Water, and the Ministry of Interior. They must also have a partnership contract if it is a partnership firm, a feasibility study, and a summary of the registration of the citizen.
Industrial License in Dubai - How to Obtain and What Are its Benefits?
It is a straightforward process to apply for an industrial license in Dubai. The very first procedure before setting up an industrial concern or factory is to obtain initial approval from the concerned authorities in Dubai. When it comes to altering the present factory specifications or settings, initial approval is also applicable.
The business person must get in touch with the Department of Economic Development (DED) and apply for the industrial license after they get the initial approval. Within the prescribed time, the final decision is made by the Department of Economic Development (DED). For the license application, the processing time is 3 months. However, the applicant can submit a request to the relevant free zone authorities if they want to run their business in a free zone.
After the decision has been made by the Department of Economic Development (DED), the applicant shall receive the Application Approval notification. It may take another 15 days to reach the applicant. The applicant needs to get prior permission from the municipality when it comes to factory consultation. Other agencies and Ministries like the Ministry of Health, Chamber of Commerce and Industry, etc must also approve the license. The final approval shall be issued within two weeks if all the aforementioned requirements and documents are through.
After all the applications and approvals when the industrial license is obtained by a company, the authorities in the United Arab Emirates grant them certain rights. Encouraging industries and increasing investment in the industries is the aim of those authorities. The benefit of holding an industrial license in Dubai is that the government will provide land at a reduced rate for developing their industry. To support the investor, terms for renting industrial space have been specifically designed.
Necessities such as water, electricity, and others are available at a low rate. To improve their industry, guidance is provided focusing on the methods used by similar industries. Loans with lower interest rates are given to innovative products and if the product is expected to improve the national economy, the government will financially help them during R&D. During official procurement, exceptional quality goods will be prioritized by the UAE government.
As the applicant obtains the industrial license, the following activities can be carried out:
- Processing of raw materials
- Iron and Steel casting
- Appliances and equipment manufacturing
- Manufacturing of gold and precious stone cutting
- Production of batteries
- Food production
- Paper production
- Manufacturing of textile
- Manufacturing of petroleum products
- Automobile and motorcycle manufacturing
The cost is dependent on the location of the firm. According to the type of industry they are establishing, they may need additional approvals and registration. With amendments in existing pricing rules, the overall cost may vary from time to time.