The Fardan Group

Industrial License Setup in Dubai

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The Industrial License is issued by the Dubai Department of Economic Development (DED). However, industrial licenses should also get approval from the Dubai Municipality (DM) and different ministries and other authorities. For example, banks and other financial institutions require approval from the Central Bank of the UAE, insurance companies and related agencies from the Ministry of Economy and Commerce, pharmaceutical and medical products from the Ministry of Health and manufacturing companies required approval from the Ministry of Finance.

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Industrial licenses are issued for companies that convert natural resources or transmute raw materials. This transformation can be in terms of structure, appearance, the manufacturing new products, or transforming semi-manufactured products into fully manufactured ones. This transformation can be achieved by mechanical means, or by manually segregating, filling, assembling, or packing products.

In order to set up Industrial License Company in Dubai, there must be a local sponsor holding 51% of shares and the foreign investors will own the remaining 49%.

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The industrial license in UAE, company formation requires a physical office inside the country. A virtual office is not entertained by the DED. It is necessary to do the maximum amount of preliminary analysis before applying for this license.

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How to Get Industrial License in UAE?

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There is an old saying that it is better to be safe than sorry. The same adage applies while getting an industrial trade license in Dubai. Reads intriguing? There is sound logic behind this summation. Continue reading to know the reason.

It is always a good idea to seek the assistance of a reputed and experienced law firm to fetch Industrial license rather than initiate the process on your own and cause serious blunders which in turn might result in uncalled for repercussions such as rejection or even blacklisting. 

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Here are the  steps involved in acquiring an Industrial License in UAE

 

1. Industrial licenses in Dubai are issued by the Department of Economic Development.
2. Industrial licenses need special approvals from Dubai Municipality – Planning department – civil defense is also required and more government offices approval according to industrial license activity.
3. Demands a green signal from the Ministry of Commerce & Economics. Even other sectors require additional clearance – such as pharmaceutical, medical, etc.

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So what is an Industrial License and what Industrial Activities does it cover?

 

The industrial license allows business establishments to assemble, process or redesign/repackage goods using local or imported natural or manmade raw materials. Mentioned below are some of them.

1. Oil & Petroleum Processing.
2. Metallurgical Engineering.
3. Steel Manufactory.
4. Aluminium Manufactory.
5. Manufacture of gold and precious stones cutting.
6. Manufacture of mats and rugs.

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Here are some of the requirements & preconditions for Industrial License Setup 

 

Requirements 

Industrial license in Dubai is issued to those business LLC establishments who indulge in manufacturing, semi-manufacturing activities such as the manufacture of motor vehicles, motorcycles & its spare parts, appliances and machinery manufacturing and water manufacturing and bottling.

 

In simple words, converting raw materials into finished goods. This definition covers a range of industries some of which have been mentioned above. If you do not fall under any of those categories it is still possible to get industrial licenses in Dubai.

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Preconditions 

1. One of the fundamental requirements to obtain an industrial license in Dubai is to own a brick and mortar office, and not the virtual kind. This condition is simply not negotiable. It could be anywhere within Dubai.

2. Local sponsor/sleeping partner holding 51% stake in the newly formed company is another non-negotiable prerequisite. The rest of the 49% stake can be held by foreign investors or industrial license holder.
3. Human resources – labors with full OR part-time contracts can be arranged
4. Labor camp – staff accommodation in Dubai – transportation is one of the services Business link provide and assist their clients to find the best solutions according to their requirements

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Are you Eligible for Industrial License?

 

Eligibility can only be concluded after the required documents are submitted. This is where experts come into the picture. With over two decades of experience, highly motivated team,  Business Link UAE Consultancy offers unmatched services in obtaining an industrial license in Dubai.