Free Zone Industrial License, An Economical Approach For Setting Up Manufacturing Business In UAE
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Free Zone Industrial License, An Economical Approach For Setting Up Manufacturing Business In UAE


UAE‘s contribution to the world economy is substantial. As a world-class business capital, UAE houses companies ranging from small-time startups to multi-billion dollar conglomerates. With its highly lucrative investment policies, liberal trading laws and smooth access to the international market, UAE’s free zones make an exceptional location for industry formation.

The Free Zone Industrial license in UAE is emitted for those enterprises which transform natural material or natural resources into other final products. Companies that are legally incorporated in industrial production outside the UAE and are within the Free Trade Zone can be given an Industrial license. It can be obtained from different Free Zone authorities available in UAE.

We as Flying Colour Business Setup consultants Dubai provide assistance for the application procedure that the companies must follow in order to obtain a Free Zone Industrial license in UAE.

Who needs to obtain a Free Zone Industrial License in UAE?

If a company relies on the transformation of resources in order to obtain new products, then it should apply for an industrial license in UAE. The transformation that takes place can be either manually or mechanically performed and it can start from raw materials or from semi-manufactured ones.

Investors in UAE operating in manufacturing will require an industrial license.

Requirements for the application procedure for a Free Zone Industrial License in UAE

The Free Zone Authority which is issuing industrial licenses might be required external approval from the specific ministries depending on the activity of the company. For example, the companies which operate in the manufacturing of petroleum products need to obtain also an approval from the Supreme Petroleum Council Approval (SPC approval) of the UAE, whereas approvals also vary on which free zone an Industrialist is choosing. Industrialist should have a proper business plan prior choosing a specific free zone based on their activity as well as the other requirement like for example number of sheds requirement, electricity requirements based on machinery load and consumption, Hygiene requirements in terms of obtaining food processing license etc. Industrialists are supposed to select their desired free zone jurisdiction based on the type of business. The business activity should match the category of the preferred free zone.

Benefits of having Free Zone Industrial License

  • Government facilitated easy application process
  • Free zone companies are ideal for foreign investors who seek 100% foreign ownership
  • Free zone regions have tax exemption benefits. They are devoid of corporate tax, Income tax and personal tax. There is VAT as applicable in the UAE
  • Free zone jurisdictions do not have foreign exchange restrictions
  • Hassle-free employee recruitment formalities
  • Investors can enjoy complete repatriation benefits in terms of profit and capital
  • Free zone entities are devoid of export and import charges
  • Enjoy logistic advantage
  • Well-equipped and ample communication facilities

FREE ZONE INDUSTRIAL LICENSE, an economical approach for setting up Manufacturing Business in UAE


Q-What are the requirements regarding capital investment?
A-These vary on the business type and the free zone authority.

Q-What are the types of businesses I can do in a free zone?
A-You can do any business which is authorized as per UAE jurisdiction starting from import of raw materials, manufacturing, processing, assembling and packaging, export of finished products and storage/warehousing of products.

Q-Is a UAE national partner required to get the industrial free zone license?
A- No. All free zones can be formed with 100% foreign ownership.

Q-What facilities are available in the free zone?
A-There are offices, pre-built warehouses, plus land and port facilities as well as staff accommodation is also available.

Q-Are there any restrictions regarding import and export?
A- There are no restrictions on importing and exporting goods that are approved as per the terms of your license.

This blog is written by Mr. Mohammad Rizwan Khan, Business Advisor at Flyingcolour Business Setup, VAT and Accounting Services, Dubai. If you have any question regarding setting up a Free Zone Industrial License anywhere across the UAE then please contact us at +971 4 4542366 or email us at

Please Note: This article was published on 08th December, 2020. The information provided in the article is based on the policies and rules applicable at the time of writing it. Talk to one of our consultants for any recent update or change.

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