The budding innovation ecosystem of the United Arab Emirates has and is attracting a lot of startups, entrepreneurs and investors. As the business world expands, it becomes necessary to obtain a license in order to establish a new business. Currently, the UAE offers licenses in industries like manufacturing, import and export, housekeeping, and freelancing.
This license is issued in Dubai to businesses that convert natural materials or natural assets into finished goods. The transformation can be carried out manually or automatically, and it might begin with raw materials or semi-manufactured components. Production, separation, accumulation, packing, and other industrial license activities are the most common. It is issued by the Dubai Department of Economic Development (DED) in general. However, the Dubai Municipality, as well as other ministries and authorities, must approve the issuing of this license.
Dubai’s industrial license sectors
An industrial license is required for those who operate in the manufacturing industry. The following are some of the industries that fit into this category:
- Food and bread manufacturing industries
- Metal casting industries Textile manufacturing
- Manufacturing of machinery and engines
- Petroleum product manufacturing
- Manufacturing of paper
Obtaining a Dubai industrial license: conditions and requirements
Make sure you’ve completed all of the requirements listed below before applying for an Industrial License. The following are the details:
- Local sponsor: Your business should have a local sponsor that owns 51% of the stock. This is a requirement that cannot be waived. Foreign investors or holders of an industrial license can own the remaining 49 percent of the company.
- Physical office: If you want to apply for an enterprise license, you should have a business office and a storage facility in Dubai. Virtual offices aren’t a good idea.
- Local industrial license: You’ll additionally need a local industrial license in the area where you’re doing business.
- Capital: Your company’s capital must be at least Dirhams 250,000.
- Employees: The company must have at least ten employees.
- You’ll need machines with a horsepower of five.
Documents required for obtaining a Dubai industrial license
A report that contains information on the factory, such as the factory’s plans, the reason and purpose for opening the factory, data on manufacturing equipment, production cost and capital, and some
information about financing options. Other elements could include employee information and any other pertinent information.
For non-citizens, a copy of their passport and proof of residency, as well as a summary of the citizen’s registration, are required.
- Contract for feasibility study collaboration (if a partnership firm)
- A copy of your business license
- Balance sheet copies
- Approval by the National Media Council
- Approval by the Ministry of Health
- Approval from the Ministry of the Environment and Water
- Approval from the Ministry of the Interior
Going through the procedure of obtaining an industrial license alone can be extremely overwhelming, which is where we step in. FlyingColour business setup can assist you with this process in a timely and hassle-free manner. Please contact us right away, even if it’s just for friendly advice.