Industrial License in UAE
The United Arab Emirates is quickly developing in the corporate sector. In order to establish a new firm, it is becoming increasingly vital to obtain a license. Manufacturing, import and export, housekeeping, and freelancing are among the fields in which the UAE now issues licenses. Businesses that convert raw materials or natural resources into finished items are granted the trade license in Dubai. The transformation might start with raw materials or semi-manufactured materials, and it can be done manually or automatically.
The most typical operations include production, sorting, accumulation, packing, and other industrial licensing activities. It is issued by the Dubai Department of Economic Development (DED) in general. The issue of this license, however, must be approved by the Dubai Municipality, as well as other ministries and agencies.
Eligible Sectors For Trade License In Dubai
Those who have occupation in the manufacturing industry must obtain an Industrial License. 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
Requirements To Apply For Industrial License in UAE
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 must 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 industrial license in UAE, you must have a physical office and a warehouse 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 Dhs 250,000.
- Workers: The company must employ at least ten people.
- You will need 5 horse power machines.
Documents Needed For Obtaining Trade License
- A report that comprises information on the plant, such as the factory’s plans, the reason for opening the factory, data on production tools, production costs and money, and some information on financing alternatives. Employee information, as well as any other relevant information, may be included in the additional details.
- 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
- Approval by the National Media Council
- Approval by the Ministry of Health
- Balance Sheet Copies
- Approval from the Ministry of the Environment and Water
- Approval from the Ministry of the Interior
Cost Of Obtaining Trade License In Dubai
The cost of an industrial license depends on whether you apply on the mainland or in a free zone. In addition to the cost of the trade license, you should consider the cost of other permits and registrations, as well as the cost of leasing space. On average, an industrial license costs roughly AED 35,000.
How To Get Trade License In UAE
- Authorization must be obtained from the Dubai authorities before starting a new business or adjusting an existing one.
- Once you’ve gotten their approval, you can apply for an industrial license in UAE with the Department of Economic Development. The DED will consider your letter and make a decision within three months of receiving it.
- The DED will contact you within 15 days if your application is accepted.
- To construct the plant you’ll need to get authorization from the town.
- Your license must be approved by the Chamber of Commerce and Industry, the Industrial Registry, the Ministry of Health, and other authorities.
- The above mentioned documents are required to be shown to the authorities.
- It will take a week or two, for your request to be approved or disapproved.
Advantages Of Having Trade License In Dubai
Companies that have earned an industrial license in the United Arab Emirates have been granted specific powers by the UAE authorities. The goal is to boost industry investment and encourage businesses to grow.
Some of the advantages of having an industrial license in Dubai are as follows:
- Terms for renting industrial premises that have been created with the investor in mind.
- The government will supply land at a lower rate to help you develop your business.
- Reduced rates are provided for electricity, water, and other requirements.
- Guidance centered on how similar industries improved their processes in order to improve yours.
- Innovative items may be eligible for a lower-interest financing.
- If your product is projected to benefit the national economy, the government will provide financial assistance during the R&D phase.
- During official procurement, the UAE government would prioritize high-quality commodities.
Rules For Trade License Holders
The federal government has imposed various obligations on those who have a Dubai industrial license. You must follow these guidelines for the efficient functioning of your business and to avoid undesired repercussions. If your proposal is approved, you must begin construction on the industrial space within six months of receiving approval.
- Submit the required data to Dubai’s Department of Economic Development as directed (DED).
- You must write a letter to the DED when you are ready to start your industrial operation. After that, the DED will issue a certificate of permission.
- Your industry must be included in the industry registry. Request this in writing to the proper authority.
- If the factory’s records have been improved or amended, submit a note to the DED detailing the changes in the format indicated.
- You are not permitted to sell or lease the property set aside by the government for the development of the industry.
- A copy of the data of the company’s enrolled employees must be prepared and given to the DED.
- All items and materials imported after claiming customs duty exemption should not be used unless mentioned throughout the import process.
- Follow the rules, regulations, and policies of the land to the letter.
- All hygiene, fitness, and industrial safety guidelines must be adhered to to the letter.
- The DED must be notified in writing of any changes, such as the appointment of a director. In that case, the owners and the director would be in charge of all of the company’s operations, as well as law enforcement and the observance of stringent industrial safety laws.
- On a regular basis, reports must be filed to the authorities.