Industrial License Dubai

INDUSTRIAL LICENSE DUBAI

In these recent years, the economy of Dubai has been booming with opportunities. Entrepreneurs and investors from all over the world are looking to start their businesses in the region. As the United Arab Emirates offers the perfect conditions for companies to thrive in a short time. Subsequently, it is one of the most sought out locations to trade for foreigners and locals alike.

Because of the growing interest in the area, the Dubai Government is stating new regulations to support foreigners in their journey to investment. As a result, before they start any type of organization they need to acquire a business license. For example, if an investor wants to start a company in the industrial sector, they will have to apply for an industrial license Dubai.

To obtain this type of license, interested parties need to go through a process to attain it from the Department of Economic Development or DED. Foreign business owners usually acquire the services of a business consultancy agency to support them through this difficult procedure.

The industrial license offers businesses a legitimate identity. Thus, stating their legality to function in a certain area. At the same time, with this type of certification, companies are aware of their complete responsibility for their operations. While also remaining compliant with the United Arab Emirates Laws.

Before you procure an industrial license, you must be sure of what your business will be about. An industrial license in UAE will allow you to turn natural resources, semi-manufactured materials, and raw materials into finished products. This transformation can be done mechanically or manually.

Packaging, segregation, accumulation, production, and any other industrial activities can be carried out with this type of license. Ultimately, with the support of Connect Zone, you will have your industrial license in no time.

Requirements for an Industrial License Dubai

Entrepreneurs and investors who want to acquire a UAE industrial license must follow some steps before obtaining it.

Categorize your Company

Investors have to identify what kind of business they will be creating and what their primary form of trading will be. Additionally, they have to define if they have any related business activities to add to their industrial license.

When you navigate through this process with a business consultancy agency it becomes much easier than going through it alone. These agencies act as a bridge between foreigners and local authorities. In effect, streamlining the whole procedure. If you misclassify your business operations, you will not be obtaining the right license in the end.

Investors are obligated to define the type of organization they want to register in the United Arab Emirates. As they have to register it with the pertinent authorities to receive a Dubai industrial license.

Achieve the Authorization of the Dubai Economic Department

Before you start your company or make improvements to an existing business, you have to obtain the approval of the pertinent authorities. Firstly, you have to apply to the Dubai Economic Department for an industrial license after receiving their initial approval. To obtain this type of certification you should compile the following documents:

A report that showcases information about the plant. For instance, data on production tools, the factory’s plans, production cost, financing options, and reason for opening the factory. Plus, the report must include other details such as employee information and other necessary data.

  • A copy of the valid passport, residence, and summary of the registration of the foreign business owner.
  • Feasibility Study, copy of the trading license, and balance sheet.
  • If it is a partnership organization, they must present their partnership contract for securing their Industrial License.
  • Finally, the approvals of the National Media Council, Ministry of Interior, and Ministry of Environment and Water.

Compiling all these documents in a foreign country can be difficult, especially for those who do not speak the language. However, this is where a business consultancy agency comes in handy. When acquiring their services, business owners can find allies within their team. These agents will help you deal with any difficulty you may have while requiring an industrial license in Abu Dhabi or another Middle Eastern region.

The main objective of this kind of agency is to support investors and entrepreneurs on the road to company formation. Consequently, helping them streamline their managerial processes and offer their efficient solutions after they establish their businesses. Ultimately, allowing them to have the tools to remain compliant with Dubai’s regulations for securing their Industrial License Dubai.

Find a Local Sponsor

Dubai’s Laws require that investors have a local sponsor to obtain their industrial license and establish their business. It is important to note that the local sponsor will be in charge of holding 51% of the company’s stock. On the other hand, the international investor will possess the remaining 49% of the company.

This is a requirement that cannot be avoided by investors. All legal formalities and other commercial approvals will be the responsibility of your local sponsor. So, it must be a reliable person to support your company.

Legally Structuring your Organization

The next step is obtaining the Articles of Association and Memorandum of Association to structure your corporation as an entity. In these documents, you should state the rules, policies, and regulations that your company as a whole will follow. This paperwork is normally required in English and Arabic.

Rent Office Space

To apply for a Dubai industrial trade license, entrepreneurs and investors must have a local office space. Finding office space can be difficult, particularly because small, flexible, or virtual offices are not accepted for these types of companies. Nevertheless, with a business consultancy agency by your side, you can easily find a warehouse or big office to run your business from.

In the end, after you go through these steps, you will also need the capital to fund your company. Dubai’s government asks for AED 100.000 minimum to establish any business in the industrial sector. Once you have your business license and the necessary funds you can start trading with no problems.

Types of Activities That Can Be Carried Out Under an Industrial Trade License Dubai

Many business activities can be carried out under an industrial license in the United Arab Emirates. Every commercial activity that you operate must be approved by the Department of Economic Development for legal purposes. Industrial activities include:

  • Processing of raw materials.
  • The casting of metals.
  • Extracting petroleum and metals.
  • Production of food goods and processing of meat.
  • Manufacturing of machinery, structural steel, and other appliances.
  • Paper products manufacturing.
  • Collection of waste and treatment.
  • Wood products and furniture manufacturing.
  • Glass and plastic industries.
  • Motor vehicle manufacturing.
  • Light aircraft manufacturing.

In summary, an industrial license is required if your business activities need the manufacturing, production, or creation of physical products. When your operations require to import or export materials for the manufacturing process. Or if you need to create and package a set of new products from present raw materials or combine two or more goods to turn it into a single invention.

It is important to have in mind that with the support of a business consultancy agency like Connect Zone you will have your company running quickly. Aside from helping you with the formation process, they can aid you with staffing your company. Finding the perfect candidates to fill any job position. Also, they are capable of taking any managerial responsibilities from your hands with their HR solutions. In conclusion, their benefits are endless.

Renewal Process of an Industry License Dubai

Industrial licenses in the United Arab Emirates need to be renewed yearly. To renew it, investors must present the following:

  • A copy of the lease contract of their office space.
  • Their original industrial trade license.
  • And approval of the pertinent local authorities.

This process can be much easier when you count on the services of a business consultancy agency. They will take charge of renewing your license and dealing with the authorities while helping you remain compliant. Once you have your license renewed, it can last for up to five years.

Importance of Having an Industrial License in Dubai

Obtaining an industrial license from the Dubai Government means that your business is in line with the local regulations. To have one your policies, business plans, and infrastructure needs to be in place according to the law. An industrial license is necessary for the United Arab Emirates so companies can be protected from any legal issue.

Authenticity

With an industrial license, your business is authenticated by the government. With this credential, your clientele can make sure that they are trading with a reliable organization. Showing your business license in your physical space or website reassures customers that they are working with a legal entity.

Compliance

Having a Dubai industrial license help companies remain compliant with local regulations. They can function as a record for companies to remember that they have to pay taxes to keep their credentials valid.

Obtain Funding

Possessing an industrial license in the United Arab Emirates can help investors obtain funding from the government or private companies. Therefore, companies must have a license to opt for this benefit.

Access to Information

Due to the legality that offers an industrial license Dubai, companies can have access to certain information that is only accessible to established businesses. With an industrial license Dubai, investors can get in touch with organizations and corporations that may have not been accessible before.

Privacy

Running your company under an industrial license will protect your information from the public and only make it accessible to businesses within your same range. On the contrary, if you conduct your business under your name, your information will be accessible to everyone.

Privileges and Obligations of Holding an Industrial License in Dubai

The authorities in the United Arab Emirates generally grant some rights to companies that obtain an industrial license Abu dhabi and Dubai. This is a way of encouraging industries and increasing investment in the region. These are some of the advantages of having an industrial license Dubai:

  • The conditions for renting and buying industrial office space are particularly designed to support investors and entrepreneurs.
  • To develop your industrial business, the authorities can provide land at a lower cost.
  • Furthermore, water, electricity, and other necessities are accessible at reduced rates.
  • Investors can have access to guidance that focuses on the methodology used by a similar organization to improve their businesses.
  • Business owners holding an industrial license can obtain loans with lower interest rates.
  • If your product will improve the national economy, the Dubai Government will financially help you during your process.
  • Outstanding quality products will be a priority of the United Arab Emirates authorities during official procurement.

Obligations

On the other hand, there are some legal duties for investors holding an industrial license in Dubai. To run your business operations smoothly and prevent any legal consequences, you have to attain the following obligations:

  • Provide all necessary business information to the UAE’s Department of Economic Development.
  • Once investors are ready to start their industrial operations, they have to send a letter to the Department of Economic Development. Afterward, they will be granted an authorization certificate.
  • You have to register your company in Dubai’s Registry of Industries to start operating.
  • To make any improvements to your company’s records you must send a letter to the Department of Economic Development describing the alterations.
  • Investors cannot lease or sell the properties that the authorities have provided to develop their industries.
  • Staff members of your company must follow the instructions for maintaining industrial safety, hygiene, and fitness.
  • Managers must submit reports on the company regularly.
  • All products and materials imported after demanding customs duty exemption should not be utilized.
  • Report any adjustment such as the appointment of a director or any other important position to the Department of Economic Development.
  • The business owners and directors have to be responsible for all company operations. As well as enforcing the law and other industrial safety regulations.
  • Companies have to report the information of every staff member and send it to the Department of Economic Development as a record.

Government Departments

We can help you with the processes in the following government departments.

Government Department

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