Industrial License in Dubai
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Dubai has established itself as a global business hub and attracts investors from all around the world. The emirate’s business-friendly policies, modern infrastructure, and strategic location make it an ideal place for businesses to thrive. Entrepreneurs who are planning to start an industrial business in Dubai must obtain an Industrial License in Dubai. In this article, we will guide you through the process of acquiring an Industrial License in Dubai and provide all the necessary information you need to know.
What is an Industrial License in Dubai?
An Industrial License in Dubai allows the holder to conduct industrial activities such as manufacturing, assembling, packaging, and processing. It is mandatory for businesses that are involved in industrial activities to obtain an Industrial License in Dubai from the Department of Economic Development (DED).
Process of acquiring an Industrial License in Dubai:
The process of acquiring an Industrial License in Dubai involves several steps. Here is a step-by-step guide to help you obtain an Industrial License in Dubai:
Step 1: Choose a Business Activity The first step in obtaining an Industrial License in Dubai is to choose a business activity that falls under the industrial sector. You can refer to the Standard Industrial Classification (SIC) code list provided by the DED to determine the business activity that you want to pursue.
Step 2: Choose a Company Name The next step is to choose a unique company name for your business. The company name should comply with the naming conventions set by the DED. Once you have selected a name, you need to reserve it with the DED.
Step 3: Obtain Initial Approval After reserving the company name, you need to obtain initial approval from the DED. You need to submit the necessary documents and pay the required fees to obtain initial approval.
Step 4: Lease a Business Premises To obtain an Industrial License in Dubai, you need to lease a business premises that is suitable for your industrial activities. The location of the business premises should comply with the zoning regulations set by the Dubai Municipality.
Step 5: Obtain External Approvals Depending on the nature of your business activity, you may need to obtain external approvals from other government departments. For example, if your business activity involves the use of hazardous materials, you need to obtain approval from the Dubai Civil Defense.
Step 6: Submit Final Documents and Obtain License Once you have completed all the above steps, you need to submit the final documents to the DED and pay the required fees. After reviewing the documents, the DED will issue the Industrial License in Dubai.
Requirements for obtaining an Industrial License in Dubai:
To obtain an Industrial License in Dubai, you need to fulfill certain requirements. Here are the requirements for obtaining an Industrial License in Dubai:
Business Plan: You need to prepare a detailed business plan that outlines your business objectives, strategies, and financial projections.
Capital: You need to have a minimum capital investment of AED 250,000 for a General Industrial License and AED 1,000,000 for a Manufacturing License.
Premises: You need to lease a business premises that is suitable for your industrial activities.
External Approvals: Depending on the nature of your business activity, you may need to obtain external approvals from other government departments.
Benefits of obtaining an Industrial License in Dubai:
Acquiring an Industrial License in Dubai has several benefits for entrepreneurs. Here are some of the benefits of obtaining an Industrial License in Dubai:
- Tax Exemption: Industrial businesses that are registered in Dubai are exempted from paying corporate and personal income taxes.
Access to Free Zones: Industrial businesses that hold an Industrial License in Dubai can operate in any of the free zones in the UAE.
Import and Export: Industrial businesses with an Industrial License in Dubai can import and export goods without any restrictions.
Infrastructure: Dubai has modern infrastructure and state-of-the-art facilities that support the growth and development of industrial businesses.
Strategic Location: Dubai’s strategic location provides easy access to the global market and enables industrial businesses to expand their operations globally.
FAQs
What is the validity of an Industrial License in Dubai?
Can I operate an industrial business from a residential property?
Can I obtain an Industrial License in Dubai without a physical office?
Is it mandatory to have a UAE national as a partner or sponsor to obtain an Industrial License in Dubai?
Conclusion
Acquiring an Industrial License in Dubai is a mandatory requirement for businesses that are involved in industrial activities. The process of obtaining an Industrial License in Dubai can be complex and time-consuming, but it is essential for entrepreneurs who want to establish an industrial business in Dubai. With the right guidance and support, obtaining an Industrial License in Dubai can be a smooth and hassle-free process. We hope this guide has provided you with all the necessary information you need to know about obtaining an Industrial License in Dubai.
