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What is an Industrial Manufacturing License in Dubai?

An Industrial Manufacturing License in Dubai, as well as in other emirates of the United Arab Emirates, is issued for commercial activities of an industrial nature, like manufacturing or refining petrochemicals. If you’re uncertain about whether a specific business activity qualifies as industrial, a general guideline is that it likely does if it requires specialized plant equipment. Examples of industrial activities include:

• 1. Manufacturing of paper and/or paper-based products
• 2. Production of bread on a commercial scale
• 3. Anything involving the production or mixing of chemicals on a large scale
• 4. Casting of metals
• 5.Forging and/or assembly of machines / equipment / engines
• 6. Packaging of food products, including bottling of carbonated drinks

Obtaining an Industrial Manufacturing License is essential for businesses engaged in manufacturing or industrial activities. While the license is issued by the Department of Economic Development in the emirate where you intend to establish your company, there are several mandatory clearances and approvals required beforehand in Dubai.

Here are some key requirements:

1. 1. Fire Safety Compliance: Your industrial establishment must have certified firefighting equipment in place to ensure safety.
2. 2. Worker Health Protection: A detailed plan ensuring the health and safety of your workers must be submitted to the authorities.
3. 3. Electrical Power Connection: The location must have an electrical power connection capable of supporting the continuous operation of your machinery and plant equipment.
4. 4. Electrical Safety Measures: You’re responsible for ensuring electrical safety on your premises. Any fail-safe electrical protection equipment, meeting UAE standards, must be included in your Business Plan. This will be thoroughly reviewed by technical authorities.
5. 5. Additional Approvals: Depending on the nature of your business and equipment, you may need to obtain further approvals from relevant government agencies.

Ensuring compliance with these requirements is crucial before applying for an Industrial Manufacturing License in Dubai. Consulting with experienced business setup consultants can help streamline the process and ensure that all necessary approvals are obtained efficiently.

About Industrial Manufacturing License in United Arab Emirates

Once your Industrial Manufacturing License is approved by the Department of Economic Development, you have six months to commence construction. Upon completion of construction, the Department will grant permission for your operations to begin. Any changes to your industrial operations must be promptly reported to the authorities, and you’ll need to apply for inclusion in the Industrial Register.

Maintaining accurate records of your workforce is essential. Ensure all employees are adequately trained to operate plant machinery to minimize the risk of industrial accidents. Additionally, imported raw materials must be used solely for their intended purposes.

If you appoint a Director for your industrial establishment, inform the Department of Economic Development accordingly. The appointed Director is responsible for ensuring strict compliance with all applicable laws and regulations.

Additional Requirement in Abu Dhabi: In Abu Dhabi, 25% of your workforce must consist of Emirati nationals.

Compliance with these regulations is crucial for the smooth operation and legal compliance of your industrial establishment. Consulting with experienced professionals can help you navigate these requirements effectively.

Your report should encompass comprehensive details about the production tools, including intricate technical specifications and estimated production costs. It should outline your financial plans for the industrial venture, specifying whether you intend to finance it independently or seek assistance from a financial institution. To ensure the viability of your operations post-establishment, you must provide evidence of adequate funding, such as bank statements or letters of credit/guarantee from a UAE-based bank or financial institution.

Additionally, the report should detail the projected number of employees required for the industrial establishment and ensure that the facility can accommodate them comfortably. You’ll need to obtain and include approval from the Municipality and provide evidence of membership with the local Chamber of Commerce and Industry.

Furthermore, submit copies of Emirates IDs for all partners residing in the UAE, or passports if they are abroad, along with company formation documents that clearly identify the ownership structure. A location plan indicating the proposed layout of the industrial unit, including areas for cooling towers, electrical units, and chemical storage tanks, must be prepared and approved by the relevant government authorities. This approved plan should be attached to your application for an Industrial Manufacturing License.

Requirements to Get Industrial Manufacturing License in Dubai

The government offers incentives such as free or discounted land and assistance in research and development (R&D) for products expected to contribute significantly to the UAE’s economy. If your industrial plant is situated outside of a free zone, you’ll need approval from the local Municipality for construction. Electricity and water will be provided to your facility at subsidized rates based on its requirements. As an Industrial Manufacturing License holder, compliance with industrial safety regulations and adherence to labor laws concerning worker welfare are mandatory.

Innovative products, not currently available in the market, may qualify for financing from a UAE government bank.

Here’s an extended list of industrial activities permitted in the United Arab Emirates:

Procedure to Get Industrial Manufacturing License

For more information on securing an Industrial Manufacturing License in Dubai or elsewhere in the United Arab Emirates, please get in touch with us.

How to Get an Industrial Manufacturing License in Dubai?

The Industrial Manufacturing License is issued by the Department of Economic Development in the emirate where the industrial plant is situated. For example, if you plan to set up a pharmaceutical plant in Ras Al Khaimah, the Department of Economic Development in Ras Al Khaimah (DED-RAK) would be the appropriate authority to issue the license.

Additional requirements may vary depending on the emirate. In Dubai, having both a physical office and a warehouse for storage is compulsory. A virtual office cannot serve as a substitute for a physical office.

Furthermore, a Local Sponsor must hold at least 51% of the company’s shares, necessitating the appropriate company incorporation structure. Before approaching the Department of Economic Development for the Industrial Manufacturing License, you must obtain all other required permissions from entities such as the Ministry of the Interior, the Ministry of Environment and Water, and the Ministry of Health and Prevention.

Once all prerequisites are met and documentation is in order, you can anticipate receiving your Industrial Manufacturing License within approximately 3-4 weeks.

Need Help Getting an Industrial Manufacturing License in UAE?

We are a dedicated team of company formation experts committed to assisting entrepreneurs in establishing businesses in the UAE. Our services extend to guiding foreign investors through the intricate process of setting up industrial units, ensuring all required permissions from relevant government agencies are secured. If you have a vision, we are here to help you realize it.

Our business setup consultants collaborate closely with our legal team to deliver the desired results. With professional accountants on board, you can trust that your Business Plan, submitted as part of the Industrial Manufacturing License application, will meet all financial requirements. Our meticulous approach has led to a 98% client satisfaction rate.

If you’re interested in obtaining an Industrial Manufacturing License in the UAE, please reach out to us via phone, the contact form on our website, or email. A senior member of B-FIRST BUSINESS SOLUTIONS will promptly respond to your inquiry. Rest assured, we prioritize confidentiality and uphold the highest standards of ethics and professionalism in all our interactions.

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