How to set up an Industrial Licence in Dubai Mainland | PRO Partner Group
What is an Industrial Licence in Mainland Dubai?
As per the Department of Economy Development (DED), any Individual or corporate intending to incorporate a legal entity to build or operate an industrial plant, manufacturing or assembly unit must obtain a licence from Dubai Economic Department (DED) authority in mainland Dubai and obtain the relevant special approvals required from additional specific authorities, depending on activity, such as Dubai Civil Aviation Authority, Dubai Culture, Dubai Health Authority, Roads and Transport Authority and Ministry of Interior.
The Dubai government issues specific certificates to factories that meet the requirements for an industrial licence to allow these companies to benefit from duty exemptions on machinery, equipment, spare parts, unprocessed raw materials and packaging materials.
In Dubai there are approximately 18 industrial areas such as Ras Al Khor Industrial Area, Al Quoz Industrial Area, Jebel Ali Industrial Area, Al Quassia Industrial Area and Al Safa Area (specifically for the food production industry), to name a few. In just the Emirate of Dubai alone, there are multiple locations for businesses in the industrial sector to set up and thrive which has seen a huge rise in foreign investors and companies setting up their manufacturing base in the UAE.
What are the Requirements to get Industrial production Licence in Dubai?
Submitting a Detailed Business Plan plays a vital role in being able to incorporate an industrial company in Dubai Mainland. The business plan should include a complete study that summaries your company structure, business goals, industry activities, equipment needs, and operational requirements. The report must include financial information related to the business and a proposed site location.
The next step is to reserve the company name and obtain initial approval from Department of Economic Development. These documents will be required together with the other necessary documentation to proceed with the next steps to obtain the business licence.
Renting or leasing a warehouse, office / commercial space is required and will depend on the nature and size of business.
It is mandatory for a company to prepare a Memorandum of Association (MOA) which should contain all required information regarding the ownership, office details, activities, objects and the constitution of the company.
As per the nature of the business activities external approvals from different government bodies may be required to be attained before and some are required after the licence is issued.
Once all these steps are fulfilled, the Industrial licence will be issued. From here the company is then able to apply for the immigration card, labour file and issue required staff resident work visas.
Once the licence and visas are issued then a corporate bank account can be setup to receive and make payments.
What are the obligations after incorporating an Industrial Licence in mainland Dubai?
As per the federal authority of the UAE, certain guidelines are required to be fulfilled to ensure the smooth functioning of your manufacturing/ industrial business.
As per the guidelines initial construction for the industrial location must be initiated within six (6) months of the project approval.
The company must provide all the mandatory information to the Department of Economic Development (DED), as required.
The company must submit a letter to the DED as and when it is ready to begin the industrial activity. The DED will grant a certificate of authorization at that point.
In case of any amendments in the Industrial plant related to location, shareholders, general manager etc – then a further letter will need to be submitted to the DED for approval of the changes.
The company must follow all instructions to maintain hygiene, health and industrial safety conditions and guidelines set forth for the relevant Industrial activity.
Emiratisation requirements in the Industrial sector requires that the company employ a minimum of 25% local Emirati workforce. The Emiratisation requirements have recently been updated and the company will need to register with the NAFIS system – please speak to a member of the PPG team to find out more about your obligations on Emiratisation.
How can PRO Partner Group help?
PRO Partner Group has an extensive team on the ground with in-depth knowledge of the market, company incorporation requirements, industrial licensing, as well as all government departmental requirements and visa, labour and immigration services.
If you need guidance on obtaining an industrial licence in the UAE or any other related company setup, restructuring, local partner or PRO support matter in Qatar, Abu Dhabi, Dubai, the wider UAE, Oman or Saudi Arabia, then please do get in touch with us on +971 (0)4 456 1761 for our Dubai office, or email us at firstname.lastname@example.org or complete the contact form below and we will be delighted to assist you.