Industrial License in UAE: Everything You Need to Know
Why an Industrial License is Essential for Your Business in UAE
Starting a manufacturing or distributed services business in the UAE requires an industrial license, which is a crucial part of setting up a company here. The industrial license allows you to legally engage in industrial activities such as manufacturing, processing, and distribution within UAE jurisdictions.
However, navigating the legal and bureaucratic processes can be daunting. That’s where Dahhan Business Services comes in. As a leading provider of business setup services in the UAE, Dahhan offers A to Z, door-to-door services specifically tailored to making your industrial license application process smooth and hassle-free.
Industries Covered by an Industrial License
An industrial license in the UAE covers a wide range of activities such as:
- EManufacturing of goods and products.
- EProcessing raw materials into finished products.
- EAssembly of products where components are imported and assembled locally.
- EPackaging and labeling of manufactured products.
Types of Industrial Activities Permitted
There are primarily three categories of industrial activities that require an industrial license in the UAE. First is manufacturing, which involves the large-scale production of goods from raw materials, such as food processing, garment production, or electronics assembly. The second is processing, where raw or semi-processed materials are refined or altered into finished products, like plastic molding or chemical treatment. Third is assembling, where various components are put together to create a complete product, such as machinery or vehicles. Each category demands specific facility standards and regulatory approvals. At Dahhan Business Services, we guide clients through selecting the appropriate category and fulfilling all licensing requirements.
Heavy Industry
Includes activities such as steel manufacturing, petrochemicals, and heavy machinery production.
Medium Industry
Covers industries like food production, electronic goods assembly, and pharmaceuticals.
Light Industry
Encompasses activities such as textile manufacturing, light machinery, and handicrafts.
Steps to Obtain an Industrial License in UAE
While the process of setting up a business in the UAE can be complex—often involving multiple approvals, legal documentation, and compliance requirements—Dahhan Business Services streamlines every step to save you time and effort. From selecting the right business activity and legal structure to handling document preparation, translation, and government liaison, we take care of everything. Our experts ensure that each stage, including trade name reservation, initial approval, tenancy contracts, and license issuance, is completed accurately and efficiently. With a deep understanding of local regulations and industry practices, we minimize delays and provide a smooth, hassle-free experience for entrepreneurs and investors alike:
Business Plan and Feasibility Study
First, a detailed business plan outlining your intended industrial activities, production processes, target market, equipment needs, and projected financials must be prepared. This document is essential for demonstrating the viability and strategic vision of your proposed business. Alongside this, a comprehensive feasibility study should be conducted to assess market demand, operational requirements, and potential challenges. At Dahhan Business Services, we assist clients in crafting a solid business plan and conducting the necessary research to ensure the foundation of your application is strong. Our experts help present your concept clearly and effectively to meet the criteria set by the UAE licensing authorities.
Initial Approval
To begin the licensing process, you must obtain initial approval from the Department of Economic Development (DED) in the emirate where you intend to establish your industrial business. This approval confirms that the UAE government has no objection to your proposed business activity and allows you to move forward with the remaining steps. Dahhan Business Services facilitates this crucial stage by preparing and submitting all required documents on your behalf, ensuring accuracy and compliance with local regulations. Our team communicates directly with the DED to expedite your approval, saving you time and minimizing the risk of delays or rejections.
Location and Site Selection
Depending on the type of industrial activity your business will engage in—such as food production, metal fabrication, or chemical manufacturing—you will need to choose an appropriate industrial zone that meets regulatory, logistical, and operational requirements. These zones are specially designated by the UAE government to support manufacturing and industrial operations, offering the necessary infrastructure and utilities. Choosing the right location can impact your business efficiency, cost, and scalability. Dahhan Business Services provides expert guidance in selecting the most suitable industrial area based on your specific needs, budget, and long-term goals, helping you make an informed decision that supports sustainable growth.
Lease Agreement
Once a suitable industrial zone has been identified, the next critical step is to secure the physical premises by signing a lease agreement. This lease must comply with UAE regulations and be registered with the appropriate authorities, such as the local municipality or free zone authority. The type of facility you choose—whether a warehouse, factory, or production unit—must align with your business activity and meet safety and environmental standards. Dahhan Business Services supports you throughout this process by helping you find the right facility, negotiating favorable lease terms, and ensuring that all legal and technical requirements are met before finalizing the agreement.
Environmental Impact Assessment (EIA)
If your industrial activity has the potential to significantly impact the environment—such as manufacturing, chemical processing, or waste management—you may be required to submit an Environmental Impact Assessment (EIA) report. This assessment evaluates how your operations may affect air quality, water resources, waste generation, and overall environmental sustainability. Securing EIA approval is a critical regulatory step and must meet the guidelines set by the UAE environmental authorities. At Dahhan Business Services, we assist you in navigating this complex requirement by connecting you with certified environmental consultants, helping you compile the necessary documentation, and ensuring timely submission and approval to avoid project delays.
Submit Required Documents
Once all preparatory steps are complete, the next phase involves submitting a comprehensive set of legal documents to the relevant UAE authorities. These typically include passport copies of shareholders, a detailed business plan, the signed lease agreement, initial approval documents, and an Environmental Impact Assessment (EIA) report if required. Proper documentation is crucial for ensuring a smooth and timely licensing process. Dahhan Business Services takes the hassle out of this step by managing the end-to-end document preparation, ensuring all paperwork meets regulatory standards, and submitting everything on your behalf. Our meticulous attention to detail helps avoid delays and ensures full compliance.
Final Approval and License Issuance
After your submitted documents are reviewed and approved by the relevant UAE authorities—such as the Department of Economic Development (DED), Municipality, and Environment Departments—your industrial license will be officially issued. This license legally authorizes your company to begin operations within the specified industrial sector and jurisdiction. At this stage, it’s crucial to ensure full compliance with all legal, safety, and environmental regulations to avoid future complications. Dahhan Business Services oversees every aspect of this final step, ensuring all requirements have been met and no detail is overlooked. Our team guarantees a smooth, hassle-free license issuance process so you can focus on launching your business.
Benefits of an Industrial License in UAE
Obtaining an industrial license in the UAE offers numerous benefits:
Legal Authorization
Legally permits you to conduct industrial activities.
Access to Free Zones
Enables business operations within UAE free zones which offer tax exemptions and other benefits.
Operational Flexibility
Allows you to import raw materials and export finished products efficiently.
Funding Opportunities
Makes your business eligible for various government grants and incentives aimed at industrial growth.
Expert Assistance by Dahhan Business Services
At Dahhan Business Services, we aim to make your industrial license application process as straightforward and stress-free as possible. Our dedicated team of experts provides end-to-end support tailored to your specific business requirements. We assist with everything from choosing the right business activity, securing initial approvals, and preparing required documentation, to coordinating with relevant government authorities. We also help you find suitable industrial premises and ensure compliance with environmental and safety regulations. With our industry knowledge and commitment to client success, you can confidently navigate the licensing process and focus on growing your manufacturing or production business in Dubai:
- ZConsultation on the best business structure.
- ZAssistance in legal documentation preparation and submission.
- ZGuidance on compliance with local laws and regulations.
- ZOngoing support for any post-licensing requirements.
Conclusion
Securing an industrial license in the UAE is a critical step for any business planning to undertake industrial activities. With Dahhan Business Services, your journey from start to finish is handled with professionalism, expertise, and the highest quality of customer service. Our door-to-door service ensures that all your needs are met promptly and affordably, making us the ideal partner for your UAE business setup.
Ready to start the process? Contact Dahhan Business Services today!
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Frequently Asked Questions (FAQs)
What's the difference between industrial and commercial license in Dubai?
Industrial licenses are specifically for manufacturing and production activities, requiring factory premises and special approvals, while commercial licenses cover trading activities without production facilities.
How much does an industrial license cost in Dubai?
Costs range from AED 15,000 to AED 50,000 depending on the industrial activity, location (mainland vs free zone), and size of operations. This excludes additional costs for approvals and facility setup.
Can foreigners get 100% ownership for industrial licenses?
Yes, foreign investors can fully own a company in free zones such as Dubai Industrial City or Jebel Ali Free Zone. For mainland licenses, foreign investors can also have 100% ownership, depending on the business activity and regulatory requirements.
What are the approved locations for industrial activities?
Dubai has designated industrial zones including Dubai Industrial Park, Jebel Ali, and Al Quoz. Some light industrial activities may be permitted in mixed-use areas with approvals.
How long does industrial license approval take?
Standard processing is 2-4 weeks after completing all requirements. Fast-track options (5-7 business days) are available for certain free zones with premium fees.
Do I need special approvals for importing industrial machinery?
Yes, certain equipment requires conformity certificates from ESMA (Emirates Authority for Standardization), along with approvals from the Ministry of Economy and customs clearance for heavy machinery imports. Some approvals may be required depending on the type of license being registered.
