How to Obtain an Industrial License in Dubai: Process, Costs, and Key Requirements

An industrial license in Dubai is a mandatory legal requirement for businesses involved in manufacturing, processing, or assembling products. The Dubai Department of Economy & Tourism (DET) issues this license for mainland businesses. Free Zones have their own authorities to issue this license. This license allows companies to operate in sectors like food production, textile manufacturing, and machinery assembly. 

The Industrial license is essential for businesses that handle raw materials and convert them into finished goods. Without it, businesses cannot legally conduct industrial activities in Dubai, making it a vital step for anyone entering the manufacturing sector.

Types of Industrial Licenses in Dubai

Dubai offers three types of industrial licenses based on the nature and size of the business activity:

• Light Industrial License: This license is for small businesses such as auto garages, workshops, or small warehouses under 2000 sq ft. It is ideal for businesses with low health and safety risks.
• Medium Industrial License: This is suitable for larger facilities like manufacturing units or factories above 2000 sq ft. It covers businesses with moderate risks.
• Heavy Industrial License: This applies to businesses in sectors with high environmental or health risks, like chemical manufacturing, recycling plants, or weapons production. These businesses face stricter regulations.

Obtaining the right industrial trade license in Dubai ensures legal compliance and smooth operations for your manufacturing business.

Here’s a structured and detailed process for acquiring your industrial, aka manufacturing license in Dubai:

Step 1: Preliminary Planning & Feasibility

Start by deciding on the business activity you plan to pursue. Prepare a detailed business plan outlining the goals, strategies, and expected financial projections. Ensure you have the capital, typically AED 250,000, especially for mainland businesses.

Step 2: Choose the Legal Structure & Location

You need to decide on your business structure, such as a Limited Liability Company formation or a branch of a foreign company. Your business activity and location (mainland or Free Zone) should align with Dubai’s regulations. Choose an industrial zone that fits your business needs, such as Jebel Ali Free Zone, Dubai Industrial City, or Dubai South.

Step 3: Trade Name Reservation & Initial Approval

Reserve a trade name that clearly reflects your industrial activity. Ensure it aligns with Dubai’s naming guidelines, which prohibit offensive language, abbreviations, and religious references. After selecting the name, submit your initial application to the DET or the relevant Free Zone authority for approval. 

Once approved, the name will be officially reserved for your business.

Step 4: Secure Industrial Premises

Lease suitable industrial premises, such as a warehouse or factory, in an approved industrial area. Ensure the property complies with zoning rules and regulations in Dubai. Register the lease with Ejari for tenancy authentication.

Step 5: Obtain No-Objection Certificates (NOCs)

You must obtain several external approvals before proceeding. These include an NOC from DET and approval from Dubai Municipality for health and safety. Depending on your activity, you may also need approvals from Civil Defense and the Ministry of Industry. These documents are necessary to legally set up your industrial facility.

Step 6: Submit Documents

Prepare the necessary documents to proceed with the submission. These documents include:

• Copy of passport and residence for non-citizens
• Summary of registration for citizens
• Feasibility study
• Partnership contract (if applicable)
• Copy of the trade license
• Ministry of Health approval
• Ministry of Environment and Water approval

Ensure that all documents are complete and meet the requirements.

Step 7: Review, Inspection & Final Approval

Once you’ve submitted your documents, the DET will review your application. Inspectors will conduct on-site checks to ensure the facility meets safety, health, and environmental standards. If everything is in order, you’ll receive final approval.

Step 8: Receive Your Industrial License

After the review and inspection, the DET will issue your Industrial Trade License. This will allow you to legally operate within Dubai’s industrial sector. Ensure that you understand the industrial license cost in Dubai and renewal requirements, as the license is valid for a set period, typically one year.

By following these steps, you will successfully obtain an industrial license and be ready to operate in Dubai.

To ensure a smooth and efficient start to your business in Dubai, understanding the trade license process is essential. This process is required to legally operate any business in Dubai, ensuring compliance with local regulations. Learn all the necessary steps and requirements in our detailed blog: How to Get a Trade License in Dubai.

At SafeLedger, we help you complete the registration process and avoid unnecessary delays.

The total expenses for industrial licenses depend on the type of manufacturing, location, and scale. The choice between Free Zone and Mainland significantly impacts the cost of obtaining an industrial license in Dubai. Here’s a breakdown of industrial license costs in Dubai: 

Mainland Industrial License Costs

For businesses applying for an industrial license in Dubai through Dubai Economy and Tourism (DET), the common fees include:

The total mainland industrial license fees typically range from AED 14,000 to AED 30,000, excluding machinery, fit-outs, and other operational setups.

Free Zone Industrial License Packages

Free Zones offer industrial setup packages with benefits such as customs duty exemptions and reduced utility tariffs. Their costs are as follows:

These setups usually require a dedicated facility within the zone, with additional costs depending on the size and location of the property.

Additional Costs to Consider

Several additional expenses contribute to the overall cost of acquiring an industrial license in Dubai:

• Machinery & Equipment Imports: Varies based on the industry.
• Factory Fit-Out & Safety Installations: Includes fire systems, ventilation, etc.
• Visa Application Fees: AED 3,000 – AED 5,000 per visa.
• Health Insurance: Starts at AED 1,500 per person annually.
• Utility Deposits & DEWA Connections: AED 5,000 – AED 15,000, based on facility size.

Renewal & Ongoing Compliance Costs

After receiving the industrial trade license, annual renewal and compliance fees include:

• Ejari Renewal: Depends on lease value.
• Audit & Compliance Reports: AED 5,000+ annually.

For a detailed breakdown of the costs involved in obtaining your license in Dubai, check out our post on How Much Does a License Cost in Dubai?.

Once you have acquired your industrial license in Dubai, several post-licensing requirements must be completed to ensure smooth operations. They are:

a. Registration & Compliance Responsibilities

After receiving your manufacturing license in the UAE, you must complete a few critical steps to begin operations:

• Ensure that your business is registered with Dubai Customs for smooth import/export operations.
• Set up a corporate account with a local bank to manage your business transactions efficiently.
• Process employee visas to legally employ foreign nationals in your industrial facility.
• Make sure that your facility meets all required operational standards, including safety and zoning regulations.

b. Ongoing Obligations

Maintaining your industrial license in the UAE requires adherence to ongoing legal and operational duties:

• License Renewals: Ensure you renew the trade license before it expires. Dubai trade license renewal fees typically range from AED 8,000 to AED 15,000.
• Reporting Requirements (if required): Submit reports and financial statements to authorities when requested. Industrial companies only submit reports upon request.
• Maintaining Safety & Environmental Standards: Follow safety protocols and meet environmental standards. Obtain approvals from the Ministry of Industry and Advanced Technology (MoIAT) and relevant environmental authorities to comply with Dubai’s industrial regulations.

By staying compliant with these post-licensing requirements, you ensure your business can operate without legal issues.

If you’re exploring business options in Dubai, understanding the licensing process is crucial. Read our detailed blog, “How to Apply for a DET License in Dubai?” 

Understanding the common challenges can help you navigate the application process smoothly. Here are some key challenges businesses often face:

1. Delays with External Approvals: External approvals often take time, delaying the process. To avoid this, ensure the timely submission of required documents and maintain constant communication with relevant authorities.
2. Documentation Errors: Errors in documents can lead to rejection. Double-check all paperwork and ensure that every detail meets the specific requirements of authorities.
3. Non-Compliant Facility Layout: A layout that doesn’t meet safety or zoning standards can cause delays. Work with experienced architects to ensure your facility complies with all local regulations.
4. Choosing an Incorrect Industrial Zone: Choosing the wrong zone can limit operations. Research the best industrial zones that align with your business activity and legal requirements.

To avoid these challenges, plan ahead, stay organized, and work closely with the right experts.

If you want expert guidance and seamless assistance in obtaining your industrial license in Dubai, reach out to SafeLedger. With our extensive experience and dedicated team, we ensure your business setup process is smooth and compliant. Contact us today!