Get Your Industrial Trade License in the UAE

An industrial trade license in the UAE is essential for any business involved in manufacturing, processing, or assembling goods. It is issued by the Department of Economic Development (DED) and requires businesses to operate from a physical warehouse or industrial space. This license ensures that your business adheres to safety, environmental, and technical standards set by the local authorities.

In recent years, the UAE has intensified its support for industrial growth through initiatives like “Operation 300bn,” which aims to increase the industrial sector’s contribution to AED 300 billion by 2031. Key emirates like Dubai and Abu Dhabi offer dedicated industrial zones and free zones with infrastructure, tax incentives, and 100% foreign ownership, making it easier for businesses to set up operations.

At Safe Ledger FZCO, we simplify the entire licensing process in the UAE. From preparing documents to coordinating with government entities, our experts ensure you get your industrial trade license without delays or confusion. Let us help you build your business foundation in the UAE.

An industrial trade license is a mandatory legal permit that specifically authorizes businesses to engage in manufacturing activities. This involves the transformation of natural resources or raw materials into new products, whether through manual or mechanical processes.

This license is indispensable for any business involved in production, processing, or assembly. It provides the legal framework to establish factories and manage production facilities. It also grants businesses access to the UAE's extensive industrial resources. The license ensures that industrial operations adhere to vital safety, environmental, and regulatory Industrial Trade License standards set by the government.

Choosing the correct business location is a pivotal decision. The UAE offers three primary options: Mainland, Free Zone, and Offshore. Each jurisdiction presents distinct benefits and limitations for industrial activities.

This table provides a quick comparison to help businesses choose the most suitable jurisdiction for their industrial activities.

The cost disparity between mainland and free zone setups is a significant factor for new businesses. While free zones often appear cheaper upfront, the potential need for a local distributor to access mainland sales can offset initial savings.

To successfully obtain an industrial license in the UAE, businesses must meet specific eligibility criteria. These requirements ensure that industrial operations are legitimate, well-resourced, and compliant with national standards.

Essential Conditions for Your Industrial Trade License Registration

A fundamental requirement for an industrial license is a physical presence. Your company must have a physical warehouse and a dedicated office space within the UAE. Virtual office spaces are not acceptable for industrial activities. This strict condition ensures that industrial businesses have the necessary infrastructure for production and can be properly inspected for compliance.

Additionally, businesses need to secure an industrial license from the relevant local licensing office.

Minimum Capital and Employee Requirements

Industrial businesses must demonstrate financial commitment. A minimum capital investment of AED 250,000 is typically required. Furthermore, the business must employ a minimum of 10 workers. These minimum capital and employee requirements signal the UAE's focus on attracting serious, established manufacturing ventures.

This policy ensures only well-resourced businesses enter the market, promoting economic value and job creation.

Additional Approvals You Might Need

Many industrial activities necessitate obtaining additional approvals from various government bodies. These can include:

• Many industrial activities require approvals from multiple authorities beyond the DED.
• Common entities involved include Dubai Municipality, the Ministry of Health, and the Ministry of Industry and Advanced Technology (MoIAT).
• MoIAT oversees industrial production compliance.
• Dubai Municipality ensures adherence to health, safety, and local standards.
• Environmental and safety permits are often mandatory.
• These layers of approval support national sustainability and safety goals.

Obtaining your industrial license in the UAE involves a structured process. Following these steps systematically can streamline your application and minimize delays.

Step 1: Define Your Business Activity

Clearly specify the nature of your industrial operations. Regulatory authorities classify industrial activities into various categories, and a precise definition is crucial for the application process.

Step 2: Choose Your Jurisdiction

Decide whether to establish your business on the Mainland or in a Free Zone (offshore jurisdiction is not applicable for e-commerce businesses). This choice significantly impacts your ownership structure, market access, and regulatory framework.

Step 3: Determine Legal Structure & Reserve Trade Name

Select the appropriate legal structure for your business, such as a Limited Liability Company (LLC). Then, choose a unique business name and reserve it with the relevant authority.

Step 4: Apply for Industrial Trade License

Apply for initial approval to the Department of Economic Development (DED) or the respective Free Zone authority. This step confirms that the authorities have no objection to your chosen business activity and legal form.

Step 5: Secure a Facility Lease

Obtain a physical warehouse or factory space that meets industrial requirements. This is a mandatory step for industrial operations and is often required before final license issuance. This "ready-to-operate" policy minimizes speculative licensing and ensures businesses have the necessary infrastructure in place for tangible industrial activities.

Step 6: Prepare Required Documentation

Gather all necessary documents, which typically include passport copies of shareholders, a Memorandum of Association (MOA), and a detailed business plan.

Step 7: Obtain External Approvals

Secure any additional permits required by your specific industrial activity. These approvals often come from specialized government departments like the Ministry of Health or environmental agencies.

Step 8: Submit Final Application & Pay Fees

Once all initial approvals and documents are ready, submit your final application to the DED or Free Zone authority. Pay all applicable government fees.

Step 9: Receive Industrial License

Upon successful review and approval, your industrial license will be issued. This document officially authorizes your business to commence industrial activities in the UAE.

Step 10: Process Visas (if applicable)

If you have foreign investors or employees, the next step involves applying for their investor or employment visas through the relevant immigration authorities.

Skip the steps and let Safe Ledger FZCO handle your entire industrial license process. Contact us today!

Ensuring your industrial license is valid and active is essential for maintaining regulatory compliance and business credibility in the UAE. The government has streamlined this process with robust digital platforms, promoting transparency and ease of doing business.

How to Check Your Industrial License Status?

You can verify the status of your industrial or trade license online through the official Department of Economic Development (DED) portals for the emirate. For instance, Dubai-based businesses can use the “www.moec.gov.ae/en/services”, while other emirates like Abu Dhabi, Sharjah, and Ajman offer similar platforms.

Note: The name and structure of the DED may vary by emirate, such as ADDED (Abu Dhabi Department of Economic Development) for Abu Dhabi.

To verify: 

1. Visit the DED eServices portal relevant to your emirate.
2. Navigate to the "License Inquiry" or "Business Search" section.
3. Enter your trade name, license number, or business activity code.
4. Complete the CAPTCHA or Industrial Trade License verification step.
5. View details such as license validity, registered activities, and company status.

This service is available 24/7 and is frequently used by investors, clients, and regulators to confirm business legitimacy.

Several core documents are generally required for an industrial trade license application, regardless of the chosen jurisdiction. These include:

• Completed application form
• Passport copies of all shareholders, partners, and main individuals involved
• UAE Visa or Emirates ID (if applicable)
• Passport-sized photographs
• Copy of the initial approval certificate
• Notarized Memorandum of Association (MOA) (For FZ-LLCs, Articles of Association (AOA) may also be required)
• Valid lease agreement or proof of ownership for your physical industrial premises (warehouse/factory and office space)
• Proof of payment for all trade license fees
• Detailed business plan or a comprehensive feasibility study outlining production processes, market analysis, financial projections, and overall strategy
• Proof of financial stability
• Qualifications and certifications for key personnel involved in the production process (e.g., engineers, technicians)
• No Objection Certificate (NOC) from current sponsor (if applicable)
• External approvals from relevant government authorities (activity-dependent, e.g., Dubai Municipality, Ministry of Health, Ministry of Industry and Advanced Technology)
• Environmental Impact Assessment (EIA) (if required by activity)
• Health and Safety Compliance Documents
• Details of industrial equipment and machinery to be used
• Insurance Certificates for the facility, machinery, and employees

Industrial licenses require a detailed business plan and feasibility study, showing higher scrutiny compared to other license types.

Jurisdiction-Specific Document Requirements

Beyond the essential documents, certain jurisdictions may require additional paperwork:

• Mainland Specific Documents:

  • The company's registration document
  • Data report on production costs
  • Blueprints of factory plans
  • Land Lease Agreement for the site, when approved
  • Local Service Agent Agreement (if Sole Proprietorship)
  • Parent company's incorporation certificate (for corporate entities)
  • Board Resolution (for corporate entities)
  • Power of Attorney (for corporate entities)

• Free Zone Specific Documents:

  • Bank Reference Letter from the shareholder(s) or director(s)' bank
  • Corporate Power of Attorney (if a representative is appointed)
  • Audited financial reports on the company's balance sheet for two years (for corporate entities)
  • Registry Identification Code form for the appointed manager (original notarized copy)
  • Board of directors' resolution on appointment of the company's manager/director (duly notarized and certified)
  • Specimen signature of the manager/director (duly notarized and certified)
  • Certificate of Incorporation (for corporate shareholders)

Understanding the financial outlay is a critical component of business planning. The total cost of an industrial trade license in the UAE varies significantly based on several influencing factors.

Managing your industrial license effectively involves understanding its validity period, the renewal process, and procedures for expiry or cancellation.

Industrial Trade License Validity Period

An industrial trade license in the UAE is typically valid for a period of one year. To maintain its legal standing and enable continued business operations, the license requires annual renewal.

Industrial Trade License Renewal: A Simple Process

Annual renewal is crucial for maintaining legal compliance and avoiding penalties. The renewal process involves several steps:

• Preparation: Gather required documents (refer to the documents section above), including a copy of your current trade license, a valid tenancy contract (like Ejari for mainland businesses), and passport copies of all partners.
• Application Submission: Submit the renewal application through the DED or relevant free zone portal. The Ministry of Industry and Advanced Technology (MoIAT) also offers an online service for renewing industrial production licenses.
• Fee Payment: Pay the applicable renewal fees, which vary based on business activity and jurisdiction. MoIAT's renewal fee is AED 500, with an additional inspection fee of AED 100.
• Inspection (if applicable): Authorities may inspect your facility to ensure ongoing compliance with safety and environmental standards, especially if there's a location or activity change.
• License Issuance: Once the application is approved and fees are paid, the renewed industrial license is issued.

The annual renewal requirement and the penalties for late renewal underscore the UAE's continuous regulatory oversight.

Industrial Trade License Cancellation Procedures

Failing to renew your industrial license on time can lead to severe consequences. These include heavy fines, suspension of business activities, or even forced closure. There is typically a 30-day grace period after expiry, but delays beyond this period incur penalties.

To cancel an industrial license, businesses must follow specific procedures, like:

• Settle all outstanding debts and liabilities with suppliers and financial institutions.
• Notify relevant stakeholders and government authorities about your intent to cancel the business.
• Submit a cancellation application to the respective licensing authority (DED or Free Zone Authority).
• Attach all required documents and pay the applicable cancellation fees.

Documents often include the original trade license, a resolution from shareholders approving the cancellation, and clearance certificates from various authorities.

Operating an industrial business in the UAE necessitates strict adherence to regulations. Non-compliance or operating without a valid license carries significant penalties.

Consequences of Non-Compliance

Operating an industrial business without a valid license is illegal in the UAE. This can result in severe repercussions, including:

• Monetary Penalties: Fines can range from AED 250 for late renewal to AED 5,000 for operating without a valid license. For more serious violations, fines can escalate significantly, from AED 1,000 up to AED 1,000,000.
• Business Closure: Authorities may issue a cease and desist order, forcing the business to halt operations. Continued non-compliance can lead to permanent business closure.
• Blacklisting: Your company runs the risk of being blacklisted, which can severely damage its reputation and future business prospects.
• Visa and Banking Restrictions: Non-compliance can lead to restrictions on renewing business owners' and employees' visas. It can also make opening or maintaining business bank accounts impossible.

The severe penalties for non-compliance underscore the UAE's strict regulatory enforcement. This acts as a strong deterrent, ensuring businesses prioritize legal adherence and operational integrity to maintain a legitimate and stable business environment.

Common Penalties for Industrial License Violations

Understanding potential penalties is crucial for ensuring continuous compliance and avoiding legal and financial repercussions.

The tiered Industrial Trade License penalty system for UBO non-compliance demonstrates a graduated enforcement approach. This provides businesses with an opportunity to rectify issues, but escalates penalties significantly for repeated offenses.

Obtaining an industrial license in the UAE offers numerous strategic advantages. It positions your business for significant growth and long-term success within a supportive and dynamic economic environment.

• Global Logistics Hub

The UAE boasts world-class infrastructure, including advanced ports, airports, and road networks. This facilitates seamless global trade and efficient supply chain management, significantly reducing shipping times and logistical costs for industrial businesses.

• Tax Benefits

Companies holding a UAE industrial license, especially those in free zones, can enjoy substantial tax benefits. These include corporate tax exemptions for a specified period, directly increasing profitability. Businesses can also fully repatriate their profits and capital without restrictions.

• Strategic Location

Dubai's prime geographical position serves as a crucial crossroads for trade between Europe, Asia, and Africa. This strategic advantage makes the UAE an ideal base for companies looking to expand their global reach and access major international markets.

• 100% Foreign Ownership

Recent legislative changes allow foreign investors to maintain complete control over their industrial businesses on the UAE mainland for many activities. Free zones have always permitted 100% foreign ownership. This eliminates the need for a local sponsor, offering full autonomy in decision-making and operational management.

• Access to UAE Residency

An industrial license entitles business owners and their employees to obtain UAE residency visas. This provides access to an enhanced lifestyle, including quality healthcare and education services.

• Government Support

The UAE government actively promotes industrial growth through various initiatives, grants, and support programs. This pro-industry regulatory environment aims to attract and foster manufacturing businesses.

• Streamlined Import/Export

The UAE offers business-friendly customs procedures and has established trade agreements with numerous countries. This creates a simplified environment for cross-border commerce, reducing administrative burdens on manufacturing companies.

• Growing Local Market

Industrial businesses can tap into the UAE's expanding consumer market. The high purchasing power and increasing demand for quality manufactured goods provide significant opportunities for local sales.

• Industrial Innovation Support

Dubai actively supports advancements in manufacturing technologies, automation, and sustainable production methods. The government offers specialized programs and incentives to encourage industrial innovation.

The combination of 100% foreign ownership with duty-free import of machinery and raw materials creates a powerful incentive for foreign industrial investment. This directly reduces operational costs and enhances profitability, making the UAE highly competitive for manufacturing.