Question 1

Q-1. How long does it take to get an industrial license in the UAE?

Accepted Answer

The process to obtain an industrial license on the mainland typically takes between 20-30 working days, depending on the complexity of the business and required approvals. In certain free zones, the process can be much quicker, ranging from 3-5 working days. External approvals or specific requirements may impact the timeline.

Question 2

Q-2. Can a foreigner own 100% of an industrial company on the UAE mainland?

Accepted Answer

Yes, recent legislative changes have allowed foreigners to fully own industrial businesses on the UAE mainland without needing a local Emirati partner. This applies to many industrial activities, making the process more attractive to international investors looking to establish operations in the UAE.

Question 3

Q-3: What is the minimum capital requirement for an industrial license?

Accepted Answer

On the UAE mainland, industrial businesses typically require a minimum capital investment of AED 250,000. However, this may vary depending on the nature of the business. In free zones, the capital requirement can be lower, or sometimes not specified, but proof of financial viability is often needed to proceed with registration.

Question 4

Q-4. Do I need a local UAE partner (sponsor)?

Accepted Answer

No, a local sponsor or partner is no longer required for most industrial activities on the mainland due to recent updates in foreign ownership laws. For businesses operating in free zones, 100% foreign ownership has always been allowed without the need for a local partner or sponsor.

Question 5

Q-5: Can I import machinery duty-free?

Accepted Answer

Yes, businesses holding an industrial license can import machinery, raw materials, spare parts, and equipment duty-free into the UAE, provided these items are directly used in manufacturing, production, or packaging processes. This exemption significantly reduces operational costs for industrial companies.

Question 6

Q-6. What are the main types of industrial licenses available in the UAE?

Accepted Answer

The UAE offers several types of industrial licenses, including those for manufacturing, processing, and assembling. Depending on the business activity, companies may need a specific license for activities like production, packaging, or distribution. Each type of industrial license aligns with specific regulatory requirements.

Question 7

Q-7. Can I apply for an industrial license if I want to operate in a free zone?

Accepted Answer

Yes, free zones in the UAE offer specific industrial licenses for businesses looking to set up in areas with tax incentives, infrastructure, and streamlined procedures. These licenses are ideal for manufacturing and industrial companies and typically allow for 100% foreign ownership without the need for a local partner.

Question 8

Q-8. Is there a renewal process for an industrial trade license in the UAE?

Accepted Answer

Yes, industrial trade licenses in the UAE must be renewed annually. The renewal process requires submitting updated business documents, paying applicable fees, and ensuring compliance with regulations. The renewal can typically be done through the respective Department of Economic Development (DED) or the relevant free zone authority.

Question 9

Q-9. What documents are required to apply for an industrial license in the UAE?

Accepted Answer

To apply for an industrial trade license, businesses need to provide a variety of documents, including a completed application form, passport copies of the owners, lease agreements for business premises, and, in some cases, a feasibility study. Additional documents may be needed depending on the type of business activity and location.

Question 10

Q-10. Are there any tax benefits for industrial businesses in the UAE?

Accepted Answer

Yes, the UAE offers various tax advantages to industrial businesses, including tax exemptions in free zones, zero percent corporate tax rates for up to 50 years, and no import duties on machinery and raw materials used for production. Additionally, there are no personal income taxes, making it an attractive destination for industrial businesses.

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