Starting an industrial or manufacturing business in the UAE requires the right legal approvals. One of the most important permits is the Industrial License in Dubai, issued by the Department of Economic Development (DED). This license gives businesses the authority to carry out industrial and manufacturing activities legally in the emirate.
What is an Industrial License in Dubai?
An Industrial License in Dubai is a legal document that allows companies to engage in industrial activities such as manufacturing, processing, and packaging goods.
- It ensures that businesses operate under the UAE’s regulatory framework.
- It is mandatory for any company involved in transforming raw materials into finished or semi-finished products.
- The license is issued and regulated mainly by the Dubai Department of Economic Development (DED), along with approvals from relevant ministries.
In short, if you plan to set up a factory or industrial unit, this license is essential.
Why You Need an Industrial License in Dubai
An industrial license is not only a legal requirement but also a gateway to business opportunities.
- Legal compliance: It ensures that your company meets the UAE’s laws and safety standards.
- Business benefits: Licensed industrial companies gain access to banking facilities, investor visas, and trade opportunities.
- Economic growth: Dubai promotes industrialization, and licensed businesses contribute to the UAE’s economic diversification goals.
Key Business Activities Allowed Under an Industrial License
With an Industrial License in Dubai, companies can engage in several activities, including:
- Manufacturing and assembling products
- Processing and packaging items
- Importing raw materials for production
- Exporting finished goods to global markets
This wide scope of activities makes Dubai an attractive hub for industrial ventures.
Main Requirements for an Industrial License in Dubai
Before you apply for an Industrial License in Dubai, you must fulfill certain conditions set by the Department of Economic Development (DED) and other government bodies. These requirements ensure that your business has the right infrastructure, workforce, and safety measures to operate legally.
1. Office and Warehouse Facilities
- Every industrial company must have a physical office registered under its trade license.
- A warehouse or factory space is mandatory for storing raw materials, machinery, and finished goods.
- The facility should be located in an approved industrial or commercial zone.
- Depending on your activity, you may also need specialized storage such as cold storage or secure hazardous material facilities.
- The lease agreement (Ejari in Dubai) must be submitted as part of the licensing process.
2. Minimum Workforce and Equipment Needs
- Industrial activities require skilled and unskilled workers to operate machines, manage production lines, and maintain quality.
- The number of employees depends on the scale of operations but must meet the DED’s minimum requirement.
- Companies are expected to install proper machinery and production equipment suitable for their business activity.
- Labor contracts must be registered with the Ministry of Human Resources and Emiratisation (MOHRE).
- Employers must provide worker housing or allowances if required under UAE labor law.
3. Compliance with Health and Safety Standards
- The Dubai Municipality and Civil Defense authorities strictly monitor industrial facilities to ensure public safety.
- Companies must install fire alarms, fire extinguishing systems, and emergency exits.
- Industrial waste disposal must follow environmental protection regulations.
- Factories must comply with ventilation, air quality, and noise-control standards.
- Regular safety inspections are conducted, and non-compliance can lead to fines or license suspension.
Documents Required to Get an Industrial License
To secure an Industrial License in Dubai, you will need:
- Trade name reservation certificate
- Passport copies of shareholders and partners
- Initial approval from the DED
- Memorandum of Association (MoA)
- Lease agreement for warehouse or office space
These documents prove your business identity, activity, and compliance.
Step-by-Step Process to Apply for an Industrial License in Dubai
Applying for an Industrial License in Dubai involves several approvals and legal formalities. Below is the detailed explanation of each step:
Step 1: Choose Your Industrial Activity
The first step is to define the exact activity your business will perform. Examples include manufacturing furniture, producing food products, or assembling machinery.
- Activities must be listed under the approved categories of the DED.
- Selecting the correct activity is crucial since it determines the approvals and conditions you will need later.
Step 2: Select a Business Legal Structure
Your company must have a legal identity. Common structures include:
- Limited Liability Company (LLC): The most common option for industrial businesses.
- Sole Proprietorship: For individuals who want full ownership.
- Partnerships or Free Zone Entities: Depending on business goals.
- The structure affects ownership rights, liability, and profit distribution.
Step 3: Reserve a Trade Name
A unique trade name is required for every business in Dubai.
- The name must not violate UAE naming guidelines.
- It should reflect the nature of your industrial activity.
- Reservation is done through the DED’s online portal or service center.
Step 4: Obtain Initial Approval from DED
Before finalizing your setup, you must get an initial approval certificate.
- This approval confirms that the government has no objection to your business activity.
- It does not yet grant the license but allows you to proceed with other formalities like MoA preparation and site selection.
Step 5: Draft and Sign the Memorandum of Association (MoA)
If your business has partners or shareholders, you need to create a Memorandum of Association.
- The MoA outlines ownership percentages, roles, and responsibilities.
- It must be notarized by a Dubai notary public.
- For an LLC, this step is mandatory.
Step 6: Secure Office and Warehouse Space
Since industrial activities require physical operations, renting or leasing a warehouse and office is essential.
- The lease contract (Ejari in Dubai) must be registered with the Dubai Land Department.
- The facility must meet safety and zoning regulations set by Dubai Municipality.
Step 7: Obtain External Government Approvals
Depending on your industrial activity, additional approvals may be required:
- Ministry of Economy for manufacturing at a national scale.
- Dubai Municipality for environmental and public health approvals.
- Civil Defense for fire safety compliance.
- Environment Department for waste management and eco-friendly practices.
Step 8: Receive Your Industrial License
After completing the above steps and submitting documents, the DED will issue your Industrial License in Dubai.
- The license specifies your approved activities.
- It is valid for one year and must be renewed annually.
Step 9: Apply for Employee and Investor Visas
Once your license is active, you can register with the immigration department.
- Apply for work permits to hire employees.
- Apply for investor visas for shareholders and business owners.
- The number of visas depends on your office/warehouse size and business activity.
Step 10: Open a Corporate Bank Account
Finally, open a UAE corporate bank account to manage transactions.
- Banks will require your industrial license, company documents, and shareholder details.
- A corporate account is essential for importing materials, paying salaries, and handling business finances.
Special Approvals Needed for Industrial Activities
Certain industries require extra permissions:
- Ministry of Economy for industrial activities at a national level
- Dubai Municipality for environmental and safety standards
- Civil Defense and Environment Department for fire and safety compliance
Cost of Industrial License in Dubai
The total cost depends on business activity, location, and approvals.
- Initial application fees vary based on DED charges
- Renewal and government fees are required annually
- Additional expenses: office rent, warehouse, labor visas, and approvals
On average, setting up an industrial license can range from AED 25,000 to AED 50,000, excluding facility rent and equipment costs.
Why Choose Dubai for Your Industrial Business?
Dubai offers several advantages for industrial investors:
- Strategic location with access to global trade routes by air and sea
- Modern infrastructure, world-class logistics, warehouses, and free zones
- Investor-friendly environment, 100% foreign ownership in free zones, tax benefits, and ease of business setup
Start Your Industrial Business in Dubai with Expert Help
Applying for an Industrial License in Dubai can feel overwhelming because it requires multiple approvals, detailed paperwork, and compliance with strict regulations. Missing even a single step can delay your business setup. This is where professional consultancy firms make a big difference.
A trusted business setup consultant can:
- Guide you through each stage of the licensing process
- Manage government approvals and legal documentation
- Assist in securing warehouses, offices, and required facilities
- Help with visa processing for employees and investors
- Support in opening corporate bank accounts for smooth operations
With expert support, you can save time, avoid costly mistakes, and start your industrial business in Dubai with confidence.
If you’re ready to set up your company, Ripple can help you get started today. Our team provides complete assistance for industrial licensing, approvals, and business setup in Dubai.
📞 Contact Ripple at ripplellc.ae to launch your industrial venture quickly and hassle-free.