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INDUSTRIAL LICENSE

Dubai's extensive and advanced logistics and infrastructure play a pivotal role in fostering industrial expansion. With its strategic positioning as a trade nexus between the eastern and western regions, Dubai enjoys a distinct geographical advantage. For those engaged in industrial manufacturing and aiming to establish an industrial enterprise in Dubai or the UAE, securing an Industrial License is a fundamental requirement. Acquiring an industrial license in Dubai streamlines the operations of manufacturing and industrial ventures, enabling the creation of both partially processed and fully finished goods.

 

Activities falling under the purview of an industrial license in Dubai encompass essential processes such as production, categorization, assembly, packaging, and more. Notably, obtaining an industrial trade license in the UAE mandates the possession of a physical warehouse within the country. This license is typically issued by the Dubai Department of Economic Development (DED). As a business owner, it is incumbent upon you to seek authorization from the Dubai Municipality and other pertinent authorities to facilitate the issuance of this license.

  • Mainland business setup – Benefits
    100% OWNERSHIP NO CAPITAL REQUIRED UNLIMITED VISA FLEXIBLE OFFICE LOCATION RENT/LEASE OFFICE FACILITY
  • Type of licenses
    Generally, four major licenses are issued for businesses operating in the UAE mainland. The licenses are issued based on the business endeavor and they are: 1)Professional License – License issued for firms that undertake service-oriented endeavors. Professional License are required for professionals who take part in any professional activity like consulting. Compared to other licenses the cost involved in the issuance of a professional license is less. 2)Commercial License – License issued for those business establishments that undertake buying and selling of goods or services or simply trading. Most traders opt for the general trading license in order to conduct more than one trading endeavor with a single license. Commercial licenses are very common in Dubai and the UAE mainland. The entire formalities connected with Professional License like issuance, amendment, cancellation can be accomplished easily. 3)Industrial License – License issued for firms that are involved in the manufacture of goods like factories, industries etc. When it comes to Industrial License, you may need to seek the approval of External Ministries and government departments depending upon the type of industrial activity.
  • How to set up Mainland Company in Dubai
    Step by step instructions for mainland company formation in Dubai, UAE: Memorandum of Association (MOA) – Get ready with the MOA that clearly indicates the operational guidelines of your company like the purpose, capital involved, share details etc. Obtain Initial Approval from the Department of Economic Development (DED) – DED performs the notarization of MOA and then issues the Initial approval. You may contact a business consultant to get this formality done. Trade name registration – Find an appropriate trade name for your business and get it registered with DED. DED has the right to alter or discard the trade name if it has already been selected by another company. Office space requirement – An office space is mandatory to set up any mainland business in Dubai or UAE. A registered office address is required for the issuance of a trade license. Information regarding ownership agreement or tenancy can be produced as evidence of a registered address. Apply for the license – If all the above-mentioned prerequisites are satisfied, you may apply for a trade license. DED is the agency that issues the mainland license in Dubai, UAE. Pay the license fee – Submit all the relevant documents connected with company incorporation to the Commercial registration department and DED and pay the required license fee. Get your license – Get your trade license from the DED. The company registration procedures shall be accomplished in a week if all the formalities are through. If you are new to Dubai or UAE and have doubts regarding company incorporation and license issuance, it is advisable to entrust the job to an experienced business consultant. Frank & Frank Business Set up Services can assist you through the entire tasks associated with mainland business formation in Dubai and UAE. Our advisors and consultants are always ready to help you.
  • Documents required for mainland License
    The document requirements change with the type of shareholder. Individual shareholders require a specific group of documents. Corporate shareholders require another set. Both requirements are listed below. Individual shareholder documents The foreign shareholders, directors and managers are required to submit their copies of their passport. Employer’s NOC is applicable if the shareholder is on an employment visa. UAE shareholder’s National ID card (copy) Removal of Mandatory Requirement of a Local Emirati Sponsor in UAE Earlier, the company formation regulations necessitated the requirement of a local Emirati sponsor to establish a business in the UAE. It had been an uphill task to identify the reliable sponsor. A risky element here was that the sponsor would be holding 51% of shares in the company and all the official documents would be addressed to him or her. The country’s decision to remove this mandatory requirement is expected to lead to a quantum leap in the arrival of expatriate businesspersons. Consequently, strengthening the business sector and fortifying the UAE economy abundantly. Corporate Sponsorship Mainland LLC companies may seek the service of a corporate sponsor. Here the Corporate sponsor would function on behalf of the individual sponsor. A corporate sponsor must be a corporate company owned by UAE nationals. Types of Company formation in Mainland UAE Incorporation of Professional Company – Professional companies rely on the professional or intellectual capabilities of its shareholders. Business establishments that provide all kinds of consultancy services can be put into the category of professional companies. Accounting firms, legal firms, educational consultants, consultancies that deal with administration and management all come under the category of professional companies. A professional trading license is mandatory for all professional companies to operate in the mainland UAE. In certain scenarios, professional company licenses demand educational qualification of the shareholders in order to ensure the quality of the services. Professional company assets are subject to government monitoring. The monitoring is conducted for assets like websites to safeguard certain professional standards. Foreign investors or shareholders can fully own a professional company. However, the service of a UAE national is mandatory for company incorporation. The UAE national has no ownership rights or equity share in the company but receives a fixed annual service fee. Incorporation of branch office – You may set up your branch office in Dubai. The branch company can operate as the child company of the parent company and perform all the business activities and transactions vested upon the parent company. The activities include customer-oriented interactions and services, settlement of agreements on behalf of the parent company etc. The branch office is not supposed to perform any operations that the parent company is not allowed to undertake. Business establishments of the financial sector like banks, financial institutions and insurance companies can set up branch offices in Dubai. Step by Step instructions for branch office incorporation in Dubai Finalize you business activity for company formation in Dubai mainland Frame your company structure Trade name reservation – Approach the Department of Economic Development (DED) for trade name registration of your branch. Ministry of Economy - initial approval After you get the initial approval from the Ministry of Economy, you are required to apply for a Commercial License. The license issuance is carried out by the DED and the validity of the license is 1 year. Find appropriate office space for your branch and confirm the location. Get a Corporate bank account Accomplish the employee-related formalities like labour cards and visa. Get the Dubai Chamber of Commerce and Industry membership. Documents needed for MOE – Initial approval. In order to get MOE – Initial approval, the following documents are necessary. Registration forms Trade name registration (proof) Parent company’s MAA (Memorandum and Articles of Association) Parent company’s Certificate of Incorporation Passport copy of the director Parent company’s NOC Local service agent – Naturalization book and passport (copy) The local director of the branch requires a power of attorney. Board resolution from parent company Setting up a new branch in Dubai requires the authorization of the management of the parent company. Documents needed for DED - Commercial License issuance. MOE – Initial approval The Parent company should issue a statement that defines the business undertakings of the branch Parent company’s audited financial statement (previous 2 years) Property lease contract (copy) Initial approval documents (Copy) Kilton’s branch Incorporation Services in Dubai If your company requires a branch in Dubai, Kiltons can guide you through the Business Incorporation process. We assist you in matters related to: Documentation related services Finding a trustworthy local service agent Coordinating the various government agencies for approvals Branch location assistance Corporate bank account opening assistance Limited Liability Company Incorporation – Limited Liability Company Incorporation is one of the most preferred mainland business priorities. LLCs can accommodate multiple shareholders ranging from 2 to 50. A wide range of business activities can be incorporated under LLC with exception to financial endeavours like insurance or banking The company share ratio need not be followed in the case of profit and loss acquired. The LLC licenses are issued by the Department of Economic development or DED. Instructions to set up a Limited Liability Company in Dubai Reserve the trade name. Office space registration General information of shareholders - name and nationality. Capital share of the individual shareholder. Identity information of managers like name and nationality Profit and loss share of shareholders. Representative office – An International business concern is allowed to set up a representative Office in Dubai on its behalf in order to attain UAE-wide representation. The representative office is established mainly for the promotion of business. At times, the international company may form a representative office to end all the business transactions with its clients. The representative office is not authorized to perform any business transactions in the UAE. The Ministry of Economy’s approval is mandatory for the registration of a representative office. Advantages of setting up Representative office Economical company set up cost. The total cost of formation of a Representative office in UAE would be reasonable. Since having a physical office is not mandatory in UAE, it is economically more beneficial. Many shareholders Maximum of 50 shareholders can take part in company formation. And hence the representative office has the benefit of flexibility. Share capital benefit. Minimum share capital is not required for representative office formation.
  • Approval Authority
    Department of Tourism and Commerce Marketing (DTCM) - Department of Tourism and Commerce Marketing (DTCM) Banks & Financial Institution - Central Bank of the UAE Training Institutes/ Educational Establishments - Knowledge and Human Development Authority approval (KHDA) Printing, Publishing & Advertising - National Media Council Contracting & Building Maintenance; Architect & Engineering and other related activities Dubai Municipality Transportation & Vehicle Rental activities - Road and Transport Authority (RTA) Medical-related activities - Dubai Health Authority Real Estate / Business Centre activities - Real Estate Regulatory Agency (RERA) Chartered Accountants / Insurance Companies / Insurance Brokers - Ministry of Economy Cargo Cleaning, Packaging, Fishing Cages Manufacturing - Dubai Maritime City Gym & Fitness = Dubai Sports Council/Emirates Body Building Federation (EBBF)
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