Dubai has become a global hub for manufacturing, trading, and industrial activities, making it one of the best destinations for investors. If you are planning to start a manufacturing, processing, or industrial unit, the first step is to obtain an industrial license in Dubai, UAE.
This license gives businesses the legal right to carry out activities such as manufacturing goods, assembling products, processing raw materials, and packaging for commercial distribution. Whether you choose to set up in the mainland or in a free zone, the license ensures that your company operates legally and benefits from Dubai’s investor-friendly policies.
What is an Industrial License in Dubai?
An industrial license is issued by the Dubai Department of Economy and Tourism (DET) for mainland companies or by the respective free zone authorities. It is mandatory for any business involved in manufacturing, processing, or industrial production activities.
The purpose of an industrial license in Dubai is to regulate and monitor industrial activities. It ensures compliance with UAE’s regulations while also supporting businesses through incentives like tax exemptions, customs benefits, and access to industrial zones.
Who Needs an Industrial License?
You need this license if your business activities involve:
- Manufacturing raw or semi-finished goods
- Processing and assembling machinery or parts
- Packaging and labeling products for sale
- Importing raw materials and exporting finished goods
Industrial Activities Covered
The industrial license in Dubai covers a wide range of activities.
Manufacturing Activities
Businesses engaged in manufacturing goods, from textiles and furniture to construction materials and electronics, require an industrial license.
Processing and Assembly
Companies that assemble products or process raw materials into finished or semi-finished goods fall under this category.
Packaging and Distribution
Firms involved in packaging, labeling, or distributing manufactured products are also required to hold an industrial license.
Benefits of an Industrial License in Dubai
An industrial license in Dubai offers several advantages to entrepreneurs and investors.
100% Foreign Ownership
Many free zones allow full ownership, and certain mainland sectors now also permit 100% foreign ownership, reducing dependency on local partners.
Tax Advantages and Incentives
Most free zones offer 0% corporate tax, customs duty exemptions, and simplified import/export processes for raw materials and finished goods.
Market Access and Infrastructure
Dubai provides unmatched access to UAE, GCC, and global markets with advanced ports, airports, and logistics hubs, making it ideal for industrial activities.
Documents Required for an Industrial License in Dubai
To apply for an industrial license, you need to prepare several key documents.
For Individual Shareholders
- Passport copy of each shareholder
- UAE residence visa copy (if applicable)
- Emirates ID copy (for residents)
- Passport-size photographs
For Corporate Shareholders
- Certificate of Incorporation
- Memorandum of Association (MoA)
- Board resolution authorizing company setup
- Passport copies of company representatives
Additional Requirements
- Trade name reservation certificate
- Initial approval certificate from DET or free zone authority
- Lease contract/Ejari for mainland companies
- NOC from other authorities if activities require special approvals
Cost of Industrial License in Dubai
The cost of an industrial license in Dubai varies depending on whether you set up in the mainland or a free zone.
Mainland Industrial License Cost Breakdown
- Trade name registration: AED 620 – 720
- Initial approval: AED 1,200 – 1,500
- MoA notarization: AED 2,000 – 3,000
- Office/Warehouse Ejari: AED 10,000 – 20,000 annually
- Industrial license issuance: AED 10,000 – 15,000
- Total estimated cost: AED 25,000 – 35,000
Free Zone Industrial License Cost Packages
- Industrial license fees: AED 12,500 – 20,000
- Flexi-desk or office package: included in most free zones
- Visa allocation: AED 3,000 – 5,000 per visa
- Warehouse leasing: variable based on size and location
- Total estimated cost: AED 18,000 – 40,000
Step-by-Step Process of Getting an Industrial License in Dubai
The process is straightforward if you follow the steps carefully.
Step 1: Choose the Right Business Activity
Select the industrial activity from the approved list by DET or free zone authority.
Step 2: Choose a Legal Structure
Decide if your company will be an LLC, sole proprietorship, or branch.
Step 3: Reserve a Trade Name
Submit 2–3 options for your company name to ensure compliance with UAE naming guidelines.
Step 4: Obtain Initial Approval
Get pre-approval from DET or the free zone to proceed with the setup.
Step 5: Draft and Notarize MoA/LSA
Depending on the structure, prepare the Memorandum of Association (MoA) or Local Service Agent (LSA) agreement.
Step 6: Lease a Warehouse or Office Space
A warehouse lease agreement or Ejari is mandatory for industrial businesses.
Step 7: Obtain External Approvals
Certain activities require additional approvals from Dubai Municipality, Ministry of Health, or Ministry of Environment.
Step 8: Final Submission and Payment
Submit all documents, pay the government fees, and complete the process.
Step 9: Receive Industrial License
Your license will be issued, and you can officially start operations.
Step 10: Apply for Visas and Bank Account
Once you have the license, you can apply for investor visas, employee visas, and a corporate bank account.
Renewal & Compliance Requirements
The industrial license must be renewed every year to stay valid. Renewal requires updated documents, payment of fees, and meeting compliance rules. Delays lead to fines, visa cancellations, or business suspension. Staying proactive with renewals ensures smooth operations and avoids unnecessary legal or financial issues.
Validity Period
The industrial license in Dubai is valid for one year and must be renewed annually.
Renewal Fees & Fines
- Renewal cost: AED 8,000 – 15,000 depending on activity and approvals.
- Late renewal fines: AED 200 per month.
- Failure to renew may lead to blacklisting or visa cancellations.
Mainland vs Free Zone Industrial License
Choosing between a mainland industrial license and a free zone industrial license depends on your business needs. Mainland offers unrestricted access to the UAE market but comes with higher setup costs. Free zones provide 100% ownership, tax benefits, and affordable packages, making them ideal for international operations.
Ownership and Operations
- Mainland: Access to the entire UAE market, ability to bid for government contracts, but requires Ejari lease.
- Free Zone: 100% foreign ownership, customs benefits, but limited direct UAE market access unless using a distributor.
Cost and Flexibility
- Mainland setup costs are generally higher due to office/warehouse requirements.
- Free zones offer affordable packages and easier renewals.
Common Challenges & Solutions
Getting an industrial license in Dubai comes with challenges such as warehouse approvals, strict banking compliance, and limited visa quotas. With expert guidance, these issues can be resolved quickly. Working with business consultants helps investors secure the right facilities, approvals, and financial support for long-term success.
Warehouse Approvals
Challenge: Finding suitable warehouse space that meets DET requirements.
Solution: Work with approved warehouses and secure Ejari early.
Bank Account Opening
Challenge: Strict compliance checks by UAE banks.
Solution: Maintain clear records, business plan, and partner with a business consultant.
Visa Quotas
Challenge: Limited visa allocation in free zones.
Solution: Choose a package that matches your workforce needs or opt for mainland.
Conclusion
Obtaining an industrial license in Dubai opens doors for businesses in manufacturing, assembly, and processing. With benefits such as 100% ownership, tax incentives, global market access, and advanced infrastructure, Dubai is one of the best places to set up industrial operations.
To ensure a smooth process and avoid delays, working with experts Business Setup Consultants can make your setup faster, cost-efficient, and fully compliant.
FAQs
What is an industrial license in Dubai?
It is a business license that allows companies to carry out manufacturing, processing, packaging, and other industrial activities.
How much does an industrial license cost in Dubai?
Costs range between AED 25,000 to AED 35,000 for mainland and AED 18,000 to AED 40,000 in free zones, depending on activity and space requirements.
Do I need a warehouse for an industrial license?
Yes, a warehouse or industrial space is mandatory to obtain this license.
Can foreigners own 100% of an industrial business in Dubai?
Yes, in free zones and certain mainland sectors, 100% foreign ownership is allowed.
How long does it take to get an industrial license?
The process takes 7–14 business days, provided documents and approvals are ready.
What are the documents required?
Passport copies, Emirates IDs, MoA, trade name certificate, Ejari/lease, and special approvals if needed.
Is VAT registration mandatory?
If your revenue exceeds AED 375,000 annually, VAT registration is mandatory.
Can I apply for multiple visas with an industrial license?
Yes, visa allocation depends on the size of your office or warehouse.
How to get an industrial license in the UAE?
To obtain an industrial license in the UAE, you must select your business activity, decide between a mainland or free zone setup, reserve a trade name, and secure initial approval. You also need a warehouse or industrial space, prepare legal documents, obtain external approvals if required, and finally submit your application with fees to the relevant authority.
How much is industrial license in Dubai?
The cost of an industrial license in Dubai generally ranges between AED 25,000 and AED 35,000 for mainland setups and AED 18,000 to AED 40,000 for free zones. The exact cost depends on factors like activity type, warehouse size, visa quota, and whether the business is mainland or free zone.
What is an industrial production license?
An industrial production license is a type of industrial license that authorizes businesses to carry out activities such as manufacturing goods, processing raw materials, assembling machinery, and packaging products for commercial use. It is mandatory for companies engaged in production-based operations in Dubai and across the UAE.
