How Much Does It Cost to Get an Industrial License in Dubai?

|

Blog
Industrial License in Dubai

Dubai has grown into a global hub for industrial business offering strategic opportunities for manufactures and entrepreneurs. If you are planning to start industrial activities like manufacturing, processing, or assembling, obtaining an industrial licence in Dubai is mandatory. But how much does an industrial licence cost and what factors influence these causes this guy provides and in that look at the expenses and UAE industrial licence Process to help you plan effectively.

What Is an Industrial License in Dubai?

An industrial license in UAE is Required for any businesses engaging in manufacturing or industrial activities. issued by the department of Economic Development it allows companies to legally conduct activities like producing assembly and processing goods. An industrial licence covers a wide range of sectors from electronics to food processing ensuring business complies with Dubai’s regulations.

 

Investors holding a UAE industrial licence also offer benefits like text exemptions and potential industrial incentives which can enhance long-term business growth.

Key Cost Factors for an Industrial License in Dubai

The cost of securing an industrial licence in Dubai depends on multiple factors from application fees to Faculty cause below is a breakdown of the primary expenses involved:

Industrial License in Dubai

1. Application Fees  

The initial application fees for an industrial licence in Dubai range fromED 2,000 to AED 5,000,  this P varies based on the type of industrial activity and business scale.

2. Location and Facility Costs  

 Finding a suitable facility is essential and the cost depends on the chosen location for instance free zones may charge an additional set of fees. Renting or buying industrial land also varies greatly depending on proximity to Urban centers or ports. overall location and facility expenses can form a substantial part of the budget.

3. Environmental and Health Approvals  

Industrial businesses must meet environmental and health regulations, required in specific permits. environmental permits generally cost between AED 1,000 and AED 3,000,  while health and safety approvals add an extra AED 1,000 to AED 2,500 to the budget.

4. Construction and Infrastructure Costs  

For businesses needing customized facilities, Construction costs, including utilities, can add significantly to the budget. this may range from 10 to 100s of thousands of Dirhams based on the size and Technical requirements of your facility.

5. Government and Registration Fees  

Additional government charges such as registration and inspection fees, generally range from AED 2,000 to AED 4,000. These courses vary based on the business’s operational needs and location.

6. Consultancy Fees  

A consultancy for guidance through the UAE industrial license process can simplify the setup but also bring an additional expense. consultancy fees range from AED 5,000 to AED 10,000.

 

Estimated Total Cost of an Industrial License in Dubai

The average cost of obtaining an industrial licence in Dubai typically Falls between AED 25,000 to AED 50,000,  depending on your business requirements. This estimate covers essential fees, initial approvals, and environmental assessments.

 

Moreover, companies with more complex setups may see higher costs.

 

Note: These are approximate Costs, so Consulting with a professional can provide a more accurate estimate.

 

Additional Costs to Consider for Industrial Setup in Dubai

Besides the industrial licence fees, you should budget for other associated expenses:

 

  • Employee Visas  

 Each employee will need a work visa costing AED 2,000 to AED 5,000 per visa, depending on their role and sponsorship needs.

 

  • Utilities and Operational Costs  

Industrial operations usually require significant utility expenses for electricity, water, and waste management.  considered the monthly utility costs that can impact long-term budgeting.

 

  • Insurance  

 Industrial insurance Seas covers production facilities, raw materials, and employees.  Insurance costs can range from several thousand Dirhams annually based on the coverage.

 

UAE industrial licence process step by step

 If you are ready to start your industrial business in Dubai here is a General overview of the process to obtain an industrial licence.

 

  • Submit an initial application

 begin by applying to the department of Economic Development, providing information about your business activities and company structure.

 

  • Obtain environmental and health approval

 depending on your industry, and secure the necessary environmental and health safety approvals from relevant UAE authorities.

 

  • Secure allocation

 choose an appropriate facility for your operation either with the mainland area keep in mind the additional setup costs related to your chosen location.

 

  • Complete documentation and pay fees

 submit all required documents including complete registration form, lease agreements, and proof of approval. necessary fees to finalise the licence process.

 

  • Receive your industrial licence

Upon meeting all requirements and paying fees, your industrial license will be issued, allowing you to start operations in Dubai, just like local entrepreneurs who are starting a business in Dubai.

FAQs About getting an industrial licence in Dubai

An industrial licence is a permit required for businesses in Dubai that engage in the manufacturing production or processing of goods. It’s mandatory for industries like, electronic food processing, chemical food processing, chemical manufacturing, and other sector activities. This is issued by the Dubai department of Economic Development (DED) ensuring businesses meet local regulatory standards.
Yes, you can apply for an industrial license in a Dubai free zone which offers benefits like tax exemptions and full ownership, however, it is essential to consider the specific free zone rule and fees as costs and regulations can be different from those on the mainland.

Conclusion

While Obtaining an industrial licence in Dubai involves various costs, it opens the door to atriving the industrial market. With a solid budget and understanding for each step you can ensure a smooth licenceing process and set your business up for success in the UAE Consulting a business advisor may streamline the setup and provide when you are able inside to your specific business needs.

 

For questions about setting up your industrial business in Dubai or for a more detailed breakdown, consider reaching out to a licensed business consultant from DXB-VIP who can guide you through each step.

Share this article: 

Recent Posts

Categories

Contact Us