Free Zone Industrial License - A detailed guide

A detailed guide on obtaining a free zone industrial license

Obtaining a free zone industrial license is a great way to enter the booming industrial sector in Dubai. Dubai has adopted various innovative methods to boost its economic growth. As each day progresses, the city takes 10 steps further, breaking new grounds in its economic sector. This is just one of the few reasons why starting a business in Dubai is an exemplary choice for both, budding entrepreneurs and established ones.

Furthermore, company formation in free zones makes for a very ingenious choice. This is because the owner not only gets 100% ownership of their business but can do so at a cost-effective amount. 

This blog will enlighten you on everything you need to know about obtaining your free zone industrial license in Dubai.

All you need to know about free zone industrial license

Let us begin with what a free zone industrial license actually is. Entrepreneurs who opt for a commercial activity that is of an industrial nature can obtain this license. For instance, any company that involves the use of factory equipment such as manufacturing chocolates on a commercial level will need an industrial license.

Another example is a company would require an industrial license is when it is involved in the production or refinement of chemicals on a large scale.

It is also important to note that the rules and regulations for obtaining industrial license may vary depending on the emirate your factory is based in. Such as in the case of Dubai, there is a requirement to have both, a physical office as well as a warehouse facility.

The following are some sectors that require an industrial license:
  • Manufacturing of food and beverages
  • Manufacturing of textiles
  • Oil refineries
  • Chemical facility

There are also various prerequisites that an investor needs to accomplish in order to apply for a Dubai free zone industrial license. These are listed below:
  • Office Space: You will require to have a physical warehouse and an office space in Dubai. A virtual office will not be acceptable in this case.
  • Number of employees: In an industrial space, you will require to have a certain number of employees in your company depending on where you set up.
  • Electricity & Water: Depending on which area your facility is located in, you will have to contact Dubai Electricity and Water Authority (DEWA) to upgrade the supply of water and electricity voltage for your facility.
  • Transport: If your factory is located on the outskirts of Dubai, it may increase the amount spent on transportation of the raw materials and products. Fortunately, most free zones in the UAE are strategically located near seaports and airports, aiding in any transportation needs.

You can always renew your industrial license as long as your company’s lease agreement is valid.

Advantages of obtaining a free zone industrial license

  • Full ownership of business: Free zones permit foreign investors to get 100% ownership of their business. 
  • Full profit repatriation: Free zone companies can repatriate all their profits to their home country. This gives them the freedom to transfer 100% of their capital to their place of origin without any requirements. 
  • 0% corporate tax: The UAE laws state that companies do not require to pay corporate tax out of their business revenue, thereby allowing you to keep all your profits.  
  • 0% import or export tax: Unlike mainland, free zones are exempt from all customs duties.
  • Strategic location: Dubai has world-class telecommunication, trailblazing financial intercessions, ultramodern industrial infrastructure, e-governance system, and service sectors. The location of the free zones make for highly cost-effective living.
  • Global Connectivity: Dubai has a multi-national community and provides opportunities for you to connect with a global business community.
  • Range of business activities: Free zones give you the freedom to undertake a range of business activities that fall under industrial license and more.
  • Time-efficient process: The entire process of obtaining an industrial license is fairly swift and easy.
  • Convenient Registration: Dubai gives you the ability to register from the comfort of your home. You can send all the required documents to the free zone without being physically present for submission.

Steps involved in acquiring an industrial license

  • Submission of the application with the business plan. 
  • Finalization of the preferred warehouse in line with the business activity. 
  • Environmental approval
  • Application of the license
  • Application for visa
Documents needed to apply for Dubai free zone industrial license:
  • Business plan
  • Passport copy
  • Visa copy
  • Investor’s profile (depending on the activity)

Obtain your free zone industrial license now with Shuraa

Shuraa ensures that the entire process of obtaining your free zone industrial license runs smoothly. Our expert consultants will guide you through the entire process from regulatory requirements, understanding free zone license cost, all the way up to the process of obtaining approvals from the authorities. 

Contact our expert consultants at +97144081900 or send a WhatsApp message on +971507775554 to get started. You can also drop in an email at [email protected] and get your queries answered in no time.