Dubai has become one of the world’s top business hubs. Every year, thousands of investors and entrepreneurs flock here to explore opportunities. The city offers modern infrastructure, global connectivity, and a tax-friendly environment. If you are looking to set up a company in Dubai, it is important to know about the different types of licenses and their costs. One of the most important licenses for manufacturing and production companies is the industrial license.
In this blog, we will explain the industrial license in Dubai, the steps to obtain it, and also other licenses that you may need to consider. This guide will help you get a clear picture before making a decision.
What is an industrial license?
An industrial license is a legal document that allows a company to carry out manufacturing, processing, and production activities in Dubai. If you want to set up a factory, manufacture goods, or pack and assemble products, you need this license. Without it, you cannot run any industrial activity in the city.
The Dubai government introduced a licensing system to ensure that all businesses operate legally and transparently. It also helps ensure the safety, quality, and proper management of industrial activities.
Cost of an Industrial License in Dubai
The cost of an industrial license in Dubai depends on various factors. There is no set price for each, but we can give you an idea of the average cost. Typically, the price starts at AED 10,000 and can go up to AED 30,000 or more.
Here are the main cost components that you need to know:
- Initial Approval Fee – This is the first payment you make to get approval for your business activity.
- Trade Name Reservation Fee – You need to book a unique name for your company, and this comes with a fee.
- License Issuance Fee – This is the main cost of an industrial license.
- Government and Municipality Fees – These charges are for inspections, approvals, and other services.
- Office or warehouse rent – You will need to rent or lease space in Dubai to carry out your activities.
In addition, you may also need to pay for visas, labor cards, and other permits, depending on the type of business you have.
Additional costs to consider
When you plan for an industrial license, you should also think about additional costs. These include:
- Equipment and machinery costs.
- Hiring skilled workers.
- Electricity, water, and other utilities.
- Customs duties on raw materials if you import them.
These costs are not part of the license fee but are just as important to the budget.
Steps to Obtaining an Industrial License
Obtaining an industrial license is not very complicated if you follow the process step by step. Here is how you can do it:
- Choose the type of industrial activity you want to carry out.
- Choose a legal structure for your company (LLC, sole proprietorship, etc.).
- Reserve a trade name.
- Obtain initial approval from the Department of Economic Development (DED).
- Prepare your business plan and documents.
- Rent or lease physical space (factory, warehouse, or office).
- Obtain approval from Dubai Municipality and other authorities.
- Submit all documents and pay the required fees.
- Obtain your industrial license.
Once you have completed these steps, you can legally start your manufacturing operation in Dubai.
Importance of Commercial License in Dubai
Not all businesses require an industrial license. If your company deals with services, consulting, or other non-industrial work, you may need a professional license in Dubai instead. For example, doctors, engineers, consultants, and IT specialists typically need this license.
A professional license often costs less than an industrial license. It also has fewer requirements, as you don’t need a warehouse or factory space. This makes it a popular choice for freelancers and service providers.
Both professional and industrial licenses are important for business development in Dubai. The type of license you need depends entirely on your work activity.
Why Dubai is a great place to start a business
Dubai offers everything an investor or entrepreneur is looking for. The city has free zones, mainland options, advanced transportation, and access to global markets. You can easily trade with other countries from here, thanks to strong port and airport facilities.
Many people choose Dubai because it has low taxes and offers full ownership in many free zones. The process of registering a company is also faster than in many other countries. Skilled workers come here from different parts of the world, which helps businesses grow.
If you want to start a business in Dubai, you first need to decide what type of company you want to open and what licenses you need. With the right guidance, the process becomes easier and less stressful.
Final Words
The cost of an industrial license in Dubai may seem high at first, but it gives you the right to run a legal and reliable company in one of the fastest growing cities in the world. The actual cost depends on the size, type and location of your business.
Before making a final decision, you should check all the costs, including setup fees, rent, permits and running costs. It is always a good idea to seek advice from business setup experts so that you can save time and avoid mistakes.
Dubai welcomes investors with open arms. Whether you want to open a factory, a service company, or a small consultancy, you can find the right license and start your journey here.
