Industrial License in UAE

For all manufacturing and industrial activities conducted in the UAE, an Industrial License is essential. Several business activities fall under the industrial license. Most of them are in the manufacturing, fabrication, and production sectors in the UAE.

Industrial License in UAE is one of the most in-demand business license categories. Entrepreneurs are aiming to open the business with huge capital investment in UAE by obtaining Industrial license in UAE. It helps them establish industries of large and small scale depending on their business requirements.

UAE has got a robust business infrastructure with world-class office facilities and a transport network connecting the world cities daily via air, sea, and land. Investors can choose from a wide range of business activities and company setup packages to establish an industrial unit in the UAE.

Industrial License in UAE - Wide Range of Business Activities

Under the Industrial License, there is a wide range of business activities such as (below list is not an exhaustive list):

Adhesive & paper manufacturing
Casting of Metals
Books Binding
Cards & Envelop Printing
Food & Beverage Manufacturing
Magnetic Technology Equipment Manufacturing
Metal Products Coating
Safety Harness Fabrication
Oil & Petroleum Processing
Metallurgical Engineering
Steel Manufacturing
Many more...

All business activities in the lines of fabrication, preparation, production, or manufacturing of goods in the UAE require an industrial license to be commissioned, produced, and distributed in the region and abroad.

Requirements to get an Industrial License in Dubai

For obtaining an Industrial License in Dubai it is essential to take a physical premise - virtual offices are not permitted.

The Industrial License for manufacturing companies must also have a Trade License to sell the items in the UAE or abroad.

Industrial License from the Mainland of Dubai - Dubai Economy

Industrial License are required to have special approvals from Dubai Municipality (Planning Department, Civil Defence, other Government Offices as per the activities)
Enables the company to assemble, redesign/re-package goods using local or imported natural or man-made raw materials.
Wide range of business activities ranging from oil and petroleum processing, metallurgical engineering, steel manufacturing, etc.
Mandatory to own a physical office in the mainland of Dubai. Also, must have a manufacturing facility, warehouse, labor camps, etc., to support the business operation.
Own 100% of the company shares as a foreign investor and no requirement of a local UAE Sponsor.

Documents Required for Obtaining an Industrial License

Copy of passport and resident visa of the foreign owners
A detailed report of the factory and warehouse requirements
An assessment study of the proposed business plan and method of operation
Financial estimates and copy of balance sheet
copy of approved trade license for selling of the goods
Required approvals from the Municipality, Government authorities, and Ministries (Ministry of Economy, Ministry of Labour, Ministry of Electricity & Water, etc.)

The requirement of Certificate of Origin (CO) for Import of Goods in the UAE

The Certificate of Origin (CO) is required by the importing country. It is a document that declares the countries involved in the production or manufacturing process of the products bound for exports.

It is a must-have document for every trader and is issued by the Chamber of Commerce in the country of origin. Importing Countries rely on the Certificate of Origin for the import duty calculations, provide preferential treatments if applicable and to assess the legality of the goods.

It also helps in the regulation and entry of unauthorized goods that are prohibited internationally.

Dubai's Certificate of Origin regulations

Dubai Customs rules are adhering to the GCC's Common Custom Law. The proof of origin of goods was taken from Article 25 of the GCC law.

The Article states, " Imported goods are subject to the proof of origin according to the rules of origin adopted within the framework of the international and regional economic agreements in force".

The Government of Dubai adheres to two types of the rule of origin system:

Preferential Certificate of Origin

The Certificate enables the trader for a reduced customs duty and other rates. There are special privileges like a reduced import fee for the trader when shipped goods are from the Free Trade member countries.

The Certificate of Origin is an essential document to obtain the preferential duty treatment under a Free Trade Agreement (FTA).

UAE has entered into a Free Trade agreement such as the GCC Customs Union, Greater Arab Free Trade, European Free Trade Association, and the GCC-Singapore FTA.

To benefit from the customs duty exemptions for imported goods that are belonging to any of the member states of these FTAs, a Certificate of Origin has to be submitted to the customs along with each shipment.

Non-Preferential

The Certificate does not offer any advantage to the trade.

Why Certificate of Origin is an essential document?

Confirming the origin of the goods helps in identifying if the shipment requires preferential treatment
Collecting trade information to create reforms and future trade policies
Adhering to trademark laws and compliance by identifying the country of origin
Streamline goods procurement by knowing the country of origin and corresponding import taxes

How to Apply for a Certificate of Origin?

Submit the copy of trade license to state the business activity and other trade details (company name, location, company legal form, license validity, etc.)
Provide the invoice or related materials that show the manufacturing location of the products
Submit the duly-filled in the Certificate of Origin form and supporting documents.
Obtain your Certificate of Origin post the assessment and fee payment from the respective Chamber of Commerce in your emirate where you operate the business.

To know more about ways to obtain an Industrial License as well as Certificate of Origin for your export business, talk to our expert Business Consultants.