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Obtaining an industrial licence in a free zone is an excellent method to break into the thriving industrial sector in Dubai. Dubai has used a number of creative strategies to stimulate its economic development. With each passing day, the city advances ten steps farther, breaking new ground in its economic field. The fact that establishing a company in Dubai is an excellent option for both new and existing businesses is only one of the many reasons why doing business in Dubai is a wise investment for both.

free zone industrial license

Furthermore, forming a business in a free zone is a really creative and clever option. Specifically, it is because the proprietor obtains full control of their company while also doing so at a reasonable cost to the organisation.

This blog will provide you with all of the information you need to acquire your free zone industrial licence in Dubai.

Everything you need to know about obtaining an industrial licence in a free zone

Let us first define what a free zone industrial licence is and what it is not. Entrepreneurs who want to engage in a commercial activity that is of an industrial character are eligible to apply for and acquire this licence. Industrial licences are required by law for any business that includes the use of factory equipment, such as the production of chocolate on a commercial scale.

Another instance in which a business might need an industrial licence is when it is engaged in the large-scale manufacturing or refining of chemicals.

Note that the requirements and procedures for acquiring an industrial licence may differ depending on which of the UAE’s seven emirates your business is located in. According to the laws of Dubai, it is necessary to have both an actual physical office and a storage facility to do business successfully.

The following are some industries that need an industrial licence: manufacturing, transportation, and distribution.

the manufacture of foods and drinks
Textile manufacturing is an industry that employs thousands of people.
Refineries for oil
a chemical manufacturing plant
In addition, there are a number of requirements that an investor must meet in order to be eligible to apply for an industrial licence in the Dubai free zone. The following are some examples:

Having a physical warehouse as well as an office space in Dubai will be necessary for your business. This situation does not lend itself to the use of a virtual office.

Depending on where you set up your business in an industrial area, you will be required to have a specific number of workers in your organisation.

You will need to contact the Dubai Electricity and Water Authority (DEWA) in order to increase the supply of water and the voltage of electricity for your facility, depending on the region in which it is situated.

Transport: If your plant is situated on the outskirts of Dubai, the amount of money you spend on transportation of raw materials and finished goods will likely rise. Fortunately, most free zones in the United Arab Emirates are conveniently situated near seaports and airports, making it easier to meet any transportation requirements that may arise.

Your industrial licence may be renewed at any time so long as your company’s leasing agreement is still in effect.

The advantages of getting an industrial licence in a free zone

Free zones allow foreign investors to obtain 100 percent control of their businesses, allowing them to expand their operations.
Profit repatriation in full: Companies operating in free zones are permitted to repatriate 100% of their earnings to their home nation. This provides them with the flexibility to transfer 100 percent of their wealth back to their area of origin without being subjected to any restrictions.
0 percent corporation tax: According to UAE legislation, businesses are not required to pay corporate tax out of their company income, enabling you to retain all of your profits in your pocket.

In contrast to the mainland, free zones are exempt from all customs charges, including import and export taxes of zero percent.
In addition to world-class telecommunications and pioneering financial institutions, Dubai also boasts ultramodern industrial infrastructure, an electronic government system, and service sectors. Strategic location: Dubai is strategically located between the United States and Europe. Because of the free zones’ strategic placement, they provide very cost-effective living conditions.

Global Connectivity: Dubai is home to a diverse population of people from all over the world, which offers chances for you to network with people from all over the world.

Range of business activities: Free zones offer you the flexibility to engage in a variety of business operations that come within the purview of an industrial licence, as well as other activities.

Procedure that is quick and simple: The whole process of getting an industrial licence is relatively quick and simple.

Registration is simple and convenient since Dubai allows you to complete your registration from the comfort of your own home. The free zone allows you to submit all of your papers electronically rather than physically submitting them in person.

The procedures that must be followed in order to get an industrial licence

Submission of the application together with a business plan is required.
Finalization of the best warehouse location in accordance with the company’s commercial activity needs.
Approval of the environment
The licence is being applied for.
In the case of a visa application
Documents required to submit an application for an industrial licence in the Dubai free zone include:

Business plan, passport copy, visa copy, and investor profile are required (depending on the activity)