Dubai Industrial City License Types for Company Formation

Diverse licensing options for seamless company formation in Dubai Industrial City

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Dubai, the jewel of the United Arab Emirates, is not just a tourist paradise but also a hotbed for businesses. One of the most promising areas for setting up a business is the Dubai Industrial City. But before you dive in, it’s crucial to understand the different Dubai Industrial City License Types for Company Formation and this guide by Fzbuddy is here to help!

Overview

Dubai Industrial City offers a wide range of licenses for various business activities. Understanding these licenses is the first step toward successful company formation. This works whether you’re a foreign investor or a local business owner. Read More: List of Dubai Design District (d3) Licensing Options: Choose the Right License for Business

Definition of Industrial Licenses in Dubai

Industrial Licenses are permissions granted by the relevant authority. This lets you carry out manufacturing activities within Dubai Industrial City. These licenses are essential for maintaining the integrity of the industrial sector. Similarly, this ensures compliance with legal requirements.

Types of Licenses for Company Formation in Dubai Industrial City

Business Activity License

Requirements for Obtaining a Business Activity License

To obtain a Business Activity License, you’ll need to submit an application form along with required documents such as a business plan, proof of minimum share capital, and a lease agreement for your physical business location.

Types of Business Activities Permitted Under the License

This license allows a variety of trade licenses, including but not limited to:

  • Mechanical Equipment
  • Chemical Products
  • Building Materials

Restrictions and Limitations of the Business Activity License

The Business Activity License does not permit retail outlets or trading in precious metals unless additional approvals are obtained.

Commercial License

Requirements for Obtaining a Commercial License

Similar to the Business Activity License, a Commercial License requires an application form, proof of minimum share capital, and a list of business activities you intend to undertake.

Types of Commercial Activities Permitted Under the License

Commercial activities can range from trading in chemicals to safety equipment trading.

Restrictions and Limitations of the Commercial License

Commercial License holders cannot engage in manufacturing activities or provide professional services1.

Professional Services Licence

Requirements for Obtaining a Professional Services Licence

An application form, business plan, and proof of relevant experience are required for this type of license.

Types of Professional Services Permitted Under the Licence

Services range from technology consultancies to legal requirements and consultancy basis services.

Restrictions and Limitations of the Professional Services Licence

The license is limited to the provision of services and does not allow for trading activities or industrial companies operations.

Trading Licence

A Trading License allows for a wide range of trading activities, including but not limited to gas trading and trading in chemicals. Read More: List of Dubai Gold and Diamond Park Licensing Options: Choose the Right License for Business

Benefits of Establishing a Business Entity in Dubai Industrial City

Access to an Extensive Range of Raw Materials

Dubai Industrial City offers a wide range of raw materials, making it easier for industrial companies to source what they need locally.

Ease of Obtaining Corporate Bank Accounts and Credit Facilities

The credibility with banks and ease of obtaining corporate bank accounts make financial transactions smoother.

Tax Incentives

One of the most attractive features is the tax incentives offered, which significantly lower the cost of business operations.

Low Cost Operational Base

Dubai Industrial City provides an affordable business operational base, thanks to its low-cost infrastructure and logistical support.

Specialized Infrastructure and Logistical Support

The city boasts world-class infrastructure, including the largest IP telephonic network and advanced IT infrastructure.

Requirements for Obtaining a License for Company Formation in Dubai Industrial City

Application Form & Required Documents

An application form along with required documents like articles of association, investor passport copies, and proof of minimum share capital are essential for the licensing process.

Minimum Share Capital Requirements

The minimum share capital varies depending on the type of business and the legal form of the business entity.

Conclusion

Understanding the different license types is crucial for successful company formation in Dubai Industrial City. Whether you’re looking at industrial licenses, commercial licenses, or professional services licenses, each comes with its own set of requirements and benefits. So, choose wisely and take the first step toward building your empire in Dubai’s burgeoning industrial sector.

Sources


FZBuddy aims to provide accurate and reliable information as you navigate the UAE Freezone space. As such, our writers refer to primary information sources in supporting each article appearing on this website. These include, but are not limited to, published news articles, government portals, research papers, and more.

  1. مدينة دبي الصناعية. (n.d.). Industrial Park & Logistics Hub in Dubai | Dubai Industrial City. https://dubaiindustrialcity.ae/
  2. Home – Executive Council. (n.d.). Executive Council. https://tec.gov.ae/en/home

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