Topic Summary
Getting an industrial license in Dubai starts from AED 18,350 for a sole founder and can be issued in one business day.
In 2026, Dubai's manufacturing and industrial sector contributes over 9% of the emirate's GDP, with more than 5,000 active industrial facilities operating across dedicated zones and mainland plots (u.ae, 2025). An industrial license in Dubai starts from AED 12,500 at Dubai South Business Hub Free Zone. The license is issued in one business day. Zero paid-up share capital is required. First-year cost for a sole founder with one visa starts from AED 18,350. UAE corporate tax applies at 9% on taxable income above AED 375,000 (Federal Tax Authority, 2026).
If you plan to manufacture, assemble, process, or package a physical product, you need an industrial license in Dubai before your first machine runs. This article covers what that license is, who legally requires one, the requirements you must meet, what it costs, and the exact steps to obtain one, so you can move from decision to licensed operation without guesswork.
What Is an Industrial License in Dubai and Who Needs One
An industrial license in Dubai is a legal permit that authorises a company to manufacture, assemble, process, or package physical goods within the emirate. Issued by DET for mainland operations or by the relevant free zone authority, it is mandatory for any business whose core activity involves physical transformation of raw materials or components.
The Legal Definition Under UAE Classification Standards
UAE licensing authorities align activity classification with ISIC Revision 4, the international standard approved by the UN Statistical Commission in 2006. Under this framework, an industrial license covers activities in ISIC Section C (Manufacturing), which spans 24 divisions including food processing, garment production, furniture assembly, chemical blending, and electronics fabrication. The nature of the physical transformation determines whether an industrial license applies, not the label a founder chooses for their business.
The key distinction is value addition through physical processing. A company importing finished goods and reselling them unchanged needs a trading license in Dubai, not an industrial one. But a founder importing pre-made phone cases and printing custom logos onto them is performing a manufacturing activity, physical transformation, and requires an industrial license in Dubai.
Activities That Trigger the Industrial License Requirement
Here's a practical breakdown of activities that require an industrial license in Dubai:
Manufacturing from raw materials: food production, chemical blending, metal fabrication
Assembly operations: electronics, furniture, machinery components
Processing and packaging: bottling, labelling, re-packaging into retail units
Printing and publication of physical materials
Repair and maintenance of industrial equipment classified under manufacturing divisions
A small-batch coffee roasting company that buys green beans and roasts, grinds, and packages them under its own brand is performing a manufacturing activity and must hold an industrial license. You can check the full list of business activities in Dubai to confirm where your operation sits before applying.
Worth flagging: free zones issue their own industrial or manufacturing licenses for activities conducted within zone boundaries. Goods produced in a free zone and sold into the UAE mainland are subject to standard import duties. Free zone status suspends duty, it doesn't permanently exempt goods from it.
Industrial License Dubai Requirements You Must Meet
To obtain an industrial license in Dubai, you need a valid trade license specifying industrial activities, a physical premises that meets zoning approval for manufacturing use, approvals from the relevant sector regulator where the activity is regulated, and compliance with environmental and safety standards set by Dubai Municipality.
Core Document Requirements
Passport copies and UAE entry stamp or visa page for all shareholders and the general manager
Completed application form specifying exact industrial activities using approved DET or free zone activity descriptions
Memorandum of Association (MOA) or Articles of Association drafted to include manufacturing as the primary activity
No-objection letter from the landlord or a tenancy contract for the proposed industrial premises
Zero paid-up share capital is required at Dubai South Business Hub Free Zone, removing the bank deposit barrier many founders expect
A sole founder from Germany setting up a food processing operation needs only their passport, the signed MOA, and a tenancy contract for a unit with food-grade zoning approval. The industrial license in Dubai is then issued in one business day at DSBH once the complete file is submitted.
Regulatory Approvals for Specific Industrial Activities
The licensing authority and the product regulator are two separate bodies. DSBH licenses the activity; the named regulator approves the product or facility independently. Here's how that splits by sector:
Food manufacturing: DSBH licenses the activity; Dubai Municipality's Food Safety Department approves the facility and issues a food establishment permit separately.
Chemical or pharmaceutical production: DSBH licenses the activity; the Ministry of Health and Prevention (MOHAP) approves the product and manufacturing standards separately.
Electronics assembly involving radio-frequency devices: DSBH licenses the activity; the Telecommunications and Digital Government Regulatory Authority (TDRA) approves the devices separately.
A founder launching a protein supplement brand must obtain the DSBH industrial license first, then apply to MOHAP for product registration before selling into the UAE market. Always confirm which regulator governs your specific product category before submitting your file.
Premises and Zoning Requirements
Industrial activities must be conducted in premises zoned for industrial or manufacturing use. Residential or commercial-only zones don't qualify, and a flexi-desk or virtual office doesn't satisfy the premises requirement, a physical unit is mandatory for an industrial license in Dubai.
Dubai Municipality enforces environmental compliance including waste disposal, emissions, and noise standards for all manufacturing premises. Free zone industrial units often come pre-approved for manufacturing use, which simplifies this step considerably. A candle manufacturer renting a warehouse unit inside a free zone industrial cluster avoids the separate municipal zoning application because the zone authority pre-clears units for manufacturing use.
What an Industrial License in Dubai Costs
An industrial license in Dubai starts from AED 12,500 at Dubai South Business Hub Free Zone (AED 11,375 for B2C activities), with first-year total cost for a sole founder with one visa from AED 18,350. Each activity added beyond the first five costs AED 2,000. Visas are always an additional cost.
License Fee Breakdown at Dubai South Business Hub Free Zone
Base license fee: from AED 12,500 (B2C activities: AED 11,375), launched September 2025
First five business activities included in the base fee
Each activity beyond five: AED 2,000
License issued in one business day once the complete file is submitted
Zero paid-up share capital, no funds locked in a corporate bank account at incorporation
A founder setting up a furniture assembly operation with six listed activities pays the base license fee plus AED 2,000 for the sixth activity. That's the full licensing cost, no hidden fees at the point of issuance.
Total First-Year Cost Including Visa
First-year all-in cost for a sole founder with one visa starts from AED 18,350 at DSBH. Visas are always an additional cost and are never bundled into the license fee. The AED 18,350 figure covers the license plus one investor visa package; additional employee visas add further cost on top.
A solo founder registering a packaging operation with two activities and one visa can expect a first-year outlay from AED 18,350, with no paid-up capital requirement reducing upfront cash pressure. Use the DSBH cost calculator to model your specific headcount and activity combination before committing.
Step-by-Step Guide to Getting Your Industrial License in Dubai
Getting an industrial license in Dubai involves six steps: confirm your activities require an industrial license, choose your jurisdiction, reserve your trade name, submit incorporation documents, secure premises approval, and collect your license. The process at Dubai South Business Hub Free Zone takes as little as one business day for a complete file.
Steps to Obtain Your Industrial License
Confirm your activity: Check that your core activity falls under manufacturing or processing using the approved business activities list. Borderline cases can be mapped against ISIC Section C by a business consultant.
Choose your jurisdiction: Free zones suit operations producing primarily for export or re-export. Mainland suits operations selling directly into the UAE market. Both offer 100% foreign ownership.
Reserve your trade name: Check company name availability and reserve your trade name. It must comply with UAE naming conventions and can't conflict with existing registrations.
Prepare and submit incorporation documents: Passport copies, MOA, and a tenancy contract or letter of intent for premises. At DSBH, steps 3 through 6 are handled through a single submission portal.
Obtain premises approval: Confirm the unit is zoned for your specific industrial activity. In a free zone, this is handled internally by the zone authority.
Collect your license: At DSBH, the industrial license in Dubai is issued in one business day from AED 12,500 once the complete file is submitted.
A founder setting up a garment assembly unit at DSBH completes name reservation, document submission, and receives their industrial license within one working day. Mainland applications route through DET and require a separate Dubai Municipality premises inspection, which adds time.
What Happens After You Receive the License
Open a corporate UAE bank account, most banks require the license, MOA, and a business plan for manufacturing entities. See banking and taxation services for guidance.
Apply for investor and employee UAE residency visas through ICP; visas are always an additional cost separate from the license fee.
Register for corporate tax with the Federal Tax Authority; late registration carries a one-time flat AED 10,000 penalty.
Register for VAT if taxable turnover meets or exceeds the AED 375,000 mandatory threshold; late VAT registration also carries an AED 10,000 penalty.
Obtain sector-specific product approvals from the named regulator before commencing production or sales.
After receiving their DSBH industrial license, a supplements brand founder should immediately apply for corporate tax registration with the Federal Tax Authority and initiate MOHAP product approval in parallel to avoid launch delays.
Corporate Tax and VAT Obligations for Industrial License Holders
Industrial license holders in Dubai are subject to UAE corporate tax at 9% on taxable income above AED 375,000. Free zone entities may qualify for a 0% rate on qualifying income if they meet all four Qualifying Free Zone Person conditions. VAT registration is mandatory once taxable turnover reaches AED 375,000.
Corporate Tax: The Four QFZP Conditions
A free zone company pays 0% corporate tax on qualifying income only if it meets all four Qualifying Free Zone Person (QFZP) conditions: (1) maintained in a free zone, (2) has adequate substance in the UAE, (3) derives qualifying income as defined by the Federal Tax Authority, and (4) has not elected to be subject to the standard 9% regime. Failing any one of the four conditions means the standard 9% rate applies to all income, not just the non-qualifying portion.
Industrial income from manufacturing activities sold to customers outside the UAE typically qualifies; sales into the UAE mainland may not qualify depending on the transaction structure. A DSBH-licensed electronics assembler exporting 100% of its output to European buyers is more likely to meet QFZP qualifying income conditions than one selling the same products to UAE mainland retailers.
VAT on Manufacturing and Industrial Sales
Industrial vs. Trading vs. Professional License: Which One Fits Your Business
Feature | Industrial License | Trading License | Professional License |
|---|---|---|---|
Core activity | Manufacturing, assembling, processing, or packaging physical goods | Buying and selling finished goods without physical transformation | Delivering skilled services, consulting, design, engineering |
Premises requirement | Physical industrial unit zoned for manufacturing use, mandatory | Commercial unit or warehouse; flexi-desk may suffice in some free zones | Office space; flexi-desk or co-working often accepted |
Typical regulator involvement | Licensing authority plus sector regulator (MOHAP, TDRA, Dubai Municipality) depending on product | Licensing authority; customs registration if importing/exporting | Licensing authority; professional body approval for regulated professions |
Example business | Coffee roaster packaging its own brand; furniture assembly unit; cosmetics manufacturer | Importer reselling European protein bars under its own label without processing | Management consultant; graphic design studio; engineering advisory firm |
Can combine with other license types | Yes, industrial and trading activities can appear on one DSBH license; each activity beyond five costs AED 2,000 | Yes, trading and service activities can be combined on one license at DSBH | Yes, professional and trading activities can be listed together, subject to activity rules |
Most manufactured goods sold within the UAE are subject to 5% VAT; exported goods are zero-rated.
Register for VAT once taxable supplies reach AED 375,000 annually; voluntary registration is available from AED 187,500.
Input VAT on machinery, raw materials, and business inputs is recoverable, a meaningful cash-flow benefit for capital-intensive manufacturing operations.
Late VAT registration carries an AED 10,000 penalty.
A food processing company selling AED 400,000 of packaged goods annually into the UAE market must register for VAT and charge 5% on domestic sales, while export sales to GCC or international buyers are zero-rated. Worth noting: DSBH is not a designated zone under UAE VAT law, so standard UAE VAT rules apply to all supplies made from DSBH.
Is the 0% corporate tax rate automatic for free zone manufacturers?
No. A free zone industrial license holder qualifies for 0% corporate tax on qualifying income only if all four QFZP conditions are met simultaneously. Selling manufactured goods into the UAE mainland can affect qualifying income status. Register with the Federal Tax Authority immediately after license issuance to avoid the AED 10,000 one-time flat late registration penalty.
Industrial License in Dubai vs. Other License Types
An industrial license in Dubai covers physical manufacturing and processing. A trading license in Dubai covers buying and selling finished goods. A professional license in Dubai covers service delivery by skilled individuals. Choosing the wrong license type can result in regulatory non-compliance, so confirm your primary activity classification before applying.
When a Trading License Applies Instead
If your business imports finished goods and resells them without physical transformation, a trading license is the correct instrument. Distributing, wholesaling, or retailing products manufactured by a third party falls under trading activity, not industrial. A company that sources pre-manufactured protein bars from a factory in Europe and resells them in Dubai under its own label without any processing needs a trading license, not an industrial one.
Companies that manufacture under their own brand but outsource all production to a contract manufacturer are typically classified under trading or professional services depending on the activity structure. The physical transformation must happen under your license for an industrial classification to apply.
When Both Licenses May Apply
A business that manufactures some products and trades in others may need to list both industrial and trading activities on a single license. At DSBH, multiple activities can be listed on one license, the first five are included in the base
References
Frequently Asked Questions
