Renewing an industrial license is crucial for businesses operating in Dubai, UAE, to maintain operational and regulatory compliance. The consistent rise in demand for industrial license renewal in Dubai in recent years is indicative of the UAE’s emergence as a hub for industry and manufacturing.
However, for some, the process can be a bit challenging to comprehend. This is why we have provided an easy guide for quick and hassle-free industrial license renewal in Dubai.
Read to know more –
What is an Industrial License?
An industrial license in the UAE is an official permit granted to businesses and companies involved in manufacturing, production, processing, or other industrial-related services. It gives them a license to operate their business and produce goods legally in the Emirate.
Dubai, UAE, issues three types of industrial licenses to business owners. These include:
- Light Industrial Trade License that is ideal for small workshops and warehouses with few health and safety hazards (such as auto garages and the storage of spare parts).
- Larger manufacturing facilities and warehouses with moderate risk levels should apply for a medium industrial license.
- For heavy manufacturing involving hazardous materials and significant environmental concerns, a heavy industrial license is required.
Since the government only permits such activities in specific industrial parks and free zones, such as Jebel Ali Free Zone, Dubai Industrial City, Dubai Investments Park, and Dubai South, it is crucial to select the appropriate license and site inside authorized industrial zones.
Why Renew Your Industrial License in Dubai?
Industrial license renewal in Dubai plays a pivotal role in operating your business with zero hindrance. It is essential to continue legal industrial activities in Dubai. If you fail to renew it on time, you might have to pay legal fines, business restrictions, blacklisting, or even suspension of practice. So, you have no option but to be careful when it comes to your industrial license renewal.
Simple Steps For the Industrial License Renewal Process In Dubai
There are a few simple steps you must follow to get your industrial license renewed at the earliest.
Verify the Premises and Lease
First, you have to ensure that the facility where you have set up your business is valid and registered with EJARI. This is one of the mandatory steps for renewal.
Gather All The Documents
Next, gather your documents that are mentioned below required for the renewal.
Fill Out An Application Form
You have to fill out the BR/1 form and attach all the documents you are asked for. If you have business partner/s, the form must be signed by all partners and shareholders of your company.
DED Evaluation and Issuance of Payment Vouchers
Your application and supporting documentation will be examined for compliance by the Department of Economic Development. A payment voucher for the renewal fees will be sent after approval.
Fees for Renewal Payment
As directed by the voucher, pay the renewal fees. License type, company activity, location, and visa allotment all affect fees.
Obtain a New Industrial License
Your renewed industrial license, which is normally good for an additional five years, will be issued to you upon payment confirmation and final approval.
Required Documents
There are a few documents you have to present for your license renewal. These include:
- EJARI Certificate: This is proof of your tenancy contract, and it should be valid at the time of renewal.
- Previous License Copy: This is for verification of your existing license and the details.
- BR/1 Form: This has to be filled out and duly signed by all partners and uploaded to the official website.
- Passport and Photocopies: The original passport and the photocopies must be presented.
- No Objection Certificates (NOCs): These comprise the Land Department’s and DED’s approvals as well as any necessary environmental clearances.
- Certificates of insurance: For physical units, these include third-party liability and workers’ compensation insurance.
- Industrial Annual Operational Fitness Certificate(IAOFC): It can be necessary to do this for operational compliance.
Industrial License Renewal in Dubai Cost
The cost of industrial license renewal depends on a variety of factors, like the type of company formation, size of the business, and location. Depending on your lease, there is typically a market cost in addition to the regular renewal fee. Companies should also budget for additional costs, such as late renewal penalties and knowledge and innovation fees.
Typically, the cost of renewing your industrial license in Dubai starts from AED 1,500* per year.
What Happens If You Delay The Renewal of the Trade License?
Whether it’s mainland or free zones, failing to renew the license on time may result in:
- Blacklisting of your company
- Suspension or cessation of all business operations and trade activities
- Inability to engage in extra business activities or expand the existing ones
- Financial penalties every month
Final Takeaway
Business in Dubai is incredibly rewarding. However, you must remember to strictly follow the legalities and regulations. Follow these simple steps and get your license renewed at least a month before expiry to prevent any fines. It’s an essential process that no business in Dubai can overlook. If you find the entire renewal procedure a bit intimidating, you can always request the services of a business consultant to navigate it for you!
Get Started With Experts!
At Xpert Advisory, you have the services of expert business consultants who are adept at streamlining complex processes. We help entrepreneurs with company formation and guide them throughout the process, from obtaining a license to the final setup. Get in touch with us for more details!
FAQs
Is There a Grace Period For Renewing the License In Case One Forgets?
Yes, there is a grace period of about 30 days after the expiry. You still have time to renew it within this time.
Can Industrial License Renewal Be Done Completely Online?
Yes, many licensing authorities and free zone authorities offer online portals to initiate the renewal process.
What’s the Price of Industrial Trade License Renewal?
It typically ranges between AED 8,000 to AED 15,000* with additional costs for tenancy approvals, visas, and other services.
