What is an industrial license?
The type of licence you require to operate in Jafza will depend upon the activity your business intends to engage in.
The superior and widespread logistics infrastructure of the Jebel Ali Free Zone facilitates industrial growth. Manufacturing is the production of goods through a series of processes that can range from assembling components to chemical or biological processing.
At Jafza, an industrial license is for businesses that intend to set up a manufacturing process. This may involve the purchase of raw materials, importing goods used for manufacturing, or the assembly of the product, production of the final product, and services for sales and support. The activities under the industrial license in Dubai essentially include production, segregation, collection, packaging, etc. Production can be termed as the transformation of raw materials or natural resources from the crude state to the final or refined state.
A core requirement of the industrial license is to have the production facility and warehouse within the free zone.
How much does an industrial license cost?
- A single manufacturing facility license is priced at AED 5,000 per year where you may select 7 activities under a single group. Additionally, the cost will be increased by AED 500 for each additional activity beyond 7 activities in the group. **
- If you have selected 2 groups, and if each group has a maximum of 6 activities, the cost of the license will be AED 8,500 per year. This means you may select up to 6 activities per group (12 in total) but you may not exceed more than 2 groups. Additionally, the cost will be increased by AED 500 for each additional activity beyond 6 activities per group. **
The cost of the license depends on a number of factors for an industrial license. It is advisable to speak with our sales advisory team to determine the industrial process and facilities required to determine accurate costs.
** All mentioned costs are subject to change and a change in such cost will be communicated by Jafza.
When is an industrial license required?
- If all activities of business require the production, manufacturing or creation of physical products or goods.
- If the business operations require the import or export of material or goods etc to be used in a manufacturing process
- To package and create a set of new products from existing raw materials or combining 2 or more existing products into a single product.
An industrial license is a broad range license that covers aspects of manufacturing, trading and service. As a manufacturing unit, you may need to import raw materials, export your finished product and also provide an element of service or after-sales support.
It is essential to note that the issuance of an industrial license requires the lease of a production facility and warehouse within Jafza. The company must also comply with HSE requirements and will be subject to an audit from the HSE authority regularly.
Steps to get started with an industrial license
The creation of a company with an industrial license requires the following steps:
- You must complete the Jafza Application Form and the EHS Undertaking Form in their entirety and submit all required documents.
- You must select the type of company formation you would want to incorporate under. Refer to the company formation section on our website for more information. Please take note, an offshore company formation will not be applicable for an industrial license
- Once you have selected the formation, you will be asked to select the license type – this is where you need to select Industrial License.
- A lease agreement for a production facility (for particular activities selected) or a facility built for industrial purpose must exist.
Speak to our business development and sales team if you need help regarding your industrial license requirements. You can schedule a call or visit us at our sales centre in Jebel Ali Free Zone.