How to Obtain a Trade License for your Business in Abu Dhabi?

by Zaara 07, Aug 2020

How to Obtain a Trade License for your Business in Abu Dhabi?

Abu Dhabi is the capital of the UAE and is located in the mainland of Persian Arabian Gulf. It is the fastest-growing market in the Middle East and also one of the stable ones. Abu Dhabi is a home for commercial and industrial businesses. It is ideal for business owners to launch a successful business in Abu Dhabi. The procedure for setting up a business in Abu Dhabi is a very flexible and transparent one. This is one of the many causes why business owners keep an eye on Abu Dhabi.

To start a company in Abu Dhabi, one of the essential steps is to obtain a business license. Without a business license, one cannot officially start the business. Let us understand the different permits and the process of getting one.

Types of Business Licenses in Abu Dhabi

The different types of business licenses are –

  1. Industrial License – Industrial Licenses are issued to owners of factories, of whatever kind, which manufacture products to sell them for profit.
  2. Professional License – Professional Licenses are issued whose work depends on their mental skills, intellectual abilities, academic achievement and scientific talents.
  3. Commercial License - Commercial licenses are issued to the owners of businesses practising activities such as General Trading, Contracting, Real estate, Transportation, Healthcare etc.

The relevant Department responsible for issuing a business license depends on the type of business activity that your business is into. Business Licenses are obtained through one of the following licensing authorities – the Department of Economic Development, Department of Culture and Tourism, Higher Corporation for Specialized Economic Zones and the free zone authorities such as Masdar and the Media Zone Authority.

Requirements to Obtain a Trade License in Abu Dhabi

Before operating a business in Abu Dhabi, it is first necessary to follow the steps outlined below to meet the legal requirements of all concerned government authorities and to guarantee maximum commercial advantages for the businessperson.

  1. Designate the category your business falls into – industrial, commercial, and professional
  2. Determine all the related business activities be included within each business license (maximum 10 per license)
  3. Decide as to your business's appropriate legal status in the UAE
  4. Select a proper trading name for the company
  5. Submit a form to the Department for initial approval
  6. Register a trading name after receiving initial support (If you don't have a formerly reserved a business name)
  7. Lease business premises and obtain consent from the Authority
  8. Prepare all required documents; such as Memorandum of Association and approvals from other related government authorities which may be important to each case
  9. Submit a further application to the Department to obtain the final license
  10. Pay fees

Documents Required to Obtain Trade License

The legal necessities and conditions for issuing a business license vary depending on the form of the venture. Licensing stages can be summed as follows:

  • Trade name reservation
  • General Directorate of Residency and Foreigners Affairs - Abu Dhabi's support of an investor's visa
  • Specifying the type of business activity and obtaining the consent of the concerned authority accordingly
  • Inspecting the premises of the business
  • Issuing a preliminary approval
  • Issuing a final approval
  • Paying the fees
  • Requesting and obtaining the Membership of the Abu Dhabi Chamber of Commerce & Industry
  • Opening a card for the business shall be opened at both the Ministry of Human Resources and Emiratisation and the General Directorate of Residency and Foreigners Affairs- Abu Dhabi

Abu Dhabi Business Centre

The Abu Dhabi DED launched the smartphone application "Abu Dhabi Business Centre", which enables users to handle all trade license-related transactions through it. The app offers various services related to issuing and cancelling a business license.

The application can be downloaded from the App Store and Google Play.

Renewal of Trade License in Abu Dhabi

One cannot conduct business in Abu Dhabi without renewing the Trade License. When it's time for your Abu Dhabi trade license renewal, you can change your sponsor and business address, if required. Commitbiz offers complete assistance in renewing the trade license in whichever way you need. We will send you timely reminders when the renewal of your license is due.

Commitbiz will work with you to handle your business setup in UAE from start to finish. Contact us today to know more.

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