Trade License Renewal in Abu Dhabi

Being one of the most significant requirements for doing business, a trade license renewal in Abu Dhabi is a must. A trade license is a legal document that allows companies to operate officially following the regulatory requirements.

There are several activities involved in each of the license categories. Some of these activities require approval from specific Ministries and other Authorities – For example - insurance companies and related agencies from the Ministry of Economy and Commerce; banks and financial institutions from the Central Bank of the UAE; manufacturing from the Ministry of Finance and Industry; and pharmaceutical and medical products from the Ministry of Health. 

More comprehensive processes apply to businesses engaged in oil or gas production and related industries. 

Abu Dhabi Trade License Renewal

The DED has announced that investors and business owners can renew businesses for 3 years instead of the 1-year licenses that were in legal circulation prior. This decision is expected to reduce the procedural cost and licensing transactions by up to 70% to support small and medium enterprises.

There are three main categories of licenses issued by the Abu Dhabi Department of Economic Development (ADDED). They are –

1. Commercial

2. Industrial 

3. Professional. 

Procedure for DED Abu Dhabi License Renewal

A business cannot continue conducting its operations in Abu Dhabi if they have not renewed its license. Even though the renewing procedure is made easy by the DED through offline, online, and auto-renewal systems, there are a few things to keep a tab on. 

Like, getting licensing approvals, information on renewals, assuring you have all the documents, and being updated with the changing structures can be difficult at the time. The stages to renewing are as follows: 

1. Have a Valid Tenancy Contract

The tenancy contract must have a validity of at least one month, and it should be attested by Ejari. If the tenancy contract does not have a validity of at least a month, the allied license cannot be applied for renewal. 

2. Apply for License Renewal

A license renewal application must be sent to Abu Dhabi DED. It must be sent with the required documents which are as follows –

• A typed BR/1 form

• Ejari Registration Certificate and a photocopy of Tenancy Contract

• Photocopy of the existing business trade license

• Passport photocopies of all the business partners

• Copies of valid passports of concerned persons

• Copies of Valid UAE ID Card of relevant persons

• Copies of the Family member’s Ids

• No objection letter from the respective authorities in case the activity may not be practiced except with authorization from the relevant authorities (Original)

• A copy of the authentication of the signatures attested by the Notary Public. 

3. Pay the Abu Dhabi Trade License Renewal Fees

After applying, the DED shall allot a payment voucher. Once you get the voucher, progress to the payment procedure. Immediately after making the payment, you will receive your renewed license from the channel and you may continue your business setup in Abu Dhabi hassle-free. 

Criteria Applied for Trade Renewal in Abu Dhabi

Here are some conditions applied to the trade renewal process. 

Conditions for Trade License Documents Renewal Offline

• In case of the expiry date of the license is for more than three months; you shall undergo through Inspection Division in the Department of Economic Development

• The license application form should be submitted by the owner or by a legally authorized representative

• In case the permit is a subsidiary of the Emirate of Abu Dhabi or any of the Emirates, a valid copy of the parent company's license shall be linked

• In case the company is a subsidiary of a foreign company, the License certificate shall be renewed at the Ministry of Economy. 

Conditions for Abu Dhabi Trade License Renewal Online

• Documents should be in PDF format

• The copy shall be in the clear and correct colour format (i.e., neither too light nor bright)

• The papers shall be labelled (Lease Agreement, Partnership Agreement…)

• The average size of the documents is 70 Kbytes. 

Features of the Trade License Expired Fine in Abu Dhabi

A sum of the penalty must be paid if a business fails to renew its trade license on time in the Emirate. For all types of business industries in Abu Dhabi, the penalties include: 

1. Monetary Penalty

The sum of the monetary penalty depends on business activity. In case the license is expired, the DED Abu Dhabi imposes several forfeits. 

Like a business practiced without a license could be penalized, failure to renew the license within a specific period is penalized, and also an additional office for an existing license without permission is penalized. 

2. Black Listing of a Company

There is a possibility of a company being blacklisted if they fail to renew the license on time. Blacklisting includes stopping all the transactional activities the company is dealing with, nullifying the visas and sponsors under the company, and a possibility that business people would have to leave the country. 

3. Restricting Expansion of a Business

Businesses with expired license records may not be allowed to expand under these circumstances. Businesses need to have a clean record if there are plans for expansion or rather suspend or liquidate the entity. 

Hence, to eliminate all these possibilities, it is recommended to take help from a consultant who will take of these services for you, so that you can concentrate on the business operations. Commitbiz Management Consultants is a professional consultancy and services provider offering a comprehensive range of business support solutions to companies across the UAE. 

We specialize in delivering fast, efficient, and tailored service packages that quickly meet the needs of businesses. Our professional team of consultants combines in-depth knowledge of government regulations with decades of localized experience to help customers accomplish their requirements as quickly as possible.

With our expert license renewal service, companies in Abu Dhabi and the UAE can continue operating a business without having to worry about personally handling their trade applications and renewals. Contact us today for more information.