Tajer Abu Dhabi License extends to GCC Nationals and UAE Residents

by commitbizadmin 08, Mar 2019

Tajer Abu Dhabi License extends to GCC Nationals and UAE Residents

Introduced in the year 2017, a Tajer License in Abu Dhabi allowed Emiratis to establish their business across 100 various business activities without having the need to rent a physical office in the country. It was launched to ease the business setup process and reduce cost to establish a company in Abu Dhabi especially for small businesses and freelancers. The license too was granted in two simple steps; entering data and paying fees after reviewing the application.

In the recent news, Abu Dhabi Department of Economic Development (ADDED) has expanded its Tajer Abu Dhabi license package by opening it up to all the GCC nationals and the UAE residents and increasing the number of eligible activities to 1,057 commercial activities, all exempted from having a physical presence or an office. This move has been aligned with the recent economic initiatives taken by Sheikh Mohamed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the UAE Armed Forces, and Chairman of the Executive Board of the Emirate of Abu Dhabi, that include multiple initiatives to improve the ease of doing business in the Emirate and support entrepreneurs, SMEs, and the private sector.

About Tajer Abu Dhabi License

Tajer, also called as a Trader License is issued electronically and does not require having a lease contract or Articles of Association. Apart from this, the legal structure accepted under Tajer Abu Dhabi License includes a One-Person Company for GCC nationals and Emiratis, and a Limited Liability Company for residents in partnership with Emiratis. It is important to note that foreign nationals will still need a local partner or a company in case of forming an LLC or obtain a National Service Agent (Sponsor) in case of forming an establishment or branch. The idea behind introducing this license was to empower entrepreneurship in the country and has been so far effective in its campaign. Coming to the fees, the overall government fees to get the Tajer license are lower than any Establishment or Professional License or an LLC but will change depending on the type of business activity you choose.

Any license will come with both pros and cons. In case of this, a Tajer license does not allow the owners/employer to apply for a labor quota and a visa to the staff directly. The staff/employees can apply for a work permit against the license but they must have their visa elsewhere. A Tajer license can also be converted to an Establishment or an LLC at a later stage, if required by the owner. This is especially beneficial for a freelancer as he/she can set up in a low cost with the help of this license initially and when they want to expand the business, employ staff and take on a physical location it can progress to a full LLC company when commercially viable.

Golden Package by ADDED

The Abu Dhabi Business Centre of ADDED has come up with a “Golden Package” for Tajer which will include commercial activities under seven main categories namely, Business and Contracting Commerce, Services and Operations, Consultancy and Design, Transportation and Management, Sales and Maintenance, and productive local families. The package will also help businesses on social media grow and develop as the license allows them to transact as an entity and therefore export and import, open bank accounts and work with government entities.

This move will help Abu Dhabi in improving the ease of doing business in Abu Dhabi for start ups and small businesses which are a key engine of the national economy and one of most important strategic drivers of future growth. To know more do contact us today. Commitbiz advisors will help you with all your queries.