Types of Business Licenses in Abu Dhabi

Doing business in Abu Dhabi has always been correlated with following a rigorous administrative routine. It is set up by the authorities to allow businesses to operate in the most significant business hub of the United Arab Emirates.

The government's focus is to implement corporate policies from the capital of the UAE to other neighbouring emirates. The goal is to maintain a formalised system of communication between the corporate entities and the governing bodies.

What are the benefits of having a Business License in Abu Dhabi?

These are the benefits of obtaining a business license in Abu Dhabi:

• Credibility and Trustworthiness

Obtaining a business license in Abu Dhabi will allow you to own the trust of the clients or customers.

• Strategic Geographical Location

A trade license for your business in Abu Dhabi opens the global market with access to the Middle East, Central & South Asia, Europe, and Africa.  

• 100% Repatriation of Capital and Profits are Possible

Businesses in Abu Dhabi mainland have the advantage of repatriation of one hundred percent (100%) of the profits made by a business, as well as its capital, to the country of origin of the investors, without any restrictions.

• Low Import Duty

Customs duties are duties imposed on goods entering or leaving air, land, or seaports of any country. Goods and commodities imported to Abu Dhabi from countries outside the GCC are subject to 5% of the value of goods, in addition to the Cost Freight Insurance (CIF). 

For alcohol and cigarette products, a duty of 50% and 100% is imposed, respectively. 

• Low Cost of Starting a Business in Abu Dhabi Mainland

The UAE Companies Law does not prescribe any minimum share capital, but the company should have adequate capital to accomplish the purposes of incorporating it. And the capital should consist of equal shares in value. 

There’s currently no requirement for depositing the share capital into a registered bank in the UAE. However, some jurisdictions are excluded from this. 

• No Annual Audits

Organizations are usually expected to be audited, regardless of which nation they have developed in the world. However, this all depends on the jurisdiction. 

As in the Abu Dhabi mainland, businesses are not required to be audited annually, while those in the Free Zone authorities may be audited in compliance with the authority rules and regulations or legal framework. 

What is a Business License in Abu Dhabi?

A business license in Abu Dhabi is a certificate allowing a person or legal entity to practise a particular activity in compliance with the terms and conditions stipulated by the Department of Economic Department (DED).

The "Law No. (2) For the Year 2009 Concerning Issuance of Licenses in the Emirate of Abu Dhabi" regulates all types of commercial activities in the Emirate and the issuing of licenses.

Under this law, no person, natural or legal, may engage in practising any economic activity, or part of the activity, as the Department Decision stipulates, before obtaining a license from the concerned authority, in conformity with all requirements set forth by laws governing the practising of that activity.

The issuing of the license is the final stage in the procedures for obtaining a trade license for any activity.

Conditions to Obtain a Business License in Abu Dhabi:

The legal requirements and conditions for obtaining a business license in Abu Dhabi vary depending on the form of the business activity. 

Licensing stages can be summed as follows:

• Trade name reservation
• General Directorate of Residency and Foreigners Affairs - Abu Dhabi’s approval of an investor’s visa
• Specifying the type of activity and obtaining the consent of the concerned entity accordingly Inspecting the premises of the business
• Issuing a preliminary approval
• Issuing a final approval
• Paying the fees
• Requesting and getting Membership in the Abu Dhabi Chamber of Commerce & Industry
• 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.
   

Application in Business Centre

The Department of Economic Development in Abu Dhabi (ADDED) launched the smartphone application "Abu Dhabi Business Centre", which enables users to handle all trade license-related transactions through it. 

The application offers various services related to issuing and cancelling a business license. The application can be downloaded from Google Play and App Stores.

The different types of Business Licenses in Abu Dhabi:

The Department of Economic Development (DED) has listed various activities that can be recognized as business operations. 

But, to develop a licensing structure, the following six activities have been identified in the niche category for activities requiring licenses and permits issued by the government to business entities. 

The various types of business licenses that are issued by the DED to businesses are:

1. Industrial License in Abu Dhabi

The industrial license is issued by the DED to business owners who set up factories and manufacturing plants for doing business in Abu Dhabi. These business owners are involved in industrial supply chain and trade-related activities as third-party suppliers.

Thus, they must acquire an industrial license to be eligible to operate the business in the stipulated manner.

2. Professional License in Abu Dhabi

This license is issued to skilled professionals who operate service-based businesses solely based on their skill and craft. It is issued to individuals who work independently to earn a livelihood and specialise in service-providing activities such as technical repair services, carpentry, steelworks, home appliance installations, and so on.

3. Agricultural License

As the title suggests, this license is issued to perform agriculture activities for business setup in Abu Dhabi. This includes crop irrigation, botany, poultry farming, cattle rearing, fisheries, and livestock farming.

4. Tourism License

A tourism license, also known rarely as a hospitality services license, is issued to owners of facilities specializing in tourist activities like restaurants, hotels, tourist camps, travel agencies, floating restaurants, etc.

5. Commercial License in Abu Dhabi

Commercial activities that require this specific license include:

• Real Estate
• Medical Clinics
• Infrastructure services
• Transportation services
• Pharmacies and hospitals.
• Export and Import businesses 

The DED issues this license to create a clear divide between what qualifies as an industrial activity requiring an industrial license and what qualifies as a commercial activity requiring a specific commercial license.

6. Craftsmanship License

A craftsmanship license is issued to individuals whose work depends on their mental skills, intellectual abilities, academic achievement, and scientific talents, like:

• Consultants
• Auditors
• Lawyers

This license follows similar guideline regulations to that of the Abu Dhabi freelance license.

End Note

We at Commitbiz will help you acquire the business license for your company in Abu Dhabi. We’re proficient in providing business setup services in the UAE.

Contact us today for more information about the cost of each license.