A Trade License is one of the most significant requirements for doing business in Abu Dhabi. A trade license is a legal document that allows companies to operate officially in and around Abu Dhabi, following the regulatory requirements.
There are three main categories of licenses issued by the Abu Dhabi Department of Economic Development (ADDED). They are –
- Commercial License
- Industrial License
- Professional License
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.
How to Renew a Trade License in Abu Dhabi?
A business cannot continue conducting its operations in Abu Dhabi if they have not renewed the license. The stages to renew a trade license in Abu Dhabi is 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 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
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.
Even though the renewing procedure is made easy by the DED through offline, online, and auto renewal system, 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. That is where Business Setup Consultants like Commitbiz come into the picture. We provide commercial license, professional license, industrial license, and various business-related requirements in Abu Dhabi and across the UAE.
What Happens if a Company Fails to Renew Trade License on Time?
A sum of the penalty must be paid if a business fails to renew their trade license on time in Abu Dhabi. The penalties include –
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 time-period is penalized, and also an additional office for an existing license without permission is penalized.
Black Listing of 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 activates the company is dealing with, nullify the visas and sponsors under the company, and a possibility that business people would have to leave the country.
Restrict Expansion of Business
The 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.
How can Commitbiz help?
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 Abu Dhabi and the UAE can continue operating business without having to worry about personally handling their trade applications and renewals. Contact us today for more information.