Types of Business Licenses in Abu Dhabi

Doing business in Abu Dhabi has always been correlated with following a rigorous administrative routine set up by the authorities that 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 neighboring emirates to maintain a formalized system of communication between the corporate entities and the Governing bodies.

What is a Business License in Abu Dhabi?

A business license in Abu Dhabi is a certificate that allows a natural person or a legal entity to practice a particular activity in compliance with the terms and conditions stipulated by the laws and regulations of the Department of Economic Department. 

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 issuing of licenses. 

Under this law, no person, natural or legal may engage in practicing 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 practicing 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 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

• Opening a card for the business shall be opened at both the Ministry of Human Resources and Emiratization and the General Directorate of Residency and Foreigners Affairs- Abu Dhabi.

Application in Business Centre

The Department of Economic Development in Abu Dhabi 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 canceling 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. Essentially these business owners, involve 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 specializes 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, including 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 transportation services, export and import businesses, real estate, infrastructure services, medical clinics, pharmacies, and hospitals. 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. Craftmanship 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, and lawyers. This license follows similar guideline regulations to that of a freelancer license.

We at Commitbiz Management Consultants can help acquire a business license for your company in Abu Dhabi. We are proficient in providing business setup services in the UAE. 

Contact us today to get more information.