Doing business in Abu Dhabi has always been in correlation 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. With this vision in mind, the corporate governance requisites laid down by the government demand that all businesses be in possession of legal permits that provide legal immunity to companies to perform their operations within Emirati borders vis-à-vis the various licenses that business must and should have to set up business in Abu Dhabi.
What is Business License in Abu Dhabi?
From a linear perspective, a Business License is self-explanatory as being a permit issued by the government to corporate entities for conducting trade activities in a particular region. Similarly, as per the 2009 License Issuance law of Abu Dhabi, a business license will, by nature, legalize a corporate entity to perform the various trade activities and economical operations involving monetary benefits and tax regulations within the Emirati borders. The law stipulates that neither an ordinary person nor a legal entity is permitted to engage in any economic activity or branch of activity without obtaining a relevant license from the concerned authority and to fulfill the legal requirements applicable to the practice of that particular activity.
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
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 the industrial license to be eligible to operate the business in the stipulated manner.
2. Professional License
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, 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
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
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.
How can Commitbiz Help?
We at Commitbiz comprise a team of industry professionals who cater to several businesses in the UAE with an overall experience of 15 plus years in the Emirati market. Our services comprise business setup in the UAE, company secretarial services, accounting and bookkeeping services, and nominee director services. We strive to provide entrepreneurs with an overall package of administrative services to simplify their journey from inception to incorporation in the UAE market. Contact us to know more and expand your business in the middle east.