Commercial License Abu Dhabi | Cost, Process & Benefits
Abu Dhabi is the capital of the UAE. It has become a global commercial hub. Due to its booming industries and growing economy. Recently, the number of business licenses issued in the emirate has seen impressive growth. This makes it a perfect destination for entrepreneurs, and startups. There has been a 21.5% increase in business licenses issued in Abu Dhabi. The report is issued according to recent reports. This underlines the region’s growing appeal for businesses of all sizes.
Considering setting up an Abu Dhabi business? Must obtain a business license. Within the emirate, this license is crucial for all commercial activities. The blog walks you through the following:
- Acquiring a commercial license in Abu Dhabi, including
- The benefits, costs, and steps involved.
Benefits of Starting a Business in Abu Dhabi
Abu Dhabi offers numerous advantages to entrepreneurs to set up a business. Some key reasons are shared. Here’s why you should launch your business in this vibrant emirate:
| Benefit | Description |
| Booming Market | In the past two decades, Abu Dhabi’s economy has expanded significantly. The city provides businesses with access to a growing consumer base. |
| Strategic Geographical Location | Situated at the crossroads of global trade. Abu Dhabi offers easy access to markets. Especially in the GCC and Middle East. Along with Asia, Africa, and Europe. |
| Low Taxes | Abu Dhabi offers low tax rates. This includes zero income tax for many businesses. It allows entrepreneurs to retain more profits for reinvestment. |
| Industry Hub | The emirate is a leader in specific industries. Entailing manufacturing, pharmaceuticals, construction, and more. It offers access to these sectors. |
| World-Class Infrastructure | Abu Dhabi has all the infrastructure. This supports new businesses. Equipped with road networks and seaports. Coupled with airports/warehouses/telecommunication services, |
Steps to Get a Commercial License in Abu Dhabi
In Abu Dhabi, business setup and a business license can be done by following a simple process. The following are the steps. This helps to obtain your business license:
1. Choose a Business Name
Abu Dhabi business setup starts with choosing a company name. Your company name should adhere to the following guidelines:
- The name should reflect the nature of the business.
- It must avoid any offensive or misleading terms.
- The name should not resemble any existing company or brand in the region.
2. Apply for a Business License
Decide between two license types. Choose a mainland license or a free zone license. However, the decision depends on your business needs. It is based on the activity type you plan to carry out.
Mainland License: A mainland license allows you to operate within the UAE market. You can conduct business with government entities. Best suitable for those planning to serve the local market.
Free Zone License: Free zones offer benefits such as:
- 100% foreign ownership
- Tax exemptions, and
- Simplified processes.
However, they limit your ability to trade directly within the UAE market outside the free zone.
Submit your application at this stage. Choose the business license type that suits your activities.
3. Submit Documents
Provide various documents on choosing your business type and location. This way, you can complete your application. Required documents typically include:
- A completed application form from the DED/relevant free zone authority.
- Passport and Emirates ID copy
- A business plan outlining your company’s goals. Along with products, or services.
- Trade name approval certificate copy
- A tenancy contract for office space or warehouse (depending on your business).
- Local sponsor’s passport copy.
- Company’s Memorandum of Association
4. Receive the Business License
The business license should be issued within a few days when all documents are complete and correct. The license will allow you to legally operate. You can operate either in the UAE mainland or within a free zone. It depends on your choice.
5. Apply for Visas
Apply for employee visas for expatriate employees. This process is part of your overall business setup. It involves applying for:
- Residency visas
- Work permits, and
- Labor cards.
How Much Does an Abu Dhabi Commercial License
Abu Dhabi business license cost ranges between AED 10,000 and AED 30,000. The final cost will depend on various factors. This includes:
- Type of Business: Whether you choose a mainland or free zone license.
- Business Activity: The nature of your business and its complexity.
- Location: Free zone licenses tend to be more cost-effective. However, certain businesses may need to be based in mainland Abu Dhabi.
- Number of Visas: The employee number you wish to sponsor will influence the license cost and visa fees.
Types of Business Licenses in Abu Dhabi
Several business license types are available. It depends on the commercial activities nature. The common types include:
| Business License Type | Description |
| Commercial License | Covers general trading, construction, retail, real estate, transportation, and other commercial activities. |
| Professional License | For individuals offering professional services like consultancy, accounting, engineering, and design. |
| Occupational License | For professional services in sectors like education, law, auditing, and management consultancy. |
| Tourism License | For businesses operating within the tourism industry. This includes travel agencies and hotels. Along with restaurants, and tours. |
| Industrial License | For businesses focused on manufacturing or industrial activities, including production and assembly. |
| Agricultural License | Businesses involved in agriculture, livestock, or fisheries. |
Working with Connect Zones Business Setup in Abu Dhabi
Connect Zone offers expert guidance and assistance for entrepreneurs. They help Abu Dhabi businesses to set up easily. The team helped thousands of entrepreneurs successfully launch their businesses. The years of experience in the region are the ultimate proof of this
Connect Zone Team assigns a dedicated manager. They guide you through the entire business setup process. Their assistance aids in understanding the tax landscape. Get help with tax-related matters. Have compliance with all UAE regulations with the support of Connect Zone’s legal experts. Their HR solutions help manage your workforce effectively. Let’s gain access to a range of business networking events and connections. All at Connect Zone Business setup!
Conclusion
Abu Dhabi’s business setup offers numerous advantages. From international markets access to world-class infrastructure and low taxes. Navigate the process of obtaining a commercial license in Abu Dhabi. Do so by following the steps outlined in this blog.
Abu Dhabi is a great place to establish a new venture or expand an existing business. Start your business operations with the right guidance. Get support from professionals like Connect Zone. They ensure that your business setup process is smooth and efficient.
Want to get personalized support and detailed information on business setup in Abu Dhabi? Just reach out to Connect Zone today!
