Abu Dhabi Trade License: Simplified Steps to Start
Entrepreneur’s hub, Abu Dhabi is the fastest-growing region. The city offers a favorable environment for all enterprise types, a perfect location for stepping on. Entrepreneurs can establish successful businesses in the region. A business-friendly ecosystem with the government promoting global trade relations. The Emirate has a lot to offer!
Business setup in Abu Dhabi is a great option. The flexibility, open markets, and tax benefits are a few reasons. For a business launch, the first step is obtaining a trade license. Conducting business is illegal without it. A quick overview about getting a trade license in Abu Dhabi. From the types of licenses to the process involved!
What You Need to Know About Trade License in Abu Dhabi
A trade license is a legal document, permitting a business to operate in Abu Dhabi. The DED is responsible for issuing trade licenses. A valid trade license is mandatory to engage in business activities.
Key Business Activities Under the Trade License Abu Dhabi
Carry out various activities once your Abu Dhabi business is licensed:
- Your products and services advertising
- Goods and services importing and exporting
- Participating in other commercial activities
Work with a business consultancy like Connect Zone to make the process smoother. In case, you’re unfamiliar with local laws and regulations.
Key Considerations Before Applying for a Trade License
Consider these aspects before applying for a trade license in Abu Dhabi:
1. Local Sponsorship
A local sponsor is required for businesses established in the Abu Dhabi mainland. It means an Emirati service agent or a local partner owning 51% of the business shares. This is essential for foreign investors who wish to operate on the mainland.
2. Documents Required for Trade Name Registration
These documents must be submitted when applying for a trade license:
| Document | Description |
| Tenancy contract | Proof of office space |
| Valid passport | Personal identification |
| Signed trade name application | Name application form |
| Corporate bank letter | Verifies financial details of the company |
| Emirates ID | Personal identification for all shareholders |
| Memorandum of Association | Agreement with the local sponsor |
| Signature copies (attested) | Required from relevant parties |
| No Objection Certificate from a local sponsor | Formal approval from a local sponsor |
| Ministry of Economy approval | Confirms business registration |
3. Public Relations Officer (PRO) Services
A Public Relations Officer in Abu Dhabi manages government-related paperwork. This may entail document attestation and visa applications. A PRO presence assures that all legal documents are processed smoothly.
Costs Involved in Setting Up a Business
Establishing a business in Abu Dhabi involves several costs. These depend on whether you choose to set up in a mainland or free zone.
Mainland Fees
| Fee Type | Description |
| Visa Fees | For employee and employer visas |
| Incorporation Fees | Charges for company formation |
| Local Sponsor Fees | Fees paid to the local sponsor |
| Legal Translation & Notary | Additional documentation costs |
Free Zone Fees
| Fee Type | Description |
| Visa Fees | Employee visas for the free zone |
| Name Reservation Fees | To secure your business name |
| Annual License Fees | Payment for yearly business renewal |
| Registration Fees | Charges for business setup |
Types of Trade Licenses in Abu Dhabi
Abu Dhabi offers several trade license types. They are based on the business nature and activities. For instance, these licenses are categorized into:
1. Professional License
This license is issued for businesses reliant on intellectual and professional skills. Consultants, freelancers, and service providers are included. An ideal license for individuals whose career is based on their expertise.
2. Commercial License
A commercial license is required for businesses engaged:
- General trading
- Real estate
- Healthcare
- Contracting, and
- Transportation.
It is one of the common license types in Abu Dhabi.
3. Industrial License
For businesses involved in manufacturing and industrial activities, this license is required. These may include the production and assembly of products. It is issued to companies that create goods for sale and profit.
Steps to Obtain a Trade License in Abu Dhabi
Must follow the following steps to obtain a license in Abu Dhabi:
Step 1: Determine the Category of Business
First, categorize your business. The three main types of licenses are:
- Professional
- Industrial, and
- Commercial.
Step 2: Choose Business Activities
You must select the business activities that your company will conduct. For one trade license, you can select up to ten business activities.
Step 3: Select a Trade Name
Choose a unique business name that follows the regulations of the DED. Ensure the name reflects your business and is available for registration.
Step 4: Initial Approval
Submit the application form with your business plan. Send to the relevant department for initial approval.
Step 5: Register the Trade Name
Once initial approval is received, register your trade name with the appropriate government authorities.
Step 6: Lease Office Space
In Abu Dhabi, find and lease an office space. Be in the mainland or a free zone. Make sure the office complies with the local zoning laws.
Step 7: Document Submission
Collect all the necessary documents for submission to the relevant department.
Step 8: Obtain the Trade License
Pay the fees after all steps are completed and the required documents are submitted. Now, you are all set to obtain your trade license. Receive it from the relevant authorities.
Trade License Renewal Process in Abu Dhabi
The renewal process for the Abu Dhabi trade license is relatively simple. Follow these steps:
- Gather all required documents and submit them to DED.
- Wait for approval from DED.
- Pay the renewal fees.
- Receive the hard copy of your renewed license.
Renewal Fees
License cost renewal in Abu Dhabi is between AED 10,000 to AED 12,000. It primarily depends on the business type and trade activities.
Fines for Expired Trade Licenses
Operating with an expired trade license can lead to fines. These include:
| Violation | Fine |
| Operating without a license | AED 5,000 |
| Operating another office under one license | AED 2,000 |
| Failure to renew before the due date | AED 250 |
Cancellation of Abu Dhabi Trade License
If you wish to close your business, the process to cancel your trade license includes the following steps:
- Notify all employees about the closure.
- Obtain a cancellation letter from the Board of Directors.
- Engage a liquidator to handle the company’s assets and liabilities.
- Submit all documents to DED and publish the closure in two local newspapers.
- Complete the cancellation process and obtain the final approval from DED.
Hire Connect Zone To Obtain Abu Dhabi’s Trade License
Abu Dhabi business setup can be a straightforward process. It can be possible if you are well informed about the requirements. Following the necessary steps is also important. Obtaining an Abu Dhabi trade license is a critical first step. The process can be done smoothly with the right guidance. Abu Dhabi offers a conducive environment for growth for a small professional service or industrial enterprise. A large commercial business can also achieve great success here
Feel free to contact Connect Zone for expert assistance in obtaining a trade license. The Connect Zone team navigates the setup process as simply as possible. Get experienced team assistance at every step of your business journey in Abu Dhabi!
