Abu Dhabi, one of the world’s fastest-growing economies, has become a hot spot for creative industries due to its strategic location between major continents and easy access to international markets. To operate a business in this thriving city, acquiring a valid trade license in Abu Dhabi is essential. This article covers everything you need to know about setting up a business in Abu Dhabi, including the general trading license cost, benefits, and the step-by-step procedure.
What is an Abu Dhabi Trade License?
A trade license in Abu Dhabi is a legal document issued by the Department of Economic Development (DED). It allows companies and individuals to carry out commercial activities in Abu Dhabi and across the UAE, including:
- Importing and exporting goods
- Engaging in various commercial-related activities
- Advertising and promoting products and services
If you’re an aspiring entrepreneur new to the Emirates, seeking assistance from an expert business setup consultant in UAE can streamline the process and help avoid cultural barriers or legal complications.
Types of Trade Licenses in Abu Dhabi
Struggling to find the right license for your business? Here’s a list of licenses you can apply for in Abu Dhabi, depending on your business nature:
1. Professional License
Issued to service-oriented companies or individuals, such as:
- Craftsmen
- Artisans
- Consultants
- Auditors
- Lawyers
2. Commercial License
For businesses involved in general activities, including:
- Public trading companies
- Transportation services
- Export and import firms
- Clinics and pharmacies
- Real estate and construction
3. Industrial License
Required for entities engaged in manufacturing activities, including:
- Producing
- Assembling
- Other specialized activities
Steps to Obtain an Abu Dhabi Trade License
Before starting a business in Abu Dhabi, familiarize yourself with the guidelines and steps involved. Here’s a quick overview:
Step 1: Select Your Business Activities
Choose from the list of activities approved by the DED. This decision will impact your legal proceedings and applicable fees.
Step 2: Determine the Legal Form of Your Business
Select a legal corporate structure that complies with Abu Dhabi regulations.
Step 3: Choose a Suitable Trade Name
Pick an easy-to-pronounce name that adheres to UAE naming conventions. Register your chosen name with the relevant department.
Step 4: Join the Abu Dhabi Chamber of Commerce and Industry (ADCCI)
According to Law No. (7) of 1998, becoming a member of ADCCI is mandatory for all nationals and expatriates in Abu Dhabi.
Step 5: Acquire Your Abu Dhabi Trade License
Once your application is approved, pay the required fee to receive your license. Expert consultants at Bizinvestfirm can assist throughout this process.
Required Documents for a General Trading License in Abu Dhabi
To apply for a general trading license in Abu Dhabi, you’ll need the following documents:
- Trade name certificate
- License form signed by all shareholders
- Passport copies of all shareholders
- Naturalization certificate copy
- Approval letter from the Ministry of Economy and Planning
- Clearance/No Objection letter from the local sponsor
- Approval letter for proposed business activities
- Memorandum of Association
- Bank letter validating claimed finances
- Tenancy contract
Renewal of Abu Dhabi Trade License
The renewal process includes:
- Submitting required documents (tenancy contract, attestation letter, copy of the original trade license).
- Waiting for approval from authorities.
- Paying the renewal fee upon receiving a fee voucher.
- Obtaining the renewed license in printed form.
Cost of a Trading License in Abu Dhabi
The cost of a trading license in Abu Dhabi ranges from AED 20,000 to AED 50,000, varying based on the nature of your business. Typical expenses include:
- License fee
- Administration fee
- Office space rent
- Local sponsor Memorandum of Association (MOA) fee
Different Jurisdictions for Business Setup in Abu Dhabi
1. Abu Dhabi Mainland
Setting up in the Abu Dhabi Mainland allows access to liberal laws, tax exemptions, and a diverse workforce, attracting global investors.
2. Abu Dhabi Free Zone
The Abu Dhabi Free Zone offers 100% foreign ownership and eliminates the need for a local sponsor, making it easier for businesses to establish themselves.
Benefits of an Abu Dhabi Trade License
- Multicultural environment
- Innovative infrastructure
- 24/7 ongoing support
- Up to 65% contribution to the UAE’s economy
- Investor-friendly policies
- Diverse and sustainable economic opportunities
- Excellent connectivity to global markets
- Proximity to one of the world’s busiest ports
- Customized Investor Care services and incentives
- Tax benefits that enhance profitability
Build Your Business in Abu Dhabi with Bizinvestfirm!
Bizinvestfirm provides top-notch business setup services across the UAE. Our expert professionals will guide you through the entire process, ensuring a smooth and successful business setup.
Ready to embark on your business journey in Abu Dhabi? Contact Bizinvestfirm today to learn more about business licenses, general trading license costs, and corporate laws pertaining to Abu Dhabi company formation.
