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Abu Dhabi Trade License: A Comprehensive Guide

Are you interested in starting a business in Abu Dhabi, a key business and industrial centre? For that setup in Abu Dhabi, you must obtain a valid DED trade license in abu dhabi to operate legally. The Abu Dhabi Department of Economic Development (ADDED) issues trade licenses, ensuring businesses comply with regulations and function within the legal framework.

Trade License In Abu Dhabi: Costs & Process To Get It?

Adnan Ahmed

In Abu Dhabi, holding a valid trade license is essential for businesses to operate legally and avoid penalties. As of June 2020, the emirate had 145,660 registered licenses, accounting for 22.3% of the UAE’s total.

This highlights the importance of compliance as without a Abu Dhabi trade license, businesses cannot conduct transactions and may have to face legal consequences and heavy penalties. With the right trade license, you can improve your business credibility, allowing access to various economic incentives, tax benefits, and the UAE’s expanding business opportunities.

This article explains trade license cost in abu dhabi, types, renewal fees, required documents, and how to check the status of your license. We also cover special licenses such as the 790 AED license and the list of permitted business activities.

Our business setup experts help you get the right trade license in Abu Dhabi while meeting the regulatory requirements.

Types of Trade Licenses In Abu Dhabi

Abu Dhabi offers different types of trade licenses based on business activities. The following are the main types of trade licenses in Abu Dhabi issued by the DED:

1. Commercial License

A commercial license in Abu Dhabi is needed for businesses involved in trade, such as buying, selling, importing, or exporting goods. It is an ideal choice for retail shops, supermarkets, wholesalers, and online businesses in Abu Dhabi. This license permits companies to trade within the UAE and globally.

2. Industrial License

Businesses that manufacture, assemble, or process goods require an industrial license in Abu Dhabi. This license is the legal requirement for factories, production units, and industries that transform raw materials into finished products.

3. Professional License

A professional license is a mandatory requirement for businesses offering specialized services in Abu Dhabi. The specialized services are consulting, accounting, legal services, and healthcare. The license is issued to individuals and firms providing expertise-based services. This license is mandatory for service providers to operate legally in Abu Dhabi.

4. Tourism License

A tourism license in abu dhabi is required for travel, hospitality, and entertainment-related businesses. This includes hotels, travel agencies, tour operators, and restaurants catering to tourists. The license ensures businesses comply with Abu Dhabi’s tourism laws and service standards.

5. Agricultural License

An agricultural license in abu dhabi is required for businesses involved in farming, livestock management, and food production, supporting food security and agricultural growth. The license ensures compliance with environmental and food safety regulations in Abu Dhabi. It helps promote sustainable agricultural practices and food security in the UAE.

The Abu Dhabi E-Commerce License Cost (Tajer Abu Dhabi):

Tajer Abu Dhabi, also called the Abu Dhabi Trader License, is a business license issued by the Abu Dhabi Department of Economic Development (ADDED), particularly for e-commerce businesses. Initially, it was limited to UAE nationals, but now GCC nationals and UAE residents having LLCs in partnership with Emiratis can also apply for it under different legal structures.

This expansion has opened more opportunities for businesses to grow in the UAE’s e-commerce sector. Tajer Abu Dhabi license offers 12000 activities to entrepreneurs to choose from. The cost of tajer abu dhbai license ranges from AED 790 to AED 5500, depending on the chosen activities.

It allows businesses to operate online through websites and social media platforms. The online setup of this trade license makes it a great choice for startups, freelancers, and small businesses in the digital sector. Tajer Abu Dhabi trade license is popular due to its flexibility, making it easier for entrepreneurs as there is no need for physical space for the first three years.

Key Factors to Consider Before Applying for a Trade License In Abu Dhbai:

Before applying for a trade license in Abu Dhabi, you need to consider the following key factors:

Business Activity Selection

You need to select the right business activity that matches your operations to ensure compliance with Abu Dhabi laws. If you select the wrong activity, it may lead to legal complications and restrictions on your business.

Legal Structure

Before applying for a trade license, you have to decide which legal structure is best for you. You can select between a sole proprietorship, partnership, LLC, or foreign branch based on your business model, ownership rules, and liability protections.

Office Space Requirements

You need to check if your business requires a physical office or if you qualify for a virtual office setup. Some licenses, like the Tajer Abu Dhabi license, do not require office space for the first three years.

Capital Requirements

You must ensure that your business meets the minimum capital requirements set by the authorities for certain types of licenses. These requirements vary depending on the nature of the business and its legal structure in Abu Dhabi.

Regulatory Approvals

You have to obtain approvals from specific regulatory bodies if your business falls under restricted or specialised industries. Sectors such as healthcare, finance, and tourism require additional permits from relevant authorities.

Public Relations Officer (PRO) Services

You need PRO services to complete legal formalities, including trade licenses, visa applications, and labor permits. A PRO helps with official government attestations, ensuring your business meets all legal requirements.

Preparation of Required Documents

You have to prepare all necessary documents in advance to avoid delays in obtaining your trade license. Additional paperwork may be required based on your business activities, so you must be ready for it before applying for the trade license.

Abu Dhabi Trade License Cost:

The trade license cost in Abu Dhabi ranges from AED 10,000 to AED 30,000; however, the final amount depends on the type of business activity, legal structure, and selected jurisdiction. Additionally, the cost may change based on the tenancy contract and other regulatory requirements proposed by the authorities.

Abu Dhabi Trade License Costs for Expats:

For expatriates, the approximate cost of a basic trade license starts at AED 10,000 to AED 30,000. Additional costs may include:

Local sponsor fees (if applicable)
Office rent (if required)
Government approvals and notarization charges
Visa processing fees for employees and partners

Abu Dhabi Trade License Renewal Fees:

A trade license in Abu Dhabi must be renewed annually according to regulations set by the Abu Dhabi DED. The renewal cost of a trade license in Abu Dhabi varies depending on the business type and activities, ranging between AED 10,000 and AED 12,000. Some of the key charges include trade name registration, Ejari fees, foreign company name charges, and government fees.

Late renewals of trade licenses in Abu Dhabi can lead to penalties ranging from AED 250 to AED 5,000 per month. The renewal process is simple and easy as it involves submitting updated documents to ADDED, clearing outstanding payments, paying fees, and obtaining necessary approvals from the authorities.

Documents Required to Get a Trade License in Abu Dhabi:

The following documents must be prepared in order to apply for a trade license in Abu Dhabi:

Passport copies of business owners and partners
Emirates ID copy (for residents)
No Objection Certificate (NOC) from the sponsor (if applicable)
Business plan (for certain license types)
Copy of naturalization certificate
Certificate of trade name
Copy of your Memorandum of Association
Office lease agreement (if required)
Initial approval from ADDED
Additional approvals from relevant authorities (for specific businesses)

Step-by-Step Guide to Obtaining an Abu Dhabi Trade License:

You need to follow the step-by-step guide to obtaining a trade license in Abu Dhabi:

Step 1: Select the Business Type

In the first step, you need to determine your business type. In Abu Dhabi, the main types of licenses are commercial, professional, industrial, tourism, and agricultural. Each type has specific legal requirements and regulations.

Step 2: Decide on Jurisdiction

In the second step, you must decide whether to establish your business in Mainland Abu Dhabi or within one of its Free Zones. Each jurisdiction of your company has its own requirements, business facilities, limitations, and operational flexibility.

Step 3: Choose Your Business Activities

In the third step, you must choose your company’s business activities. Abu Dhabi allows a maximum of ten activities under a single trade license, but with the confirmation that your business activities are mentioned in the list approved by the Abu Dhabi DED.

Step 4: Select a Trade Name

In this step, you must select a unique trade name representing your business. The trade name must comply with Abu Dhabi’s trade name guidelines, and in the next step, you have to register it with DED.

Step 5: Apply for Initial Approval

In the fifth step, you must apply for initial approval from Abu Dhabi DED. This approval makes sure that your business activities and legal structure follow the required regulations. In some cases, you may need to appoint a local sponsor for your trade license based on your selected business activities,

Step 6: Secure an Office Space

In the sixth step, you must find a suitable office space based on your business needs. You can either lease a physical office or opt for a virtual office according to your license type. You have to confirm that the lease agreement is Ejari-registered to meet legal requirements.

Step 7: Gather Required Documents

In the seventh step, you need to prepare all the necessary documents, as discussed above, to submit the application for a trade license in Abu Dhabi. Some additional documents may also be required depending on your business type and chosen activities for your trade license.

Step 8: Submit the Application

Once you gather all the documents, the next step is to submit your trade license application to the Abu Dhabi DED through an online portal or by physical presence.

Step 9: Pay Fees and Obtain Your Trade License

In the final step, you have to pay the required trade license fees along with all associated costs, as mentioned above. After approval from the relevant authorities, you will receive your Abu Dhabi trade license.

Abu Dhabi Trade License Activities List:

Abu Dhabi offers a diverse range of business activities under its trade license categories. Some of the activities permitted include:

Maritime Consultancy Services: Providing expert advice on maritime operations and logistics.
Tourism & Recreation Consultancy: Offering guidance on tourism development and recreational projects.
Accounting and Auditing System Analysis: Evaluating and improving financial reporting and auditing processes.
Logistics Consultancy: Advising on supply chain management and logistics optimization.
Network Consultancy: Providing expertise on designing and managing network infrastructures.
Agricultural Extension Services: Offering support and advice to enhance agricultural practices.
Design and Artwork Services: Creating visual content for various media and purposes.

What Is Abu Dhabi Trade License 790 AED:

Abu Dhabi offers a cost-effective licensing option known as the Tajer Abu Dhabi license which we discussed above, with fees starting at AED 790. This basic fee allows investors to select up to six business activities. This licensing option is designed to encourage entrepreneurship by simplifying the process and reducing initial costs.

The Tajer Abu Dhabi license is particularly beneficial for small businesses that do not require a physical office space. However, it is important to note that while the base cost for this license is AED 790, additional expenses such as administrative fees, trade name registration, and other charges can increase the total setup cost to around AED 2,000 to AED 3,000.

Can You Get Trade License Without Office in Abu Dhabi?

In Abu Dhabi, businesses can obtain a trade license without an office through options like the Tajer Abu Dhabi license, allowing entrepreneurs to operate remotely without physical space. Additionally, certain business activities in Abu Dhabi are granted a one-year exemption from the requirement of having a lease agreement or office space.

This exemption is valid for one year from the date the business license is issued and applies to over 1,200 activities. This approach significantly reduces startup costs and encourages business growth in Abu Dhabi.

How To Check & Verify Your Trade License Status In Abu Dhabi:

To verify the status of your business license in Abu Dhabi, you can use the online services through the ADDED website. The following is a simple process that ensures that your business remains compliant with local regulations and helps avoid potential penalties associated with expired or invalid licenses.

To verify the status of your trade license, you must:

Visit the official ADDED website.
Click on the “trade license verification” section.
Enter your trade license number or other relevant reference numbers.
Submit the details to view your license status, validity, and renewal date.

By regularly verifying your trade license status, you can maintain uninterrupted business operations and mitigate the risk of penalties in Abu Dhabi.

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How We Can Help You?

At Now Consultant, our business setup experts make obtaining a trade license in Abu Dhabi easy for you. From selecting the right license type to preparing the necessary documents and ensuring compliance with regulations, our experts provide complete and comprehensive support.

We simplify complex processes like securing initial approvals, opting for suitable jurisdiction, choosing the correct business activities, and selecting legal structures so you can focus on growing your business.

Whether it is obtaining the cost-effective AED 790 Tajer Abu Dhabi Trade license, managing renewals, or ensuring you meet all requirements without costly mistakes, we handle everything on your behalf.

Frequently Asked Questions

Can I conduct multiple business activities under one trade license in Abu Dhabi?

Yes, multiple related business activities can be included under one trade license. However, all activities must fall within the same business category. Additional approvals may be required for certain activities.

How long does it take to get a Abu Dhabi trade license?

A trade license in Abu Dhabi generally takes 4 to 5 weeks to process, depending on approvals, required documents, and business activity type. You should prepare all the required documents early to complete the process on time.

Can I open a corporate bank account with my Abu Dhabi trade license?

Yes, a valid trade license enables you to open your corporate bank account in Abu Dhabi. Some banks may ask for extra documents, such as a business plan and financial statements, to open a bank account in Abu Dhabi.

Can I get a trade license for freelancing in Abu Dhabi?

Yes, freelancers can apply for a freelance license under Abu Dhabi’s professional license category. This allows individuals to work legally without a company setup.

Can I run a business from home in Abu Dhabi?

Yes, home-based businesses in Abu Dhabi, such as e-commerce, consulting, and freelancing,g are allowed to run businesses from home. However, a valid abu dhabi trade license is required to operate legally in Abu Dhabi.