It is mandatory to renew a trade license as it is the most important legal obligation for continuing business operations in Abu Dhabi. It is not only a legal requirement, but also a business must hold a valid license to build its trust and compete in the market. In case you fail to renew your trade license before the expiry, you may face fines and legal trouble, or even suspension of your business operations.
For many business owners, the trade license renewal in abu dhabi is assumed to be complicated, stressful, and time-consuming. In this article, we make it simple for you by explaining each aspect of trade license renewal in Abu Dhabi. At Now Consultant, our business setup experts help you renew the trade license of your business in Abu Dhabi.
Why Trade License Renewal Is Important?
The following points highlight the importance of trade license renewal in Abu Dhabi:
Legal Requirement:
The importance of trade license renewal can be analyzed at this point, as it is a compulsory legal obligation under the Abu Dhabi Department of Economic Development (ADDED). Every business must hold a valid license to operate within the emirate.
Prevent Business Disruption:
A valid license is a legal obligation; and, in other words, an expired license can lead to delays or restrictions in your business operations. If you do not renew your trade license in time, it may also impose heavy fines and penalties by the Abu Dhabi legal authorities.
Build Trust:
Your valid and timely renewal of the trade license on time shows that your business is responsible and credible. Therefore, the validity of a trade license builds trust in your business among the clients, investors, and government authorities in Abu Dhabi.
Long-Term Benefits:
The renewal of trade licenses in Abu Dhabi has long-term financial and legal benefits. A valid trade license in Abu Dhabi helps your business secure government contracts and apply for bank loans.
When You Should Renew Your Trade License In Abu Dhabi:
Your trade license is an official document that acts as proof of the existence and smooth functioning of your business operations in Abu Dhabi. Therefore, you need to be very conscious of its validity and expiry date as discussed below:
Before Expiry of Trade License:
In Abu Dhabi, a trade license is mostly valid for one year. Therefore, business owners are required to renew their license before its expiry. Business setup experts recommend starting the renewal process at least one month before the expiry date.
Grace Period for Late Renewals:
The Abu Dhabi government provides a grace period of 30 days even after the license expiration date. However, this does not mean you can freely operate your business during this time without any risk. As your license is considered expired in the grace period, you are under strong threats that can still result in fines and penalties.
Avoid Delays and Risks:
It is advised to start the renewal process at least one month before expiry, as it allows you to address issues, such as an expired tenancy contract or missing approvals. If you experience delays in renewal, it can affect your ability to sponsor new visas or renew existing ones, participate in business deals, and access government portals.
Requirements for Trade License Renewal in Abu Dhabi
The following requirements must be fulfilled in order to renew the trade license of your business in Abu Dhabi:
Abu Dhabi Mainland:
The following are the requirements for Abu Dhabi mainland:
- Ejari registration certificate and a copy of the tenancy contract
- A copy of the current trade license
- Passport copies of all business partners and relevant people
- Copies of valid Emirates IDs of all stakeholders
- Family member IDs (if needed)
- No Objection Letter (if needed)
- Filled BR/1 form (the trade license renewal form)
Abu Dhabi Free Zone:
The following are the requirements for Abu Dhabi Free Zone:
- Original and copy of the business trade license
- PO Box renewal confirmation
- Passport copies of shareholders
- Audit report (for some specific Free Zones)
- Additional Documents (depending on the Free Zone)
The above requirements for the mainland and the Free Zone may vary depending on your business activity and company structure.
How To Renew a Trade License In Abu Dhabi – Step-by-Step Guide
There are two ways to renew your trade license in Abu Dhabi: one is online and the other is offline. However, the first three steps are the same for both methods as given below:
Step 1: Check Your Trade License Validity
In the first step, you have to check and confirm the expiry date of your current trade license. You can check this on the license document issued by the Department of Economic Development (DED) or your Free Zone Authority.
Step 2: Review Your Tenancy Contract
In the second step, you have to review the validity of your tenancy contract, and it must be registered with the Abu Dhabi Municipality. The tenancy contract should have a minimum of one month left before its expiry when applying for renewal. If your contract has expired, you have to renew it before applying for license renewal.
Step 3: Gather All Required Documents
In the third step, you need to collect all the required documents for the renewal process. The required documents for the mainland and the Free Zone are listed above.
Step 4: Choose a Suitable Renewal Method
Here, you have two options to decide how you want to renew your license: either online or offline. The online method through the TAMM portal, which is available 24/7, is comparatively more convenient than the physical method.
A. Online Renewal Through TAMM
The following is the online process of renewing your trade license through the TAMM portal:
- Visit the TAMM Platform
You need to start by visiting the TAMM portal, which is the official Abu Dhabi government service platform. First, you have to check whether your business type in Abu Dhabi is eligible for online license renewal or not.
- Log in Using UAE Pass
In this step, you have to log in with your UAE Pass, which is the official digital ID for UAE residents. This is a secure and easy access to your business details for applying for renewal.
- Submit Your Renewal Application
Here, you can fill in the online renewal form with your trade license details. After filling information, the next step is uploading your documents and submitting the application.
- Pay the Renewal Fee Online
When you submit the application, the next step is to pay the renewal fee. You can pay the license renewal fee by using any online means, such as a debit or credit card.
- Download the Renewed Trade License
After successful payment, the system will process your application, and upon confirmation, you will receive a message from the authorities. You will be informed to download your renewed trade license from the TAMM portal
B. Offline Renewal at DED or Free Zone Office
The following is the offline renewal process of your trade license:
- Visit the Relevant Authority
First, you need to visit the Abu Dhabi DED office if your business is in the mainland or go to the respective Free Zone Authority if you are the owner of a Free Zone company in Abu Dhabi.
- Submit Application and Documents
Secondly, you need to fill out the BR/1 application form for the renewal of the trade license and submit it to the relevant person. You must attach the hard copy of the required documents, along with the application. The designated person of the relevant authorities will review your submission and may ask for clarification.
- Pay the Fee and Collect the License
Once your application is approved, you will be informed to pay the renewal fee at the fee counter. After payment, your new license will be printed or emailed to you.
Abu Dhabi Trade License Renewal Fees:
The cost to renew a trade license in Abu Dhabi generally starts from AED 890 and can go up to AED 12,000, depending on several factors. Your renewal fee depends on the chosen jurisdiction, the type of license, and the renewal duration you choose.
For example, renewing an economic license with up to six activities may cost AED 890, while commercial licenses usually range between AED 10,000 to AED 12,000.
- Along with the license renewal amount, you also need to cover:
- License renewal service charges
- Commercial activity fees (based on your business sector)
- Abu Dhabi Chamber of Commerce fee
- Municipality charges (based on your tenancy contract and office space size)
To get the most accurate estimate, it is recommended to get help from business setup experts at Now Consultant.
Get Expert Help to Renew Your Trade License In Abu Dhabi
If you are thinking of renewing your trade license in Abu Dhabi by yourself, you should be aware that it involves strict timelines, specific document requirements, and clear coordination with government portals like TAMM or visiting DED or Free Zone offices.
Keep in mind, a small mistake can cause a huge loss for your business. At Now Consultant, our expert team follows each step, from checking your license validity and tenancy contract to gathering the exact documents and submitting the application. We help you avoid penalties and remove any looming threats that might affect your business operations.
Can I renew my Abu Dhabi trade license without a tenancy contract?
In Abu Dhabi, a valid tenancy contract is mandatory for trade license renewal. However, certain business activities may be exempt from this requirement. Therefore, you must consult with the business setup consultant, such as Now Consultant, to determine if your business qualifies for this exemption.
How long does it take to renew a trade license in Abu Dhabi?
The renewal process duration is not exact for all types of businesses in Abu Dhabi; however, it takes about 1-2 weeks to complete the process. The time required for the renewal process depends on your chosen business activities, selection of online or physical platform, and the preparation of required documents.
What is the grace period after my trade license expires?
Abu Dhabi provides a 30-day grace period to business owners after the expiration of a trade license. During this time, business owners should renew their trade license as soon as possible to mitigate the risk of penalties.
What happens if I don’t renew my trade license on time?
If you do not renew your trade license on time, it can lead to several consequences, including fines ranging from AED 250 to AED 5,000 and suspension of business activities. There are looming threats of potential legal issues and blacklisting of your company.
Can I renew my trade license if there are outstanding fines?
Outstanding fines must be settled before renewing your trade license in Abu Dhabi. It is mandatory to clear all outstanding fees and fines before initiating the renewal process.
Can I change my business activity during the renewal process?
Yes, you can change your business activities during the trade license renewal process. This involves submitting an amendment application to the ADDED or Free Zone Authority, along with the necessary documentation and approvals.
