The capital city of the United Arab Emirates, Abu Dhabi is prominently growing as a commercial hub. From solid infrastructure to a diversified economy, the city offers a multitude of opportunities. According to reports, there has been an upsurge in new establishments demonstrating the dynamism of the Emirate as a core for startups, investors, and entrepreneurs. However, an Abu Dhabi trade license is a must to get started with a business in the region.
In this comprehensive guide, we will address the type of business licenses available in Abu Dhabi and the steps involved in starting a new business there.
Types of business licenses in Abu Dhabi
Numerous business activities are listed as permissible by the Department of Economic Development (DED) in Abu Dhabi. However, they are all classified under specialized categories of licenses that are provided by the government to corporate organizations.
Industrial license
Business owners who want to establish factories and manufacturing facilities for conducting business in Abu Dhabi can obtain an industrial license in Abu Dhabi. With this permit, they can run a factory, manufacture goods, sell them, and even participate in trade-related and industrial supply chain operations as third-party suppliers.
Professional license
This license is issued to people whose jobs depend on their intellectual expertise, academic achievements, and scientific ability. For example, consultants, auditors, and lawyers.
Commercial license
Companies engaged in transportation, export and import, real estate, infrastructure services, medical clinics, pharmacies, and hospitals are covered under a commercial license. It allows them to participate in a wide range of commercial activities.
Benefits of Abu Dhabi trade license
An Abu Dhabi trade license holds multiple benefits for entrepreneurs. Here are some reasons why you should consider launching your business in this dynamic city and obtaining a business license Abu Dhabi:-
- Legal recognition and legitimacy
A business license gives an official permit to do business. It gives validity and legal recognition to the company in the market. It allows potential investors and customers to know that the business is ethical and abides by the local rules.
- Wide market and range of business opportunities
Abu Dhabi is located at the hub of major global trade lines. Thus, it gives wide access to huge markets and trade opportunities. A business license Abu Dhabi allows its holders to trade things in and out of the country and form partnerships with other companies and nations.
- Tax perks
Businesses with trade licenses can avail tax breaks and other benefits. There is no personal income tax, no customs tax, and no business tax rate on certain types of income.
- Easy to obtain visas
With Abu Dhabi trade license, business owners can sponsor their employees and get visas for them. They can also hire skilled workers from all over the world and make their business grow and expand.
- Simplified business setup
Getting an Abu Dhabi trade license is pretty simple. The DED in the region makes the process easier by providing clear instructions and establishing quick steps.
- Booming market
The economy of Abu Dhabi has witnessed steadfast growth in the past two decades. Due to this rapid growth, businesses are able to access a large market of consumers and business partners for their products or services.
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- Geographical location
As mentioned earlier, Abu Dhabi is a hub for global trade. It provides easy access to the GCC region, the Middle East, South and Central Asia, Africa, and Europe. By obtaining a trade license in Abu Dhabi, businesses can reach billions of consumers and countless corporate clients.
- Hub for key industries
The capital city of the UAE is a hub for specific industries such as steel & aluminum manufacturing, glass production, plastics, automotive, and pharmaceuticals. Working in or with any of these industries can allow new businesses to access regional and international markets more easily.
- Excellent infrastructure
The world-class infrastructure of Abu Dhabi such as seaports, airports, road networks, warehouses, and internet/telecommunications helps businesses get off the ground.
Steps to obtain an Abu Dhabi trade license
The process of getting an abu Dhabi trade license is relatively straightforward and easy.
Choose a company name
The process starts with choosing a name for the company. Nevertheless, the company owner must ensure to comply with various rules and requirements established by the United Arab Emirates. For example, avoid any potentially offensive terms, titles shouldn’t be misleading or resembling to other existing businesses. In addition, the selected name must clearly describe the business activities.
Submit an application
There are two major jurisdictions available for entrepreneurs and investors in Abu Dhabi – the Mainland and Free Zone. With a free zone license, business owners can enjoy the benefit of paying 0% income tax, quick and easy office setup, and 100% business ownership. On the other hand, the Mailand company license provides direct access to the local market which is unattainable in the free zone. Shuraa Business Setup can advise you on the best jurisdiction and suitable license for your business.
Submit all the documents
There are a variety of business documents included in the business setup process. The business owners must arrange and submit them properly to the concerned licensing authorities. The specialists at Shuraa Business Setup can guide you on all the documents required based on your business model and make sure they are submitted correctly.
Collect the license
Once all the documents and paperwork are filed correctly, the authorities will review them and issue the license within a few days. The owners can collect their respective licenses and get started with their business operations.
Process the visas
After you have secured your business license, apply for employee visas, especially those who are expatriates. You can contact Shuraa Business Setup to help you apply for visas as part of your Abu Dhabi trade license application.
Documents required for the licensing process:-
- Trade name certificate
- Licensing form signed by the Shareholders
- Passport copies of all shareholders
- Certificate of naturalization
- Initial approval from the Ministry of Economy and Planning authorizing the company formation
- Copy of residence visa
- Approval from the authorities for proposed business activities
- Clearance Certificate from the local sponsor
- Memorandum of Association
- A letter from the bank authenticating the claimed finances of the company
- Tenancy contract
Abu Dhabi business license cost
The cost of a business license in Abu Dhabi depends on the business activities, the number of visas, the location of the business, and many other factors. Nevertheless, a free zone license is a cheaper alternative compared to other licenses.
Renewal of business license Abu Dhabi
- The applicant has to send all the necessary paperwork to DED such as a legal rental agreement, a letter from the Ejari, a typed BR/1 form, a copy of the business license, and copies of the passports of business partners.
- Once the renewal application is turned in, the applicant needs to wait for approval.
- The authorities will then issue a fee coupon which the applicant has to pay to renew the license.
- The renewed license will be sent to the applicant in print form by the DED.
Why Shuraa Business Setup?
Hence, the process of getting an Abu Dhabi Trade license is not very complicated. The team of consultants at Shuraa will help you get a suitable license for your business in Abu Dhabi. They will solely handle the paperwork and other legal formalities so that you can focus on running your business efficiently.
Reach out to Shuraa Business Setup and learn more about Abu Dhabi trade license requirements.
