18-07-2024
Abu Dhabi, the capital of the UAE, is a prominent business hub offering a wealth of opportunities for entrepreneurs and companies. Securing a trade license is a critical first step to establish a legal business entity in Abu Dhabi. This blog will guide you through the various types of trade licenses, the application process, and the requirements needed to operate your business successfully.
Types of Trade Licenses in Abu Dhabi
- Commercial License
- Description: This license is issued to businesses engaged in trading activities such as buying and selling goods, including general trading, contracting, and real estate.
- Examples: Retail shops, import/export businesses, and general trading companies.
- Professional License
- Description: This license is issued to individuals and companies providing professional services that rely on intellectual abilities and expertise.
- Examples: Consultancy firms, law firms, marketing agencies, and IT service providers.
- Industrial License
- Description: This license is required for businesses involved in manufacturing, producing, and assembling goods.
- Examples: Factories, manufacturing plants, and industrial production units.
- Tourism License
- Description: This license is specifically for businesses operating in the tourism sector, including travel agencies, tour operators, and hospitality services.
- Examples: Travel agencies, tour guides, and hotels.
- Agricultural License
- Description: This license is for businesses involved in agricultural activities, including farming, livestock breeding, and fisheries.
- Examples: Farms, fisheries, and agricultural production companies.
Application Process for Trade Licenses in Abu Dhabi
Step 1: Determine the Business Activity
- Description: Clearly define the business activity you intend to undertake. This will help you determine the type of trade license you need.
Step 2: Choose a Business Structure
- Description: Decide on the legal structure of your business. Common structures include sole proprietorship, partnership, limited liability company (LLC), and branch of a foreign company.
Step 3: Trade Name Registration
- Description: Choose and register a unique trade name for your business. The trade name should comply with the UAE’s naming conventions and not conflict with existing businesses.
- Authority: Department of Economic Development (DED) in Abu Dhabi.
Step 4: Initial Approval
Description: Obtain initial approval from the DED. This approval confirms that the proposed business activities are permitted in Abu Dhabi.
Requirements: Submission of business plan, passport copies of shareholders, and initial approval form.
Step 5: Memorandum of Association (MOA)
Description: Draft and notarize the Memorandum of Association (MOA) if you are establishing an LLC or partnership.
Authority: Notary public or legal advisor.
Step 6: Lease Agreement
Description: Secure a physical office space and obtain a tenancy contract (Ejari). This is mandatory for all businesses operating in Abu Dhabi.
Requirements: Tenancy contract, Ejari certificate, and office location details.
Step 7: Final Submission
- Description: Submit all required documents to the DED for final approval. This includes the initial approval certificate, notarized MOA, trade name certificate, lease agreement, and any additional documents based on the business activity.
- Authority: Department of Economic Development (DED).
Step 8: Payment of Fees
Description: Pay the necessary fees for the trade license issuance. The fees vary depending on the type of license and business activity.
Step 9: Issuance of Trade License
- Description: Once the DED approves your application and payments are made, the trade license will be issued, allowing you to legally operate your business in Abu Dhabi.
Requirements for Trade License Application
- Completed Application Form: Filled and signed trade license application form.
- Business Plan: Detailed business plan outlining your business activities, objectives, and strategies.
- Passport Copies: Copies of passports and visa pages of all shareholders and partners.
- Initial Approval Certificate: Obtained from the DED.
- Memorandum of Association (MOA): Notarized MOA for LLCs and partnerships.
- Trade Name Certificate: Proof of trade name registration.
- Tenancy Contract (Ejari): Valid lease agreement for the business premises.
- NOC from Sponsor: No Objection Certificate (NOC) from the current sponsor if the applicant is on an existing UAE visa.
- Approvals from Relevant Authorities: Additional approvals may be required from specific authorities depending on the business activity (e.g., health, tourism, education).
Conclusion
Obtaining a trade license in Abu Dhabi is a structured process that involves several steps and documentation. Understanding the different types of trade licenses and their specific requirements is crucial for setting up a business successfully. At Bavas Business Solutions, we provide expert guidance and support to help you navigate the trade license application process smoothly. Contact us today to learn more about our services and how we can assist you in establishing your business in Abu Dha