Starting a business in Abu Dhabi is a great opportunity. The UAE offers a strong economy and a strategic location. It also has countless business opportunities. Knowing how to get a business license for Abu Dhabi is, therefore very essential for any business venture. This article gives you all the answers you may need on the requirements to cost about getting a business license in Abu Dhabi. This license can be applied to entrepreneurs and startups. Moreover, SMEs, foreign investors, and business owners in corporations need this. It is also best for those who want to do business in Abu Dhabi or expand their operations to the Middle East.

What is a Business License in Abu Dhabi?

A business in Abu Dhabi is an official document, which will let one do business within the Emirate. The obvious thing here is that a business cannot function without such papers for it would then never operate lawfully in that particular Emirate. Various kinds of business licenses exist in Abu Dhabi. But, your industry or what you are doing will determine the suitable license for you. For instance, there exists a commercial license given out to trading businesses in Abu Dhabi, professional services, and industrial licenses. Every license, however, has its specific criteria.

Why Do You Need a Business License in Abu Dhabi?

All the business in the Emirate has to be licensed in Abu Dhabi. It will also provide you with evidence that your business is meeting all the law requirements. It may add more credibility to your business, and then you will be able to sign contracts, rent office space, and open corporate bank accounts. There are different types of business licenses in Abu Dhabi. These are applied and issued according to the type of business.

Commercial License: for trading and general businesses

Professional License: for service-based business, including consulting, legal, and health

Industrial License: for manufacturing and industrial activities

Tourism License: for tourism-related activities such as travel agencies and hotels

Freelance License: for those who want to be freelancers

Conditions of Issuance of Abu Dhabi Business License

Every type of business in Abu Dhabi has its specific conditions affixed. In general, the most common requirements include:

Business Activity: Briefly describe what business activity you intend to undertake

Trade Name: The trade name associated with the business will be required to be registered by the business since an exclusive name for your business identifies it.

Legal Form: You must have ascertained a legal form – LLC, Sole Proprietorship, or even a branch office.

Initial Approval: Obtain a pre-approval from DED of Abu Dhabi.

Address: Offer a physical place of the registered business place in Abu Dhabi.

Partner: At times, a business model is to be a business that necessitates a local partner

Applying for the license to do business in Abu Dhabi requires fulfilling the conditions mentioned above.

How To Apply for A Business License In Abu Dhabi

This is a long procedure to get a business license in Abu Dhabi, but if you keep reading and follow these easy steps, you will find it easy.

Step 1: Choose Your Business Activity

Select an economic activity that is in line with your business objectives. There are several licenses available under the business license category. They will allow you to carry out specific economic activities in Abu Dhabi. Select them according to your business activity requirement for instance, you might have to take a commercial license for selling products.

Step 2: Select a Trade Name.

After you choose a business activity, come to the selection of your trading name. Your name will first have to be distinguishable. Moreover, it shall designate your business and comply with Abu Dhabi naming regulations. If your trade name is registered, it gives an assurance that you won’t lose time after it has already been employed by anyone.

Step 3. Choice of Legal Form

The legal structure of your business will affect your application for a business in Abu Dhabi. You will choose an appropriate form to suit your aims and needs.

Step 4: Apply for Initial Approval

Secondly, get initial approval in Abu Dhabi from the DED. This is aimed to ascribe to the fact that the government grants permission to your business undertaking. Note the fact that an initial approval means it’s not a licensing license; it’s preliminary approval.

Step 5: Office Rental

Most of the Abu Dhabi firms need to have a physical office. You will have to locate an office rent it and ensure that the office complies with DED. You will need to submit a tenancy contract for your licensing process.

Step 6: Present All Required Documents to DED

Submit all documents required in DED that include the application form and trade name approval. initial approval, and tenancy contract. See to it that these are right so that delays will be avoided.

Step 7: Pay the Fees

Finally, pay the fees for a business in Abu Dhabi. The fees for a business license in Abu Dhabi vary depending on the type of license and business activity. You should find out the current fee structure to help you budget.

Step 8: Obtain Your Business License

After completing the whole process, once you pay all the license fees, you shall be issued a business in Abu Dhabi, therefore you can begin operating the business legally.

Business License Cost in Abu Dhabi

The cost of a business in Abu Dhabi depends on the type of business, activity, and legal structure. Generally, in Abu Dhabi, the costs for the business license consist of fees for trade name registration, initial approval, and document notarization. Extra costs will have to be incurred if there is a need to rent office space or PRO services in Dubai to facilitate documentation and approvals.

Trade License Renewal in Abu Dhabi

Upon registering a business in Abu Dhabi, you will notice that the license has to be renewed. Like trade license renewal Dubai, renewal requires submitting updated documents as well as payment of renewal fees to retain your license. Renewal of your business license timely saves you fines and keeps you in good standing with local authorities.

PRO Services in Dubai and Abu Dhabi

Such services prove helpful if hiring PRO services in Dubai or Abu Dhabi is considered for managing paperwork and different approvals. Often known as PRO Services Dubai, it helps deal with all matters about acquisition, approvals, documentation, or other legal requirements. Mostly small businesses find it highly convenient to avail of PRO services, while many big businesses look at it as a routine service for reducing the efforts put into dealing with licenses and their issues.

Dubai business setup vs. Abu Dhabi business setup

Business setup in Dubai like setting up in Abu Dhabi but, at the same time, varies in procedures about licensing needs, costs, and norms and requirements. For example, trade licenses in Dubai are different procedures when comparing business licenses in Abu Dhabi. Although both cities boast many business opportunities. These different requirements make the difference in deciding whether it is good or bad to set up a business here.

FAQ’s

1. How long would it take to get a business in Abu Dhabi?

It normally takes this period, a few days or a week to two depending on the license type as well as on the documentation completion. You can benefit from the accelerated process if you happen to employ PRO services in Dubai and Abu Dhabi.

2. Is there a renewal period for a business in Abu Dhabi?

Yes, business licenses have to be renewed every year just like trade license renewal in Dubai.

3. Can I do business in Dubai with an Abu Dhabi license?

No, every Emirate has its licensing requirements. A business in Abu Dhabi doesn’t permit you to operate in Dubai and if you want to do business there you would need a separate trade license Dubai.

4. What is the approximate amount that is required for a business in Abu Dhabi?

The prices differ, but some of them at least would fall into the categories of fees relating to a trade name and fees to attain preliminary clearances on other documents. For correct quotations, the DED can be approached or any PRO services company in Dubai can be consulted.

5. Are Abu Dhabi Free Zones available?

Abu Dhabi has some Free Zones that offer benefits in terms of tax, full ownership from foreign parties, and also easy business setup procedures. Hence, Free Zones are among the favorite locations for international business owners looking forward to establishing their businesses in the UAE.

Conclusion

Obtaining a business in Abu Dhabi is required for those interested in business expansion. From understanding the needs and process to knowing what it costs to obtain a business license in Abu Dhabi. We hope by reading this guide one has made things much simpler than before.