The UAE capital has positioned itself as one of the centres for commercial activities in the Middle East. There are numerous benefits of starting a business in Abu Dhabi. The following article will highlight some of the key factors to consider and the advantages of business setup in Abu Dhabi.
Popular Areas for setting up a business in Abu Dhabi
Listed below are some the zones that you may consider setting up your business in:
1. Al Ain
Not only is the area serene with greenery all around, but it is also home to the UAE’s oldest dairy company, Al Ain Farms, founded four decades ago. Some other business giants located in Al Ain include Meaco Group and Jenaan Investments, among others.
Besides dairy, Al Ain is highly conducive for agricultural activities including fresh fruits and vegetables and poultry.
2. Abu Dhabi Global Market (ADGM)
ADGM is an international financial centre which follows the English Common Law, allowing businesses to operate according to the practices followed globally. Thus, it facilitates simpler monetary transactions for businesses dealing internationally.
ADGM consists of three independent authorities, including registration, financial and courts, which promote a business-friendly ecosystem.
3. Khalifa Industrial Zone Abu Dhabi (KIZAD)
Kizad provides large spaces to suit real estate and logistics industries. Moreover, it is well-known for its free zone—mainland solutions. While it is known that free zones companies in the UAE are limited to trading only within the jurisdiction they are located in, with kizad, entrepreneurs can obtain a second license. This dual license can be used to acquire a mainland office, apply for residency visas, and also trade freely across the UAE.
4. Masdar City
A venture of Mubadala Investment Company, Masdar City is a free zone dedicated to boosting renewable energy and sustainable urban development and also support the UAE’s transition to a knowledge-based economy.
It is the regional commercial hub for projects focusing on renewable energy. Thus, attracting entrepreneurs and investors passionate about the modern technology.
Trending Business Activities
One of the main advantages of business setup in Abu Dhabi is that the city provides a favourable environment for specific sectors, which include —
Manufacturing of equipment for the oil and gas industry: Production of valves, pumps, fitters, tankers, turbines, and compressors, among others
Oil and gas supply and distribution: Companies that deal in buying and selling of the resources
Providing logistical support to the oil and gas industry: Business which help move the petroleum
Marine activities: The Abu Dhabi ports provide a suitable environment for companies that manufacture materials used in the marine industry. More importantly, their businesses can run smooth due to close proximity with other GGC nations and also reap the benefits of offshore facilities
Major Benefits of Starting a Business in Abu Dhabi
The city is witnessing rapid development across industries including manufacturing, transport, tourism, healthcare. Below are some highlights:
Long term gain at affordable costs
Annual trade license renewals can often be a costly affair. However, starting a business in Abu Dhabi is not only as affordable as opening a company in Dubai, but also sustainable. Why? Mainly because the trade licenses are valid for two years. This allows entrepreneurs to focus on actualising their business goals instead of worrying about the legwork involved in renewals.
Quality of life
Abu Dhabi has been voted “the most liveable city in the region” by Global Liveablity Index 2021. The city offers an attractive cosmopolitan lifestyle, yet the calm favoured by families. Given that the city is home to expats from across the world, the residents can choose from a wide range of attractions, including international food and entertainment.
Benefits of Abu Dhabi business with ADNOC
For oil and gas investors, associating with Abu Dhabi Oil Company (ADNOC) is perfect for starting a business in Abu Dhabi. In many cases, it is also obligatory to get a permit from this governmental authority’s Supreme Petroleum Council (SPC). The SPC is the highest energy decision-making body and important one for any business conducting oil and gas related activities. Some of these include supply and distribution of oil and gas to and from ADNOC, manufacturing of equipment that aid the industry, and logistical support, among others. Furthermore, any other businesses, even if it is a cafeteria or a grocery store, located within ADNOC’s jurisdiction need to get approvals from SPC.
To learn more about the benefits of starting a business in Abu Dhabi, get in touch with Shuraa Business Setup. A free consultation with one of our company formation specialists will help you get a clear picture on the suitable jurisdiction, corporate structure, costs involved, documentation required and other formalities for setting up a business in Abu Dhabi.
Obtaining a trade license is a crucial step for anyone looking to start a business in Abu Dhabi. A trade license is a legal document that allows individuals or companies to conduct business activities within a specific jurisdiction. Having a trade license in Abu Dhabi is not only a legal requirement but also essential for establishing credibility and trust with customers and partners.
Abu Dhabi has been an ideal destination for business owners as well as aspiring entrepreneurs from across the world. Thanks to the affordable cost of getting a trade license in Abu Dhabi.
Setting up a business in Abu Dhabi is a wise option for companies as it is one of the most affordable Emirates for commercial activities. The trade licenses in the Abu Dhabi Mainland are regulated by the Abu Dhabi Department of Economic Development (ADDED) with a validity of one year.
In this article, we will explore in detail the types of business licenses in Abu Dhabi, the documents required, and the approximate prices as well as the process involved in company registration in Abu Dhabi.
Types of Trade Licenses in Abu Dhabi
Abu Dhabi offers various business licenses to businesses based on their nature and activities. Here are the main types of trade licenses available:
1. Commercial License
This is the most common type of license, and it is required for businesses that are involved in trading activities, such as the buying, selling, and distribution of goods. This includes businesses that import and export goods and those that sell them retail or wholesale.
2. Industrial License
This license is required for businesses that are involved in manufacturing activities. This includes businesses that produce goods from raw materials and businesses that assemble goods from pre-made components.
3. Professional License
This license is required for businesses that provide professional services, such as consulting, accounting, legal services, and healthcare.
4. Tourism License
This license is required for businesses involved in the tourism industry, such as hotels, travel agencies, and restaurants.
The type of license that you need will depend on the nature of your business. The Department of Economic Development (DED) is responsible for issuing all trade licenses in Abu Dhabi. Additionally, businesses may need to obtain special permits or approvals from other relevant authorities depending on their specific activities.
We recommend consulting with business setup experts at Shuraa to determine which license and approvals you need for your business setup in Abu Dhabi.
The E-commerce License (Tajer Abu Dhabi)
Tajer Abu Dhabi, also known as the Abu Dhabi Trader License, is a special type of trade license issued by the Abu Dhabi Department of Economic Development (ADDED) specifically designed for e-commerce businesses.
Unlike the general trade licenses, Tajer Abu Dhabi addresses businesses that operate online to allow them to conduct business through websites and social media platforms.
A major benefit of this license is that you don’t need to have a physical store or office space to obtain it. This makes it attractive for startups, small businesses, and freelancers who operate virtually.
While Tajer Abu Dhabi allows for e-commerce activities, it’s not for all business types. There are business activities listed eligible for this license.
Initially restricted to UAE nationals for specific activities, the program has broadened. Now, GCC nationals and UAE residents can apply under various legal structures.
Documents Required to Get a Trade License in Abu Dhabi
The exact documents required to get a trade license in Abu Dhabi can vary depending on your specific business setup, but here’s a general list of common requirements:
Certificate of trade name
Copies of passports and visas (for all shareholders)
Memorandum of Association (MOA) (Only applicable if you have a local sponsor)
Additional documents (depending on your situation)
How to Get a Trade License in Abu Dhabi?
Obtaining a trade license in Abu Dhabi involves several steps, including:
1. Choose Your Business Activity and Legal Structure
Identify the specific activities your business will undertake. There are various categories with numerous sub-activities.
Decide on your business structure, such as a sole proprietorship, limited liability company (LLC), or a branch of a foreign company. Each has its own requirements and implications.
2. Reserve a Trade Name
Pick a unique and appropriate trade name for your business that complies with DED guidelines. You can submit a reservation application online or through DED service centers.
3. Secure a Physical Office Space (Unless Applying for a Tajer License)
For most licenses, you’ll need to acquire physical office space in Abu Dhabi. Secure a tenancy contract and be prepared to present it during the application process. (Not required for Tajer Abu Dhabi e-commerce license).
4. Apply for the Trade License
Submit your completed application form, along with the required documents and fees, to the Abu Dhabi DED. Depending on your business activity, you might need to obtain specific permits, certifications, or approvals from other government entities.
5. Secure Business Location
Lease a commercial space suitable for your business operations. Obtain the tenancy contract and have it attested by the relevant authorities.
6. Final Trade License Issuance
After fulfilling all the requirements and approvals, the DED will issue your official trade license, allowing you to operate your business legally in Abu Dhabi.
Consider consulting with business setup specialists in Abu Dhabi at Shuraa Business Setup for guidance throughout the process.
Instant Trade License in Abu Dhabi
Any interested parties, including residents and visitors and avail instant trade license facility in Abu Dhabi
The small business license in Abu Dhabi allows a combination of trading as well as professional and service-oriented business activities
More than 2,500 activities qualify for instant trade license in Abu Dhabi without having an office space for the first year of business
The license comes with a default visa quota for up to three employees
You do not need to obtain an NOC from current visa sponsor to apply for instant business license
You can get the instant license in Abu Dhabi in just one working day
Why Get Abu Dhabi Business License?
There are several compelling reasons to acquire a trade license in Abu Dhabi if you’re planning to operate a business there.
Legality and Recognition: A trade license acts as a legal permit, authorizing you to conduct business activities within Abu Dhabi. It signifies your compliance with local regulations and establishes your business as legitimate.
Business Setup and Operations: The trade license in Abu Dhabi serves as a foundational permit to allow you to establish your business presence and conduct commercial activities within the emirate.
Access to Market Opportunities: With a license, you gain access to Abu Dhabi’s thriving market and its potential customer base. This opens doors to conducting business and generating revenue.
Investor Confidence: For businesses aiming to attract investors, possessing a trade license demonstrates seriousness and adherence to regulations. This can be a crucial factor in securing investment opportunities.
Banking and Financial Services: Securing a trade license can simplify opening business bank accounts and accessing financial services necessary for operating your business.
What is the Cost of Obtaining Abu Dhabi Trade License?
The Abu Dhabi Trade License cost generally ranges from AED 10,000 to AED 30,000. However, you should know that the overall cost of obtaining a trade license isn’t fixed and can vary depending on several factors:
Type of License: There are different licenses for various business activities (commercial, industrial, professional, etc.), and each might have its own fee structure.
Legal Structure: The legal structure you choose for your business (sole proprietorship, LLC, etc.) can influence license fees.
Business Activity: The specific activities your business engages in may affect the applicable fees.
Location: The location of your business (specific areas within Abu Dhabi) might have slight variations in fees.
Tenancy Cost (except for Instant License): For most licenses, you’ll need physical office space and a tenancy contract. The cost will vary depending on location and office size. This can be a significant cost factor, but the instant license eliminates this upfront requirement.
Shuraa professionals can guide you through the process, estimate costs based on your requirements, and potentially help optimize your application for cost-effectiveness.
How to Add Activity in Trade License Abu Dhabi
Adding activities to your existing trade license in Abu Dhabi involves a few steps. Here’s a breakdown of the process:
1. Gather Required Documents
Application form for amending a trade license
Copy of your current trade license and registration certificate
Completed business license amendment application
No Objection Certificate (NOC) from relevant government entities if your new activities require them (e.g., Department of Health for medical services).
Proof of your company’s good standing (financial statements etc., may vary).
2. Initial Approval
Submit your application and required documents to the Department of Economic Development (DED) or the relevant authority that issued your original license. Await DED’s initial review and approval to proceed with adding the activities.
3. Secure Approvals from Other Entities (if applicable)
Depending on the new activities you wish to add, you might need specific permits or approvals from other government departments. DED will guide you in this aspect.
4. Pay Applicable Fees
Once approved, settle any fees associated with amending your trade license.
5. Collect Your Updated Trade License
Upon successful completion of the process and payment of dues, you’ll receive your updated trade license reflecting the newly approved activities.
Simplify Your Abu Dhabi Company Formation with Shuraa
Getting a trade license in Abu Dhabi is a key step if you want to start a business here. It makes your business legal and gives you access to many benefits, like signing contracts and growing in a strong economy. The process can seem complicated with all the steps and documents needed, but it’s worth it for the success and growth of your business.
To make it easier, consider getting help from Shuraa Business Setup. Our experts can guide you through the entire process, from registering your company and getting the trade license to handling paperwork, visa help, office space, and more.
An Abu Dhabi business (economic) license is essential for legally operating any commercial activity in the emirate’s mainland. It is obtained digitally via the TAMM platform using UAE Pass.
Options include the simplified Abu Dhabi Trader Licence (formerly Tajer Abu Dhabi), ideal for startups, home-based businesses, and e-commerce with no physical office required initially (often for the first 3 years) and over 1,200 activities available—primarily for UAE nationals, GCC citizens, and residents (expats with residency visas).
Non-resident foreigners can opt for the Virtual Licence to set up remotely with 100% ownership in select sectors. Licensing and registration are regulated by the Abu Dhabi Department of Economic Development (ADDED) and its arm, the Abu Dhabi Registration and Licensing Authority (ADRA), for a fully streamlined, digital process.
2. Do I need a physical office to get a trade license in Abu Dhabi?
Not necessarily. The instant trade license option allows you to obtain a license initially without physical space. However, a regular trade license typically requires proof of a commercial office lease agreement.
3. What are the steps to renew a trade license in Abu Dhabi?
You need to review your tenancy contract, attain approvals from various administrative authorities, and file your renewal application. Once you’re done with these steps, simply pay the Abu Dhabi trade license renewal fee from the payment voucher.
4. How can I get a trade license in Abu Dhabi?
You can follow the below-mentioned process to obtain an Abu Dhabi business license:
Choose the license type
Enlist the business activities
Pick a legal structure
Register a trading name for your venture
Submit your application for initial approval by the DED
Find a location to incorporate your business and secure a tenancy contract
Obtain Trade License
5. How long does it take to get a trade license in Abu Dhabi?
The processing time can vary depending on the complexity of your application. A regular license can take 4-6 weeks, while the instant license can be issued on the same day if submitted during working hours.
6. What happens if I don’t renew my trade license?
Operating a business with an expired trade license is illegal and can result in fines and penalties. It’s crucial to renew your license before its expiry date to maintain legal compliance.
Disclaimer: The information in this post is for general guidance only and may change due to updates in government policies or regulations.
