When considering how to start a business in Abu Dhabi it is important to appreciate the fact that there is a need for an understanding of trade licenses because they are very important in carrying out business activities within the emirate. Trade license is a business runtime provision obtained from the governing bodies to allow a person or a firm to undertake business activities within the limits of the United Arab Emirates. Below is a discussion on the different trade license types, the procedures for applying them as well as other vital issues related to acquiring a license in Abu Dhabi.

What is a Trade License?

A trade license is a mandatory legal document issued by the Abu Dhabi Department of Economic Development (ADDED) that permits businesses to conduct transactions in the emirate. It is a formal request that enables the execution of any business, profession or craft in the Abu Dhabi region.

 Why is a Trade License Important in Abu Dhabi?

Infringement of the law by engaging in business activities within Abu Dhabi trade license without the benefit of an active trade license can attract serious legal repercussions and punitive measures. A trade license is of the essence because it:

 - Guarantees adherence to the business laws of the United Arab Emirates 

- Guides action in the opening of the corporate bank accounts 

-Facilitates the application for self

-Creates an impression when negotiating with clients and suppliers

-Safeguard the company’s brand name and business interests

Types of Trade Licenses in Abu Dhabi

Abu Dhabi issues various forms of business trade licenses to cater for the different business needs.

1. Commercial License

- This part covers all business organizations that carry out trading activity involving movement of goods.

- It encompasses such operations as buying, selling goods and providing services to people and other businesses as well as carrying these goods

- E.g. trade and tourism, hospitality management retail shops, general import and export businesses.

2. Professional License

- This license is issued to an Individual or a Company whose objectives are focused on making services.

- Thus, this business license includes for instance networks of consultants, spas, and the business of nurses. 

For those who wish to work for themselves and offer services without the presence of any employer above them.

3. Industrial License

- This pertains to the license for carpets which manufactures and processes the textile brought into the country.

- As in this case, making parts, installing ready-made items and wrapping them for selling places

In case anyone wishes to set up a facility or any other unit for the manufacture of goods, this license will be needed.    

4.Tourism License

   - Businesses that are relevant to travelling and sight-seeing promotion are regulated through this type of tourism license.

   - Examples are restaurants and hotels, travel companies and tour organisers.

   – Governed by the Department of Culture and Tourism.

Documents Required to Apply for Trade License

Necessary conditions:

- Passports of all shareholders with their respective copies

- A valid Emirates Id card in case if individual resides in UAE

- NOC from present sponsor if Individual is residing in UAE

- Proof of residence in UAE

- Detailed business proposal or company profile

Initial no objection certificate from the abu dhabi department of economic development

- Rent agreement or any documents indicating ownership of the premises

- Bank reference letter

Other Conditions Accordingly to the Issued License’s Nature:

- Curriculum certificates (for professional licenses)

- Approval of the primary regulatory authorities

- All licenses for the activities requiring security clearance

- Change in the environment impact assessments (required for the industrial licenses)

Benefits of Having a Trade License in Abu Dhabi

1. Possibilities for the Development of the Business

   - Possibility of tendering for government contracts

   - Opportunity to grow beyond the UAE’s boundaries

   - Taking part in fairs and business shows

2. Financial Gains

   - Accessibility to corporate bank accounts

   - Access to bank facilities for businesses

   - Facility to accept payment through the internet

3. Operational Advantages

   - Protection by the law of the land in the UAE

   - Capacity to provide work permits to employees

   - Access to the provision of service to the government.

4. Comprehensibility in the Market

   - Increased customer assurance

   - Improved colleague consultant interaction

   - Provision of a market edge.

How to Get Instant Trade License in Abu Dhabi

Abu Dhabi offers a simplified registration in the form of instant license for a number of business activities:

1. Visit the ADDED official website or the TAMM platform

2. On the homepage, click on “Falls Under Instant License” services

3. Opt for any of the alternatives provided for the business operations

4. Where appropriate, submit requisite details through the internet

5. Complete the transactions

6. Straightaway, acquire a virtual license

Who is eligible to instantly get the license in abu dhabi?

- Application must be made for any permitted business activity

- All the shareholders must be citizens of U.A.E

- The primary place of business must come first

No other licenses or approvals are required that are compliant to the business activity

Renewal of Trade License in Abu Dhabi

Trade licenses shall be renewed every year. The following activities are included in the process of renewal:

Steps for Renewal :

1. Go to the ADDED electronic services and log in

2. Select submit renewal application

3. Change company documents if necessary

4. Pay renewal charges

5. Collect renewed license

 Important Renewal Notes:

- Start renewal process 1-2 months to rubric expiry

- Make sure to pay all fines or rectify all violations

- All the expired papers should be updated

- Adhere to the terms and conditions attached to the license

Documents for Renewal:

- Trade license in original

- Valid Deed of Rent

- Receipt of payment of Municipality fees

- Passports and Visas of all members

- Other approvals that are related to the activity

Costs of licenses are determined by:

- Kind of license

- Nature of the business activity

- Legal structure of the company

- Geographical area within Abu Dhabi

- Volume of activities covered

Moreover, other costs may include:

- Fees for the Municipality

- Fees for registering with the Chamber of Commerce

- Fees for obtaining external approvals

- Fees for issuance of establishment cards

Fees for issuance of immigration cards

How can Flyingcolour business setup can help to acquire Abu Dhabi trade license?

Applying for a Abu dhabi trade license to operate a business setup in Abu dhabi is more than just a formality and demands strategy and execution. The Flyingcolour Business Setup team is ready to walk you through each step and most importantly to help in getting the trade license and putting up the business. Following is how we can bolster your understanding and achieve the commercial brokerage license issuance:

↠ Activity selection tailored to the client

We will help you look into the possible activities to be added and which ones fit the desired outcome and more satisfying, the business goal, and activities as well.

↠ Assistance with regulatory issues

We make sure that you don’t have to worry about the regulations since we will take you step by step through the entire process. You can leave all the implementation of the project to our team and enjoy your dreams while we take care of all the nitty gritties if any of the establishment.

↠ Help with issue resolution

In the event that a problem occurs, our PRO will liaise with the concerned parties on your behalf. This will allow the issues to be resolved without requiring your presence all the time.

↠ Continuous Communication

There will be always an officer assigned for relationship management for you and they will inform you about the business setup and allow the top most customer satisfaction on you.

↠ Assistance in Work Space

If it comes to that and if you need assistance positioning your business setup in Abu dhabi, our En Jae team will help you in looking for a suitable place for your level and operational requirements.

↠ Expert Assistance

We can also boast about our high level of professionalism, because it probably wouldn’t be useful otherwise. Our team is willing to take any comments or questions you may have regarding operation of your business or the license and give you answers of qualified nature.

Conclusion

Getting a Abu dhabi trade license follows a hierarchy which must be meticulously followed and observed especially as far as local rules are concerned. Although this might appear difficult, the advantages which come with having a valid trade license far exceed the initial energy and resources. It does not matter whether you decide for the instant license alternative or the standard application way; keeping all papers and requirements in order will certainly make it easier to conduct business in Abu Dhabi.