Planning to put up a business in Abu Dhabi? Comply with local laws and apply for a trade license in Abu Dhabi.

Ranked 1st among Middle East free zones, Abu Dhabi has leveraged a brand name as the most influential business center of the Arab Gulf region. Be it for its unprecedented location that embraces emirates to conduct trade related roles in facilitating goods between the western and eastern regions or a free market economy with no taxes by either companies, individuals or FDI’s, Abu Dhabi stands as a major source of attraction for entrepreneurs and businessmen from across the world.

Every country has rules and regulations for setting up businesses and the UAE is no different. Entrepreneurs and investors need to comply with local laws. Understanding the legal requirements is essential to reducing any issues while setting up your business in Abu Dhabi.

Like every country encases a set of rules and regulations for a business set up, Abu Dhabi as well works on similar lines. Thus, acting as per the right guidelines for business registration along with itspre-requisites, depicts the best interest of the entrepreneurs and investors to comply with the UAE laws. In favor of these aspiring entrepreneurs, the write up shall throw light to have an adequate transparency for getting a trade license in Abu Dhabi. Before starting business operations in Abu Dhabi, the below accountability shall meet the legal requirements of all the related government authorities and to ensure maximum benefits commercially to the business authority:

• Identification of the categories (industrial, professional and commercial) and kind of business activities to be involved in the business operations.
• Identification of all the pertaining business activities that must match and accommodate every business license, with a maximum of 10 business activities/licenses.
• Identification of the appropriate legal form of the business which must suit the business activities and the strength and countries of the business owners.
• Identification of all the necessities and factors pertaining to acquiring the required license.
• Determining the name of the business trade.
• Submission of an application to The Abu Dhabi Department of Economic Development (ADDED) for a preliminary approval (valid for 6 months) either via internet, a document creating consultancy/ legal consultant or even personally.
• Registration of the trade name and post a preliminary approval either via internet, a document clearing consultancy/ legal consultant or personally.
• Leasing a business office (suggested that the counter encompassing the planning department of Abu Dhabi Municipality is contacted to have a verification of the business premise as per the business activities).
• Preparation of the requisite documents like the validation proof of other government authorities and memorandum of association.
• Submission of the application to the department to have a final license obtained.
• Payment of the fees and the collection of the trade license.

There are fundamentally three general licensing categories that are issued in Abu Dhabi for registering a company on the basis of the kind of activities involved in a business. These are:

1. Industrial License: It must be issued to a company associated with manufacturing based business activities.
2. Commercial License: For any trading kind of activity, a commercial license is issued.
3. Professional license: It must be issued to the various employees, professionals, artists, craftsmen and service providers.

The Abu Dhabi Department of Economic Development (ADDED) is the main government body responsible for issuing licenses. Operating in varied locations, the department’s sole responsibility is to ensure licensing based services.

It must be duly noted that the founders of the private firm must not be less than 3 persons according to Federal Law No. 8 of 1984. To obtain a license, the assistance of a UAE national is needed either as a partner or as a service agent (for professional licensing). The latter must assist in applying for a trade license & acquiring a trade license renewal in Abu Dhabi.