Obtaining and renewing a Business Licence in Abu Dhabi

A trade licence is essential for those looking to start or continue a business in Abu Dhabi. Without a trade licence, a business is not permitted to operate in Abu Dhabi and can face fines or penalties. Whether obtaining a new licence or renewing an existing licence, there are specific steps that must be taken to remain in compliance with local regulations.

Determining the nature of your business activity is the first step to getting your business legally recognised under one of the six types of licences available:

• Industrial – any industrial or manufacturing activity involving the production of goods from raw materials or the assembly of goods from pre-made components.
• Commercial – any commercial trade activity relating to goods, commodities or services including import and export, retail and wholesale.
• Professional – any activity providing professional services, such as consulting, accounting, legal services and healthcare.
• Tourism – any activity related to tourism including hotels, travel agencies and restaurants.
• Agricultural – any activity related to cultivation, fisheries, livestock, pest control, fertilisers, veterinary, supply of equipment and production facilities.
• Occupational – any activity related to artisans and craftsmen who practice and earn from an independent livelihood.

Next, you need to select one of the legal forms that suits your business activity and ownership. This includes setting up as a sole proprietor, forming a limited liability company (LLC), partnership, public company, or a branch of a foreign company. The choice will depend on the aims and operation of the business and will impact on your legal obligations and what activities are permitted.

Once the business structure has been decided, the next step is to reserve a trade name. The trade name must be unique, reflect the nature of the business and comply with the local regulations. The chosen trade name can be checked and reserved through the Abu Dhabi Department of Economic Development (ADDED).

Having reserved the trade name, the next step is to apply for initial approval from ADDED. This approval is important because it confirms that the business name and activities are permitted in Abu Dhabi, and that the business meets all the requirements to proceed.

Once the initial approval certificate has been issued by ADDED, the applicant is required to obtain all the relevant documentation required for the business activity, legal form and ownership criteria, which may include:

• Memorandum of Association (MOA)
• Partnership Agreement
• Foreign company accreditations
• Local Service Agent Agreement (LSA)
• Additional approvals from other entities, such as the Abu Dhabi Municipality, the Department of Health, the Abu Dhabi Tourism Authority, etc.
• Suitable business location and tenancy contract
• Identification documents

These documents must then be submitted to ADDED along with the required fees.

Once all documents have been reviewed and approved, the business will be issued with its trade licence. This licence allows the business to operate in Abu Dhabi, open a bank account, hire employees and commence trading.

To check the status of the trade licence in Abu Dhabi, use ADDED’s eServices portal and enter the trade licence number. This will show the status of the licence and whether it is active and compliant with the local regulations.

Checking the licence status regularly is important to avoid any unexpected licensing issues. Keeping the licence active will help avoid any penalties or disruptions to the business and ensure seamless operations without any legal complications.

The process for renewing a trade licence in Abu Dhabi is relatively straightforward, but it is always best to be well prepared. There are penalties if the licence is renewed late, so it’s important to do it on time.

You will need to assemble all the required documentation, which includes the current trade licence, updated tenancy contract and any other documents required by ADDED.

Once all the documents have been prepared, you can submit the renewal application either online through ADDED eServices portal or in person at a service centre, an pay the required renewal fees. Make sure to check all information before submission to avoid any delays in processing.

When a renewal application has been processed and approved, the business will receive its renewed trade licence. If there are any issues with the licence renewal, it is best to address these immediately with ADDED to avoid any potential disruption to the business.

Obtaining, maintaining and renewing a trade licence in Abu Dhabi can be complicated due to the specific regulations and paperwork involved. Sovereign can assist businesses through each step from gathering the right documents to submitting the applications and ensuring compliance with the local laws and regulations. Our team will help to avoid any potential issues and keep your business running smoothly.

For further information on business licensing in Abu Dhabi, please contact Jonathan Kelly, Business Development Manager at Sovereign, below.