How to get a Trade License in Abu Dhabi?

The United Arab Emirates, notably its capital Abu Dhabi, is an excellent area to start and grow a business. The government's attempts to promote bilateral ties and trade with practically every country in the world are the cause behind this. In this article we are going to discuss about Trade License in Abu Dhabi and everything you need to know about it

Why you need Trade License in Abu Dhabi?

A Trade License in Abu Dhabi the documentation that a firm or individual must have in order to conduct business in the United Arab Emirates. The Department of Economic Development is in charge of regulating and overseeing the procedure (DED). After you've obtained the license, you'll be able to engage in the following activities.

After obtaining a Trade License, you can engage in the following activities:

• Import and export your products to other countries.
• Participate in a variety of commercial operations.
• Advertise your services and products so that the general public is aware of them.

If you are new to the UAE, we recommend seeking assistance from a professional business setup consultancy in the UAE to assist you in obtaining a trade license in Abu Dhabi. This will speed up the procedure and help you avoid cultural or legal stumbling blocks.

What is the procedure for obtaining a Trade license in Abu Dhabi?

Do you know how to obtain a trade license in Abu Dhabi? These are the processes you must follow in order to obtain a trade license in Abu Dhabi. Although the stages are rather simple, you may have difficulties if you are unfamiliar with how to complete them. All of these processes will be assisted by a company setup consultant

Simple Steps to Get Abudhabi trade license

• Select the license type.
• Narrow down the business activities (Keep in mind that the maximum number of activities are 10 per license)
• Pick an appropriate structure and legal status (LLC, Sole Proprietorship etc.)
• Choose a trade name for your company that falls under the rules of permitted names by the UAE government.
• Submit your application for initial approval by the DED
• After receiving initial approval, register your trade name
• Find a local sponsor and sign a Memorandum of Association (MOA)
• Find a location to establish your business and obtain a tenancy contract
• Gather all relevant documentation including the MOA and application form

Documents Required for a Trade License in Abu Dhabi

The following are the required documents that you need to submit to the DED to greenlight the process.

• Certificate of trade name
• Shareholders signed licensing form
• Copies of the passports of all shareholders
• Copy of naturalization certificate
• A letter from the Ministry of Economy and Planning that authorizes the company formation
• Copy of your residence permit
• A letter approving proposed business activities signed by the authorities
• Clearance and no objections from your local sponsor in the form of a letter
• A copy of your Memorandum of Association with said local sponsor
• A copy of the letter from your Bank that authenticates the claimed finances of the company
• A copy of your tenancy contract

When you submit the above-mentioned documents to the appropriate authorities, you will be given a trade license fees voucher to pay.

Read More: Guide On Obtaining A Mainland Co Working License In Dubai

Different Trade Licenses Allow Different Activities

These are some of the businesses/activities that you can engage in with a commercial license:

Commercial License

• General Trading
• Real Estate
• Healthcare
• Contracting

Professional license

Getting a professional license will allow you to:

• Teach privately or with an institution
• Practice Law as an individual or firm
• Audit firms as an individual or with an organization

It is basically the license that individuals who are skilled in academic fields need to obtain.

Industrial License

It is the license needed to:

• Run a factory
• Manufacture goods
• Sell goods for profit

This is the license that most investors nudge towards in Abu Dhabi.

Craftsmanship License

This is the license that workers whose main skill is what they do with their hands need to acquire. The following are some of the professionals that need this license:

• Plumber
• Electrician
• Carpenter
• Painter

Tourism License

Organizations wishing to participate in the tourism business in the UAE must obtain this license due to the UAE's prominence as a global tourist destination. As a result, they will be able to:

• Run a hotel
• Start a travel agency
• Run a restaurant

Keeping in mind that the tourism industry offers a wide range of opportunities, the activities listed above are just a sample of what can be done with this license. It is essential to seek advice from one of our specialist Business Setup agents for complete details on all of the activities covered by each trade license.

Fees for Trade License in Abu Dhabi

The cost of an Abudhabi    trade license varies depending on the type of business you want to start. The following information is a rough idea of what to expect when applying for a general trading license.

• Local Sponsor MOA fee: AED 12,000
• Commercial License fee: Between AED 8000-15000
• Administrative fee: Between AED 3000-45000
• Tenancy Cost: Minimum AED 5000 for an office space
• E-channel: AED 2200

The entire amount for an Abudhabi    trade license is AED 38,700. It is crucial to note, however, that this is the first-time fee. In the second year, the cost drops dramatically, and there are other costs that you do not have to pay for. For example, acquiring a virtual office in Abudhabi    can help you save money on your tenancy. This is just one example of how an agent can assist you in reducing costs while increasing earnings.

Conclusion

Abu Dhabi serves as a location for firms to form professional ties and assist one another in growing. Dhanguard are well aware of the emirate's incomparability and significance. Aside from the trade license in Abu Dhabi, we will also walk you through the entire process of starting a business in Abu Dhabi   

Experts on the team have completed a large number of projects in Abu Dhabi and other regions of the UAE relating to mainland business creation, Offshore company formation, and free zone company formation.

Dhanguard provides the business setup and company formation services in Dubai, UAE with the guidance of our professional team of consultants. Faster and hassle-free company setup in Mainland and Freezone in UAE.

Dhanguard provides faster and hassle-free Trade License with minimum paper work. With the guidance of our professional team of consultants you will get General trading license, Freelance license, Etrader license, Event Management License, Travel Agency license in Mainland and Freezone in UAE.