How to Procure Abu Dhabi Business License?

How to Procure Abu Dhabi Business License?

Many entrepreneurs across the globe dream to do business in the UAE. Abu Dhabi, the 2nd most populated emirate in the country is known to be a renowned business hub. This leads many businessmen to wonder about the Abu Dhabi business license. Well, the Abu Dhabi business license is an official document that allows you to conduct business in the UAE.

The process of business registration Abu Dhabi and business license is regulated by the DED (Department of Economic Development). You can conduct the following activities after you get the Abu Dhabi business license:

1. Import and export your commodities within and outside the country.

2. Take part in a number of commercial activities.

3. Rent office space with ease.

If you too want to set up a business in Abu Dhabi, you must know how to procure an Abu Dhabi business license. Also, you must know the list of required documents too. In this blog, we have mentioned all the steps to get your Abu Dhabi business license, cost and list of documents.

How to Procure Abu Dhabi Business License?

The process to get an Abu Dhabi business license is relatively simple and straightforward. But, if you are new to the process you must take help from business consultants. Following are the steps to get your business license:

1. Select the type of license you want to apply for. The UAE government advises4 types of licenses. Namely, Professional License, Commercial License, Industrial license and Tourism license.

2. Narrow down your business activities. Also, note that the limit of activities per business license is 10.

3. Moreover, Decide an appropriate legal structure. You can choose for it to be sole proprietorship, Public or Private Partnership, Limited Liability Company, Branch of a local or foreign company. Also, you can set up a branch of a GCC company.

4. Now, you need to choose a trade name for your company. Also, register it with DED. Make sure that it complies with the rules of permitted names by the UAE government.

5. Submit your application and also the necessary documents for initial approval by the DED.

6. Furthermore, partner with a local sponsor and sign an MoA or, you can also sign an LSA. Make sure that it is signed by all the partners in front of a public notary.

7. Draft and sign a Memorandum of Association (MOA).

8. Find a location to rent an office space. Furthermore, register it with Ejari to obtain your tenancy contract and the unique Ejari number.

9. Now, submit all the documents and your application with DED. Do check all the documents before handing them over.

10. Within a matter of 5 to 6 days you will receive your license. However, the process will only take a day or two to finish.

11. Pay the required fee through a link shared by DED over mail. Make sure you initiate the payment within 30 days of receiving your Abu Dhabi business license.

What are The Required Documents for Business Registration Abu Dhabi?

The following is the list of the documents that you need to submit to the DED to complete the process of business registration Abu Dhabi:

1. Trade name certification.

2. Abu Dhabi business license form, duly signed by all the shareholders.

3. Copies of the passports of all the shareholders of the company.

4. Copy of incorporation certificate.

5. A letter from the Ministry of Economy and Planning that authorizes the company formation

6. Copy of your residence permit.

7. National ID

8. A letter approving the selected business activities signed by the legal authorities.

9. No objection letter from your local partner in the form of a letter.

10. Memorandum of Association signed by all the shareholders.

11. A copy of the letter for authentication of finances from the bank.

12. A copy of your tenancy contract and your unique Ejari number.

13. Copies of the visas of all the business partners and employees.

What is the Cost of an Abu Dhabi Business License?

The fee of an Abu Dhabi business license can vary according to the nature and business activities you choose. However, the breakdown of an approximate cost is given below:

1. Fee for Local Sponsor and MoA: AED 12,000 approx.

2. Fee of Commercial License: anywhere between AED 8,000 to AED 15,000 approx.

3. Administrative Fee: anywhere around AED 3,000 to AED 45,000 approx.

4. Fee for Tenancy Contract: AED 5,000 approx.

An Abu Dhabi business license can cost you anywhere between AED 30,000 to 40,000. However, this is just a one-time cost. This cost is reduced in the second year. Also, there are factors and services that you won't have to pay for. For example, you can cut down business registration Abu Dhabi cost by renting a virtual office in Abu Dhabi.

What is the Process of Abu Dhabi Business License Renewal?

The business license must be renewed yearly. Just like the registration process, the renewal process is also quick and simple. However, if you fail to renew your license, it can be cancelled. Below given is the process of Abu Dhabi business license renewal:

1. Gathering all the required documents.

2. Double check all the documents and submit them all to DED.

3. Now, wait for their approval.

4. If all is in place, the DED will send an email with a fee voucher.

5. You must pay the required fee through the voucher.

6. Receive your renewed license in print form from DED.

The Abu Dhabi business license renewal can cost you anywhere between AED 10,000 to AED 12,000.

What is The Fee for Expired Business License?

One of the advantages of Abu Dhabi business license is that even if it gets expired, the UAE government gives you a grace period of 30 days. Within a span of 30 days, you can either renew your license or cancel it. However, if you continue operating your business activities without renewing your license, the government will charge the following fine:

1. Fine for operating without a license: AED 5000

2. License non - renewal fine before due date: AED 250

3. Fine for running another office under one license: AED 2000

Acquire Your Abu Dhabi Business License With Help of Shuraa!

Now that you are equipped with all the important information related to Abu Dhabi business license and business registration, you should connect with business consultants. The paperwork for the registration is a crucial task. It can be tedious if you are new to the process. Hence, to avoid any mishaps with the paperwork, we suggest you take help from expert business consultants at Shuraa Business Setup to help you with the paperwork for your business registration Abu Dhabi. Furthermore, we will also help you with getting important permissions and approvals and acquiring your business license at a very low cost.

Moreover, get to grow your business with the right advice. You can reach out to our experts at +971 44081900 or drop a WhatsApp message on +971 507775554. For assistance via email, please write to us at info@shuraa.com.