Obtaining Trade License in Abu Dhabi - IBG Consulting Dubai

Obtaining Trade License in Abu Dhabi

August 24, 2020by admin

ABU DHABI: Setup your business in UAE’s capital

Abu Dhabi is the place to be Known as the capital of the United Arab Emirates and the second-most populous Emirate in the country, thousands of opportunities are available within Abu Dhabi. Its growth and urbanization were caused by the massive oil and gas reserves and global trade, accounting for about two-thirds of the UAE economy. Whether you’re a local or a newcomer, there is something in store for you in Abu Dhabi.

Business setup in Abu Dhabi is a well-developed system within the Emirate. Many traders come and set up their enterprises due to multiple advantages, including:

  • Being the center of the UAE Economy. As mentioned, Abu Dhabi covers two-thirds of the $400 Billion UAE economy. As the home city of the country’s president, Abu Dhabi is also the center of politics and many industries.
  • Premier living standards. Abu Dhabi has topnotch public services, including transportation, healthcare, and education.
  • Strategic location. Aside from having neighboring Middle East countries, Abu Dhabi has good access and relationship to nearby European, Asian, and African countries, making international trade easier.

The Government of UAE, maximized its support to its economy to maintain its standing as a leading business hub. With this, the UAE offers multiple benefits to licenses obtained within any emirate, including:

  • Corporate and income tax exemption
  • Little to no audit requirements
  • 100% repatriation of capital and profits
  • Readily-available coworking and office spaces

Company formation in Abu Dhabi has eight steps:

  1. Identify your business activity. There are more than 2,000 permitted business activities in the country. Moreover, some activities can be combined in one trade license. Check with your chosen business authority the list of their allowed activities.
  2. Choose your legal form. Your legal form will depend on many variables: number of shareholders, your capital, even your business activity. The legal form of your company will determine the applicable laws and regulations.
  3. Register your trade name. Each authority in the UAE has its own guidelines on choosing your trade name, so make sure to read them. It must depict the nature of your business and legal form.
  4. Acquire initial approval from authorities. Obtaining an initial approval from the UAE Government does not mean you are free to perform your activity, however, it will help you determine the next steps.
  5. Draft legal documents such as the Memorandum of Association and/or Local Service Agreement. Only UAE-based law firms, courts, and notary public prepare and attest MoAs and agreements. Foreign-owned companies in the UAE are required to appoint their local service agent.
  6. Choose your location. Businesses in the UAE are required to have a registered address. Many coworking spaces and office rentals are available for a reasonable price.
  7. Acquire additional approvals. In some cases, sector-specific business activities are required to get additional approvals from local authorities. For example, architectural and engineering activities are required to get the approval of the Local municipal department.
  8. To obtain your Abu Dhabi Trade License, submit all other documents, and pay the applicable fee. After completing the above-mentioned steps, submit the following documents and pay for your license in the nearest service center:
    • Receipt of the initial approval and previously-submitted documents
    • Lease contract copy
    • Attested Memorandum of Association
    • Additional government approvals (if applicable)
    • Attested local service agent contract (for foreign-owned companies)

How can we help?

IBG Consulting is armed with a vast knowledge of experience when it comes to trade license acquisition and business setup. We are a team of dedicated individuals who are here to help you build your empire in the UAE.

As your chosen local service agent, we will assist in preparing related documents as well as become the bridge between you and your chosen authority.

Aside from Abu Dhabi business setup, we also offer company formation in the mainland, free zone, and offshore jurisdictions in all other emirates. We also have visa processing, digital marketing services, accounting & bookkeeping, and PRO services to aid your needs as you start your company.

Have any question? Fill the form & get free consultation!