Comprehensive Guide to Trade License Setup and Renewal in the UAE

To establish a business or trade in a particular country, applicants need to have a written document that provides them the legal permission to carry out their activities. The license does not allow any trade except the one it has permitted. Furthermore, it does not give any ownership of property on which the applicant is trading. It’s just a simple document that shows the legality of your business. Dubai is one of the countries that has made it compulsory for every firm and organization to have a business license. For the same reason, annual trade license renewal in Dubai is compulsory.

Trade License Renewal in Dubai

If you have set up your business in Dubai, it’s imperative to get your trade license and renew it from time to time to ensure the smooth functioning of your company. The license renewing process is straightforward, but you might need to deal with a lot of documentation. The trade license you are issued is valid for only one year and must be renewed yearly. The application for renewal of the trade license must be submitted before 30 days of expiry. It’s very important to renew a license in time, and if not renewed it can cause problems such as penalties, banning of business, or some other serious issues. In case you fail to do the same, a late fee can be imposed on you, which is AED 200 per month (excluding external penalty, if any).

Documents Required for Trade License Renewal

Below is the list of required documents for the renewal process in the UAE:

• Ejari registration: For renewal of the license, it’s necessary to possess a registration certificate from Ejari. It’s compulsory to have a tenancy certificate that is approved by Ejari, or else a fine will be imposed on you.
• Tenancy contract with validity: To renew the license one must have a tenancy contract that still has a validity of one month or more. For applying you must first check and verify your tenancy contract.
• A copy of your old trade license: You need to attach a copy of your old license to get it renewed. You cannot apply for a trade license renewal if you don’t have the mandatory permits that allow you to carry out your business activities in the UAE.
• BR/1 form: BR/1 form is a license renewal form that must be filled and submitted to start the process. You must type a BR/1 form with the signature of existing partners and submit it to the DED for approval.
• Photocopy of passport of all business partners: A passport photocopy of each business partner must be mandatorily submitted to show the stakeholders involved in your business.

Business Licensing in Abu Dhabi

Obtaining a trade license is a crucial step for anyone looking to start a business in Abu Dhabi. Setting up a business in Abu Dhabi is a wise option for companies as it is one of the most affordable Emirates for commercial activities. The trade licenses in the Abu Dhabi Mainland are regulated by the Abu Dhabi Department of Economic Development (ADDED) with a validity of one year. Abu Dhabi offers various business licenses based on their nature and activities.

Types of Trade Licenses Available

• Commercial License: This is the most common type of license, and it is required for businesses that are involved in trading activities, such as the buying, selling, and distribution of goods.
• Industrial License: This license is required for businesses that are involved in manufacturing activities, including businesses that produce goods from raw materials.
• Professional License: This license is required for businesses that provide professional services, such as consulting, accounting, legal services, and healthcare.
• Tourism License: This license is required for businesses involved in the tourism industry, such as hotels, travel agencies, and restaurants.

The E-commerce License (Tajer Abu Dhabi)

Tajer Abu Dhabi, also known as the Abu Dhabi Trader License, is a special type of trade license issued by the ADDED specifically designed for e-commerce businesses. Unlike the general trade licenses, Tajer Abu Dhabi addresses businesses that operate online to allow them to conduct business through websites and social media platforms. A major benefit of this license is that you don’t need to have a physical store or office space to obtain it. This makes it attractive for startups, small businesses, and freelancers who operate virtually. Now, GCC nationals and UAE residents can apply under various legal structures.

Additional Requirements for Abu Dhabi

Regarding the specific documentation for Abu Dhabi, the general list of common requirements includes:

• Certificate of trade name
• Copies of passports and visas (for all shareholders)
• Memorandum of Association (MOA) (Only applicable if you have a local sponsor)
• Copy of your UAE residency permit
• Bank letter and Tenancy contract with Ejari attestation

You don’t have to worry about the process of trade license renewal when you partner with local business setup consultants. Shuraa can help to renew your trade license and determine which license and approvals you need for your business setup.