Last Updated on January 12, 2023 by Salman Khan
But to operate in Abu Dhabi, certain types of enterprises need a commercial licence. But how do you submit an application for a business licence? Anyone wishing to open a business in Abu Dhabi can learn how to apply for a commercial licence from this article.
What does a commercial licence mean in Abu Dhabi?
Business owners who wish to conduct business in Abu Dhabi must get a commercial licence. Real estate, transportation, contracting, public commerce, hospitals, and clinics are among the industries that require a commercial licence in order to operate in Abu Dhabi.
This is just one of many business licences available in Abu Dhabi that can be sought for based on the goods or services being offered.
Depending on the legal structure of the company, there are four main types of commercial licences that can be obtained, and each has its own set of rules and requirements. The documents are:
- Establishment:This is a business run by a solitary proprietor with a permit to engage in a certain activity. The only party liable for the company’s financial obligations in this form is the owner. If the business’s owner is not an Abu Dhabi resident, they must appoint an Abu Dhabi resident to serve as their service agent. You can visit the start a cafe in Dubai for additional reference.
- Company:This type of licence involves a contract between two or more parties, and the business’s gains and losses are divided among the partners. General partnerships, limited liability companies, commandite companies, and private or public joint stock companies are the four legal forms that a company must adopt.
- Branch:The company is a branch of a foreign or Abu Dhabi-based firm that offers the same goods and/or services as the parent firm. The branch may be a local firm from Abu Dhabi or another emirate, a foreign company, a GCC company (with or without a foreign investor, or a local or international company in a free zone, among other options.
- Cooperative Society:A team of independent individuals working together to jointly own a project in order to fulfil their financial objectives.
How do I apply for a business licence in Abu Dhabi?
The Abu Dhabi Department of Economic Development has established a set of procedures that all enterprises must follow in order to receive a commercial licence.
Step 1: The name of the company must be chosen as the initial stage. Entrepreneurs need to be aware of the regulations that must be followed. First of all, no other company in Abu Dhabi may be utilising the name of the firm; it must be original.
Additionally, no vulgar or blasphemous language is permitted in business names. In addition, the entrepreneur must decide what tasks the company will perform and what structure it will take, as mentioned before.
A certificate of initial approval as well as copies of the business owner’s passport must be supplied with the commercial licence application.
Step 2:Following that, depending on the operations it will be conducting, the company needs to get approvals from specific authorities, such as the Abu Dhabi Municipality Public Health Division or the Abu Dhabi Chamber. The ability to complete this online is now available to government agencies.
Step 3:Then, if necessary, approvals must be obtained from foreign partners as well as from the General Administration of Residency and Foreigners’ Affairs for Security.
Business creation consultants such as OnTime Business Setup can help with this process.While it may be done alone, it is advised to get assistance to ensure the procedure is as quick and painless as possible. It can be complicated, especially for individuals who have never used the system before. You can visit Freezone company setup for more information.