To spur growth in the emirate, license renewal fees have been reduced to Dhs 1,000 only in Abu Dhabi. Business setup in Abu Dhabi is now only Dhs 1,000, too. The significant fee reduction will be implemented starting the 27th of July, 2021 Tuesday. Take note: the federal fees for business setup in Abu Dhabi and trade license renewal remain the same.
Inclusions of Fixed Fees for Trade License Renewal & Business Setup in Abu Dhabi
This newly announced fixed fee for trade license renewal and business setup in Abu Dhabi covers the following:
- Six activities for a business license
- All Abu Dhabi Department of Economic Development (ADDED) related fees
- All Department of Municipalities & Transport related fees
- Abu Dhabi Chamber of Commerce & Commerce membership fees
- Certificate of Conformity issuance fee
- Other fees required by the regulatory authorities In Abu Dhabi
There are several fees that have been fully subsidized while others were reduced significantly. According to the Chairman of the Abu Dhabi Department of Economic Development, Mohammed Ali al Shorafa, the significant reduction in the fee structure for Abu Dhabi company formation and trade license renewal will help in easing the process existing and new entrepreneurs have to go through.
It will also create a boost in the emirate’s business climate while encouraging innovation and growth. There have been those who were deterred on learning how to start a business in Abu Dhabi due to the relatively high costs. According to the ADDED Chairman, they strongly believe restructuring the fees is going to help new and established businesses.
Steps for Business License Renewal in Abu Dhabi
1st step: Check the validity of the tenancy contract of your businesses.
This is an important step for business license renewal in UAE. Apart from having a validity of a minimum of one month, the tenancy contract has to be authenticated or attested by the local authorities. If you hire a team of seasoned business setup consultants in Abu Dhabi, they can handle the authentication of the tenancy contract on your behalf.
2nd step: Submit the application for trade license renewal.
The application has to be approved by all concerned authorities. It’s necessary for running a successful business anywhere in the UAE. The license renewal process will require you to submit other documents as well and not only the application form and tenancy contract. Have your business setup consultants in Abu Dhabi process these documents necessary for renewing your business license:
- Typewritten license renewal application form
- Valid tenancy contract (attested)
- Latest business license (photocopy)
- Passports of business partners, if applicable (photocopies)
For the processing of a trade license for a new business in Abu Dhabi regardless of the legal structure or form, the following are to be submitted:
- Receipt of Initial Approval and all documents submitted to obtain the Initial Approval from several government departments (foreign investors have to obtain approval form the UAE General Directorate of Residency & Foreigners Affairs)
- Attested Memorandum and Articles of Association (applies to all kinds of companies)
- Service agent contract (duly attested, applies to civil companies and establishments owned wholly by all non-GCC nationals)
- Approvals from several different relevant government entities, depending on business activities and nationality of business owners/applicants
3rd payment: Make the payment.
You will receive a transaction number or payment voucher as soon as you submit an application for trade renewal. The tracking number is going to be used as the reference number up until your license is renewed. A payment voucher will be used for making the payment of the renewal fee.
Government Approvals Necessary for Business Setup in Abu Dhabi
More often than not, there are additional approvals from different regulatory authorities that govern certain business activities which are required. Some of such activities that are sorted by the ministry are as follows:
- Ministry of Interior – the Ministry issues the required approvals for activities that are related to public/general transport. This includes driving schools, alarm and security systems, used auto-parts, car rental, used-car dealers, and fire equipment.
- The local municipal department – for engineering and architectural affairs
- UAE Ministry of Justice – for legal consultancy and legal services
- Executive Council – general services, travel and tourism, car clubs, maritime and ship agencies, charter trading, foreign company branches, and charter air transport
- Telecommunications & Digital Gov’t Regulatory Authority – for telecommunication activities
- Local health department – for health-related economic activities
- Ministry of Economy – insurance consultancy and all insurance-related activities
- Supreme Petroleum Council – for offshore and onshore oil and gas services, and offshore and onshore oil drilling operations
Among the leading business setup firms throughout the United Arab Emirates, FAR Consulting Middle East offers assistance on all complicated business processes including registration and formation/setup. Learn more about how we can help you by calling us today!