A trade license is the core legal requirement for running any business in Abu Dhabi. Whether you are setting up a mainland company, professional firm or commercial activity, you must obtain and maintain a valid trade license from the Abu Dhabi Department of Economic Development (ADDED).
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This guide explains in detail how to register a trade license, how to renew it, required documents, types of licenses, common mistakes, compliance rules and how our law firm Dewey & LeBoeuf can assist you with end-to-end licensing support.
What is a Trade License in Abu Dhabi
A trade license is the official approval that authorizes a company or individual to legally conduct a specific business activity in Abu Dhabi. A business cannot legally operate, sign contracts, open offices, hire employees or open a corporate bank account without a trade license in Abu Dhabi.
In Abu Dhabi, trade licenses are regulated by ADDED. The application, modification, renewal and cancellation must follow strict legal standards.
Types of Trade Licenses in Abu Dhabi
Understanding the right type of trade license is essential for proper registration. Below we have explained and types of trade licenses in Abu Dhabi.
Commercial License
For companies that engage in buying, selling, trading or distribution of goods.
Professional License
For service based businesses such as consulting, legal, accounting, IT, marketing, training, designing and similar sectors.
Industrial License
For companies involved in manufacturing, processing or industrial operations.
Freelancer License
For self employed professionals who want to legally offer services under their own name.
E Commerce License
For online businesses, digital platforms, app based activities and remote service providers.
Choosing the correct license type is important because each category has different documentation, capital requirements and permitted activities.
Documents Required for a Trade License in Abu Dhabi
Below is the general list of documents commonly needed for a trade license in Abu Dhabi:
- Passport copy of owners, shareholders and managers
- Emirates ID copy for residents
- Visa page for foreign shareholders
- Proposed trade name
- Business activity description
- Office or business location contract
- Memorandum of Association for companies with multiple shareholders
- External approvals depending on activity
- Power of attorney if a representative is applying
Dewey & LeBoeuf directly prepares and validates all documents to reduce delays or rejection.
How to Register a Trade License in Abu Dhabi
Below is the complete step-by-step guide to register a trade license in Abu Dhabi.
Step 1: Choose the Business Activity
Select your business activity from the ADDED approved activity list. This determines what type of license you need and what external approvals may be required.
Step 2: Choose a Legal Structure
Common legal forms include:
- Sole proprietorship
- Civil company
- Limited Liability Company
- Branch of foreign company
- Branch of UAE company
The legal structure affects ownership rights, tax obligations and liability protections. Our lawyers help you select the safest structure for long term operation.
Step 3: Reserve the Trade Name
You must propose a unique trade name that follows UAE naming rules. Once approved, the trade name is reserved for your use.
Step 4: Obtain Initial Approval
Initial approval confirms that the government has no objection to your business starting the licensing process. This is not the final license but allows you to proceed with document preparation.
Step 5: Prepare the Office Lease Agreement
To issue a trade license, you must secure a physical office or workspace and register the tenancy contract. Virtual offices may be permitted for certain activities but must be approved by ADDED.
Step 6: Draft the Memorandum of Association
If you are forming an LLC or multi-shareholder entity, a Memorandum of Association is required. Our firm drafts MOA and shareholder agreements that comply with UAE law and protect your rights.
Step 7: Submit Application to ADDED
After gathering all documents, the full application is submitted through the ADDED system along with the required government fees.
Step 8: Receive the Trade License
Once approved, your trade license is issued. You can now legally operate, hire staff, sign contracts and open bank accounts.
How to Renew a Trade License in Abu Dhabi
A trade license must be renewed every year. Operating with an expired license results in penalties and business restrictions. The following steps are usually needed to renew a trade license in Abu Dhabi:
- Valid tenancy contract for at least one year
- Updated passport and ID copies
- Updated ownership information if changed
- Renewal fees payable to ADDED
Renewal Steps
- Review and update all business details
- Renew your office lease and upload the new contract
- Submit the renewal request through ADDED
- Pay the renewal fees
- Receive the renewed trade license
Our legal team handles renewals, reminders and compliance updates to ensure your business never faces penalties.
External Approvals for Certain Activities
Some business activities require approval from specific government bodies. Examples include:
- Health services require Health Authority clearance
- Tourism related businesses need tourism department approval
- Educational services require KHDA or related authority approval
- Industrial operations may require environmental and safety approvals
Dewey & LeBoeuf coordinates with all relevant authorities to secure approvals without delays.
Compliance Requirements After Receiving the Trade License
Holding a trade license comes with several ongoing obligations.
1. Maintain a Valid Office Contract
The tenancy contract must always be valid and updated on time.
2. File Economic Substance Reports (If Applicable)
Depending on your business activity, you may be required to submit ESR notifications.
3. Maintain Anti-Money Laundering Compliance
Many businesses must maintain AML policies, KYC procedures and compliance logs.
4. Renew Trade License Annually
Late renewals lead to fines and potential business suspension.
5. Update Ownership or Management Changes
Any change in shareholders, managers or legal structure must be reported.
6. Maintain Proper Accounting Records
All companies must maintain proper accounting and prepare financial statements.
Our compliance team continuously supports clients to avoid penalties or license suspension.
Common Mistakes to Avoid When Getting a Trade License
- Choosing the wrong business activity
- Using a trade name that violates UAE rules
- Submitting incomplete documents
- Not checking external approval requirements
- Not renewing the office lease on time
- Attempting to operate before receiving the license
- Failing to maintain compliance reports
These issues cause delays, rejection or fines. With legal supervision, such mistakes can be avoided completely.
Frequently Asked Questions
How long does it take to get a trade license in Abu Dhabi?
Most applications are approved within a few days if the documents are complete.
What is the cost for a trade license in Abu Dhabi?
Costs depend on the activity, office size, external approvals and legal structure. We provide full cost breakdowns during consultation.
Can a foreigner get a trade license in Abu Dhabi?
Yes. Foreigners can own 100 percent of many business activities depending on the structure and activity classification.
Do I need an office space for the license?
Most activities require a physical office. Some freelancing and e commerce activities may have relaxed requirements.
Can Dewey & LeBoeuf handle the entire licensing process?
Yes. We manage everything from legal structuring to approvals, renewals and compliance.
Why Choose Dewey & LeBoeuf for Your Abu Dhabi Trade License
Dewey & LeBoeuf is a global law firm assisting international and local clients in setting up, renewing, and managing their business licenses across the UAE. Our Dubai-based legal team handles every step, ensuring your business complies fully with Abu Dhabi regulations.
Our services include:
- Full trade license registration and renewal
- Preparation of MOA and legal contracts
- Activity and legal structure advisory
- External approval coordination
- Corporate bank account support
- Annual compliance and reporting
- Ongoing legal protection for your business
If you want a smooth, compliant, and legally protected business setup in Abu Dhabi, our team ensures end-to-end support. Contact us today for any legal support, including registering or renewing a trade license in Abu Dhabi
E-mail: info@deweyleboeuf.com
Phone: +971 58 690 9684
Address: 26B Street, Mirdif, Dubai, UAE