Trade License in Abu Dhabi

A trade license in Abu Dhabi is an official government permit that allows individuals or companies to legally conduct business in the emirate. It defines the types of activities a company can undertake and ensures compliance with local laws.

The Abu Dhabi Department of Economic Development (ADDED) issues trade licenses for mainland businesses. The respective free zone authorities, such as Khalifa Industrial Zone Abu Dhabi (KIZAD) and Abu Dhabi Global Market (ADGM), issue licenses as part of the business setup in the UAE Freezone. Holding a valid license protects your business from legal penalties and builds credibility with clients, suppliers, and government authorities.

Beyond legal authorization, a trade license in the UAE, including emirates like Abu Dhabi, allows you to:

• Show that your business is officially registered and recognized, giving confidence to clients and partners.
• Open corporate bank accounts and hire employees to run daily operations smoothly.
• Take part in government programs, tenders, and industry networks that support growth and business opportunities.
• Operate your business with legal protection and transparency, ensuring compliance and safeguarding against disputes.

These advantages make a trade license essential for establishing and growing your business in Abu Dhabi and across the UAE.

Abu Dhabi offers different types of trade licenses based on the nature of business activities. These include:

The relevant authority issues each license type and specifies the permitted business activities. This ensures your company operates within Abu Dhabi’s regulatory framework.

To explore the most cost-effective options, read: Which is the Cheapest Trade License in UAE.

Securing a trade license in Abu Dhabi is the first step to legally establishing your business. Here’s how you can operate confidently within the emirate’s regulatory framework:

Step 1: Decide Your Business Activity & Legal Structure

• Choose the main activities your company will perform (e.g., trading, services, industrial, etc.)
• Select the legal form of your business (LLC, sole proprietorship, branch, etc.).
• Your activity and legal form determine the type of license and approvals needed.

Estimated Timeline: 1–2 days

Step 2: Select Your Jurisdiction

• Decide whether you will register on the mainland or in a free zone in Abu Dhabi.
• If you want to directly trade in the Abu Dhabi market without intermediary restrictions, you can opt for a business setup in Abu Dhabi Mainland.
• If you seek flexible ownership rules and have lower office requirements, you can opt for a business setup in Abu Dhabi Freezone.

Estimated Timeline: 1 day

Step 3: Reserve Your Trade Name

• Pick a unique business name that follows Abu Dhabi naming rules.
• Submit your proposed name via the ADDED or relevant free zone authority.
• You must obtain approval before moving to the next steps.

Estimated Timeline: 1–2 days

Step 4: Obtain Initial Approval

• Apply for initial approval from the licensing authority (ADDED or free zone).
• This approval confirms that your business plan and details meet the authority’s basic requirements.

You must obtain this approval before submitting your full Abu Dhabi trade license application.

Estimated Timeline: 2–5 working days

Note: For certain business activities like food trading, construction, etc., additional approvals may be needed from Abu Dhabi Municipality or the Ministry of Economy.

Step 5: Secure a Business Location

• For most mainland licenses, lease a physical office or workspace.
• Get a valid tenancy contract (e.g., Tawtheeq) where required.
• Some free zone and specific license types may allow virtual office or flexi-desk options.

Estimated Timeline: 3–7 days

Step 6: Prepare & Submit Required Documents

• Prepare the complete set of required documents as per your approved business activity and license type.
• Upload and submit the application through the ADDED or relevant free zone portal for review.

Estimated Timeline: 2–4 days

Tip: Ensure all documents are complete and consistent to speed up approval and avoid resubmission.

Step 7: Pay Fees and Complete Formalities

• Pay the applicable government fees for trade name, approvals, and license issuance.
• Fees vary based on the type of license, activities, and location.
• Ensure all information is accurate to avoid delays.

Estimated Timeline: 1–2 days

Step 8: Receive Your Trade License

• After review and approval, the authority issues your official trade license in Abu Dhabi.
• Once the authority issues your license, you can legally operate your business in Abu Dhabi.

Estimated Timeline: 1–3 days

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Note: Mainland approvals may take slightly longer due to additional regulatory checks. On the other hand, free zone setups often offer faster, streamlined license issuance.

To apply for a trade license in Abu Dhabi, you must prepare a defined set of documents. The exact Abu Dhabi trade license requirements vary depending on your business activity, license type, and whether you choose the mainland or a free zone.

1. Core Documents (Required for Most Businesses)

The following documents form the foundation of your trade license application and are mandatory for almost all business types in Abu Dhabi.

• Approved Trade Name Reservation Certificate
• Initial Approval Certificate from the licensing authority
• Valid passport copies of all owners, partners, or shareholders
• Emirates ID copies (for UAE residents, if applicable)
• Residence visa copies (if applicable)
• Memorandum of Association (MOA) or relevant legal agreement
• Valid office lease or business address proof (as required)
• No Objection Certificate (NOC) from current sponsor/employer, if applicable

2. Additional Documents (Based on Activity or Structure)

Depending on your business activity, ownership structure, or regulatory requirements, authorities may request the following additional documents:

• Business plan for certain activities, such as industrial, e-commerce, or regulated businesses
• External or sector-specific approvals (e.g., health, food safety, municipality, tourism, real estate)
• Educational or professional certificates for professional or consultancy licenses
• Shareholder or board resolution if a corporate entity is a shareholder
• Power of Attorney for authorized representatives
• Bank reference letter (mainly for some free zones or specific activities)
• Special permits for food trading, restaurants, healthcare, or industrial operations

Submitting accurate and complete documents at the initial stage ensures a smoother and faster license issuance process.

If you are considering expanding or setting up your business in other emirates, check out: Trade License in Dubai.

The typical cost of obtaining a trade license in Abu Dhabi ranges from AED 15,000 to AED 90,000 or more.

Here’s an estimated breakdown for trade license cost in Abu Dhabi:

Note: Abu Dhabi trade license fees vary based on your business activity, government updates, regulatory approvals, jurisdiction (mainland or free zone), and setup requirements.

Verifying a trade license in Abu Dhabi ensures that a business is legally registered and authorized to operate. This is important before entering into contracts, partnerships, or financial transactions. There are multiple ways to check or verify a license, either online or offline.

1. Check Trade License Through the Official Portal

The official TAMM portal provides a fast way to access a company’s license information. Here’s how:

• Visit the TAMM portal: (tamm.abudhabi)
• Select the option to search or verify a trade license.
• Enter details such as the trade name, license number, or owner name.
• Review the Abu Dhabi trade license status, expiry date, and registered activities.

This process delivers accurate, up-to-date information, confirming that the business is legally authorized to operate.

2. Verify Using the Business Name

You can confirm a license by searching with the registered business name:

• Use the exact or partial registered trade name.
• The system displays matching businesses with their license details.
• Confirm that the activity listed matches the business operations.

This approach provides a clear way to ensure the company is properly registered and operating legally.

3. Check License Validity and Status

After searching by name or license number, confirm the license’s validity:

• Ensure the license status shows active.
• Check the expiry date to confirm the license is valid.
• Review the legal form and registered address, if available.

Verifying these Abu Dhabi trade license details ensures the business is compliant and reduces potential risks.

4. Offline Verification (If Required)

If online Abu Dhabi trade license verification​ is not possible, you can check a license in person:

• Visit the relevant Abu Dhabi licensing or business service center.
• Provide the trade name or license number for reference.
• Request confirmation of the license status and details from the authorities.

This method allows verification even without internet access.

By following these steps, you can ensure that any business you deal with in Abu Dhabi is fully licensed and compliant with local regulations.

Tip: Always verify a trade license before signing agreements or making payments. This ensures the business is compliant with Abu Dhabi regulations and reduces legal or financial risk.

If you are exploring cost-effective alternatives, read: Trade License in Fujairah.

Abu Dhabi trade license cancellation is a formal process that ensures your business is legally closed and free from future obligations. Below are the key steps you should follow:

1. Settle All Business Liabilities: Clear all outstanding dues related to utilities, suppliers, rent, and government fees. Close corporate bank accounts to confirm there are no pending financial obligations.
2. Cancel Employee and Partner Visas: Cancel all active residence visas linked to the business. This step must be completed before proceeding with license cancellation.
3. Close the Immigration Establishment Card: Apply for the cancellation of the company’s establishment card with the immigration authority after all visas are cancelled.
4. Obtain Required Clearances: Secure no-objection or clearance letters from relevant authorities if your business activity requires special approvals, such as food, health, tourism, or municipality permissions.
5. Submit the Trade License Cancellation Application: Apply for license cancellation through the official Abu Dhabi licensing portal or an authorized service center. Submit documents such as the original trade license, passport copies of owners, and cancellation resolutions if required.
6. Pay License Cancellation Fees: Pay the applicable government fees to complete the cancellation process. Fees may vary based on license type and business structure.
7. Receive License Cancellation Confirmation: Once approved, you will receive official confirmation that the trade license has been cancelled and the business is legally closed.

Note: Do not stop business operations without canceling the license. An expired trade license in Abu Dhabi can lead to fines, penalties, and renewal charges even if the business is not operating.

Renewing your Abu Dhabi trade license is essential to keep your business legally compliant and operational. All trade licenses in the UAE, including Abu Dhabi, whether mainland or free zone, are typically valid for one year. Hence, trade license renewal in the UAE is essential to avoid fines, penalties, or suspension of business activities.

Follow these simple steps to complete your renewal quickly and efficiently:

1. Check License Expiry Date: Confirm the expiry date of your current license to plan your renewal on time.
2. Prepare Renewal Requirements: Collect all necessary documents, including your current license, office proof, and any required approvals.
3. Submit Renewal Application: Submit the renewal application through the ADDED portal for the mainland or the relevant free zone authority.
4. Pay Renewal Fees: Pay the applicable fees based on your license type and business activity. Late renewal may attract fines starting from AED 500, depending on the authority and duration of delay.
5. Receive Renewed Trade License: After approval and payment, collect the renewed license, valid for another year.

Timely Abu Dhabi trade license renewal helps maintain uninterrupted business operations and keeps your company fully compliant with local regulations.

For more information on trade license options in other emirates, check: Trade License in Ras Al Khaimah Freezone.