A Comprehensive Guide to Abu Dhabi’s Economic Licenses

Abu Dhabi offers seven types of economic licenses, each designed to meet the diverse needs of businesses and individuals, encouraging growth across various sectors.

By Estelle Xiao

For businesses wishing to operate in Abu Dhabi, obtaining an economic license is mandatory. These licenses provide flexibility and convenience, allowing entrepreneurs and companies to choose the right fit for their operations. In this article, we will provide an informative guide for business practitioners.

Types of economic licenses

Instant license

Designed for quick registration, this license allows businesses to complete the registration process and obtain a trade license in a single step, making it ideal for those seeking to start operations quickly. This service allows business owners to apply for an instant license without submitting documents like a lease contract or Memorandum of Association (MOA) immediately. These documents must be provided within 30 days after the license is issued.

Tajer Abu Dhabi license

This option is tailored for specific business activities, giving entrepreneurs an easy and affordable way to begin selective operations without needing a physical office for up to three years. Tajer Abu Dhabi is particularly beneficial for small and medium-sized enterprises (SMEs) that focus on niche markets. A standard MOA is issued along with the license.

Technology license

As Abu Dhabi looks to become a global hub for technological innovation, this license is specifically designed for businesses in the tech sector. Companies focused on technology development, artificial intelligence, robotics, software, or digital services can benefit from the technology license, gaining access to infrastructure that supports innovation and growth. This license required an approval lease contract and a company incorporation contract during the application.

Commercial license

One of the most commonly issued licenses, the Commercial License covers a wide range of business activities across multiple industries. This license allows business activities in the fields of commercial, tourist, agricultural, artisanal, and professional activities. This license offers the flexibility needed to thrive in Abu Dhabi’s diverse economy. To obtain this license, an approved lease contract and a company incorporation contact are required.

Mobdea license

Exclusively for Emirati women, this unique license allows businesswomen to start and operate a business from home, which does not require a business location. Mobdea is part of Abu Dhabi’s efforts to empower female entrepreneurs, offering an opportunity for women to run small enterprises in a flexible and supportive environment and its activities must be within the creative sector. To obtain this license, a concerned entity’s approvals related to economic activity and house ownership are required.

Branch license

For companies looking to expand into Abu Dhabi, the Branch License facilitates the opening of a branch location for an existing business. This option is ideal for larger corporations or international companies seeking a presence in the Emirate. The required documents include: contract of service agent, parent company license, parent company’s memorandum of association, and tenancy contract.

Freelancer license

Abu Dhabi has recognized the growing demand for freelance work and offers a license that allows individuals to operate as freelancers in specific sectors such as consultation and expertise services. This license is perfect for professionals in fields such as design, consulting, or digital marketing who wish to work independently. This license requires documents that include attested certificate/academic qualification/record by the issuing entity, experience certificates, no objection certification for the foreign investor, and professional certificates.

The licensing process

The licensing process in Abu Dhabi has been streamlined to ensure ease of access for both local and foreign investors. Applications can be submitted through the Abu Dhabi Business Centre portal or through the TAMM branches across the emirate. For free zone businesses, the respective free zone authorities offer dedicated support teams to help investors navigate the licensing requirements.

For foreign investors interested in applying for the economic license, it is cautious to be aware that all the required documents must be in Arabic. Documents can be translated into Arabic and attested by legal translators.

Free zones

If the business owners wish to operate business in one of the five free zones, the economic license should be issued by the selected free zone on behalf of the Abu Dhabi Department of Economic Development (ADDED). Free zones offer simplified processes and have dedicated investor support teams to guide you through the required procedures efficiently.

Among others, the dual license initiative in the UAE allows companies operating in free zones to extend their business activities to the mainland without needing to lease additional office space or appoint a local shareholder. This initiative was introduced to provide more flexibility and opportunities for businesses to operate across different regions within the UAE. The extended dual license also enables engagement with both local Abu Dhabi and federal UAE government entities. Document requirements vary by application channel but typically include a trade name certificate, copies of valid passports and Emirates IDs, a Power of Attorney (if applicable), a tenancy contract (for certain activities), a notarized memorandum of association, and approval from the Directorate of Naturalization and Residence for foreign investors.

Conclusion

Abu Dhabi’s diverse range of economic licenses underscores the emirate’s commitment to fostering a business-friendly environment. Whether the business owners are entrepreneurs, tech startups, SME, or multinational corporations, there is a license to fit your needs. By simplifying the licensing process and offering tailored options, Abu Dhabi continues to attract investment and support the growth of its dynamic economy.

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