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Anyone looking to start a trading business in Abu Dhabi needs to get a commercial license from the Department of Economic Development (ADDED mainland) or the free zone authority in Abu Dhabi. A commercial license in Abu Dhabi lets a company trade legally, open a business bank account, and apply for UAE residence visas – all seamlessly.
Abu Dhabi is the capital of the UAE, the largest Emirate out of the seven, and a great place to invest in 2026 because of world-class infrastructure, 100% business ownership, and business-friendly policies.
Key facts on Abu Dhabi commercial license:
This guide has been built with the purpose of helping investors understand the commercial license and its requirements in Abu Dhabi. It will walk you through the licensing process, the costs involved, and the benefits of getting an Abu Dhabi commercial license.
A commercial license in Abu Dhabi is an official permit issued by the government that allows businesses to conduct trading activities (buying, selling, and distribution) locally and globally. The license can be obtained for import/ export or wholesale/retail of a variety of products like electronics, food, apparel, cosmetics, jewellery, toys, and more.
Commercial license is not just a legal requirement for trading companies in Abu Dhabi, but it also helps to build customer trust and partnerships. Both jurisdictions in Abu Dhabi, UAE, mainland and free zones, offer a commercial license to entrepreneurs.
An Abu Dhabi commercial license covers thousands of economic activities. Investors can combine multiple business activities under a single business license.
Here are a few examples:
| E-commerce | Furniture trading |
| Importing and exporting | Medical equipment trading |
| Jewellery & precious metal trading | Pet food supplies |
| Stationery trading | Perfume trading |
| Food trading | Toys & baby products trading |
| Building materials trading | Textile trading |
| Fashion & cosmetics trading | Real estate brokerage |
| Garments & apparel trading | Car trading |
| Footwear trading | Grocery trading |
| Electronics & gadgets trading | Pharmaceuticals |
| Gifts shop | Flower shop |
| Livestock trading | Automotive spare parts trading |
Important tips:
To discuss your business idea in the UAE, you can contact our business setup experts.
The types of commercial licenses in Abu Dhabi include a general commercial license, an e-commerce (Tajer) license, a dual license or an instant license.
A general commercial license in Abu Dhabi allows you to trade and/or import/export a single product or a combination of products in local and international markets.
Think of it as the license you need to open a retail store in Abu Dhabi. The license cost naturally increases with every additional activity added.
For selling products and consumer items online via websites, apps, or social media, you should apply for a Tajer or e-commerce license in Abu Dhabi.
You can get a Tajer Abu Dhabi license without leasing an office space for the first three years, making it a cost-effective choice for startups.
An instant license in Abu Dhabi is meant for entrepreneurs who want to establish their commercial business as soon as possible.
A lease contract for office is a mandatory requirement for this license, and it is available for 940 different economic activities.
Commercial companies already established in Abu Dhabi free zones can expand their branches on the mainland with a dual license.
A dual license in Abu Dhabi offers the benefits of free zones while introducing you to wider markets and government tenders.
In Abu Dhabi, you can apply for a commercial license in both the mainland and free zones. Mainland and free zones are two types of jurisdictions or economic areas in Abu Dhabi that have their respective governance and licensing regulations.
The commercial license on the Abu Dhabi mainland is issued by ADDED through its online portal, TAMM. The DED Abu Dhabi trade license is ideal for those looking for more flexibility in business operations. However, a physical office is often a mandatory requirement on the mainland.
Benefits of choosing the mainland:
Abu Dhabi offers numerous free zones, such as Khalifa Economic Zones Abu Dhabi (KEZAD), Abu Dhabi Global Market (ADGM), Masdar City, and Twofour54, which issue commercial licenses. Free zones are independent economic hubs, having their respective licensing authorities and business regulations.
Benefits of choosing free zones:
Based on your commercial activity and specific benefits you are looking for, you can choose between the mainland and free zones in Abu Dhabi. We have explained the differences between the two jurisdictions in the next section to help you understand better.
Mainland or free zone – where should you apply for a commercial license in Abu Dhabi? While both jurisdictions offer their own benefits, there are several factors that distinguish mainland and free zone business setups.
The key differences between mainland and free zones in Abu Dhabi, outlined below, will help clarify which option to consider.
| Aspect | Mainland Commercial License | Free Zone Commercial License |
|---|---|---|
| Market access | Access to the entire UAE market and international markets. | Market access may be restricted to the specific free zone and international markets. |
| Physical location | For most mainland business activities, a physical office location is mandatory. | Free zones offer more flexibility with flexi-desk or virtual office options. |
| Local sponsor | Certain strategic sectors may still require a 51% Emirati ownership. | 100% foreign ownership is allowed in all cases. |
| Cost of setup | Mainland business setup costs can be higher. | Free zone business setup in Abu Dhabi is often more affordable, with flexible payment plans. |
| Taxation | 9% standard corporate tax on annual income exceeding AED 375,000*. | 0% corporate tax for qualifying free zone persons. |
| Visa | Apply for unlimited UAE visas based on office size. | Visa quotas are limited and decided by the respective free zone. |
If you are still confused, we recommend getting in touch with a professional business setup consultant for detailed assistance.
Entrepreneurs who have the following documents can apply for a commercial license Abu Dhabi:
Please note that the commercial license in Abu Dhabi requirements may vary based on business type, jurisdiction, and nature of operations.
Reach out to Abu Dhabi’s Department of Economic Development (ADDED) or the respective free zone to apply for a commercial license. Here is the step-by-step process for an Abu Dhabi commercial license:
The process of commercial license Abu Dhabi begins with selecting the right business activities. There are thousands commercial activities allowed in Abu Dhabi, including the trading of foodstuffs, clothing, stationery, equipment, electronics, building supplies, and many more.
Investors do get the option of choosing multiple activities under a single license based on certain conditions. You can contact our business license experts to know more.
The legal structure of a commercial business in Abu Dhabi determines its tax obligations, ownership pattern, and liability structure. Common types of structures that commercial businesses can take up include:
A trade name in Abu Dhabi distinguishes your commercial business from others. So, make sure you pick a nice one. The business name must be registered with ADDED or the respective free zone.
Here are the UAE provisions for selecting the trade name:
An initial approval means the Abu Dhabi government has no objection to your business being established. It allows you to go ahead with the commercial license application.
ADDED issues the initial approval for all mainland companies in Abu Dhabi. For free zone business setup, you must reach out to the respective authority to get the NOC.
A physical office location may be mandatory for commercial businesses, but not in all cases. For example, free zones allow you to go for a virtual office address. Similarly, the e-commerce license in Abu Dhabi exempts the need for an office for the first three years.
However, in the case of the mainland, you will need to get a proper physical office, and the tenancy contract will be required at the time of license application.
Some sectors are regulated by designated government departments in Abu Dhabi.
For example, the Department of Healthcare – Abu Dhabi (DoH) is the primary regulatory body overseeing the healthcare sector in the Emirate. So, if you are planning to start a medical equipment trading business in Abu Dhabi, you will need to get an additional permit from the DoH along with a regular commercial license.
This is just one example; there are many such sectors where you may need approvals from:
We recommend taking advice from our business setup experts, as they can help you get all the necessary approvals on time.
Application for a commercial license in Abu Dhabi is made to ADDED or the respective free zone (KEZAD, Masdar City, ADGM, etc.). One can easily apply through the e-portal offered by the authorities. Here are the steps you need to follow to apply for a commercial license:
Once the authorities receive your application, they will check it thoroughly. After you pass the review, you will receive confirmation of your commercial license and can download it online. The Abu Dhabi commercial license will be processed within 5 working days.
Foreign entrepreneurs need a valid UAE residence visa to live in Abu Dhabi. Once you receive your commercial license, you become eligible to apply for a residence visa.
The process involves passing medical tests and finalising the Emirates ID. Investors can also apply for an employee visa for their staff and a family visa for their dependents.
A corporate bank account is essential for all commercial businesses in Abu Dhabi. A bank account helps with all business transactions and investments.
You will need to submit documents such as an Abu Dhabi trade license copy, a visa copy, and other required documents to the bank to open account.
Finally, you must focus on promoting your commercial business. Abu Dhabi is a smart city where people are highly tech-savvy, and the internet usage rate is 99%. Make sure to leverage this by promoting your products on social media, creating an SEO-friendly website, and running ad campaigns.
Verification of a commercial license in Abu Dhabi prevents its fraudulent use. It is important as it helps to check the authenticity of the license and assures you are compliant with Abu Dhabi’s commercial regulations.
How to verify?
You can check the status of your commercial license, get information about it, and make sure it is updated.
A commercial license Abu Dhabi is typically valid for one year, and it needs to be renewed to stay operational.
The license renewal application must be made to the original issuing authority (ADDED or free zone). You can complete the process online via the respective portals.
Commercial license in Abu Dhabi fees range between AED 790* to AED 5,000* (government license fees).
However, it should be noted that the cost can vary based on your business activities, selected location, and other requirements.
Some of the other expenses to consider:
For more costing details, please feel free to reach out to our business setup consultants.
An Abu Dhabi commercial license offers numerous advantages to traders, including tax incentives, 100% foreign ownership, a wide range of activity options, and a streamlined application process. Below are the key benefits explained:
Getting a commercial license in Abu Dhabi, in the mainland or a free zone, has been made simple by the government:
Commercial businesses in Abu Dhabi can reach wider markets locally and internationally:
Tax and cost savings:
Abu Dhabi is one of the most profitable places to trade:
If you are looking for a conducive and safe environment for your business, Abu Dhabi is the right place to be:
Commercial business setup in Abu Dhabi offers numerous benefits to investors, including global market exposure, low taxes, and strong government support.
Dubiz Business Setup offers specialised assistance with a commercial license in Abu Dhabi. Our business setup consultants can help you with faster and efficient business setup in Abu Dhabi, UAE. From trade license to bank account opening and visa applications, we provide every essential service under a single roof.
Get a commercial license today:
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📧 Email: info@dubiz.co
A commercial license allows businesses to conduct trading activities, whereas a trade license is a broad term used for all types of business licenses in the UAE.
Not always. In the mainland, a physical office location may be mandatory for a commercial license. However, free zone and e-commerce licenses can be obtained with more flexibility.
No. An industrial license allows manufacturing activities, which involve processing raw materials or components to create a final product. On the other hand, a commercial license is meant for buying and selling consumer goods.
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