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commercial license in abu dhabi

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:

  • Covers trading of 1000s of product types
  • Permits local and international trading
  • Free zones offer affordable licensing options
  • Open to both local and foreign entrepreneurs in the UAE

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.

What is a Commercial License in Abu Dhabi?

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.

Commercial Business Activities that are allowed in Abu Dhabi

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:

  • You must apply for the type of commercial license that matches your business activities.
  • Specific sectors like healthcare and real estate need additional external approvals.

To discuss your business idea in the UAE, you can contact our business setup experts.

What are the Types of Commercial Licenses Available in Abu Dhabi?

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.

1. General Commercial 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.

2. E-Tajer (E-commerce) License:

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.

3. Instant License:

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.

4. Dual license:

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.

Abu Dhabi Jurisdictions Where you can Apply for a Commercial License

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.

Abu Dhabi mainland

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:

  • Full access to the UAE market
  • Flexibility in visa applications
  • A broad range of industry selection
  • Ability to work directly with government bodies

Abu Dhabi free zone

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:

  • No minimum capital requirements for most sectors
  • 100% foreign business ownership
  • Flexible and premium office spaces
  • Corporate tax exemptions

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 – Deciding Between the Two

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:

  • Completed license application form
  • Copy of a valid passport
  • Passport-sized photos
  • Trade name reservation certificate
  • Office lease contract, if needed
  • Bank reference letter

Please note that the commercial license in Abu Dhabi requirements may vary based on business type, jurisdiction, and nature of operations.

How to Apply for a Commercial License in Abu Dhabi? – Step-by-Step Process

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:

Step 1 – Determine commercial activities

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.

Step 2 – Choose the legal structure for the business

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:

  • Limited liability company: A limited liability company in the UAE can have a minimum of 1 and a maximum of 50 shareholders. Their personal assets are protected from the company’s liabilities.
  • Sole establishment: A single person can start and run a trading company in Abu Dhabi under a sole establishment structure.
  • Branch: An existing GCC or foreign trading company can open its branch office in Abu Dhabi. It’s a fast way to expand operations in a tax-free atmosphere.

Step 3 – Register the trade name

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:

  • Name should contain business structure acronym (example: LLC)
  • It should not violate any public or religious sentiments
  • Must be compatible with the business’s nature
  • The names of government authorities should never be used

Step 4 – Get the initial approval

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.

Step 5 – Secure office location

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.

Step 6 – Get external approvals, as required

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:

  • Ministry of Justice
  • Municipality department
  • Ministry of Interior
  • Real estate authority and others

We recommend taking advice from our business setup experts, as they can help you get all the necessary approvals on time.

Step 7 – Apply for the commercial license

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:

  1. Visit the portal: Visit TAMM for a mainland license or the respective free zone portal.
  2. Sign in: Sign in using your UAE Pass. If you are a new user, you will need to register on the portal using basic details.
  3. Look for a commercial licensing service: Find the commercial license application service on the website. It may be named like “Issue Economic License – Commercial.”
  4. Fill out the application: Mention your personal and business details on the license application form carefully.
  5. Attach the documents: Upload the necessary documents, such as your passport copy, photographs, business plan, and lease contract copy.
  6. Pay fees to complete submission: Pay the license application fees using available payment methods such as net banking or cards. Complete your submission.

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.

Step 8 – Apply for UAE residence visas

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.

Step 9 – Open a corporate bank account

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.

Step 10 – Promote your business

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.

Commercial License Verification in Abu Dhabi

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?

  • For a mainland license: You must use the “Economic License Enquiry” service on the TAMM portal.
  • For a free zone license: The respective free zone’s portal can help you verify your commercial license.

You can check the status of your commercial license, get information about it, and make sure it is updated.

Renewal and Validity of Abu Dhabi Commercial License

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.

Costs of a Commercial License in Abu Dhabi

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:

  • Typing charges
  • Office rent cost
  • Visa fees
  • Emirates ID cost
  • Company establishment card fees

For more costing details, please feel free to reach out to our business setup consultants.

Why should Traders Consider a Commercial License in Abu Dhabi?

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:

Efficient business setup:

Getting a commercial license in Abu Dhabi, in the mainland or a free zone, has been made simple by the government:

  • 100% foreign ownership: Foreign investors no longer need a local Emirati partner to start a commercial business in Abu Dhabi mainland for most commercial sectors. Free zones offer 100% ownership regardless.
  • Streamlined licensing: Commercial licenses in Abu Dhabi are usually issued within 3 to 5 working days. Applications can be submitted digitally through TAMM or free zone portals.

Easy market access:

Commercial businesses in Abu Dhabi can reach wider markets locally and internationally:

  • Strategic location: Abu Dhabi’s location allows easy access to Middle Eastern, Asian, African, and European markets. It is also around 1.5 hours away from Dubai.
  • Brilliant infrastructure: Businesses benefit from modern office spaces, well-developed roads, ports, and logistics facilities that ensure smooth operations.

Tax and cost savings:

Abu Dhabi is one of the most profitable places to trade:

  • Low to no tax rates: Abu Dhabi offers zero personal income tax, import and export duty exemptions, and 0% corporate tax for qualifying businesses.
  • Affordable business setup: Abu Dhabi, especially its free zones, offers affordable commercial license options. This makes it more appealing for startups and beginner entrepreneurs.

Business-friendly atmosphere:

If you are looking for a conducive and safe environment for your business, Abu Dhabi is the right place to be:

  • One of the world’s safest environments: Abu Dhabi is ranked one of the safest cities globally, offering a stable environment for business operations.
  • Innovative ecosystem: The city is known for its focus on technology, sustainability, and innovation, making it attractive for modern and tech-driven businesses.

Dubiz can Help with a Commercial License in Abu Dhabi

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.

Our Business Setup Services in Abu Dhabi Include:

  • Abu Dhabi trade license assistance: We will help you get your commercial license in the mainland or the free zone, whichever you prefer.
  • Bank account opening: Benefit from our ties with the UAE’s top banks to open a corporate bank account fast.
  • UAE residence visa: Our PRO experts can guide your residence visa application for yourself, your employees, and your family.
  • Accounting and tax services: We offer professional accounting and taxation (including corporate tax and VAT) advisory services across the UAE, including Abu Dhabi.
  • Compliance services: Get ongoing legal compliance for your Abu Dhabi business in areas such as UBO, AML, company auditing, and more.

Get a commercial license today:

📞 Call: +971 56 369 5485

💬 WhatsApp: +971563695485

📧 Email: info@dubiz.co

Frequently Asked Questions (FAQs)

1. What is the difference between a trade license and a commercial license in the UAE?

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.

2. Is physical office space mandatory for a commercial license Abu Dhabi?

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.

3. Are industrial and commercial licenses the same in Abu Dhabi?

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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