Abu Dhabi Instant License Establishment: Complete Guide
Abu Dhabi Instant Licenses are issued same working day for applications made during government working hours. The business setup formalities come after the license issuance, but must be completed within 90 days. Issued by the Abu Dhabi Department of Economic Development (DED), Abu Dhabi Instant Licenses are suitable for working with the UAE federal government, Abu Dhabi government and quasi government organisations such as ADNOC and Mubadala. Permitted to work throughout the emirate of Abu Dhabi, this license-type is ideal for companies needing a quick market entry, such as meeting tender obligations.
Abu Dhabi Instant License Establishment: Overview
Quickest license issuance in Abu Dhabi
Can work with UAE federal and Abu Dhabi governments
100% foreign ownership - individual owner
Local service agent no longer required
Abu Dhabi mainland license - operate throughout Abu Dhabi Emirate
Restricted business activities - just 67
Unlimited number of visas
12 months validity, renewable annually
Abu Dhabi Instant License Establishment: Eligibility & Suitability
Applicants must be over 18
UAE Citizens
GCC nationals (must have previously visited the UAE)
Suitable for individual entrepreneurs
Startups (individual owners only)
Abu Dhabi Establishment: Legal Structure & Ownership
Mainland or Free Zone
The Abu Dhabi Establishment License is a mainland license, issused by the Abu Dhabi Department of Economic Development (ADDED), enabling the license holder to work throughout the Emirate of Abu Dhabi. This is not a free zone license.
Legal Form
An Abu Dhabi Establishment is wholly-owned by one person, who assumes total responsibility for the finances and liabilities associated with the license, in their individual capacity.
Ownership
An Abu Dhabi Establishment is owned 100% by an individual.
If two or more persons are wanting to start a business together, the Establishment company license is not suitable. An alternative license-type should be considered.
Share Capital
N/A
Local Sponsor?
A local service agent is no longer required.
Commercial Premises
Upon issuance of the Abu Dhabi Instant License, an Abu Dhabi Tawtheeq lease contract for a commercial premise needs to be arranged and submitted to Abu Dhabi Department of Economic Development (ADDED) within 90 days. (A Tawtheeq contract means the lease is officially registered with the Department of Municipalities & Transport. Without a Tawtheeq lease, a lessee can't open a dispute or claim against the landlord if ever needed.)
Commercial space must be:
-
suitable for the activities on the license, e.g. retail activities need to have a shop or warehouse; whilst consultancy activities need office space
-
large enough to accommodate the anticipated number of visas
Be aware that some business activities have specific fit-out requirements, e.g. training activities require a training centre of 100sqm as a minimum, and have specific fit-out instructions which must be adhered to.
Existing Residence Visa
If the business owner is an existing UAE resident, it is not mandatory to change their existing visa; however, they would be entitled to apply for an investor visa.
Abu Dhabi Establishment License Visa
The individual named as the owner on the Establishment license can apply for an investor visas, if required. Once the trade license has been issued, it will be necessary to apply for an Establishment Card, before starting the visa application process. Upon successfully obtaining their own visa, the license holder can then sponsor their family members and employ staff.
Abu Dhabi Instance License Establishment: License Details
Trade License Application
Once the documents are ready for the Abu Dhabi Instant License application to be submitted, the license is usually issued the same day during government working hours on working days. Thereafter, the Tawtheeq lease must be arranged and submitted within 90 days to complete the application.
Trade License Validity
The Establishment License is issued for a period of 12 months.
Trade License Renewal
Establishment licenses need to be renewed annually. Delays in renewing the license will incur fines for the company, which will increase each month the license is not renewed.
Trade License Cancellation
When the Establishment license is no longer required, the company needs to arrange liquidation and cancellation of the license from the official registry. Failure to cancel the license will incur fines accruing and liabilities relating to non-filing of tax returns.
Abu Dhabi Instant License Establishment: Essential Information
Business Activities
· Restricted business activities - choice of 67
· Business activities determine the type of commercial premises and any specific fitout required.
· Some business activities require special approvals from government departments.
Company Name
The business owner chooses the company name (trade name). The trade name must reflect the nature of the business activity(ies) on the license and not already be in use.
Employing Staff
An Abu Dhabi Instant License (Establishment) can't register in Immigration and Ministry of Human Resources and Emiratisation (MOHRE) to start processing either the license holder's visa or any employee visas until a Tawtheeq lease contract has been obtained. To employ staff, the expat Establishment license holder is required to have their own visa under the license first.
There are no restrictions on the number of visas an Establishment company can apply for, but they should have a genuine need for the employees and provide a suitable working environment.
Establishment employment visas are issued for two years.
Establishments need to pay their employee salaries via the UAE's federal payroll system, the Wage Protection System (WPS).
Business Bank Account Opening
Abu Dhabi Establishments can open business bank accounts and avail business banking facilities. However, it is likely that the banks will require the Tawtheeq lease to be arranged first. Bear in mind, banks regularly update their account features and conditions to be competitive, reflect their current appetite for risk and to comply with industry regulations.
Exit Strategy
Abu Dhabi Establishments are suitable for these types of exit:
If the company simply intends to stop operations and close. When the time comes, it is simply a case of liquidating the business and cancelling the license.
If the intention is to create a saleable business. When the time comes to sell the company, the sale is conducted by way of a share transfer to the new owner(s).
Establishment License & Visa Requirements
Instant License Establishment Requirements
✔️ Full name
✔️ Residential address
✔️ Mobile number
✔️ Email address
✔️ Source of funds
✔️ UAE Pass app registration
✔️ UID Number (overseas GCC applicants)
✔️ Passport copy (6 months validity)
✔️ Visa copy (resident GCC applicants)
✔️ Emirates ID copy (UAE & GCC residents)
✔️ Proof of expertise relevant to the business activity being applied for: attested university degree, attested certificate of experience or attested accredited accomplishments
✔️ Arabic No Objection Certificate (NOC) to the Abu Dhabi Department of Economic Development (applicants employed in the UAE).
Establishment License & Visa Requirements
OPTION 1: 1st Time UAE Visa Applicants
✔️ Everything in Establishment License Only
✔️ High resolution, passport size, studio photo, white background, without eye glasses, soft copy
✔️ Marital status
✔️ Mother’s name
✔️ Religion
✔️ Home country residential address
✔️ Home country telephone number
✔️ Tourist visa copy or visa on arrival stamp
✔️ Health insurance (to be arranged during the visa application process)
OPTION 2: Previous UAE Visa Holders
✔️ Everything in Establishment License Only
✔️ High resolution, passport size, studio photo, white background, without eye glasses, soft copy
✔️ Marital status
✔️ Mother’s name
✔️ Religion
✔️ Home country residential address
✔️ Home country telephone number
✔️ UAE residential address
✔️ Previous residence visa copy
✔️ Previous Emirates ID copy
✔️ Health insurance (to be arranged during the visa application process)
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Abu Dhabi Instance License Establishment. Page updated 29 August 2024.