Starting a business in Abu Dhabi is an exciting opportunity, especially with the ease of setting up a Sole LLC (Limited Liability Company). This guide will walk you through the complete procedure of opening a Sole LLC trade license in Abu Dhabi, from initial planning to final approval.
What is a Sole LLC?
A Sole LLC in Abu Dhabi is a type of business structure where a single individual owns 100% of the shares in the company. Unlike sole proprietorships, a Sole LLC limits the owner’s liability to the company’s capital, providing a layer of protection to personal assets.
Step 1: Choose Your Business Activity
The first step in obtaining a trade license is to decide on the business activities you want to pursue. Abu Dhabi’s Department of Economic Development (DED) offers a comprehensive list of activities. Ensure that your chosen activities align with your business goals and comply with local regulations.
Pro Tip:
Choosing the right business activity is crucial, as it determines the type of license you will need and the regulations you must follow.
Step 2: Reserve Your Trade Name
Your trade name is your business’s identity in the market. It’s important to choose a unique name that complies with Abu Dhabi’s naming conventions. The name should not include any offensive language or references to religious or political entities.
How to Reserve a Trade Name:
- Choose three potential trade names that represent your business.
- Submit these three names to the Abu Dhabi Business Center portal for approval.
- Once you receive approval for one of the names, proceed to pay the application fee to reserve it.
Step 3: Obtain Initial Approval
After paying the application fee for your approved trade name, you will receive Initial Approval from the Department of Economic Development (DED) and immigration. This approval allows you to proceed with the rest of the licensing process, confirming that your business activity and trade name comply with Abu Dhabi’s regulations.
Documents Required for Initial Approval:
- A copy of the owner’s passport and Emirates ID.
- A copy of the reserved trade name certificate.
- A description of the intended business activities.
Important Note:
Initial approval does not permit you to start business operations; it simply allows you to move forward with the licensing process.
Step 4: Draft the Memorandum of Association (MOA) with a Legal Translator
Drafting the Memorandum of Association (MOA) is a critical step in setting up your Sole LLC. The MOA outlines the structure and operation of your company, including ownership details and business activities. To ensure accuracy and compliance, it’s recommended to work with a professional legal translator, such as TCaB.ae.
How to Draft the MOA:
- Consult a Legal Translator: Engage a certified legal translator like TCaB.ae to draft your MOA in both Arabic and English.
- Review Carefully: Once the legal translator prepares your MOA, review it meticulously to ensure all details are correct. This document will govern the legal framework of your business.
- Sign and Stamp: After confirming the details, sign and stamp all pages of the MOA. This step is crucial as it validates the document.
- Submit to Judicial Department: Once signed, return the MOA to your legal translator. They will then submit the finalized document to the Judicial Department of Abu Dhabi for official processing.
Pro Tip:
Working with a professional legal translator ensures that your MOA is not only accurate but also complies with the legal requirements of Abu Dhabi, minimizing the risk of errors that could delay your business setup.
Online Meeting with the Judicial Department
After your legal translator submits the Memorandum of Association (MOA) to the Judicial Department of Abu Dhabi, you will be required to attend an online meeting as part of the verification process.
What to Expect:
- Meeting Notification: The Judicial Department will send an SMS to your registered mobile number containing a link, username, and password for the online meeting.
- Brief Meeting: The online meeting is usually brief, lasting between 1 to 5 minutes. During this time, a judicial officer may verify your details and confirm your understanding of the MOA.
- Prepare for the Meeting: Ensure you have a stable internet connection and are available at the scheduled time. This step is crucial for the official approval of your MOA.
Pro Tip:
Attending the online meeting promptly and being prepared will help expedite the approval process, bringing you one step closer to securing your Sole LLC trade license.
Step 5: Secure a Business Location
To obtain a trade license, you need a physical address in Abu Dhabi. You can either lease a commercial space or opt for a virtual office depending on your business model. The tenancy contract must be registered with the Abu Dhabi Municipality.
Pro Tip:
Consider location carefully, as it can impact your business’s visibility and accessibility.
Step 6: Submit Documents for Final Approval
With the MOA and tenancy contract in hand, you can now apply for final approval from the DED. Ensure all documents are accurate and complete to avoid delays.
Documents Required for Final Approval:
- Initial approval certificate.
- Notarized MOA.
- Tenancy contract.
- Owner’s passport and Emirates ID copies.
When submitting your documents for final approval of your Sole LLC trade license in Abu Dhabi, it is now mandatory to include detailed information about the Real Beneficiary and the company manager. This step is crucial in ensuring transparency and compliance with local regulations.
Real Beneficiary Details:
- What is a Real Beneficiary? The Real Beneficiary is the individual who ultimately owns or controls the business. This information is essential for the Abu Dhabi authorities to ensure that the business operates within legal and ethical boundaries.
- Required Information: When submitting the Real Beneficiary application, you must provide comprehensive details, including the beneficiary’s full name, mobile number, accurate residential address, street name, villa or building number, and any other relevant contact information.
- Importance: Accurately completing the Real Beneficiary section is one of the most important aspects of your trade license application. Failure to do so could result in delays of your application.
Company Manager Information:
- Manager Details: In addition to the Real Beneficiary, you must also include the details of the appointed manager of the company. This includes their full name, contact information, and any relevant identification documents.
- Role of the Manager: The manager’s details are vital because they will be responsible for the day-to-day operations and compliance of the company.
If you are facing issues with Real Beneficiary approval, TCaB.ae is here to help you successfully navigate and approve your application.
Final Submission:
Once you have gathered all the necessary documents, including the Real Beneficiary and company manager details, submit them to the Department of Economic Development (DED) for final approval. Ensure all information is accurate and complete to avoid any setbacks.
Pro Tip:
Pay extra attention to the Real Beneficiary section to ensure it is thoroughly and correctly filled out. This step has become a critical component of the trade license process in Abu Dhabi.
Step 7: Pay the License Issuing Fees
Once your trade license application is approved, the next step is to pay the license issuing fee, which is approximately 5,400 AED. This payment finalizes the licensing process, allowing you to officially operate your business in Abu Dhabi. Make sure to complete the payment promptly to avoid any delays in receiving your trade license.
Step 8: Receive Your Sole LLC Trade License
After completing the payment, the Department of Economic Development (DED) will issue your Sole LLC trade license. This license is valid for one year and must be renewed annually. With your trade license in hand, you are now officially authorized to conduct business in Abu Dhabi. However, the next crucial step is to proceed with obtaining your owner visa under your trade license, ensuring you can legally reside and manage your business in the UAE.
Owner Visa Requirement:
Before issuing visas for your employees, it is mandatory to obtain an owner visa under your trade license. The owner visa is crucial as it validates your legal status and authority to sponsor and manage employees in the UAE.
Additional Considerations
1. Visas and Work Permits:
Once your Sole LLC trade license is issued, the next step is to create an Electronic Card for your company. This involves setting up a company file and updating labor information, which you can do by visiting a Tasheel center. After paying the necessary fees, the Electronic Card will typically be activated within 24 to 48 hours. This card is essential for managing visas and work permits for your business.
Step 2: Create an E-Channel Account
After updating your labor information, the next crucial step is to create an E-Channel account. The E-Channel is Abu Dhabi’s online immigration system, designed to streamline various immigration and residency processes.
What is E-Channel?
The E-Channel system provides a comprehensive online platform for handling essential immigration tasks, including:
- Entry Permits: Apply for entry permits for new employees or partners.
- Visa Status Changes: Manage changes to visa statuses, such in and out.
- Residency Issuance: Issue residency visas for employees, owners, and their dependents.
- EMID Processing: Obtain and manage your Emirates ID (EMID), which is necessary for identification and official purposes in the UAE.
How to Create an E-Channel Account:
- Visit the E-Channel Portal: Access the official Abu Dhabi E-Channel website.
- Register Your Company: Enter your company details and trade license information to set up your account.
- Submit Required Documents: Provide necessary documents for verification, including your trade license and proof of labor updates.
- Pay Fees: Complete any applicable fees for processing applications through the E-Channel system.
- Activate Your Account: Once registration is complete and payment is made, your E-Channel account will be activated, allowing you to manage all immigration-related tasks online.
If you experience UDB issues or other challenges while creating your E-Channel account, TCaB.ae is here to help. Our experienced team specializes in resolving technical problems and will expertly manage the E-Channel setup for you, ensuring a seamless process for handling your immigration and residency needs.
Pro Tip:
Creating an E-Channel account simplifies the management of visas and residency permits, saving you time and reducing paperwork. Ensure all information is accurate and up-to-date to avoid processing delays.
2. Opening a Bank Account:
With your trade license, you can open a corporate bank account in the UAE. Choose a bank that understands your business needs and offers suitable services.
3. PRO Services:
For all your PRO service needs, TCaB.ae is your go-to solution. Our expert team provides comprehensive assistance with government-related documentation and procedures, ensuring that all your tasks are completed efficiently and accurately.
Conclusion
Opening a Sole LLC trade license in Abu Dhabi is a straightforward process if you follow the steps outlined above. From choosing your business activity to receiving your license, each stage is critical to the successful establishment of your business. By understanding the requirements and preparing in advance, you can set your business on the path to success in one of the most dynamic markets in the world.
For professional assistance in setting up your Sole LLC in Abu Dhabi, contact TCaB.ae. We specialize in PRO services and can guide you through every step of the process.