The Tajer License is ideal for sponsored spouses, freelancers, and small businesses looking to get started at a low cost; plus, without the need to pay for office space. The license is good for two years. It will have to be renewed annually after the third year, and a commercial premise will be required.
In this article, you will learn everything about how to get a Tajer license. Several changes have been made to its requirements and procedures over the years to make it more business-friendly. Let us observe:
1. Why should investors establish in Abu Dhabi?
2. All you need to know about the Tajer License
3. Important facts you must keep in mind
4. Who can take advantage of Tajer Abu Dhabi?
5. The step-by-step to obtaining a Tajer License
6. What are the licensing fees for Tajer Abu Dhabi?
7. Benefits and limitations
8. How can Connect Group help you?
1. Why should investors establish in Abu Dhabi?
Abu Dhabi is the UAE’s capital and the largest emirate. This country has undergone a massive transformation of epic proportions in recent years, with extraordinary economic development and growth. Also, Abu Dhabi has evolved into a dynamic hub and a major player in a variety of business and industrial sectors. This allows it to compete on a global scale.
Abu Dhabi is the wealthiest emirate of all, accounting for 95 percent of the UAE’s oil production. This factor has made it one of the fastest-growing business and industrial centers in the Arabian Gulf and the Middle East region. As well as a hub for foreign investment, owing to its stable and prosperous economy.
However, as there are many advantages, there can also be challenges when making any type of investment. You must be aware of the challenges of doing business in this country in order to secure a successful outcome. For this, it is useful that you count on the assistance of a well-experienced agency.
Abu Dhabi, as the UAE’s capital, provides a plethora of advantages to investors. A few of them are listed below.
1.1.1. A focal point for global trade and commerce
You will have access to markets in Africa, Asia, Southern and Eastern Europe, and the Middle East if you establish your business in Abu Dhabi. The Emirate has facilities to accommodate international trade; as well as cutting-edge infrastructure, making doing business an appealing endeavor.
If you establish a business in one of Abu Dhabi’s free zones, you will benefit from a variety of tax breaks; including no personal or corporate tax, no import/export duty, and so on. Free Zones in the UAE are a boon to the country because of the benefits they provide to start-ups.
Over the last decade, Abu Dhabi has established itself as a center of excellence for telecommunications and information technology. The Emirate, with its cutting-edge facilities and infrastructure, is the ideal location for expanding your business operations.
In recent years, the UAE’s economy has experienced significant divergence. While the petroleum industry remains critical to the economic success, the country has seen continued growth in tourism, science, and technology.
No one can deny that Abu Dhabi has emerged as a major international center of business activity in recent years. Many large corporations and holding companies have their interests concentrated here. Furthermore, the Emirates began to take the lead in the field of international tourism.
Hence, the investment capitals that flock to the Emirates from all over the world are eager to see many large-scale projects completed. Such projects contribute to the nation’s active economic growth.
With faster internet, more convenient devices, and a more connected world, e-commerce has grown exponentially around the world. The UAE is no exception. According to industry experts, e-global commerce’s market share will more than double in the next four years.
Experts believe that, particularly in light of the impact of COVID-19, there will be a shift in consumer behavior. This, with an increasing number of people using their phones and handheld devices for shopping. As a result, it is not surprising that the Abu Dhabi government is changing regulations and requirements. This measure intends to stimulate economic activity and business growth in the region.
Hence, Tajer Abu Dhabi is particularly advantageous for small businesses and freelancers. The e-commerce infrastructure in Abu Dhabi has also been steadily improving as a result of H.H. Sheikh Mohammed bin Zayed Al Nahyan’s initiatives.
Tajer Abu Dhabi (also known as a trade license) is beneficial to both existing business owners and those who wish to enter the business sector. Running businesses could incorporate online services into their marketing or service mix, whereas new businesses can obtain permission to operate and promote their business online. Companies may use the eCommerce mark (eTajer) and their license serial number for promotional purposes.
ADDED expanded its license package in 2018 to include all GCC nationals and UAE residents under three legal forms:
- Establishment. However, this applies to Emiratis and GCC nationals only.
- Sole Proprietorship. Also Emiratis only.
- LLC. Emiratis, GCC nationals, and Expats Expats must partner with an Emirati partner in this legal form type. An individual who will hold a minimum 51 percent share in the business.
Hence, the Tajer license allows the following business activities:
- 1057 business activities are covered by the license (including IT consulting, food, tourism, import, export, real estate, design, and tailoring).
- All business activities are exempt from the requirement of having a physical presence or an office.
- The food category activities are an exception to this rule.
- Licensees may use the eCommerce mark (eTajer) and serial number in product promotions.
- The formation of a one-man company for Emiratis and GCC nationals.
- The formation of a Limited Liability Company (LLC) for UAE residents in collaboration with UAE nationals (Emiratis).
- Entrepreneurs can supplement their current licenses with online trade activities. Or obtain a new license to conduct business through websites and social media networks.
The advantages of obtaining a Tajer License are not limited to a single group of people. It also contains:
By obtaining a Tajer License, freelancers will be able to work remotely, from home, or in a co-working or shared space. If the owner desires to, the License can become an ‘Establishment’ or a full LLC at a later date.
Hence, this will allow freelancers to start at a low cost by using the Tajer License. When freelancers want to expand their business, hire employees, and open a physical location, they can form a full LLC.
Entrepreneurs and SMEs will benefit from this expansion as well, as it will result in a much lower start-up cost without the need for office space. As a result, economic growth in the capital will improve, which is critical to the strategic vision. Tajer Abu Dhabi’s ‘Golden Package’ includes activities in a variety of categories, including:
- General consultancy.
- Management (certain regulated activities will require full LLC licenses).
Moving into a digital world and ensuring Abu Dhabi is at the forefront of this movement. The initiative will help to accelerate setup and drive cost efficiencies. In essence, the DED online portal will now handle the majority of applications and paperwork.
5. The step-by-step to obtaining a Tajer License
- Firstly, download the app to your mobile device and create a new account.
- To finish the final step of verification and upgrade the account, use biometric verification. The client must present their original Emirates ID at any UAE Pass kiosk.
- Locations of Kiosks. Follow the link to the Department of Economic Development – Abu Dhabi website to apply for a TAJER license. Log in with your UAE Pass account and select “ISSUE A TAJER license.” The UAE Pass account will be used for all subsequent processes.
Secondly, submit the following documents and information online in your account:
- All partners’ passports.
- Emirates IDs for all partners.
- Visa copies for all partners.
- Personal addresses, including a PO box in the UAE, email addresses, and mobile phone numbers for both partners.
- Social media links, if available (Facebook business accounts, for example).
- The name of the website.
- The capital of the company.
- Activities of choice.
- Business name (As per the Commercial Company Law, the business activity must be reflected in the company name in full).
It can be done by any translation services company (if a partner visa is required).
Once they approve the license application, the MOA will be generated online; and must be signed by both parties via the UAE pass account by entering their password.
Please keep in mind that the MOA is first reflected in the UAE local sponsor account. Only after the local sponsor signs, the memorandum -via the UAE pass- will appear in your account and you will be able to sign it accordingly.
- Apply for a GDRFA Private Sector or Free Zone Firm Card (you can generate the payment voucher immediately after the MOA is signed, without waiting for the MOA approval).
- Fee for Social Contributions.
- The fee levied by the Ministry of Economy.
- Service charge.
You and the UAE local sponsor will receive the following documents via email:
- Trade license.
- Commercial register certificate.
- Payment receipt.
If you need a visa, select “E Channel registration in AD Immigration.”
Fill out an application for the Establishment card.
A Tajer license can only be obtained and issued if you have a valid and verified UAE Pass account. A UAE/Emirati local sponsor/partner is required for a Tajer license. It must be an individual who owns at least 51 percent of the company.
The license can be issued in 4-5 days if the following conditions are met:
- Both you and the UAE local sponsor have a UAE Pass account, and the password is correct on both ends.
- All documents and details are submitted by the above-mentioned rules.
The licensing fee for Tajer Abu Dhabi is determined by the type of business activity you wish to conduct. Each type of business has a different fee. In general, the Tajer Abu Dhabi fee is much lower than that of a traditional brick-and-mortar establishment. The following are a few examples of Tajer licensing fees.
- For online gaming services, the fee will be AED 1,500.
- For sports consultancy and studies, you will have to pay AED 2,500.
- AED 2,500 is the fee for account auditing.
- For real estate consultancy, the fee will be AED 2,500.
- For web hosting, you will need to pay AED 3,500.
The advantages of a Tajer License are self-evident. Not only does a company save money on the lease and office building, but it also saves money on licensing. Tajer also requires less supervision. Furthermore, you can use the money and time you save to improve your customer service.
When the business has grown sufficiently, it can turn into an establishment or an LLC. This encourages small business owners and freelancers to start small and grow into large-scale profitable businesses later. Note that a Tajer License cannot directly apply for labor quotas or visas for staff members. Employees may work for the company, but they will not receive a visa based on this position.
Small companies are the foundation of every economy. ADDED is taking steps to empower and assist small businesses and freelancers. Similarly, MOHRE is developing policies and regulations to help businesses.
As the world gradually returns to normal, the government will take additional steps to improve the business environment during COVID-19. The first step was to establish stringent guidelines for the reopening of businesses in Abu Dhabi.
When applying for any type of company trade license in Abu Dhabi, you must prepare several documents for submission to the relevant authorities. Contact Connect Group and we will assist you in obtaining your Abu Dhabi business license in a timely and efficient manner.
Aside from documentation assistance, we can also help you with a variety of niche services required for the formation of your company. Our consultants will also provide a breakdown of business license costs in Abu Dhabi.
Would you like to reach out to us to learn more about these types of licenses? If you have any questions, do not hesitate and call us at +971 43 316 688. You can also email us at email@example.com. We are prepared and ready to assist you!
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