All about the Tajer Abu Dhabi
Companies looking to operate an e-commerce business model in Abu Dhabi have to get a licence issued by the Abu Dhabi Department of Economic Development (ADDED) in coordination with the Telecommunications Regulatory Authority (TRA). This licence is known as Tajer Abu Dhabi. The licensing process started in 2017. Over the years, several changes have been made towards its requirements and procedures to make it more business-friendly.
ALL YOU NEED TO KNOW ABOUT TAJER ABU DHABI
With faster internet, handy devices and an increasingly connected world, e-commerce has grown exponentially across the globe and the UAE is no different. According to industry experts, the market share for e-commerce in the world economy is likely to double in the next four years.
Especially considering the impact of COVID-19, experts believe that there will be a change in consumer behaviour and more and more people would use their phones and hand-held devices for shopping. Hence, it is no surprise that the Abu Dhabi government is modifying regulations and requirements to boost economic activity and business growth in the region.
Tajer Abu Dhabi is especially beneficial for small businesses and freelancers. The e-commerce infrastructure in Abu Dhabi has also been improving steadily because of the initiatives taken by H.H. Sheikh Mohammed bin Zayed Al Nahyan.
Tajer Abu Dhabi (also known as trade licence) is useful for both existing business owners and those looking to enter the business sector. Running businesses could add online services to their marketing or service mix, while new businesses can obtain permission to run and promote their business online. Companies are allowed to use the eCommerce mark (eTajer) and their allotted serial number of the licence for promotions.
WHO CAN APPLY?
Initially launched in 2017, Tajer Abu Dhabi was limited to just UAE Nationals and 100 business activities which didn’t necessitate a physical presence. However, additions were made to the list pretty quickly. The current number of activities allowed under the licence is 1057. All these businesses need not have a lease or Article of Associations.
Similarly, GCC Nationals and UAE residents were also later allowed to apply for a licence. Non-GCC UAE residents, however, were only allowed to open limited liability companies in partnership with an Emirati partner or company. In this partnership, 51% shares in the LCC (or as a Local Service Agent if the business works as a Sole/Branch setup) will be held by the Emirati partner/company.
By acquiring a licence, businesses will have permission to import and export goods, open a business bank account, make financial transactions, and work with and under Government entities.
BUSINESS CATEGORIES
Abu Dhabi’s Department of Economic Development issues licences for the following categories:
- Business and contracting commerce
- Sales and maintenance
- Services and operations
- Transportation and management
- Consultancy and design
- Productive local families
As mentioned earlier, the overall business activities list includes 1057 business types.
TAJER ABU DHABI LICENSING FEE
Tajer Abu Dhabi’s licensing fee depends on the type of business activity you want to run. Each business type has a different fee. Generally, the Tajer Abu Dhabi fee is much lower compared to a brick and mortar business. Here are a few examples of the Tajer licensing fees.
Licence Type | Fee |
|---|---|
Licence Type Online Gaming Services | Fee AED 1,500 |
Licence Type Sports Consultancy and Studies | Fee AED 2,500 |
Licence Type Account Auditing | Fee AED 2,500 |
Licence Type Real Estate Consultancy | Fee AED 2,500 |
Licence Type Web Hosting | Fee AED 3,500 |
Visit the Abu Dhabi Department of Economic Development’s (ADDED) official website to view the complete list of activities and fees.
HOW TO APPLY FOR TAJER ABU DHABI LICENCE?
The Tajer Abu Dhabi Licence can be applied via the ADDED official website or the Abu Dhabi Business Centre’s app. The documentation can slightly vary according to the business type. To request the addition of trade activity via social media or websites, an activity addition application must be submitted. The application process is entirely online and fairly self-explanatory.
BENEFITS AND LIMITATIONS OF TAJER LICENCE
The benefits of a Tajer Licence are obvious. Not only does a business save money off the lease and office building but licensing cost is also lower. Tajer also requires lesser management. And the money and time you save can go towards improving your customer service. When the company has made progress, it can be converted into an establishment or an LLC. This encourages small business owners and freelancers to start small initially and transform into a large-scale profitable business later.
Note that a Tajer Licensee cannot apply for labour quota or visa for staff members directly. Employees can work for the company but they cannot be given a visa on the basis of this job.
Small businesses are the backbone of any economy. ADDED is taking measures to empower and facilitate small businesses and freelancers and the efforts will come to fruition in the near future. Similarly, MOHRE is also coming up with policies and regulations to empower businesses.
As the world slowly goes to back to a new normal, the government will take further steps to improve the business environment during COVID 19. The first step was to provide stringent guidelines for business reopening in Abu Dhabi. Stay tuned to MyBayut for the latest updates on the capital city’s business ecosystem.
