20th June 2020
Everyone wanting to do business in Abu Dhabi wants the cheapest trade license. If you clicked into this article expecting to find the cheapest trade license on the market right now in Abu Dhabi, then I apologize! Instead, this article intends to bring caution to price-led advertising offering a 'good deal' and show you how to get the best AND cheapest license for your situation, both now and ongoing. Whilst such advertisements might be ideal for some investors, the cheapest trade license isn't necessarily the RIGHT license. We've all heard the phrase: If it's too good to be true, it probably is!
Misleading price-lead ads for trade licenses
Increasingly we are seeing ads and social media posts promoting trade licenses for AEDXX,XXX. The intention of these ads is generate inquiries from people wanting a cheap trade license to start their business in Abu Dhabi - often, would-be entrepreneurs. And, who doesn't want to get the cheapest license - nobody wants to high fees, especially when embarking on a new business. However, inquiries made to these ads rarely get what they want for the promoted price. These types of ads typically create the following scenarios:
The promoted price doesn't include all costs involved to get a trade license issued - there are lots of extra fees.
The promoted price doesn't anticipate the goals for the business - which means the license could end up being unnecessarily expensive in the longer term as the business grows.
The license-type being promoted doesn't cover the type of business activities the person wants to establish
The promoted fee doesn't include the cost of getting visas and Emirates IDs.
When responding to this type of advertisement, typically a salesperson will 'jump' on the inquiry and persuasively 'sell' the license. This is often accompanied with pressure by the salesperson urging the prospect to sign up NOW - either the price is for a limited time or perhaps they are going on vacation and need to close before leaving to ensure the prospect doesn't lose out on the special offer. A situation of urgency will be created and often prospects feel obliged to move forward and invest in the trade license. If this is the initial research/inquiry the prospect is making and signs up straight away, they are often left disappointed or in despair further down the line.
Can you get a wrong trade license in Abu Dhabi?
Yes you can! Research is essential to get the right trade license in Abu Dhabi. There is a lot to consider, in addition to price, when establishing a trade license. Sadly, I meet lots of individuals and companies once they have started doing business in Abu Dhabi, complaining about having the wrong license. Often, this is because they were 'pressure-sold' or didn't know what questions they needed to ask.
What to consider when getting a trade license in Abu Dhabi?
Following are just some of the key questions you need to ask BEFORE getting a trade license in Abu Dhabi:
What is the purpose of your business? Are you providing services or products?
Where are your products and services being delivered? Overseas, Abu Dhabi, Dubai or within a specific geographical area?
Who are your anticipated clients? Private sector or the government?
How many employees are you anticipating?
Will your product/service require special approvals?
Will your prospective clients require you to get specific approvals?
Answers to the above questions will confirm the license-types, legal structure, jurisdiction and activities for your Abu Dhabi trade license.
Getting the cheapest trade license in Abu Dhabi might appear attractive on the surface, but getting the right license is essential. Failure to have the right license could prevent your business from carrying out its activities; could prevent your business from contracting with its clients; could cause your business to face fines and even closure. In addition to these potential operational difficulties, there will also be anxiety, additional costs and wasted time resolving them - all taking your focus off of running and building your business.
Getting the RIGHT Abu Dhabi trade license will remove the above-mentioned, unnecessary issues meaning that you can focus on your business without such distractions. So, research upfront and be savvy! Ultimately, getting the RIGHT license will work out being the CHEAPEST license!
How Gateway can get you the RIGHT trade license in Abu Dhabi
Gateway Group provides concierge company formation services in Abu Dhabi. We set up both free zone companies and mainland companies, depending upon what is the most appropriate jurisdiction for each client. Gateway Group starts with a discovery questionnaire to fully understand YOUR unique situation and future goals for your business. Once we know this, we can ensure you get the right license. Trade licenses are unique to the business they represent - one size doesn't fit all. Get Gateway to organise you Abu Dhabi trade license uniquely for you!
Call Gateway Group: 600 567562
Written by Nathan Hunt, Senior Manging Partner
Gateway Group of Companies, Abu Dhabi & Dubai UAE
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