Business Setup in Abu Dhabi
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Business Setup & Company Formation
Post COVID, the economy of UAE has successfully made a strong comeback across the entire gamut of business activities presenting businesses and entrepreneurs across the globe with a once in a lifetime opportunity to start a Mainland, Freezone, Offshore business set up.
Business set up Abu Dhabi makes sense as it is the largest and the most vibrant and biggest emirate in UAE and virtually acts as a bridge between the east and the west. Off late the government of UAE has made a string of favorable and positive changes like 100 percent ownership, less bureaucratic hurdles and secure environment, high quality of life and low taxation that has further paved the way to encourage business setup Abu Dhabi and make it a global business hub.
The continuous and tireless efforts of the Government of UAE have ensured that the emirate undergoes an image makeover from being known as the biggest oil producer of UAE to a sought after tourist destination and a nerve centre of the Global business ecosystem and thus changing the common perception.
With the right guidance and support, business setup Abu Dhabi is a seamless and smooth experience devoid of bureaucratic hurdles and red tape and the Government’s role is more of an enabler and facilitator and less of an enforcer and a watchdog. Irrespective of the type and scale of business that you are planning to set up, the following necessary steps and important guidelines are enumerated as a handy reference to follow.
Types of Company Formation & business setup
How to Set Up Business
To set up a business, interested entities must select the business domain and sphere of business activity one wants to engage in, the government regulations, legal formalities and fees charged for different businesses are different. Zeroing in on a particular Domain of business activity will depend on a multitude of factors like business specialty and objective. Business set up is broadly categorized into three types.
Mainland Company Formation
They allow full ownership and can operate across the entire country. These are also the most common type of business set with a strong local presence.
Offshore Company Formation
As the name implies, these businesses operate across the border and indulge in international business activities. These businesses also provide special tax concessions and enjoy confidentiality. There is no need to be physically present in the country. However, these businesses cannot conduct business activities within the country.
Free zone Company Formation
These business enterprises allow for complete foreign ownership and special tax breaks making them lucrative for foreign businesses. There are more than 50 Free zones in UAE to choose from and operate in. It will be prudent and advisable to consult an expert consultant before choosing your business domain.
Company Registration for Business Setup in Abu Dhabi
Registering the business name is the next important activity for business setup Abu Dhabi. The Department of Economic Development registers the trade name which restricts other companies to use that specific company name. There are certain minimum requirements which the business needs to adhere to like the name must not be immoral, must make sense with the concerned business activity, must stand out and should not have been used in the past by any business, and so on. The UAE Ministry of Economy has taken upon itself to streamline the trademark registration process and also an approval from the General Directorate of Residency and Foreign Affairs (GDRFA) is necessary for investors and entrepreneurs who are not from the UAE.
Licensing Requirements for Business Setup in Abu Dhabi
Commercial License
Suitable for companies engaged in any commercial activities like import export trading, medical facilities construction companies, logistic firms, and so on.
Industrial License
This license is suitable for businesses that wish to engage in all manufacturing processing and industrial activities. However, there is a caveat that at least 51 percent of company capital must be owned by a UAE national and the business must not operate in resources like minerals, natural gas and other fossil fuels.
Professional License
This license is suitable for professionals providing professional services like doctors, engineers, legal consultants, management consultancies, educational services, artists, and experts in a particular field, and similar roles. Under this license, no more than five people can work for the licensed entity.
Tourist Services License
All activities involving travel and tourism like hotels, resorts, sightseeing agencies, safaris, and tourist entertainment services come under this license. Tourism and Cultural Authority is the issuer of this license. Apart from these four licenses, business setup Abu Dhabi sometimes requires specific licenses for niche business activities. Sometimes more than one license is required to operate a business. A unique one of its kind portal – Bashr – connected with government entities that provide licensing service facilities has also been started by the Government of UAE where one can start a business in less than an hour. Online application of commercial license facility is available for residents and investors on the official website of the UAE Government Portal.
Stature as an investment destination has grown by leaps and bounds and given its strategic geographic location, zeal, and enthusiasm of the government in facilitating business and interest of global investors and businesses the best growth story is yet to come.
Why choose CONSULTZONE as your business setup partner in Abu Dhabi?
With over a decade of experience and expertise in guiding countless clients, we offer services across the entire spectrum right from suggesting the right business to entrepreneurs and organizations, advising the most appropriate company structure, right jurisdiction, the licenses required, trade name registration, visa formalities required and ensure both immediate and long-term time and cost value creation.
We acquaint our clients of the most common mistakes and ensure our clients avoid them.
We work very closely with all Government Authorities and ensure speedy completion of all formalities.
Apart from being the most cost effective, we take pride in immense value creation for our clients.
Having consistently enjoyed excellent ratings and client referrals across sectors and companies served which has made us the most sought-after partner in setting up business.
Why Start a Business Setup in Abu Dhabi, UAE?
The United Arab Emirates’ (UAE) political and administrative capital, was founded on the back of its oil wealth. These funds have also facilitated the Gulf nation’s strong international connections.
For people of all backgrounds, it’s a great place to do business. Because of its closeness to Dubai, one of the Gulf’s most sophisticated Emirates has been able to expand and prosper. The trip to Dubai takes no more than 45 minutes. Consequently, many Abu Dhabi-based business owners are also thinking about opening a Dubai branch. Taking advantage of this chance will help the two Emirates choose a good business strategy. The ease with which Dubai is reputed to provide procedures for company creation and business establishment is another notable quality of these two cities.
It is easy for entrepreneurs to start successful businesses because of the city’s abundance of commercial and industrial establishments. Many different business opportunities are available to investors from around the world. Foreign investors looking to set up businesses in the UAE have several options.
FAQs Of Business setup in Abu Dhabi
Why Abu Dhabi and not some other Avenue?
It should be noted that one of the fastest and the most resilient economic powerhouses of the Middle East, has withstood the test of time, be it the pandemic or other economic turmoil in the business world and its economy has bounced back every time it has been challenged which makes the engine of economic growth in the Middle East. It also has a welcoming and cosmopolitan environment and enjoys extremely cordial and friendly relations across the world.
Considered the melting pot of cultures and civilizations in the world and one of the most cosmopolitan cities in the Middle East – it would not be wrong to say that is the perfect example of Unity In Diversity and is therefore equally welcoming to persons of all religions, countries, colors, and cultures, to name a few.
It is a destination where there is tremendous support from the government for anyone setting up a business as there is very little red tape, and the rules and regulations are very easy to understand, and the legal framework also acts as a facilitator rather than an impediment to doing business. There is no bribery and hush money involved and most of the procedure is internet-based based thus reducing the possibility of middlemen.
It is one of the most scenic, serene, and beautiful places on the planet with a very high quality of life which is fast paced and in sync and in fact ahead of the rest of the world thus attracting some of the most prosperous and famous personalities across the globe both for residential as well as business reasons providing ample opportunities for people contemplating setup business opportunities.
It also acts as a bridge between the east and the west, the Arab and the Western world, where one could find people of all nationalities, colors and country living in peace with each other.
With the growth of lesser dependence on fossil fuels like petroleum, which is the biggest oil exporting emirate in UAE is tirelessly working on diversifying its economy from being oil-based to a more inclusive and diverse economy presenting enormous opportunities for entrepreneurs to set up business and exploit never before opportunities.
What does Abu Dhabi Free Zone offer to me if I set up my business over there?
One big advantage – You can own up to 100% of your business and duty exemption like import export duties and taxes.
What is the time taken to set up a Business?
Time taken in setting up a business is a rather subjective query and is going to depend on a wide variety of factors like the kind and scale of business, government policies regarding the sector the time taken may vary from less than an hour for an online business to a few months for a significantly large manufacturing business or a business belonging to a strategic category.
Is a local sponsor necessary for starting a business set up in Abu Dhabi?
For most businesses, 100% ownership is allowed. However, in some critical and specific business fields, a local sponsor or partner is mandatory.
How should I ascertain that my setup business is following all laws, rules and regulations of the government of UAE?
In order to make sure that your business is following all rules and regulations of the government and avoid unnecessary mukhalfaas (penalties), it is highly advisable to get the services of a specialized consulting firm like Consultzone. Because of the vast experience and working history of a specialized consulting firm like Consultzone, setting up a financially viable as well as legally sound business becomes an extremely smooth, enjoyable, and efficient process.
