A Step-by-Step Guide to Starting a Business in Abu Dhabi

Capital of Dubai, the largest Emirate, Abu Dhabi is enriched with diversity and iconic infrastructure. Other than its cultural richness, the Emirate also stands as a great business destination for entrepreneurs. In recent years, more and more foreign investors are being attracted to Abu Dhabi because of the exclusive benefits it offers such as low tax rates, strategic geographic location, business ownership benefits, and so on. Let us understand the process of setting up business in Abu Dhabi, UAE, along with the benefits and documentation in detail.
Why entrepreneurs are choosing Abu Dhabi
Abu Dhabi proudly stands as the smartest city in the Middle East. Also, it offers excellent opportunities for SMEs and startups, helping them start and grow exponentially. Here are the major benefits of setting up business in Abu Dhabi:
Strategic geographic location: Abu Dhabi is a gateway to global markets. Businesses can reach a wide range of customers.
Luxurious life quality: Home to modern and progressive population, firms operate in an affluent and profitable environment.
Modern infrastructure: Well developed ports, roads and facilities allow for smooth, uninterrupted operations.
Advanced ICT solutions: Latest information and communications technology making connectivity stable.
Business ownership benefits: 100% ownership for freezone and certain mainland businesses eliminates need of local sponsor.
Tax benefits: Competitive corporate tax rates, low customs and zero personal income tax which means business can keep more of what they earn.
Documents needed for setting up business in Abu Dhabi
The documents needed for business license in Abu Dhabi include:
- Filled license application form
- Passport and visa copies of shareholders
- Initial approval receipt
- Ejari contract
- Shareholders agreements
- Trade name approval certificate
- Additional approvals receipt, if needed
- Memorandum and Articles of Association, duly attested
- Attested local service agent agreement, if needed
- Any additional document as may be asked
If you contact business setup experts like Dubiz Business Setup, they can handle all the paperwork and approval for your company formation Abu Dhabi.
Business setup process in Abu Dhabi
The process of company formation in Abu Dhabi is quite simple. Here is the step by step guide:
Choose your business activity: Start by deciding what activities you will conduct in your business. You can explore a range of industries such as healthcare, education, media, IT, finance, and others that interest you. Just make sure it falls within the DED’s approved list.
Select the legal form: Deciding the legal structure can have an impact on operational flexibility, ownership patterns and tax liabilities for your business. You must choose wisely your desired option: partnership, limited liability company, joint stock company, civil company, branch company, sole establishment, holding company, or other allowed structures.
Register a trade name: For your business, you must choose a name that is unique and also as per the naming rules of UAE. The name must be registered with the Department of Economic Development Abu Dhabi (ADDED).
Get the initial approval: After you get your trade name registration certificate, DED will issue your initial approval for setting up business in Abu Dhabi. This approval lets you proceed further with the business licensing in Abu Dhabi.
Get office space: Depending on the nature of your business license, you may need to secure physical office space. Types of offices include commercial spaces, warehouses, shared workplaces, private offices, etc. You must also get the tenancy contract “Ejari” for rented space which will be later on needed at the time of license application.
Prepare the documents: You must keep the essential documents ready that you would need for business license Abu Dhabi such as articles of company, trade name approval certificate, notarized documents, lease agreement, etc.
Additional approvals: For some business activities, you need special permits form specific government departments. For example, real estate business needs approval from local land department.
Apply for the license: Once you have all the documents and approvals in hand, apply for the Abu Dhabi business license. In case your selected jurisdiction is mainland, then ADDED will be issuing body. In each freezone, there is the respective licensing authority.
Visa and bank account: After you have secured your business license, you must obtain the visas that you will need to legally stay and work in Abu Dhabi. Also, getting a business bank account is also necessary for your business. Both have their own procedures and business setup experts can help you with each.
Abu Dhabi jurisdictions for business setup
There are three main economic zones in Abu Dhabi where entrepreneurs can establish their ventures. Each zone has its own rules and regulations as well as associated benefits. When choosing a jurisdiction for your business in Abu Dhabi, you must consider factors such as your business needs, budget and intended activities.
Here are the three types of business setup in Abu Dhabi:
Mainland company setup:
Mainland refers to the areas that lies outside the freezone, this economic zone is looked after the Department of Economic Development of Abu Dhabi (ADDED). Companies operating on mainland have access to the entire UAE market. Additionally, they can explore the global markets too.
Freezone company setup:
Free zones in Abu Dhabi are dedicated economic zones with their own regulatory bodies. Free zones offer exclusive benefits to entrepreneurs operating within them, such as 100% ownership, tax benefits, access to modern facilities, and much more. Setting up business in Abu Dhabi free zone remains a good choice for those looking for a fast and cost-effective business setup in UAE.
Offshore company setup:
Businesses looking to expand operations overseas while benefiting from the tax environment of the UAE can open an offshore company. The company is registered in the UAE. However, it can only conduct activities outside the nation.
Cost of business setup in Abu Dhabi
The cost for a mainland business setup can range between AED 5,500* to AED 30,000*. Many factors determine the cost of your setup, such as the type of Abu Dhabi license, visa and office space requirements, and other needs. It is advisable to get in touch with experts for an accurate cost estimation.
Wrapping up!
Abu Dhabi is not just the beloved capital of the Emirates, but a hidden gem for entrepreneurs and investors. From startups to well-established businesses, there is something for every entrepreneur to explore.
You can enjoy benefits like 100% ownership, tax savings, access to world-class infrastructure, and the opportunity to build a global brand in one of the richest cities of the Middle East. If you are confused about where and how to start, we would like to recommend Dubiz Business Setup to you.
They are company formation experts in the UAE who are trusted by global brands. They handle all aspects of business setup, licensing, and visa services with utmost care and efficiency. They have dedicated packages that can be customized to your business needs. In case of any questions, you can book a FREE consultation with them today!