Generally, foreigners willing to establish their own business in Abu Dhabi would be needing to partner with an Emirati sponsor who may hold at least 51% of the total capital. However, companies that are established in free zones will have the advantage of enjoying sole proprietorship.
Steps to Setting up a business in Abu Dhabi
Setting up a business in Abu Dhabi will take hold in any one of the following forms: Limited Liability Company, Partnership Company, Limited Partnership Company, Private Shareholding Company, and Public Shareholding Company. As a requisite of the issuance of your business trade license and in order to perform any economic activity in the Emirate, it is necessary for both national and foreign investors to join the Abu Dhabi Chamber of Commerce and Industry.
Deciding on a Commercial Activity
In order to initiate the process of setting up a business in Abu Dhabi, Investors will determine the exact scope of activity/activities that will be carried out by their intended business as the legal requirements will tend to depend on the type of business activity that you have chosen. To enquire or conduct research on this matter there are a variety of resources available, namely to visit the concerned licensing authority and to inquire with them about the activities available for licensing. Moreover, The Electronic consultation that is facilitated by the Abu Dhabi Chamber of Commerce allows for consultation that is specifically provided to Emiratis through the Khalifa Fund.
Confirming The Legal form of Business
There are several business structures when setting up a business in Abu Dhabi that will be appropriate for your business Different rules and liabilities apply to each form of ownership, which include:
- Limited Liability Company
- Partnership Company
- Limited Partnership Company
- Private Shareholding Company
- Public Shareholding Company
- Branch Establishment
Our consultants at Biztrack are well equipped with the domain knowledge and expertise required to analyze which business structure will be best suited to you, contact us for a free consultation on how you can transition to establish a successful business in Abu Dhabi!
Trade Name Registration
Further on Setting up a business in Abu Dhabi, A suitable trade name will be chosen which closely matches the nature of your business and distinguishes you from others.
Obtaining Initial Approval
Upon receiving the Trade Name Certificate, next up on Setting up a business in Abu Dhabi, The investor can formally begin setting up the procedures in order to receive the initial approval certificate which will allow you to proceed with the issuance of your Trade License and to approach the relevant authorities for getting the approval to practice the business activity that you have chosen. For foreign investors, The appeal for setup lies in the ease of setup that can be achieved with the minimal bureaucratic hassle.
At this stage, the investor can also rent the site of his business.
Documents Approvals From Authorities
Once the initial approval has been gained, the applicant can then proceed to gain approval from the concerned authorities and fulfill the legal requirements. This is to note that the DED (Department of Economic Development) has collaborated with certain bodies to ease the process of gaining approvals, these are namely:
- Supreme Petroleum Council
- Department of Transport
- Abu Dhabi Municipality – Public Health Division Al Ain
- Abu Dhabi Municipality – Public Health division Western Region
- Abu Dhabi Municipality – Public Health Division Abu Dhabi
- Abu Dhabi Chamber
- Abu Dhabi Sewerage Service Company
- General Authority of Youth and Sports Welfare
- Waste Management Center
- General Directorate of Civil Defense
- Abu Dhabi Environment Health and Safety Center
- Abu Dhabi Center for Technical and Vocational Training
- Ministry of Foreign Affairs
Issuance of Business License
After approval has been received from all the relevant authorities the investor can visit the department of economic development to be clear of any fees for issuing the business license. The licenses issued by various companies can include the Abu Dhabi Commercial License, Agricultural License, Vocational License, Professional License, Industrial License, and Tourism License.
Membership from the Chamber of Commerce
With Setting up a business in Abu Dhabi the law requires that any professional or vocational activity within the Emirate, whether it is undertaken by individuals, companies, or branches, should join the Abu Dhabi Chamber of Commerce and Industry and obtain the membership as a prerequisite to acquiring a business license.
Free Zone Companies
The Free Zone is an economic zone that attracts foreign investments by offering advantages such as allowing foreigners to own capital, providing tax exemptions, and accommodating the export/import process.
The free zones in Abu Dhabi are as follows :
- Khalifa Industrial Zone Abu Dhabi (KIZAD)
- Masdar city free zone science and technology park
- Abu Dhabi Airport
- Two Four 54 (The Media Zone Authority)
Any company that is operating in the Free Zone will be considered as a Limited Liability Company and will be subject to the Laws and Regulations of the Free Zone in which it was established.
Advantages of Setting Up a Business within the Free Zone
- 100% Ownership of the company
- Ability to transfer profits from and to the free zone
- Exemptions from export and import taxes
- Exemption from personal income tax and corporation taxes
- Facilitating the licenses and acquisition of licenses required
- Access to suitable manpower accommodation
For More Information, Please Visit: “Free Zone Company Formation”
