The United Arab Emirates is a premier corporate hub in the MENA region. Abu Dhabi, the capital of the UAE, is quickly becoming one of the most important industrial centers alongside Dubai. You can open a business in Abu Dhabi to make the most of its potential.
Abu Dhabi offers everyone a wide range of growth and innovation prospects due to its diverse economy. Its leading sectors include oil & gas, tourism, property, finance, technology, etc. Abu Dhabi is well-known for its strong infrastructure, progressive economic policies, and political stability in the SWANA region.
You can incorporate a company to cash the abundant opportunities through Abu Dhabi. The city provides a favorable environment for the expatriate investors and international businesses. Main draws for foreign entrepreneurs are 100% ownership, ease of conducting business, favorable taxation, and the availability of free zones.
Also, the Abu Dhabi government helps new businesses through innovation incubators and various financial initiatives. This guide delivers a clear and useful roadmap to successfully launch your business in Abu Dhabi. It covers the legal requirements to efficiently kick-start your journey for later operational success across the UAE.
Registration process for a new business in Abu Dhabi
This is the step-by-step procedure of registering a new business in Abu Dhabi.
- Finalize business activity: Determining your business activity is the first step in launching a company. Your license type and business structure is dependent on the business activity of your liking. Keeping in view your target market and your expertise, single out one from these options.
- Choose legal jurisdiction: Pick one suitable jurisdiction for your business in Abu Dhabi from these options.
- Mainland: It provides access to the local market, although certain structures need an Emirati nominee sponsor in Abu Dhabi.
- Free zones: It offers advantages including tax breaks and 100% foreign ownership. Once, the companies were able to operate inside the FTZ or abroad. However, the Dubai government’s directive enabling free zone companies to operate in the mainland has set a new precedent.
- Offshore: With no access to the UAE market, this option is appropriate for international trade or asset protection.
- Select corporate structure: These are some options for you to decide the appropriate business structure in Abu Dhabi.
- LLC: Limited liability company is ideal for many businesses due to its little liable nature.
- Sole proprietorship: It is common for professional services and for individual enterprises.
- LLP: Limited liability partnership is better for businesses who want the features of proprietorship with little liable-ness.
- Reserve company trade name: Register your business name in Abu Dhabi that aligns with your brand. Also, pick a trade name that is distinct from other companies, and represents the business you conduct. Make sure that both of these steer clear of the terms that are offensive or improper in the UAE.
- Get initial approval: Seek preliminary approval from the Abu Dhabi Department of Economic Development (ADDED) for business setup in mainland. Otherwise, fetch a no objection certificate (NOC) from your chose free zone in Abu Dhabi. This initial approval sets you on course for the next steps of the business registration.
- Find an office: Rent or lease an office, or a premises to carry out operations in Abu Dhabi.
- Prepare essential documents: Draft these necessary legal documents and submit with fee to the ADDED or the chosen Abu Dhabi free zone authority.
- Copies of the passports of the owners
- Photocopies of the UAE visa of the shareholders
- Business plan detailing the activities
- NOC from the ADDED or any Abu Dhabi free zone authority
- Trade name reservation certificate
- Memorandum of Association (MOA)
- Articles of Association (AOA)
- Tenancy/Ejari certificate of the office
- Acquire business license: Wisely pick in Abu Dhabi from commercial license, industrial license, or professional license, dependent on your business activities. You will obtain a business license after the Abu Dhabi regulator finds your documents valid. You can recruit staff, arrange residency permits, and begin operations as soon as you receive the license.
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Insights on the business sector in Abu Dhabi
- The non-oil GDP grown by 6.6% in Q2 2024 as a result of the economic diversification of Abu Dhabi.
- Financial services, travel, logistics, technology, and eCommerce are the main industries propelling this expansion.
- Abu Dhabi has given 25,647 new economic licenses in 2023, a 16% increase from the previous year.
- Notably, the number of “Tajer Abu Dhabi” licenses—which let companies to function without a physical office—rose by 20% to 7,187.
- Small and Medium Enterprises (SMEs) employ almost half of the workforce in Abu Dhabi.
- Contributing for 42.8% of the non-oil GDP, the SMEs make up over 90% of licensed enterprises in Abu Dhabi.
- The growing number of new business licenses and encouraging government initiatives suggest good climate for startup growth in Abu Dhabi.
Conclusion
The UAE has become a hub for both local Emirati and international entrepreneurs. Starting a business in Abu Dhabi offers exciting opportunities in a thriving and investor-friendly environment. Supportive government policies, strategic location, and seamless procedure are its effective growth drivers.
You can opt to set up a company in Abu Dhabi mainland or a free Zone. Nevertheless, understanding the legal requirements, costs, and business structure options is crucial for the success. By following the proper registration process and staying compliant, you can establish a solid foundation for the long-term growth.
Abu Dhabi is ready for the efficient implementation of your new business ideas. So, make the move and turn your entrepreneurial vision into reality. Get the most of the many business incentives and corporate support systems available.
Do you want to open a new business in Abu Dhabi? Kick-off your enterprising journey in the UAE with less hassle. Go through the corporate setup smoothly with the help of KWS Middle East right now.
FAQs about the business sector in Abu Dhabi
These are the answers to the common questions about the corporate sector in Abu Dhabi.
Yes! Abu Dhabi allows 100% foreign ownership in the corporate sector. Especially, the expatriates can fully own the companies in the free zones in Abu Dhabi. However, some businesses in the mainland Abu Dhabi may have to appoint a local nominee shareholder as well.
Yes, the companies in the Abu Dhabi mainland mostly require a physical office. Also, virtual office possibilities like flexi desks are frequently available in Abu Dhabi free zones. However, some businesses in the free zones may need physical workplaces depending on their operations.
The license costs in Abu Dhabi start from AED 10,000. However, the budget depends upon the type of business and the area. Contingent upon the operations launch, final corporate expense can cross AED 30,000.
It is possible for entrepreneurs to sponsor themselves for the UAE residency visas. Apart from the long-term investor visa, they and their families can be eligible for the golden visa. Also, they can sponsor their staff for the green visa (UAE employment card).
If all legal documents are valid, then it takes 7 to 14 working days for registering company in Abu Dhabi.
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