Business Setup in Abu Dhabi | DBS Business Setup

Business Setup in Abu Dhabi

A lot of people from different parts of the world want a business setup in Abu Dhabi because of its economic growth and best business policies. The business setup process can be easy if you know what all documents and procedures are required for it. But, here, we will discuss each and every step which is required for Business Setup in Abu Dhabi, along with a document checklist as well.

The UAE is a country with a promising business environment and growth prospects. It offers several incentives to both local and foreign investors in order to attract them and encourages them to set up their businesses there. The law of the land allows 100% ownership of companies by foreigners.

Why Should You Setup Business in Abu Dhabi?

It is widely recognized that Abu Dhabi is one of the most sought-after offshoring locations in the world, being the administrative capital of the UAE. Almost all economic sectors may invest in it since it contains 95% of the country’s total oil reserves.

In addition to its prosperity and safety, businesses are widely preferred to be established in Abu Dhabi because its business setup procedures are flexible and transparent. A new company can be set up in Abu Dhabi in just a few days, unlike in some countries. The required guidelines must be followed correctly, though.

Here are a few more benefits of establishing a business in Abu Dhabi:

• Abu Dhabi is strategically located between Europe, Asia, and Africa, providing easy access to the rest of the globe.
• The Emirate permits 100 percent foreign ownership and offers business and personal income tax exemptions.
• There are no restrictions on foreign exchange, quotas, or trade obstacles.
• Abu Dhabi has excellent living standards, including world-class healthcare, homes, entertainment, education, and transportation.

Business setup in Abu Dhabi: A How-To Guide

1. Identifying the type of economic activity: Before beginning the procedures for obtaining a business license, it is necessary to identify the proposed business’s activity or activities. The nature of the activity determines the legal requirements and expenses. Furthermore, certain activities necessitate meeting standards, such as the business’s location and the entire space of the building.
2. Determining the legal form of your business: A Limited Liability Company or a Limited Liability Partnership are two legal forms and structures that are suited for the demands and nature of your firm. Each legal form and ownership type has its own set of laws and restrictions.
3. Trade Name Registration: Once the business’s activity and legal form have been determined, the business must choose a trading name that differentiates it from others while still conforming to the nature of the activity and legal form.
4. Obtaining initial approval: After receiving the trade name certificate, an investor can seek an initial approval certificate, which allows him or her to proceed with an application for a business license and authorization for the needed business activity. The authorization of the General Directorate of Residency and Foreigners Affairs(GDRFA) is required for foreign investors. The investor might potentially seek clearance from the Commercial Protection Division at this point.
5. Obtaining necessary authority approvals: Following first approval, an investor can contact the relevant authority to acquire approval for the business activity or activities that it intends to pursue. Some forms of activities, on the other hand, just require Department of Economic Development clearance (DED).
6. Obtaining a Business License: After receiving clearance from the competent authorities, if any, the investor can apply to the Department of Economic Development and meet all legal criteria as well as pay costs for the business license to be issued. Commercial, Agricultural, Vocational, Professional, Industrial, and Tourism licenses are all given by several licensing bodies in Abu Dhabi.
7. Business License: After obtaining clearance from the required authorities, the investor can apply to the Department of Economic Development and meet all legal criteria as well as pay fees for the business license to be issued. Commercial, Agricultural, Vocational, Professional, Industrial, and Tourism licenses are awarded by numerous licensing bodies in Abu Dhabi.

Business Benefits in Abu Dhabi

The method for starting a small business in Abu Dhabi is straightforward. Knowing its benefits might provide the impetus required to conduct business in Abu Dhabi.

A few advantages are listed below:

• The Chamber of Commerce and Industry of Abu Dhabi makes it simple to obtain an Emirates trade license, local visas, rent a location and register a bank account for an LLC in Abu Dhabi.
• The investor has the option of becoming a partner in the business.
• The investor can operate the company without the day-to-day intervention of the local or national partner.
• A plentiful and low-cost energy supply.
• Freight rates are competitive.
• Real estate expenses are competitive.
• It is simple to open worldwide business bank accounts.

This covers most of the aspects of business setup in Abu Dhabi. However, a foreigner investing in Abu Dhabi for the first time may be unsure about where to invest and generate earnings. As a result, identifying the thriving industries in Abu Dhabi is critical at this point.

Licenses for Businesses in Abu Dhabi

For setting up a business in Abu Dhabi, a license needs to be obtained depending on the business activity, as noted in Step 5 of the company registration process. A few of these licenses are listed below:

License for Business Use

Corporations that engage in broad commercial operations, such as public trading companies, hospitals and clinics, construction and real estate, and business contractors, are all granted this license.

Professional Certification is Required

This permit is given to artists and other professionals who participate in the practice of a certain craft on a personal basis. These folks can operate alone or in groups of up to five. Carpenter, smithery, and steelwork are all examples of professional licenses.

License for Industrial Use

Businesses that want to start up manufacturing activities in Abu Dhabi will need to get this license. A license for Specialized Economic Zones is issued by the Higher Corporation.

Occupational Certification

Individuals who use their mental and intellectual qualities, talents, and capacities to service clients are granted this license. Law firms, accounting and audit organizations, and research and development corporations are all examples of businesses that require an occupational license.

License for Tourism

The Abu Dhabi Tourism and Cultural Authority is responsible for issuing this license. Companies that provide tourism-related services, such as hotels, travel agencies, boat rentals, and so on, are eligible for this license.

How to Proceed After Forming a Company in Abu Dhabi

As soon as an Abu Dhabi company is registered, a few things must be taken care of. Among them are:

Employee Identification Card (Company Card)

The Ministry of Labor and the Department of Immigration requires any firm operating in the UAE to be registered. A corporation cannot be Sponsor staff without these cards. In the United Arab Emirates, the Ministry of Labor, often known as the Labor Department, is in charge of all employment-related matters. The MOL is in charge of issuing labour cards and enforcing labour prohibitions on people who have them.

Obtaining a Visa

People from various nations must meet various requirements in order to get a valid visa to enter the UAE. You must apply for the appropriate visa type based on your needs. Work visas are among the several visas available in the UAE:

• Visa for travel is required
• Visa for a visit
• Tourist visas are available
• Transit visa

Cost of Business Setup in Abu Dhabi

Every step involves a cost. Whether you are in an Abu Dhabi free zone or on the mainland, you have to pay a fee. The following are the costs of establishing a business in Abu Dhabi for various jurisdictions:

Abu Dhabi’s Mainland Setup Cost

The cost varies based on the type of business, the type of activity, the size of the office, and the number of visas required. Aside from them, there are a few prices to be aware of;

• Fees for incorporation (submitting essential paperwork, arranging approvals/inspection – once)
• Fees charged by sponsors (annual)
• Fees for legal representation (one time)
• Taxes levied by the government and by third parties (trade license, notary fees, legal translation, typing centers, a mix of one-time and annual fees)
• Per-person visas are available (usually last for two years)

The Cost of the Abu Dhabi Free Zone

The cost of a free zone varies based on the type of business, the number of visas issued, and the size of the office. There are a few fees to be aware of.;

• Fees for Registration (one-time fee)
• Reservation cost for a name (one-time fee)
• Fee for a one-year license
• Share Capital is a term used to describe the amount of money
• The premises are rented on a yearly basis
• Per-person visas are available (lasts for three years)

DBS Business Setup

We at DBS Business Setup can help you setup your business in the UAE. We have a team of highly skilled and experienced professionals who will guide you through the process of setting up a business in the UAE. We can assist you with obtaining a trade license, trade name registration, company registration, opening a bank account, etc.

Our goal is to help reduce your burden when it comes to setting up your business in the UAE. You don’t have to worry about any regulations or laws because we are here for you!

Book a free consultation today!

Call us on +97145667485 or WhatsApp on +971551129344.

You may also chat with a live agent on our website https://www.dubaibusinessservices.com/, request a call back on https://www.dubaibusinessservices.com/contact-us/ or visit our office Clover Bay Tower Office 1111, Business Bay Dubai UAE.

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