As a dynamic center for global trade, investors view the United Arab Emirates (UAE) as a significant component of their operations worldwide.
Historically Dubai has become the main commercial center of the UAE. Still, over the past few years, Abu Dhabi, the federal and most considerable capital of seven Emirates, has also worked hard to improve its global presence as a center of commercial activities, not just the oil and gas sector.
If you want to build a business in one of the safest, most prosperous, and the fastest growing economy globally, Abu Dhabi is the right place. Whether you plan to organize a new business in Emirate or open a branch of a company based abroad, the procedure is transparent and flexible.
Like all Emirates, there is no income or capital tax in Abu Dhabi, except for oil and domestic banking, and no cutting tax. Business setup in Abu Dhabi can offer you tons of benefits.
How To Setup your Business in Abu Dhabi?
When you have planned for company formation in Abu Dhabi, you should decide the business setup location. You can choose from mainland, Freezone, or offshore.
It is necessary to have a good understanding of the location before deciding how to build a business presence in Abu Dhabi. The Sovereign Team in Abu Dhabi is very experienced and can provide expert advice and support on all aspects of incorporating companies in Abu Dhabi and its free zone.
Decide Business Activity
Before starting the procedure to issue a business license, it is essential to determine the intended business activities/activities. Legal requirements and costs vary according to the nature of the activity. Besides, several activities require conditions that meet business locations and total areas of the facility.
Whatever type of company you want to start, market research must be done on your idea. Market research will help you measure the needs of the city and finally help you decide whether your business is worth the risk. Some companies can help you in this step (see box below), but the market analysis is always a great idea to find rivals before starting the company. You cannot operate your business without a license.
Decide The Legal Business Form
There are various legal business forms available in UAE like limited liability partnership, limited liability company, etc. Every business form carried along with it a different set of rules and regulations.
Business Name/Trade Name Registration
After selecting the business type, the next step is to choose a trading name for your new business setup in Abu Dhabi. Select a trading name that fits with UAE’s norms because UAE has stringent business name standards. Also, select such a brand name that differentiates your firm from others and corresponds to your business’s nature.
Get Initial Approval
After the trade name is registered, the next step is to request an initial permit from the concerned body and then proceed with the business license application and other permission required to run business in Abu Dhabi.
Initial approval is the certificate that allows the person to proceed with the next business formalities like issuing a business license and getting further authorization to start the business.
If you are a foreigner who is planning to start a business in Abu Dhabi, you will have to take permission from GDRFA(General Directorate of Residency and Foreigners Affairs)
Take Business Approvals
After the initial approvals, you have to take permission from other relevant Abu Dhabi authorities to start your intended business activity.
Issue a Business License
After taking all types of approvals from the relevant authorities, you have applied for obtaining the business license. Fulfill all the paperwork and pay the required fees for issuing the business license. There are various authorities available in Abu Dhabi to issue a license.
Find a Local Partner
If you are a foreigner who is planning to start a new business in Abu Dhabi, you will require an Emirati partner to register your company. Only locals can have the sole proprietorship of business. 51% of shares should come from the local UAE residents.
Before starting a business in Abu Dhabi, all the legal and practical requirements should be understood. If still, you find any issue with company formation in Abu Dhabi, you must take the help of a business setup consultant. They will guide you through the complete process of company formation in Abu Dhabi.