The capital of the United Arab Emirates, Abu Dhabi is a leading business hub of the world. Thanks to the liberal economic policies of the UAE government, every year thousands of businesses are established in the UAE. The best part, there is room for growth for all of them. So if you are thinking of a business setup in Abu Dhabi, endless possibilities are waiting for you. But how to do it? What do you need to set up a business in the UAE? How complicated is the process? Is it worth taking the risk? You might have thought of these questions several times. Here you will get the answers to them all. But before that, let’s understand why Abu Dhabi is so popular among the business community.

The advantages of starting a business in Abu Dhabi

The fortune of the UAE changed gradually once they discovered their biggest resource, oil. But soon the government realised, they couldn’t rely solely on the oil and natural gas exporting industry for their economic growth. To thrive as a nation, they developed an economic policy that would encourage more business activities on their soil. And this changed the scenario of the entire nation. Today, UAE is one of the richest countries in the world and there are good reasons behind it. Have a look at the advantages that the UAE has to support the growth of a business in its territory.

Favourable economic policy

The UAE government has introduced an economic policy that favours businesses with low tax rates, investor-friendly regulations and minimum protocols. Unless a business is earning an annual revenue of more than AED 375,000 no corporate tax are imposed on them. For a business that is earning more than that, the tax rate is just 9%, which is significantly lower than many other countries like the UK and the USA. There are no limits on monetary transactions for business activities, foreign exchange controls, trade barriers, or quota systems in the UAE. Plus, multiple free zones in the UAE are established to provide businesses with many additional perks.

Global business hub

Unlike many other countries, the UAE government allows foreigners to enjoy complete ownership of their businesses, unless the business falls under a certain key strategic domain. This attracts entrepreneurs from all over the world to expand their businesses in the UAE and trade with each other. Plus, the geographic location of the UAE also gives access to multiple markets in Europe, Africa, and Asia. To keep the channels open between entrepreneurs from various nations, the UAE government keeps on organizing various events and trade fairs. This helps an entrepreneur working in the UAE to connect with other businesses and build a strong global network.

World-class infrastructure

UAE is known for providing one of the best public infrastructure in the world. The standards of roads, airports, schools, hospitals, hotels, banking facilities and all that is needed in civic life are exceptionally high. Not only it is connected with all the important cities in the world through multiple airports, but the well-planned roads ensure easy transportation from one place to the other domestically. There are multiple seaports across the UAE, including major ports in Abu Dhabi, Dubai, and Sharjah that handle container traffic, RoRo vessels, and general cargo. This makes imports and exports much easier.

A global talent hub

With its high standard of living and diverse opportunities, the UAE attracts a pool of talent from all over the world. This helps businesses in hiring the best talents from all kinds of professions. Plus, as a country where freelancers can earn up to AED 1 billion annually without paying any tax, it has become a favourite destination for some of the best freelance minds.

Steps to set up a business in Abu Dhabi

To establish a business in Abu Dhabi, you have to get a trade license from the Department of Economic Development (DED) of the UAE government and register for the corporate tax. Let’s understand the entire procedure in 10 easy steps.

Step 1 – Select the type of business you want to establish. 

Step 2 – Select the ownership structure of your business.

Step 3 – Get the list of documents required as per the type of your business and its ownership structure. 

Step 4 – Register your company’s name with the DED.

Step 5 – Lease an office space and prepare a rent agreement.

Step 6 – Apply for the trade license with all the necessary documents.

Step 7 – Once the application is approved, pay the application fees and collect the license. 

Step 8 – After getting the license, open a corporate bank account in any authorized bank.

Step 9 – Get a list of the documents needed to register for corporate tax.

Step 10 – Register for Corporate Tax with the Federal Tax Authority (FTA).

The entire procedure can be done online. The structure of FTA and DED has been designed for quick approvals and simple documentation. But documents must be prepared carefully. For that, you can consult professionals who can help you with business setup in UAE.