UAE is a country with one of the most lucrative environments for conducting business. Over the years, many entrepreneurs have established their businesses in the UAE, which are now booming. Now with slashed business registration costs, acquiring an Abu Dhabi business license became easier than ever before.
Recently, the government of Abu Dhabi announced a 94% reduction in the current fee for business setup in Abu Dhabi. Effective from 27th July’21, the business setup cost in Abu Dhabi has been reduced to AED 1000 ($272). According to the government of Abu Dhabi, this move will enhance the ease of business setup and increase the competition.
If you are also willing to get a permanent residency in the UAE, consider this the right time for a business setup here. You can read all about Abu Dhabi’s business-related information in this blog.
Why Setup a Business in Abu Dhabi?
Abu Dhabi is not only the administrative capital of the UAE but also, is one of the most chosen places for conducting business in the UAE. Abu Dhabi accounts for 95% of the country’s total oil reserve. It also offers diverse investment opportunities to nearly all economic sectors in the UAE.
Business setup in Abu Dhabi is much preferred because of its transparent and flexible business setup procedure. It will just take you a few days to set up your new company in Abu Dhabi. For that, you must comply with the required guidelines set by the government.
Below mentioned are a few advantages of business setup in Abu Dhabi:
- Inhabiting the most prominent area between Asia, Africa and Europe, Abu Dhabi has close access from the rest of the world.
- You are eligible for 100% foreign ownership and an exemption from corporate and personal income tax.
- There are no foreign exchange controls, quotas or trade barriers.
- Abu Dhabi offers top-notch living standards, world-class healthcare facilities, security, and amazing career opportunities.
What are the Steps for Business Setup in Abu Dhabi?
You must be aware of certain facts, guidelines, and steps before starting a business in Abu Dhabi so that you do not face any problems in the coming years.
1. Decide on The Business Activities
You must select your business activities as per the nature of your business. The DED (Department of Economic Development) provides a list of business activities from which you must choose suitable for your business. Your business activities will determine the legal proceedings and the applicable fee.
2. Determine the Legal Form
You must determine the legal form of your business to comply with the respective rules and regulations as they are different for different business establishments. Hence, you need to select a legal entity type to run your company.
3. Register Your Trade Name
Select a suitable trade name for your business. Make sure it is easy to pronounce and does not include any foul or controversial words. If you plan to name your company after a person, you must use their full name. Once you have selected a name, you need to register it with the DED.
4. Get a Membership at ADCCI
As per Law No. (7) of 1998, all the nationals and foreigners, involved in any commercial, industrial, professional activity within Abu Dhabi, whether they are individuals, branches or companies, are mandated to become a member of the Abu Dhabi Chamber of Commerce and Industry in order to acquire an Abu Dhabi business license.
5. Acquire Abu Dhabi Business License
The government offers 4 main types of business licenses:
- Commercial License in Abu Dhabi
- Industrial License in Abu Dhabi
- Professional License in Abu Dhabi
- Tourism License in Abu Dhabi
To acquire any one of the Abu Dhabi business licenses according to the nature of your business, expert consultants at Shuraa Business Setup can assist you throughout the application process, to get a permit and avail No-Objection Letter from the jurisdiction. Once your application is approved, you must pay the required Abu Dhabi business license fee and you can save it.
6. Obtain Initial Approvals
You must now submit the necessary documents to the respective departments and get initial approvals for business setup from GDRFA (General Directorate of Residency and Foreigners Affairs). All your documents will undergo a thorough inspection and then you will get an initial approval certificate for completing further legal formalities.
How to Obtain Abu Dhabi Business License?
To obtain an Abu Dhabi business license you must follow the below-mentioned steps:
- You must approach the respective legal authority as per your chosen business activities.
- Attach the necessary documents as mentioned in the application to acquire a business license in Abu Dhabi.
- Your documents and application will be reviewed by concerned authorities and you might be requested additional documents too.
- Once your documents are reviewed, you must get the membership at the Abu Dhabi Chamber of Commerce and Industry.
- The commercial register from Abu Dhabi DED will come on a field visit to check whether or not all the terms and conditions to acquire a license are fulfilled.
- Once they are satisfied, you will be issued the permit to commence business in Abu Dhabi.
What Are The Required Documents to Obtain Abu Dhabi Business License?
It is important to keep the following documents handy before applying for an Abu Dhabi business license:
- Trade name registration certificate.
- A licensing form duly signed by all the shareholders.
- Copies of the passports of all business partners, stakeholders, and employees.
- A company formation authorization letter from the Ministry of Economy and Planning.
- A copy of your residence permit.
- Proposed business activities approval letter signed by the authorities.
- No objection letter from your local sponsor.
- Memorandum of Association.
- Authentication letter from your bank for claimed finances of the company.
- A copy of your tenancy contract.
Once you submit the above-mentioned documents to the respective legal authorities, they will thoroughly inspect them. Once approved they will give you a business license fees voucher. You need to pay the required fee and then obtain your Abu Dhabi Business License.
What does the Business Setup Cost in Abu Dhabi?
As per the government, there is now a 94% reduction in the business setup cost in Abu Dhabi. Usually, this cost varies according to various factors like the location, legal entity, visa, business activities, etc.
Earlier the minimum cost to set up a business in Abu Dhabi was AED 15,500. Recently, the government of Abu Dhabi reduced this cost to AED 1,000, effective from 27th July’ 21. You can easily set up a business in Abu Dhabi. The government also reduced the license renewal fee for existing business owners to 1,000 dirhams.
Next Step for Abhu Dhabi License
If you want to set up a business in Abu Dhabi, this is the best time to get your Abu Dhabi Business License. With the slashed business setup cost in Abu Dhabi, you can now start a company with ease. The business consultant and legal experts at Shuraa Business Setup will tell you all about Abu Dhabi business-related information. All you have to do is connect with us and we will help you acquire your business license at an affordable price within a few days.