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business setup cost in Abu Dhabi

What's is the cost of setting a business in Abu Dhabi?

Abu Dhabi being the capital of UAE is one of the fastest-growing markets in the world. Abu Dhabi, the largest emirate in UAE has drafted several business-friendly policies that create a supportive environment for investors from all over the globe and provide a platform so that businesses can be started without facing many challenges.

Offering a large number of opportunities in every business sector thereby makes it an attractive business location for investors from all over the world. The government of the country feels the need to diversify the economy rather than being completely dependent on oil and as a result, has created various other platforms where investment can be made by investors globally.

While forming a company in Abu Dhabi an investor can choose a business location to be Mainland or Free zone as per the availability.

Setting up a business in Abu Dhabi mainland helps the investor to take the business to the next levels, in Abu Dhabi investor can choose from several business licenses that have been made available by the government, which include: -

  • 1. Industrial license
  • 2. Agricultural license
  • 3. Crafts license
  • 4. Tourism license
  • 5. Professional license
  • 6. Commercial license

Business setup cost in Abu Dhabi

Starting a business in Abu Dhabi, the investor must make sure that a relevant license has been acquired, which otherwise might lead to some undesirable delay and penalties in company incorporation.

To start a business in Mainland Abu Dhabi the investor must make sure that a local partner is chosen who will have a stock of 51% in the company. Abu Dhabi has to offer three onshore legal structures which include:

  • 1. Foreign branch office
  • 2. Limited Liability company
  • 3. Representative office

Setting up a business in mainland Abu Dhabi will require the investor to make certain payments at various steps of the whole process. No matter the location of the business one has to deal with certain obligations to make sure everything conforms with the rules that have been put in place by the government.

The structure of the chosen business, the activity that will be carried out, and the number of visas required among other things are to be taken into consideration to finalize the total cost of setting up a business in mainland Abu Dhabi. The investor will have to spend some amount on the various processes such as: -

  • 1. One-time fee for the registration of the company name.
  • 2. One-time government fee that will include trade license, activity fee, etc.
  • 3. Company Incorporation fees
  • 4. Certain amounts that will be paid to a local agent.
  • 5. The fee charged for renting out commercial property.
  • 6. Some visas that may be required.
  • 7. Renewal of license.

Further, the company must have a fixed paid-up capital as per the government standards for starting an LLC in Abu Dhabi mainland. The most fee charged for opening up a business in mainland Abu Dhabi is just one-time charges, whereas some of them may be charged annually.

The total cost of setting up a company in mainland Abu Dhabi may range from anywhere between AED 30000 to AED 35000 for 2 years which depends upon the package that will be chosen by the customer and also on the location and type of business activity that an investor intends to do. The investor must at the same time weigh all the pros and cons in terms of the legalities that are involved in setting up a business.

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