Business Setup in Abu Dhabi

Abu Dhabi, being the administrative capital of the UAE, is one of the most sought-after offshoring places in the world. 

Apart from the fact that it is prosperous and safe, setting up a business in Abu Dhabi is much preferred due to its transparent and flexible business setup procedures. Unlike in a few countries, it just takes a few days to set up a new company or open an offshore branch of your company in Abu Dhabi. For that, you must fulfill the required guidelines correctly.

The main advantages for opening up business in Abu Dhabi are:

• - Abu Dhabi occupies a prominent location between Europe, Asia, and Africa – and thus has close access from the rest of the world
• - The Emirate allows for 100% foreign ownership and provides an exemption from corporate and personal income tax
• - There are no foreign exchange controls, quotas or trade barriers
• - The living standards in Abu Dhabi are top-notch, with world-class facilities in healthcare, residences, recreation, education, and transportation.
  
  
  You can choose from Mainland or Free Zone area to start your company. 
  
  

  Process of Business Setup in Abu Dhabi

  The steps are as follows:

  1. Determine the Type of Economic Activities

  You need to be clear about your intended business activity before initiating the procedures, since legal proceedings and fee may vary depending on the character of your business.

  2. Find a Local Sponsor

  As per the UAE jurisdiction, foreign companies need a local sponsor to open a branch office in Abu Dhabi. A local sponsor will facilitate the necessary licenses for the branch office without bearing any liability to capital contribution or losses.

  3. Determine the Legal Form of Business

  Rules and regulations are different for different ownership types and business establishments. You need to select a legal entity type to run your business.

  4. Register Your Trade Name

  A trade name distinguishes a company and describes its nature and legal form. 

  5. Fulfil Licensing Requirements

  The various types of licenses are:
  • - Agricultural License
  • - Commercial License
  • - Industrial License
  • - Professional License
  • - Tourism License
  • - Vocational License
  
  

  6. Get Special Approvals

  • A foreign investor is required to obtain approvals from the following authorities:
  • - Abu Dhabi Customs Authority
  • - Abu Dhabi Distribution Company
  • - Abu Dhabi Education Council (ADEC)
  • - Abu Dhabi Food Control Authority
  • - Central Bank
  • - Medical Council
  • - Ministry of Agriculture and the Department of Health
  • - Ministry of Civil Aviation
  • - Ministry of Economy
  • - Supreme Petroleum Council
  • - Telecommunications Regulatory Authority

  7. Obtain the Initial Approval

  An approval from the General Directorate of Residency and Foreigners Affairs - Abu Dhabi (GDRFA) is necessary for international investors before making the initial approval. An initial approval certificate is expected to continue with the business licensing formalities that permit foreign nationals to practice their desired business activity in Abu Dhabi.