Business License in Abu Dhabi: Simple and Quick Process

Recognized as a business hub, the UAE offers a vibrant environment for entrepreneurs. The UAE capital, Abu Dhabi plays a pivotal role in this economy. Due to its vast oil reserves and diverse economic sectors. In Abu Dhabi Business setup has become easier recently. The start-up comes with affordability. As the government introduces significant reductions in business setup costs.

Anyone can launch or expand their business in Abu Dhabi. Abu Dhabi presents an excellent opportunity for business growth!

Why Start a Business in Abu Dhabi?

Abu Dhabi stands out as an attractive destination. The business owners and investors always prefer to invest here for several key reasons:

Strategic Location:

Abu Dhabi is located between Asia, Africa, and Europe. This makes it an ideal base for accessing global markets. The city’s proximity to major international shipping routes. In turn, facilitates trade and export opportunities.

Economic Strength:

Abu Dhabi is home to 95% of the UAE’s oil reserves. It is a powerhouse for the country’s economy. The government has also diversified its economy. They offer opportunities in sectors like:

• Finance
• Real estate
• Tourism
• Healthcare, and
• Technology.

Business-Friendly Environment:

The business setup process is designed to be transparent. It allows entrepreneurs to set up their companies quickly. Further, Abu Dhabi offers 100% foreign ownership. Along with exemptions from corporate and personal income taxes.

High Quality of Life:

The city offers a high standard of living. Coupled with world-class healthcare and top educational institutions. The residents can enjoy a safe environment. Without a doubt, an attractive place for business owners and employees alike.

Recent Changes to Business Setup Costs

A significant move has been made by Abu Dhabi’s government. The business setup costs have been reduced. This made it more attractive for entrepreneurs to start a business in the capital. Business setup costs have been reduced by 94% as of July 27, 2021. This brings the cost down to just AED 1,000. It is equal to approximately $272. This cost reduction is part of the government’s broader strategy. As a result, it encourages more businesses to set up in Abu Dhabi. This way, boosting competition and stimulates the economy.

The minimum cost to establish a business could go up to AED 15,500 previously. However, the process is now more affordable. This is because of the new cost structure. It is accessible to everyone who wants to start their new venture. An ideal time to take advantage of this opportunity.

Steps to Set Up a Business in Abu Dhabi

Abu Dhabi business setup involves a straightforward process. Breaking down the essential steps required. They are needed to establish your business:

1. Decide on Business Activities

Business activities selection is the first step in setting up your business. The DED provides a list of business activities that you can choose from. Right activity selection is crucial as it determines:

• The legal structure of your business
• Associated fees, and
• Other requirements.

2. Choose a Legal Structure

The business legal form is an essential decision in the setup process. The UAE offers various business entities types. These may include:

Limited Liability Company:

A popular choice for businesses with multiple partners.

Sole Proprietorship:

For individual entrepreneurs, this legal structure is ideal.

Branch Office:

Those who wish to open a branch of an existing foreign company.

Each type has its own rules and regulations. Therefore, consult with legal experts. They help determine which structure suits your business needs.

3. Register Your Trade Name

The next step is to choose and register a trade name. After you have decided on your business activities and legal structure. However,  select the unique name. A name that is easy to pronounce. It must comply with the UAE’s naming conventions. Ensure to avoid controversial words or names. They could offend cultural sensitivities.

4. Obtain Membership from the ADCCI

According to Abu Dhabi’s Law No. 7,

“All businesses operating in the emirate must be a member of the Abu Dhabi Chamber of Commerce and Industry (ADCCI). They can be either local or foreign.”

This way, submit your membership application as part of the business setup process.

5. Apply for the Small Business License in Abu Dhabi

Abu Dhabi offers four main business license types. They are based on your business activities nature:

Commercial License:

For businesses involved in trading goods and services.

Industrial License:

For businesses involved in manufacturing or industrial operations.

Professional License:

For individuals offering professional services, such as:

• Consultants
• Doctors, or
• Engineers.

Tourism License:

For businesses operating in the tourism sector, including:

• Travel agencies
• Hotels, and
• Tour operators.

Submit your application to the relevant authorities after deciding on the right license. You can hire business setup consultants. They can guide you best through the process.

6. Obtain Initial Approvals

For approval, submit the required documents to the relevant authorities. Provide a range of documents. These include passport copies, trade name registration, and residency proof. These documents will be reviewed. After this, you will receive an initial approval certificate. It allows you to proceed with the business registration process.

7. Complete Final Registration

The final step is to complete the registration upon receiving the initial approval. Registration will be done from the DED. This includes:

• Submitting all required documents
• Paying the license fee, and
• Getting the final approval for your business.

Required Documents for Business Setup

Arrange the following documents ready to have a smooth business setup process:

Trade Name Registration Certificate:

Proof that your business name is registered with the DED.

Passport Copies:

Copies of passports for all business partners, shareholders, and employees.

Tenancy Contract:

A signed contract for your office or business location.

No-Objection Letter:

If applicable, a letter from your local sponsor or partner.

License Application Form:

Duly filled out and signed by all stakeholders.

Memorandum of Association:

An agreement outlining the business partner’s roles and responsibilities.

Proof of Financial Standing:

Bank letters verifying the financial standing of the company.

Residence Permit:

Legal residency proof for expatriates.

What Does the Business Setup Cost in Abu Dhabi?

The business set-up cost in Abu Dhabi has been reduced. You can set up your new business now for just AED 1,000. It is recorded as a major reduction from the previous charges. Earlier, the setup charges were AED 15,500. The cost reduction applies to new businesses and license renewals. An excellent time to start or renew your business in Abu Dhabi.

Partner with Connect Zone: Set Your Business in Abu Dhabi

Ready for a business set up in Abu Dhabi? It is wise to consult with business setup experts. Their support can help streamline the process. Out of the top emerging names, Connect Zone successfully provides up-to-the-mark business setup services. The team’s assistance ensures that you meet all legal requirements. Obtain your business license in Abu Dhabi as quickly as possible! The reduced setup costs and growing economic opportunities are the right time to make a move. Take the next step toward business success in Abu Dhabi with experts today!

Conclusion

Looking to set up a business? Abu Dhabi is an excellent choice. All thanks to its strategic location and strong economic foundation. Coupled with its business-friendly environment. The government has recently reduced business setup costs by 94%. Ultimately increases the chances of more business setups. Entrepreneurs have an unprecedented opportunity. The chance to establish a presence in this market. Anyone can navigate the process easily. They can step in by following the steps outlined in this guide.