Why does a business need Business Setup Services in Abu Dhabi?
Abu Dhabi is the capital of UAE and strategically located in the business hub of the world. In last few years, Abu Dhabi has seen prominence among other business areas.
To legally do business in Abu Dhabi, commercial license (Trade, professional license) and company incorporation are a must. Hence setting up a business in Abu Dhabi is likely to be very different from other jurisdiction. Thus it is crucial to research first and get information on various rules and regulation and local know-how. Business Setup services fill this gap which foreign investors and owners face once they plan to set up a business in Abu Dhabi.
How does the process work?
To do business in Abu Dhabi, business owners have to decide to do business either in Mainland or Free zones in Abu Dhabi. Each has its own benefit; however, to do business in Mainland, the commercial laws defined by the Department of Economic Development, for an LLC company registration in Abu Dhabi allows investors to start an LLC firm which is the best way to setup in Abu Dhabi. To setup an LLC, minimum 2 and maximum 50 people are required, and their liability is restricted to their share capital in the business. In the case of a partnership firm, a UAE National (local sponsor) should hold 51% of the ventures and the rest 49% stays with the foreign investor.
On the other hand in a Free Zone, a business investor can own 100% of the firm instead of sharing it with a local sponsor. The free zones attract businesses from some areas. The purpose being businesses can supply goods and services to each other. A Free Zone company must carry out their work within the geographical limits of the free zone, although meetings can occur outside of the free zone.
The first step to get a license is to reserve and get approval for the desired trade name from the Department of Economic Development (DED). Once the trade name is approved:
- Abu Dhabi Trade License Committee is at one of the Abu Dhabi Emirate Municipalities (Abu Dhabi City, Al Ain City, or the Western Region Municipality), which will review your application and support documents including details of the partners and capital and inform you whether your request requires an approval of a competent agency.
- In the case of opening a branch of a foreign company, you will have to apply, and all required documents to the Ministry of Economy upon getting the approval of the competent agency; Abu Dhabi Trade license and the ministry will present it to the Executive Council in Abu Dhabi for approval.
Required documents include in the case of LLC:
- Duly signed Trade Name Registration Form.
- Valid passports copies.
- Valid UAE ID Card copies.
- Family Book copies.
Advantages of Business Setup in Abu Dhabi
Starting a company in Abu Dhabi is beneficial for a foreign investor; following are some of the advantages listed down for the entrepreneurs:
- If you plan to have LLC incorporation, it is easy to acquire a UAE trade license from the Abu Dhabi Chamber of Commerce and Industry, local visas, rent a business premises in Abu Dhabi and even open a local corporate bank account.
- Profit sharing arrangements can be different as in the case of shareholding in a LLC.
- An Abu Dhabi LLC engaged in the exports of national industrial products are exempted from payment of any taxes or trading fees.
- There is no specific minimum capital requirement.
- The investor becomes the partner in the firm.
- LLC offers UAE residence visa to the investors
- 100% repatriation of profits and capital
- The investor can commence branches
- The investor can run the business without the day-to-day interference of the local national partner.
- Abundant and inexpensive energy supply
- Simple staff recruitment procedures
- Competitive freight charges
- Competitive real estate costs.
- It is easy to open global corporate bank accounts
To set up your business in Abu Dhabi and going through the process and to understand local know-how, you need experienced people who can cut through the bureaucracy to quickly establish the company. Hence, the role of Business Setup Worldwide becomes vital, because we provide you end to end solution for your business setup needs. We provide information on any business structure or legal entity across Abu Dhabi. We know the best and cost effective way of providing you value in record time.