To register a company in twofour54, only 1 director is required. This is one of the great benefits of setting up a company in a free zone in Abu Dhabi.
Company Formation and Registration in Abu Dhabi
Abu Dhabi is one of the largest global business hubs and the wealthiest economy in the UAE. Its vibrant economy, stable political system, world-class infrastructure, strategic location and business-friendly regulatory environment make it one of the world's top destinations for business and investment.
Abu Dhabi's increasingly diverse economy offers a proven expansion ground and gateways that nurtures innovation and long-term success. Among all the emirates, it has gained the interest and attention of foreign investors and entrepreneurs for its accessibility, simple company registration and different services.
Abu Dhabi's Sustainable Economy
Abu Dhabi currently enjoys an enviable position, accelerating its economic growth. All of this is backed up by the emirate's primary export, crude oil, which is witnessing rising demand and high prices on the international market, enabling additional expansion.
Due to these circumstances, Abu Dhabi ensures its long-term success by using its current resources to build a more sustainable and stable economy.
On the other hand, oil prices are intimately related to economic progress. As a result, developing non-oil businesses, widening the scope and depth of economic activity in the emirate, and increasing productivity through a tailored approach to Abu Dhabi's particular assets are critical to achieving more sustainable growth.
Economic Incentives in Abu Dhabi for Emirati Entrepreneurs
The Abu Dhabi Government encourages Emirati people to pursue careers in investment and private industry and offers the required training to become business people, project owners, or investment companies that contribute to the country's economic growth.
Emirati entrepreneurs are also essential in the post-oil stages of the development process, as they help build an economy based on entrepreneurship, innovation, and production. The Department of Government Support has released a package encouraging government procurement incentives to promote economic growth and support entrepreneurs in the Emirate of Abu Dhabi.
The following elements are included in Circular No. (7) of 2020 about Economic Incentives for Emirati Entrepreneurs.
- The Emirati enterprises are not required to produce a bank guarantee for the bid bonds.
- The emirate entrepreneurs were exempted from presenting a bank guarantee for the performance bond.
- The Emirati entrepreneurs' dues must be paid within 15 days after the bill's date.
Growth of Abu Dhabi in Terms of Oil and Non-Oil GDP
Below tabular column represents the oil and non-oil GDP growth from 2012 to 2020.
|Abu Dhabi GDP
Futuristic Prediction of Oil and Non-Oil GDP
The tabular column shows a futuristic depiction of oil and non-oil GDP growth from 2022 to 2020.
|Abu Dhabi GDP
Abu Dhabi’s Nine-Pillar Strategy to Stimulate Economic Stability
The government has initiated the nine pillars strategy to form the architecture of the Emirate’s social, political and economic future. A substantial and continuous contribution to the United Arab Emirates federation, the government has committed to directing public policy to enhance and grow these pillars when they have been formed.
The nine-pillar strategy concentrates on four crucial areas:
- Economic development
- Social and human resources development
- Infrastructure development and environmental sustainability
- Optimisation of Government operations
The Abu Dhabi Economic Vision 2030 Highlights
Abu Dhabi is committed to building a sustainable, diversified, high-value-added economy by 2030. This will be achieved by broadening the sectors of economic activity, enlarging the enterprise base, and growing external markets.
Abu Dhabi will continuously enhance competitiveness and improve productivity. According to base case growth scenarios, delivering on such commitments will be translated into hard-core sustainable development and significant levels of economic diversification by 2030.
Furthermore, to guarantee that social and regional growth benefits all members of society equally, Abu Dhabi will prepare its young to enter the workforce and maximise the involvement of women from around the Emirate, mainly Nationals. Abu Dhabi will also continue to attract a qualified workforce from overseas, resulting in quicker regional economic growth.
Empowering Women- to Boost the Economy
Over the past two decades, significant progress has been made to bring women into the workforce. As a result, female nationals’ employment level in Abu Dhabi is higher than in other GCC states.
Encouraging more national women into the workforce will boost the economy, make better use of the Emirate’s human resources, reduce reliance on expatriate labour, and give women the opportunity to shape the direction of Abu Dhabi’s economic development.
Transparency in Futuristic Judicial and Modern Business Legislation
The government provides varied liberalities for emirates and foreigners to do business in Abu Dhabi. It is an ideal location for companies to develop because it is home to numerous. Abu Dhabi attracts local and foreign investment by amending business-related regulations to provide the ideal climate for businesses to thrive.
Existing tax, ownership, property rights, antitrust, corporate governance, and competition laws will be changed shortly to attract new investors and align the business climate with Abu Dhabi's goals.
In order to boost investor trust, the judicial system will indeed be updated on these significant reforms. One of Abu Dhabi's most important competitive advantages in the enticing company is its favourable tax policies.
Different Jurisdictions and their Perks in Doing Business
When establishing a business in Abu Dhabi, the most important thing to remember is to choose the right jurisdictions.
There are two jurisdictions in Abu Dhabi. They are mainland and free zone.
Mainland Company Formation and its Advantages
A mainland company formation in Abu Dhabi is a great choice for entrepreneurs and investors worldwide. There are many advantages to benefit from when you register your company on the mainland.
- Exempted from corporate or personal tax
- Low import duty
- Exempted from minimum capital for the formation of the mainland company
- No Annual Audits
- 100% Repatriation of capital and profits
- Office spaces with affordable and flexible rental and lease Plans
- Flexibility in Business
Free Zone Company Formation and its Advantages
Free zones are special economic zones that help local businesses attract foreign trade and investment in the emirate by providing a favorable business environment.
Setting up a business in one of Abu Dhabi's free zones offers a variety of benefits to local and international enterprises wishing to do business in the UAE. The following are some of the benefits of operating in an Abu Dhabi free zone:
- Companies with 100 percent foreign ownership
- An operational environment with low costs
- Complete capital and profit repatriation
- Exempted from custom duty
- Full repatriation of capital and net profits
- No personal income taxation
- No limitations on the citizenship of the company employees
- Complete infrastructure
A List of Free Zones in Abu Dhabi
The free zones in Abu Dhabi encompass a wide range of industries, including logistics, media, and small companies.
There are eight free zones in Abu Dhabi that covers multiple industries and sectors.
- Abu Dhabi Airport Free Zone (ADAFZ)
- Industrial City of Abu Dhabi (ICAD)
- Masdar City Free Zone
- Abu Dhabi Global Market (ADGM)
- Twofour54 Abu Dhabi (Media Free Zone Authority)
- Higher Corporation for Specialized Economic Zones (ZonesCorp)
- Khalifa Industrial Zone Abu Dhabi (KIZAD)
- Khalifa Port and Industrial Zone (KPIZ)
Each Abu Dhabi free zone has its own Free Zone Authority (FZA), which provides free zone operating licenses to enterprises looking to set up a business.
Types of Business Entities in Mainland and Free Zone
When it comes to Abu Dhabi and the mainland, most investors favor LLCs. There are three alternatives for the free zone. Nonetheless, here are several corporate organizations to pick from when starting a business in Abu Dhabi.
- General partnership
- Limited partnership
- Limited liability company (LLC)
- Public joint-stock company (PJSC)
- Private joint-stock company (PrJSC)
- Civil company
- Local company branch
- GCC company branch
- Holding company
- Sole Establishment
For Free Zone
- Free Zone Establishment
- Free Zone Company
- Free Zone Company
Thriving Business Sectors- Where to Choose? Which to Choose?
When deciding to do business in either mainland or the free zone, a foreign should go through the current thriving sector in the market. Likewise, foreign investors should look at the market's prospering sectors. Knowing about a flourishing industry and basing your business on it is a good thing to do.
The following are a few business activities that can help you comprehend Abu Dhabi's fast-growing industrial sectors.
1. Real Estate
Like any other investment, real estate has gone through booms and busts but has remained a stable business. Since the global slowdown, property prices and rentals have recovered nicely. Moreover, Abu Dhabi's huge oil revenue and capital reserves indicate the country's bright economic prospects.
In the first quarter of 2022, Abu Dhabi registered 3,304 real estate sales for Dh11.3 billion ($3 billion).
In the United Arab Emirates, health care is provided through a government-funded system and a burgeoning private sector. The healthcare system in Abu Dhabi is governed by both the federal government and the emirate. Abu Dhabi follows Dubai's lead in improving healthcare by incentivizing established company startups in the emirate.
Healthcare and community protection received 8.09 percent of the government budget (AED4. 766 billion) in 2022, enhancing investment and possibilities in the industry.
One of Abu Dhabi's most profitable commercial initiatives is e-commerce. The Covid-19 epidemic fuelled the growth of the E-commerce industry. As a result, starting an e-commerce company in Abu Dhabi is becoming increasingly attractive. In addition, many well-known corporations are changing their attention to e-commerce and will undoubtedly want expert assistance, which such firms may provide.
4. Accounting & Book Keeping
The Emirate of Abu Dhabi has excellent infrastructure and a favorable economic environment, making it a great place to do accounting and bookkeeping. Corporations are well aware that they will soon go out of business if they do not successfully manage their finances. Furthermore, company owners are increasingly keen to subcontract this responsibility.
Moreover, along with the thriving business sectors, it would be prominent to know about the business setup in Abu Dhabi.
Procedure for Business Setup in Abu Dhabi
Follow the guidelines if you wish to establish your company in a more convenient read.
1. Determine the Business Activity
The first step while starting a business in Abu Dhabi is to finalize the business activity. There are various business activities like trading, e-commerce, and manufacturing. Then, you may choose your business based on your desire or option.
Furthermore, rigorous market research is required before selecting a firm. Knowing which industries are growing can assist you in gaining a comprehensive view of the business. To discover more about the various business activities, visit the Department of Economic Development's website.
2. Choose a Legal Form
After choosing the business activity, the next step one should be aware of is selecting a legal business structure. After choosing the business activity, the next step one should be aware of is selecting a legal business structure.
Selecting the appropriate legal structure will assist you in determining the needs of shareholders. Furthermore, while establishing the business on Abu Dhabi's mainland, LLCs are preferred, and in the free zone, FZE, FZC, and branch companies are available.
3. Registration of Trade Name
After you've decided on business activity and legal structure, the next important step is to choose a trading name. Your brand and company cannot be exhibited globally without a trading name.
When picking a trading name, make sure you don't select any religious names or offend anyone's religious beliefs. Furthermore, mentioning the name of God or any other insulting language is prohibited.
4. Issuance of an Initial Approval
Following the steps outlined above, the next step is to seek clearance from the appropriate government authorities.
Even though we're discussing company incorporation in the mainland and free zone, the appropriate authorities must approve the trade name and company activity.
As a result, obtaining clearance from the appropriate government agency will help you run your business smoothly.
5. Obtain a Business License
The most important factor in starting a business is obtaining a licence. The fact that you have a license proves that you are qualified to run a firm. The permissions you receive from the various government bodies will determine whether you may obtain a business license on the mainland or in the free zone.
Choosing the license type based on the submission type would make the process go more smoothly. However, the difficulty in acquiring a business license will vary depending on the jurisdiction chosen.
If you wish to obtain the license hassle-free, you can seek help from the business consultants. Additionally, knowing in-depth details about the trade license in Abu Dhabi would help you thrive in your business.
6. Open a Bank Account
The final step to establishing your firm in Abu Dhabi is to open a bank account. Unfortunately, creating a bank account is not as simple as it appears. You can get assistance from our business consulting professionals to finish the procedure smoothly and efficiently.
Note: Compared to the free zone, the mainland has additional limitations and regulations when creating a business account. Moreover, if your requirements for setting up a business reach the level, without hesitation, look at the 7 things before starting a business in Abu Dhabi.
Types of Business Licenses-Select Your Right One
According to the Abu Dhabi Judicial Department website, there are six types of licenses in Abu Dhabi. They are:
|Types of licenses
|Trading, Contracts, Real estate, Transport of goods and services, Health care
|Livestock farm and fisheries
|Blacksmith, Carpenter, Printer
|Manufacturing, Chemical processing
|Consultancy services, Printing and Publishing, Beauty saloons, Freelancing
|Selling travel insurance, selling tickets for transportation, support on visa-related services
Documents Required to Obtain a License
Securing a license before starting your dream business in Abu Dhabi is necessary. Your license type determines the sort of business you've chosen.
- Certificate of trade name
- Shareholders signed licensing form
- Copies of the passports of all shareholders
- Copy of naturalization certificate
- A letter from the Ministry of Economy and Planning that authorizes the company formation
- Copy of your residence permit
- A letter approving proposed business activities signed by the authorities
- Clearance and no objections from your local sponsor in the form of a letter
- A copy of your Memorandum of Association with said local sponsor
- A copy of the letter from your bank that authenticates the claimed finances of the company
- A copy of your tenancy contract
License Cost in Abu Dhabi Company Formation
To obtain an idea of how much the license will cost in the Abu Dhabi firm setup, look at the table below.
Our Business Setup Services in Abu Dhabi
Business Setup Worldwide is a highly qualified professional team that takes the necessary procedures to provide customised company formation services. We offer a comprehensive range of business formation services from pre-incorporation to post-incorporation. Our Dubai team consists of highly qualified individuals that can help you with:
- Company incorporation and registration of a business
- Local sponsorship
- Corporate bank account opening and auditing
- Tax service for intellectual property protection
- VAT registration for visa service incorporation of branch and virtual offices
Why Choose Us?
Starting a business and carrying it through to completion requires much assistance. Business Setup Worldwide is ready to assist you if you think you need complete help at every stage of your company's development. Moreover, have a glance at the 8 points to proceed with a business setup consultant in Abu Dhabi for succeeding in your entrepreneurial journey.
Our business experts have a plethora of expertise and experience in the sector. In addition, we have several connections in the Dubai area. Consequently, if you believe we're a good fit, we'll be happy to answer any questions you may have. Do contact us to get more updates.
Who issues a license in Abu Dhabi mainland?
Abu Dhabi Department of Economic Development issues licenses in Abu Dhabi mainland.
What business activities are allowed in the Abu Dhabi free zone?
The business activities allowed in the Abu Dhabi free zone are aviation, aerospace, logistics, cargo and trading.
What is the cost of a company set up in Abu Dhabi mainland?
The cost of company formation in Abu Dhabi mainland is approximately 6000 AED.
How many days does it take to set up a business in Abu Dhabi?
It takes around fifteen days to set up a business in Abu Dhabi.
How many free zones are there in Abu Dhabi free zone?
There are eight free zones in Abu Dhabi.