Emirates Blog

To Start a business in Abu Dhabi, first of all, we need to identify the cost of setting up a business then we need to have a commercial license. To obtain a license from the Department of Economic Development, the procedure would be different from that of your home country. So you must first conduct proper research to understand all the legalities of UAE. This might take some of your time but it is very important for you to take the right decisions at right time for your business, yourself and your family.
 
What Should Be the First Question to Arise in Your Mind?
Choose the right way to set up your company in the UAE. Choosing the right type of entity to set up in the UAE is the most important decision your company will make. Mistakes can be expensive to rectify. You need to ensure you have the right activities for what your company wants to achieve. Should it be a free zone entity or an onshore entity? If it is a free zone which free zone best suits your companies needs? If it is onshore should you open as a Branch Office, a Representative Office, a Professional License or as a Limited Liability Company.
Please be aware you can still be 100% foreign owned with an onshore entity. Make sure you are advised well on your options so that you are able to make an informed decision. Structure of the company! Determining the structure of the company is very crucial for the sake of conducting planned activities in the companies. There are other important functions too but the company structure is important as the other functions would rely upon the structure of the company itself.
 
Eight Free Zones to Choose from In Abu Dhabi

  • Abu Dhabi Airport Free Zone (ADAFZ)
  • Twofour54
  • Abu Dhabi Ports Company (ADPC)
  • Abu Dhabi Global Markets Free Zone (ADGMFZ)
  • Industrial City of Abu Dhabi (ICAD)
  • Higher Corporation for Specialized Economic Zones (ZonesCorp)
  • Masdar City Free Zone
  • Khalifa Industrial Zone Abu Dhabi (KIZAD)

Every free zone in Abu Dhabi has its own important features which may make you form your company here.
Free Zones Company in Abu Dhabi
A free zone establishment is incorporated within a designated jurisdiction of the emirate where the company is allowed to do business inside the same free zone or outside UAE. For commercial licenses and trading of physical goods, the company cannot do local business directly because the government has posed a limitation for trading in the local market through a distributor and by paying 5% duty on the local market invoices.
What Makes Free Zones Attractive to The People?
The free zones in Abu Dhabi have the following benefits:

  • Foreign ownership (100%)
  • Exemptions from income and corporate tax (100%)
  • Profit repatriation (100%)
  • Exemptions from custom duties
  • Independent regulations

With the benefits, there are some restrictions in the free zones as well. These may include:

  • Limited operating area
  • Engagement with a distributor for engaging with mainland clients
  • Duty charges applicable for exporting products to the mainland
  • Mainland license required for government tenders or contracts

For more information: Mainland & Free zone companies. 
Mainland companies and Abu Dhabi
Great Opportunity for investors to start the mainland company.
Types of License in Abu Dhabi.
Before it actually begins operating, a commercial enterprise must obtain a license that allows it to carry out its chosen economic activity.
There are six types of license: Commercial, Agricultural, Crafts, Professional, Industrial, and Tourism.
Legal Structure of a Company
Expatriates desiring to launch a business in Abu Dhabi need to partner with an Emirati. The Emirati partner or partners must own at least 51% of the company’s capital for Limited Liability Companies and as Service agent for 100% foreign establishment and foreign branches.
There are three onshore structures for your company formation Abu Dhabi which are: Representative Office, Foreign Branch Office, and Limited Liability Company.
Legal Consultants & Local Partner – Local/Corporate Sponsorship for Companies.
Plus UAE is one of the leading company formation specialists in the UAE dedicated to helping foreign companies set up their UAE businesses correctly.
We provide an efficient, professional and dedicated corporate sponsorship platform for onshore companies with a focus on providing the foreign party with security, control and 100% of the profits. We can also manage the incorporation process to ensure a smooth setup and following establishment of the trade license we can assist with Resident Permits, Family Visa, Offshore Passes and all other Government Liaison, PRO and HR Services.

Cost of Setting up a Business in The Free Zone

Different free zones have a different cost of setting up a business as per the activities, location, and the number of visas.
The cost of setting up a business may include;

  • Registration fee (to be paid only one time)
  • Reservation fee for Name (to be paid only one time)
  • License Fee (Annual)
  • Share Capital
  • Annual rental for locations
  • Visa per person (each visa lasts for 3 years and there is visa package service limited to office space in free zones)

Cost of setting up a business in Mainland
The structure, activity, a number of visas and the premises will determine the cost of business set up on the mainland.

  • Trade Name reservation fee (to be paid only one time)
  • Fee for Government (Trade License fees, Activity fee, Competent authority fee – one time and annual fees)
  • Incorporation fees (the arrangement of approvals and inspections – once)
  • Fees of Sponsor (annual basis)
  • Legal fees (MOA preparation & Notary fee – to be paid only for once)
  • Commercial premises fee (annual)
  • New company registration with Immigration and Ministry of Labour (one-off, with the renewal of Establishment card only – every 2 years for all business entities except consultants and contractors.)
  • Visa per person (validity 3 years for investors and 2 years for employees )
  • License Renewal ( Dept. fee – Every 2 years for all commercial licenses except consultants and contractors)

Note: It is not required to deposit AED 150,000 in the company’s bank account as paid-up capital for Limited Liability Companies.
Plus UAE provides the techniques to reduce the cost of setting up a business in Abu Dhabi
For more information: www.plusuae.com
 
 
 

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