Abu Dhabi is known for a luxurious life and is one of the richest in the Emirate. It has the necessary infrastructure and services which results in an increase in company registration in Abu Dhabi. The government has also taken initiatives that attract both local and foreign investors. Conducting the world’s major event Dubai Expo 2020 and the increase in tourism are a few of the major reasons for the increase in Abu Dhabi Free Zone company formation
To start a business in Abu Dhabi you first need to obtain a commercial license and incorporate your company. Company registration in Abu Dhabi is different from your home jurisdiction. It is important to know the government rules, restrictions, etc so that you can make the right choice for your business.
Here’s everything you need to know before company registration in Abu Dhabi:
- Decide if you are setting up in the Mainland or Free Zone in Abu Dhabi:
A. Mainland companies in Abu Dhabi:
- Legal Structures:
The activities you want to engage in will determine the legal structures. There are three main legal structures to be considered in the Mainland:
- Representative office
- Foreign branch office
- Limited Liability Company
- Local Sponsor:
Business setup in Abu Dhabi requires to engage with a local sponsor. The local sponsor hold 51% of the share of LLC
- National Service Agents:
The National Service Agent facilitates a foreign company able to set up as a Representative Office or Foreign Branch in Abu Dhabi.
2. Free Zones in Abu Dhabi:
Abu Dhabi Free Zones are the fastest-growing and wealthy markets in the world. For an entrepreneur willing to start a business in this city, it is a viable location of choice. The business policies and setting up process is also simple and flexible.
It attracts tourists from all over the world. It’s also increasing the growth of small and medium enterprises in the area. Economic stability, tax incentives, healthcare policies, etc are a few of the reasons for business setup in Abu Dhabi Free Zone.
Abu Dhabi has four free zones:
Abu Dhabi Airport Free Zone
3. Know the business setup costs:
It is necessary to understand the business setup cost in Abu Dhabi. Apart from capital investment, there may be few additional costs such as operational costs, business license, government certificate, visa, trade name registration, incorporation fees, etc. The cost varies based on the structure and type of the company whether it is being set up in Freezone or mainland company in Abu Dhabi.
4. Understand the legalities and paperwork:
The Abu Dhabi government is very stringent when it comes to legal formalities and paperwork. Any delays may lead to a heavy penalty on the company. Thus understand the legalities and paperwork of your company
5. Know the incorporation and Licensing process:
To set up your business in Abu Dhabi know the incorporation process, research the market well, understand the place, currency, trends and other factors that impact your business. Also, obtaining a trade license is a lengthy process and it needs to be carried out with specifications, Consulting an expert will be easy to set up your business.
6. Know that you are under cultural borders:
Abu Dhabi has a modern look but it has its own cultural borders that need to be followed while starting a business. Hence understand the city and its cultural boundaries before starting a business
Contact MSZ Consultancy to know more in detail:
Company formation in Abu Dhabi can be done effectively and in a timely manner if you get in touch with the right consultancy firm. MSZ Consultancy will guide you through the entire process and help you build your dream business.