Why Abu Dhabi is the Newest Choice for Businesses

Did you know that Abu Dhabi is slashing its business registration costs by 90%? In July, authorities have ramped up efforts to increase business in the region. Business setup fees in Abu Dhabi have are now cut to AED 1,000, or USD $272. This push aims to significantly increase investments in the region and improve the overall ease of conducting business throughout the Emirates.

“We hope this significant change in fee structure helps further ease the setup process for new and existing investors,” his excellency Mohamed Ali Al Shorafa, the Chairmen of the Abu Dhabi Department of Economic Development (ADDED).

These new prices cover six different activities covered under the business license and cover other fees such as those from the Department of Municipalities and Transport (DMT), member fees to the ADDED, the Abu Dhabi Chamber, insurance fees, and various additional regulatory charges. Other charges you’d typically find during business setup in Abu Dhabi are either completely waived or significantly reduced.

How These New Changes Work

This push is part of a forward-thinking strategy to foster a thriving business environment in the private sector. For business-savvy investors, this initiative is a fantastic opportunity for potential investors to form a successful business in an expanding economy.

1. Improve and streamline the process of conducting business in the Emirates while increasing Abu Dhabi’s competitiveness locally and abroad.

2. Six business activities and all incurred fees from the Abu Dhabi Government entities are waived, including insurance fees.

3. More than 130 different countries have agreed to reforms on international taxation.

Changes in Regulations

For years, the UAE has been a magnet for investors hoping to maximize profits while minimizing tax responsibilities. However, in the summer of 2021, the UAE government formed an agreement with nearly 130 other countries to reform international taxation regulations. This agreement has also centered around imposing a tax rate of 15 percent in the UAE.

While this step is just the first step in a long, drawn-out process, many industries are expecting and preparing for the tax rate to come into effect in the near future.

Advantages to Forming a Business in Abu Dhabi?

There is a litany of reasons that Abu Dhabi is quickly rising in popularity for foreign investors. Let’s discuss a few reasons why company formation in Abu Dhabi is the right choice for you:


• Location

Abu Dhabi is situated in a prime location, convenient to travelers from Asia, Europe, and Africa.

• Easy Trade and Exchange

No Foreign Exchange controls trade barriers or quotas.

• Modern Infrastructure

Abu Dhabi features top-notch living standards, with modern healthcare facilities, education centers, and residential living quarters.

• Full Foreign Ownership

The Emirates offers 100% foreign ownership without the need for a national sponsor.

• Limited to No Tax Responsibilities

No person, corporate, or income taxes.

• 100% repatriation of funds.

Foreign investors are allowed to return 100% of their profits to their country of origin.

Steps for Company Setup in Abu Dhabi

For any new investor that doesn’t have the help of an on-hand business consultant, it’s important to understand the steps of business setup in the UAE. This business formation process is straightforward yet can still seem confusing if due diligence isn’t applied. Below, we’ve put together a step-by-step guide for company formation in Abu Dhabi.

1. Determine Your Business Activity

The first step in your business formation process will be to determine your chosen business activity perform intensive research to determine the market prospects surrounding your product or trade. Thoroughly understanding your chosen field and the market forecast will prepare you for success.

2. Find a Local Sponsor

This step, as of 2021, may no longer be necessary, as the UAE government no longer requires national sponsorship for foreign investors.

3. Determine the Legal Form of Your Business

The structure of your business will determine how it handles its finances, including assets, losses, and profits. This structure can be:

• Limited Liability Company (LLC)

A limited liability company is a business entity with a limited number of partners that assumed a limited amount of liability for potential losses.

• Sole Proprietorship

Sole Proprietorships are a legal structure with a single owner solely responsible for any profits or losses incurred during business operations.

• Foreign Branch

A foreign branch is a structure for international businesses operating in foreign nations. Foreign Branches serve as an entity that operates under the jurisdiction of the laws of their parent company.

4. Register Your Trade Name

At this point, you’ll need to register your company name with the relevant government authority. This name may not be previously taken and may not include profanity.

5. Fulfill Licensing Requirements and Choose Your Licensing Type

Here, you will need to gather all the necessary documents and choose your license type. Some of these license types include:

• Agricultural License

Agricultural Licenses are issued to business owners that trade livestock, fruit, and vegetables.

• Commercial License

Commercial licenses are given to owners who engage in general trading, contracting, real estate, transportation, and more.

• Industrial License

An industrial license covers businesses that engage in manufacturing products for the market.

• Tourism License

A tourism license covers businesses that operate in the tourism industry. These businesses include welcome centers, hotels, and more.

Why Choose MSZ Consultancy as Your Next Business Consultants

Whether you’re a single investor or a part of a larger corporation, MSZ Consultancy is proud to be your number one choice in business setup consultants. We possess years of experience and expertise to help you navigate company formations, secure PRO Services, apply for visas, and more. We have the inside knowledge of local customs and business regulations.

So, if you need a dedicated team of legal and business experts that can assist you in streamlining your business and maximizing profits, you’ve come to the right place. There has never been a better time to form a corporation in Abu Dhabi or anywhere in the Emirates! Give us a call today at +971 52 544 1248, and let’s get your new business up and running!

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