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Business Setup in Abu Dhabi

Business setup in Abu Dhabi

Thanks to recent government reforms, the business setup in Abu Dhabi in 2024 will be streamlined and investor-friendly.

Abu Dhabi now requires fewer steps, significantly reducing costs and documentation to encourage local and international entrepreneurs.

Here, we cover the main aspects of establishing a business in Abu Dhabi, including the licenses and legal services to support your setup.

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Process of Business Setup in Abu Dhabi

Abu Dhabi offers three main licensing options for businesses: Mainland, Free Zone, and Offshore. Each has specific benefits and limitations based on business goals and operations:

  • Mainland License: This type allows businesses to operate internationally across the UAE. It is ideal for firms that wish to expand within the local market. As of 2024, certain sectors permit full foreign ownership, eliminating the need for a local sponsor in these fields.
  • Free Zone License: Businesses in free zones enjoy full ownership, tax exemptions, and the freedom to repatriate all profits. Abu Dhabi’s free zones cater to specific industries; for example, the Khalifa Industrial Zone (KIZAD) focuses on manufacturing and logistics, while Masdar City supports clean energy initiatives. A dual license can allow some free zone businesses to operate in the mainland market.
  • Offshore License: Offshore licensing is best for companies handling international operations without physical offices in the UAE. While offshore businesses benefit from tax advantages, they cannot conduct direct trade within the UAE.

For each license type, a business owner must select a trade name, secure necessary permits from authorities like the Department of Economic Development (DED), and, if applicable, draft a Memorandum of Association.

A UAE trade license is required before hiring employees or applying for visas. The introduction of the TAMM portal has also centralized the application process, making it a one-stop shop for registration, licensing, and other services.

Additionally, while Abu Dhabi offers a zero percent corporate tax for many businesses, companies must be aware of VAT and customs obligations applicable to certain industries. The Abu Dhabi Investment Office (ADIO) offers incentives for companies in strategic sectors.

Learn about Trade Name Registration Abu Dhabi.

Legal Services Related to Company Setup in Abu Dhabi

Our law firm in UAE specializes in legal services that support seamless business establishment in Abu Dhabi, focusing on each step of the setup process. We provide the following legal services:

  • Entity Selection and Licensing Guidance: Our lawyers assess your business objectives and recommend the most suitable licensing option, whether Mainland, Free Zone or Offshore, ensuring you meet all regulatory requirements.
  • Memorandum of Association (MOA) Drafting and Notarization: Essential for partnerships, our team drafts and notarizes MOAs to clarify business roles, share structures, and other operational agreements, securing your company’s legal standing.
  • Legal Documentation and Permit Acquisition: Our team assists in compiling and submitting mandatory documents for approval, including trade name registration, commercial and specialized licenses, and, if needed, sector-specific permits.
  • Employment and Immigration Compliance: For businesses planning to hire, we navigate work permits, visa applications, and compliance with local labor laws, supporting a legal framework that protects both employer and employee rights.

Choosing the right legal support simplifies business setup in Abu Dhabi, ensures compliance, and protects against risks. With our specialized legal services, you can confidently establish your business and focus on growth in Abu Dhabi’s dynamic market.

FAQs about Abu Dhabi Business Setup

To start a business in Abu Dhabi, you need to choose a business license type, register a trade name, and secure initial approvals from the Department of Economic Development.
Foreigners can fully own businesses in Abu Dhabi in certain sectors, especially in free zones and selected mainland industries.
You typically need a physical office to start a business in Abu Dhabi For Mainland businesses, but certain licenses, like the Tajer Abu Dhabi, allow businesses to operate without office space for specific activities. Free Zone businesses generally operate within their designated zones, with flexible requirements depending on the type of business.
The benefits of setting up a business in a Free Zone in Abu Dhabi are full foreign ownership, tax exemptions, 100% profit repatriation, and simplified registration processes. Each Free Zone focuses on specific industries, like media, manufacturing, or logistics, to provide targeted infrastructure and incentives.
Business activities allowed in Abu Dhabi are commercial, industrial, professional, and service-based sectors, each requiring specific licenses.

In conclusion, Abu Dhabi’s regulatory improvements and strategic incentives have made it an attractive location for entrepreneurs and businesses. With the right licensing option and legal guidance, business setup in Abu Dhabi in 2024 is more accessible and advantageous than ever.

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