The United Arab Emirates is renowned for its diverse tourist attractions and is a major hub for economic ventures. Owing to its strategic location, low import tariffs, low economic tax rates, and growing economy, the nation has become a hub for global investment.
To promote trade and global expansion, the UAE government assists entrepreneurs in setting up their businesses. This makes the UAE the ideal place to start your entrepreneurial journey.
This blog is the perfect guide for beginners who want to know about Starting a Business in Abu Dhabi.
Essential steps for starting a business in Abu Dhabi
With the second-highest population in the UAE and the largest emirate by land, the capital, Abu Dhabi, provides numerous advantages to international companies. It offers startups and SMEs fantastic chances to strive for exponential growth. Furthermore, a recent reform in the UAE that permits 100% foreign ownership has created countless opportunities. As a result, many domestic and international businesses have been considering opening offices in Abu Dhabi. Below is a step-by-step guide for individuals who wish to set up a business in Abu Dhabi.
Business activity
For starting a business in Abu Dhabi, you first need to identify business/ commercial activity you want to go ahead with. The nature of your business will determine the legal requirements as well as the licensing fee applicable to your company. There are majorly six different types of licenses available in the UAE namely industrial, tourism, professional, commercial, agricultural, and occupational. You can move ahead with the legal work after establishing the selecting your business type.
Selecting the legal structure of your business Licenses
Choosing the ideal legal form for your company is an essential step when starting a business in Abu Dhabi. The legal structure of your company will determine the rules and regulations applicable to your company. Ensure that the legal form of your business matches your business activity. Some of the most popular legal structures are as follows:
- 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
- Foreign company branch
- Free zone company branch
- Sole Establishment
- Holding companies
You can get in touch with our experts at DUBIZ to find out the best option for you!
Selection of Trade Name
Choosing an appropriate trade name is the most important step when starting a business in Abu Dhabi. The chosen trade name must be registered with the Emirates’ Department of Economic Development. However, some naming conventions must not be violated while choosing a trade name. Some of them are as follows:
- The chosen name should not transgress the moral code.
- The name must exclude any governing authority names, religion, logos etc.
- The chosen name must reflect the business activity.
- The chosen should be one of a kind and not in use by any other organisation.
A transaction number or payment voucher will be provided during the registration procedure. The price may differ based on the nature of the firm, and payment must be received within 30 days. DED keeps track of trade names. Certificates under a trade name are valid for renewal. The Ministry of Economy is the official body for trademark registration in the United Arab Emirates.
Acquire initial approval
The DED will initiate the approval once you have acquired the trade name certificate. This allows the investor to apply for a business license. Approval from the General Directorate of Residency and Foreigners Affairs is required for foreign investors.
A MEMORANDUM OF ASSOCIATION (MOA) OR A LOCAL SERVICE AGENT AGREEMENT (LSA)
A Memorandum of Association is required for the following legal forms of business:
- Limited partnership
- Limited liability company (LLC)
- Public joint-stock company (PJSC)
- Private joint-stock company (PRJSC)
Additional Government Approvals
In certain situations, obtaining additional permissions from specific governmental authorities is necessary. Some of these entities are:
- Ministry of Interior
- Ministry of Justice
- Local Municipal Department
- Executive Council
- Ministry of Economy
- Local Health Departments
- Supreme Petroleum Council
Business License
After completing the above-mentioned steps, you can collect the business license from the service centres of the economic departments. Additionally, you can also obtain the license from their website. To obtain the business license, the following paperwork is required:
- Initial approval receipt
- All previously submitted documents.
- Copy of lease contract (attested by the Real Estate Regulatory Agency (RERA)
- Duly attested memorandum of association (for all company types)
- Approvals from other government entities
- Duly attested service agent contract (for civil establishments that are 100% owned by non-GCC nationals. This also involves local service agents.
Starting an online business in Abu Dhabi?
The UAE government has simplified starting an online business in Abu Dhabi by launching a unified online platform, bashr. You can establish an online business in Abu Dhabi within 15 minutes via this portal. Bashr is connected with local and federal entities, making applying for a commercial license simple. You can apply for a license by visiting the official website of the UAE Emirates Government Portal.
Set up your business in ABU DHABI with DUBIZ!
Starting a business in Abu Dhabi is an easy process. Abu Dhabi is the most sought-after option for foreigners looking to expand their business in the United Arab Emirates. With our experts by your side, you can hasten your journey towards success and build the company of your dreams.
Accelerate the launch of your business with the expertise of DUBIZ‘s seasoned professionals.
Contact DUBIZ today at +971 562986853 or WhatsApp us at +971 569973630. You can also drop an email at info@dubiz.co for any inquiries.
