Business SetupAbudhabi

Establish Your Company in Abu Dhabi, the Capital of the United Arab Emirates

Abu Dhabi is the capital of the United Arab Emirates. It has the second-highest population in the country, and has been termed ‘the richest city in the world’. This is not without good reason, as the 420,000 UAE nationals who call Abu Dhabi their home are worth $17 million each. Collectively, they have over $1 trillion in assets abroad. It is no wonder then, that business setup in Abu Dhabi promises to be a lucrative proposition.
The Abu Dhabi Investment Authority is the third-largest sovereign wealth fund in the world. Abu Dhabi contributes two-thirds of the UAE’s economy, which has been valued at around $400 billion. Many of the proceeds from oil are reinvested into the economy, by supporting Arab businessmen and businesswomen with their expansion plans. This makes it a lucrative opportunity for anyone wishing to do business in the UAE.
Being the capital city of the United Arab Emirates means that there almost all national-level Government agencies and Government-run companies have their headquarters in Abu Dhabi. There is a lot of scope for Abu Dhabi-based businesses to enter into lucrative contracts with these Government agencies and Government-run companies. For instance, the Abu Dhabi National Oil Company or ADNOC for short has its headquarters in Abu Dhabi and is estimated to be a $60 billion company.
New Business Setup in Abu Dhabi
Business Setup in Abu Dhabi

Identify Your Business Activity

Your intended business activity determines what kind of Business License you should apply for.

There are six different types of Business Licenses – Agricultural License, Commercial License, Industrial License, Occupational License, Professional License, and Tourism License.

It is to be kept in mind that one company can be engaged in more than one business activity. At present, there are more than 2,000 designated business activities specified by the Abu Dhabi Department of Economic Development or ADDED.

Establish Your Company

Depending on the number of shareholders and the purpose for which the company is being established, there are multiple ways of establishing a company.

It could be any one of the following

If you are not sure which kind of company would be best suited for your business needs, please get in touch with a business setup consultant who can be of assistance.

Free Zones in Abu Dhabi

Free Zone Sector
Abu Dhabi Global Market Finance
Masdar City Green technology
Khalifa Industrial Zone Abu Dhabi Industrial
Abu Dhabi Airports Free Zone Logistics
TwoFour54 Media and Communications
The advantage of opening your company in a free zone is that it allows for 100% foreign ownership. You are also at liberty to repatriate 100% of your capital and profits, in addition to operating in a tax-free environment. There are no personal income taxes or corporate taxes for the first 50 years.
Sometimes, it may make more sense to open your company on the mainland, where your clients will be able to access you more easily. There is always a best-fit for every business, and at A&A Associate LLC, we are committed to helping you find the right solutions for your company.

How Can You Set Up Your Company in Abu Dhabi, UAE?

The first thing to do is determine what exactly your company will be into, or in other words, what it plans to do. A specific business plan is a must, because this has a bearing on the next course of action. For example, if you want to set up a paints distribution company, setting your company up as a Limited Liability Company might be a good idea. This will help limit your liability in case of an industrial accident, given that you deal with flammable materials in the course of your business.

Depending on whether you are in the B2C (Business-to-Consumer) segment or B2B (Business-to-Business) segment, you could choose to set up your company on the mainland or in a free zone. If you will primarily be dealing with end users, it is important that your customers are able to access you easily. So a mainland company makes more sense.

A free zone offers 100% ownership of your company. However, the company can only be a limited liability company, and limited liability companies are excluded from certain commercial activities such as banking, finance, and/or investment.
Additional permissions may be required depending on the type of commercial activity to be undertaken by the proposed company.

Why Choose an Experienced Company Formation Specialist?

A business setup consultant who has a track record of having helped establish companies in Abu Dhabi can be an immense advantage to have in your corner. He/She will guide you on the right paperwork needed, assist you through the application process, and even help you find the right location for your office / commercial establishment.

Setting up a company is only half the work done. You need to move into a well-furnished office so that you can kickstart your business operations, and also engage in marketing so that potential clients are able to find you.
This is where we come into the picture. We not only have a team of experienced company formation experts who can help you set up your company, but also legal experts who can lend their expertise to ensure that you stay compliant with all Government regulations from time to time. We even have a team of accountants and auditors who can help you with your annual audit report, which is a mandatory requirement in the UAE.
This way, you can focus on what you do best – running your business.
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