The process company setup in Abu Dhabi involves simple steps and approvals from certain departments and government bodies. The entrepreneurs can submit their application in person to the relevant authority to the emirate they have chosen. Also, you can apply online and submit your documents to get your business license to start your business.
The government has designated some designated offices and companies in all emirates where you can submit your license application. Abu Dhabi is one of the best options for starting a business as it is located between east and west and has a stable economy.
The most important steps involve selecting a location, conducting business activities, and getting a Trade License. Here’s how you can start your business journey in Abu Dhabi.
Process of Company Setup in Abu Dhabi
Start your business in Abu Dhabi by following these easy steps.
Select a Location
Select a location for your company where you will run your business, either mainland or a free zone. If you opt for the Abu Dhabi mainland company formation process, follow the steps below.
How to Apply?
You can apply to set up your business in two ways.
Online Application
- You can apply through the online Basher platform to establish your business in Abu Dhabi. The process takes about fifteen minutes to complete. This platform combines local and federal authorities to make the company formation process easy and simple.
- You can apply through the Department of Economic Development in Abu Dhabi.
Applying Personally
You can apply personally by visiting the following offices,
- Tasheel offices
- Government service centers
- Legal services offices
- OnTime offices
- Customer support centers associated with the Department of Economic Development all over the country
How to Start a Company in Abu Dhabi?
For Abu Dhabi mainland company formation, you need to follow the steps given below.
Select a Business Activity
The first and most important step is identifying the nature of your company’s business activities. You can select from the six license options below.
- Professional license
- Commercial license
- Tourism license
- Industrial license
- Agricultural license
- Occupational license
The government has allowed entrepreneurs to choose from more than two thousand business activities. You can select multiple activities under one license. The activities you choose will decide the type of license the authorities will provide you.
Select Legal Structure
You can select a business structure according to your business’s requirements. You can choose a legal form for your business from the following,
- Limited liability company
- Sole Establishment
- Civil company
- Branch of a local company
- Branch of GCC company
- Public joint stock company
- Private joint stock company
- Holding company
- A foreign company’s representative office
Select and Register Trade Name
The next step is selecting a name for your company setup in Abu Dhabi. The name you choose must be unique and should not match the name of any registered business. The application for a trade name can be submitted through the relative economic Department through an online platform or in person.
Important Conditions
- The trade name should include the short form of the legal structure, such as LLC, etc.
- The name you select must not be offensive in any way
- The trade name must resemble the business activities you have chosen
- Any other business must not register the name
- The name should not include names of government bodies, rulers, etc
- The economic development department must approve the trade name and trademark
- Trade name certificates may need to be renewed.
Get Initial Approval
The entrepreneur must get an initial approval from the UAE’s government. This step is important as it allows the investor to proceed with the process and get a trade license for their company.
Organize LSA or MOA
If you have a sole establishment, you need to get a local services agent agreement (LSA), and for a limited liability company, civil company, private shareholder company, and public shareholder company, a memorandum of association (MOA) is required.
Select a Location
Select an office where you can run your business in Abu Dhabi. When selecting an office, consider the Department of Economic Development’s legal requirements and other local authorities. You can get a lease agreement through the Ejari portal of Dubai’s Land Department.
Get Additional Approvals
According to your business type, you may need additional approval for Abu Dhabi mainland company formation. The following activities may require approval from authorities.
| Authorities | Business Activities |
| Ministry of Economy | Insurance activities and consultancy |
| Ministry of Interior | Public transport, alarm, safety tools, fire equipment, auto parts, car rentals, and used car dealers. |
| Local municipal department | Architect and engineering |
| Ministry of Justice | Legal activities and consultancy |
| Local health department | Activities related to health |
| Supreme petroleum council | Gas and oil-field activities, oil drilling activities |
| Telecommunications and Digital Government Regulatory Authority (TDRA) | Telecommunication activities |
| Executive Council | Travel and tourism, foreign company branches, general services |
Gather Necessary Documents
You need to submit the following documents for business setup in Abu Dhabi.
- Photocopy of the lease agreement
- Initial approval
- Memorandum of Association (if required)
- Approval from other government authorities
Submit Fee and Get Trade License
Submit the required fee and get your trade license from the Department of Economic Development or their website.
Register Your Business
Register your company with the Abu Dhabi Chamber of Commerce and Industry. The registration process must be done in the same emirate where you have incorporated your business.
Cost of Starting a Business in Abu Dhabi
Starting a business in Abu Dhabi starts at AED 25,000, although these costs can differ according to your business type, location, and legal structure. To avoid extra costs, you can get help from expert business consultants in the UAE who will guide you through the Abu Dhabi mainland company formation process.
Advantages Business Get in Abu Dhabi
The benefits of setting up your business in Abu Dhabi are given below,
- Abu Dhabi is one of the best places to start a business as it is located between East and West and connects you with all the major cities in the country.
- Businesses in Dubai do not have to pay any taxes.
- The economy of Abu Dhabi is very stable and makes up about 65% of the country’s economy.
- You get 100% ownership of your business and a trade license for two years.
- UAE’s banking system provides financial solutions to companies, which promotes business growth.
- There are many affordable places that companies can lease for their business.
Important Points
Some important points need to be kept in mind for Abu Dhabi Mainland company formation,
- The authorities have ended the share capital requirement when setting up an LLC. However, this requirement is still valid for the tourism industry.
- For LLC setups, it was mandatory to have a local sponsor, but recently, the government has announced that certain activities, such as commercial companies, can have full foreign ownership.
- The local owner of an LLC is the major shareholder in the company and owns 51% of the shares.
Free Zones in Abu Dhabi
There are currently eight free zones in Abu Dhabi that you can choose for a business setup. These zones are devoted to a specific business sector or an industry. The most famous Free Zone in Abu Dhabi is Abu Dhabi Global Market Square.
Different Free Zones in Abu Dhabi
Here is the list of free zones in Abu Dhabi,
- Abu Dhabi Global Markets Free Zone
- Abu Dhabi Airport Free Zone
- Twofour54 Media City
- Abu Dhabi Ports Company Free Zone
- Masdar City Free Zone
- Industrial City of Abu Dhabi
- Higher Corporation for Specialized Economic Zones
- Khalifa Industrial Zone Abu Dhabi
Final Words
At the end of this article, we hope you’ve fully understood the company setup in Abu Dhabi. If you are starting a new business, the mainland is the best option as it allows you to do business in the country and internationally.
Industry leaders are searching for modern technologies, products, and services. You can choose these industries, retail or food and beverage industry, as they are high in demand.
For your business setup-related queries and hassle-free procedure, Contact Al-Riyady. Our expert team is here to provide you with the highest quality support and services in the UAE.
We also offer Auditing Services, Tax Consultancy, Business Valuation, Business Plan & Feasibility Study, and more.
