Free Zones in Abu Dhabi

Abu Dhabi is the federal capital of the United Arab Emirates and the largest of the seven emirates, occupying more than 80% of the country’s total land. There are several free zones in Abu Dhabi, which offer a favourable environment for business setup in the Emirates and provide a gateway for foreign investors to tap its full potential.

Abu Dhabi free zones are a part of the Emirate’s economic diversification initiative to boost the local economy and promote foreign investment. Business setup in free zones comprises media and light companies, logistics companies, and medium & heavy industries. Shareholders receive many incentives and facilities by setting up a company in Abu Dhabi free zones, which is the key driving force behind company formation in Abu Dhabi.

Abu Dhabi Business Setup Details

Check the below tabular column to know details on company formation.

*Make note that the details are subject to change

List of Abu Dhabi Free Zones

Most of the UAE emirates have set up free zones to boost the economy in the region, promote foreign investment, and drive growth. Free Zone Authority is the government body that registers and issues business licenses to non-resident companies in UAE free zone. There are eight free zones in Abu Dhabi:

• Abu Dhabi Airport Free Zone (ADAFZ)
• Twofour54
• Abu Dhabi Ports Company (ADPC) Free Zone
• Abu Dhabi Global Markets Free Zone (ADGMFZ)
• Industrial City of Abu Dhabi
• Higher Corporation for Specialized Economic Zones (ZonesCorp)
• Masdar City Free Zone
• Khalifa Industrial Zone Abu Dhabi (KIZAD)

Types of Legal Entities in Free Zone Abu Dhabi

A corporate or individual entity can register their venture in Abu Dhabi free zones in any one of the following ways:

1. Free Zone Limited Liability Company

A Limited Liability Company (LLC) is an independent legal entity with individual shareholder(s), corporate shareholder(s), or a mixture of both. The minimum capital requirement depends on the type of business activity.

2. Branch of a Foreign Company

Except foreign companies licensed to operate from a free zone in the UAE, a foreign company may carry on its main activity or business in the UAE or establish an office or branch after the Ministry of Economy and Commerce issues a license.

3. Branch of a UAE Company

A company in the UAE can also open a branch in free zones, mainland or offshore.

4. Freelance License

Freelancers are granted a freelance permit, which identifies them as a sole practitioner and enables them to conduct a business in one’s birth name, as opposed to a brand name.

Documents Required to Establish Up a Business in Abu Dhabi Free Zone

• Company Application Form
• Passport copies of the shareholders
• Passport-size photographs with white background
• 2-3 suggested names for the new company
• Specifications of the business activity
• Number of visas required
• 2 x Proofs of Address (dated within three months)
• Bank or Professional Reference Letter
• Curriculum Vitae (summary of professional history) for freelance license

There are some free zones where you will also need a copy of the proper business plan.

How to Set Up a Free Zone Business in Abu Dhabi?

The government promotes company formation in Abu Dhabi free zones to facilitate and promote foreign investment. Therefore, the procedure for business setup is simple, straightforward, less time-consuming, and free from bureaucratic barriers.

Free zones are established as independent jurisdictions which act as a single-window administration and allow an expatriate entrepreneur to wholly own a company (100% shares) without partnering with a UAE national. Abu Dhabi Free Zone Authority (FZA) is the independent government body that issues free zone operating licenses, handles non-resident companies' registration, and assists companies in establishing their business.

Setting up a business in the Abu Dhabi free zone is not at all complicated. It includes:

1. Determining the Type of Business Activity

Since each business activity has its rules and regulations, you are required to determine the activity you will conduct, and then go forward with it.

2. Registering the Trade Name

After you are through with the first step, the next step is to register your company's trade name. You can give the list of your suggested names to the Abu Dhabi Free Zone Authority. If the existing company does not already register the name in the UAE, it shall be approved by the authorities and duly registered.

3. Obtaining Approvals from the Free Zone Authority

After getting initial approval for your trade name and fulfilling all the requirements, an investor must obtain approval for the issuance of the business license.

4. Issuance of License

Once the approval of the concerned authorities is obtained, the investor may proceed to the stage of fulfilling the legal requirements of receiving an Abu Dhabi free zone license from the free zone authority.

Choose us for your Free Zone Company Setup in Abu Dhabi

Commitbiz has a specialised team of professionals with extensive knowledge of all company formation rules and regulations in Abu Dhabi free zones and can help you with company formation.

We understand your company formation dreams in the Emirates and strive to fulfil those with complete enthusiasm.