The United Arab Emirates is one of many fastest-growing and most preferred countries by entrepreneurs from all over the world because of its world-class business infrastructure and well-versed rules and regulations.UAE has seven emirates named Dubai, Abu Dhabi, Ajman, Sharjah, Fujairah, Ras Al Khaimah, and Umm Al Quwain. The whole area of UAE is divided into two parts, namely free zones and Mainland areas. Both areas of their benefits to set up a business.
Abu Dhabi is UAE's capital, and second most populated city in UAE, apart from this, it is also a significant business setup jurisdiction for national and international investors. Abu Dhabi mainland is ideal for commercial as well as recreational businesses.
Advantages of Business Set Up In Abu Dhabi Mainland.
1. There is No Corporate or Personal Tax
Abu Dhabi is a tax-free city where many international companies establish new or branch entities, taking advantage of these benefits. Abu Dhabi is characterized by an almost complete absence of taxation with just a few exceptions.
No corporate income tax is levied at the federal or emirate level, except for international bank branches (at the emirate level) and courier companies (at the federal level). Emirates-level taxes are levied on petroleum concession holders at levels expressly agreed in the corresponding concession agreements. There is no personal income tax.
2. The Trouble-Free Recruitment Process With No Limit On Employment Visa
It is illegal to work on a visa other than a valid employment visa in Abu Dhabi. However, you may come on a visit or tourist visa and actively search for jobs in Abu Dhabi. Under recent legislation about employment visas, successful candidates who are hired by employers are required to exit the UAE pending release of their Employment Visas.
3. Low Import Duty
Customs duties are duties imposed on goods entering or leaving air, land, or seaports of any country. Goods and commodities imported to Abu Dhabi from countries outside the GCC are subject to 5% of the value of goods, in addition to the Cost Freight Insurance (CIF). For alcohol and cigarette products, a duty of 50% and 100% is imposed respectively. However, UAE free-trade zones (Dubai, Abu Dhabi, Sharjah, Fujairah, Ajman, Ras Al Khaimah and Umm Al Quwain and others) are excluded from taxation.
4. There is No Necessity of Minimum Capital For The Formation of the Mainland Company.
The UAE Companies Law does not prescribe any minimum share capital, but the company should have adequate capital to accomplish the purposes of incorporating it, and the capital should consist of equal shares in value. There is currently no requirement for depositing the share capital into a registered bank of the UAE. However, some jurisdictions are excluded under this.
5. No Annual Audits
Organizations are usually expected to be audited, regardless of which nation you have developed in the world. However, This all depends on the jurisdiction. As in the Abu Dhabi mainland, businesses are not required to be audited annually, while those in the Free Zone authorities may be audited in compliance with the authorities ' rules and regulations or legal framework.
6. 100% Repatriation of Capital And Profits Are Possible.
Businesses in Abu Dhabi mainland have an advantage of repatriation of one hundred percent (100%) of the profits made by a business, as well as its capital, to the country of origin of the investors, without any restrictions.
7. Availability of Office Spaces With Affordable And Flexible Rental And Lease Plans
The below table gives some information about rental costs in some of the popular localities in Abu Dhabi.Popular areas in Abu Dhabi for renting offices
Popular areas in Abu Dhabi for renting offices
Avg rent per square feet(AED)
Al Reem Island
8. There is No Currency Regulation For Mainland Business.
Except for restrictions on transactions involving Israeli parties or money, there are no currency exchange limits and no limitations on the remittances of funds.
9. Flexibility in Business
Mainland companies can conduct their business with other mainland companies in Dubai or UAE. They have the plasticity to do their business in any part of the UAE. This facility sets them apart from free zones companies because they are restricted to operate their business in their respective free zone. Mainland companies are permitted to take on governmental work, unlike free zone companies which are prohibited from undertaking government contracts and are only allowed to carry out private commercial work.
10. Easy Registration
The registration process for mainland companies is simple and hassle-free. Also, there is no yearly audit requirement.
Abu Dhabi is one of the technologically fast-growing hubs. If you have decided to set up a business in Abu Dhabi, UAE, it's always important to seek assistance. Please contact us; we at Commitbiz love to support you in the business setup process and make your work quick.