As the country is looking forward to removing its focus from its revenue from the oil and gas industry, it is welcoming businesses from various sectors in hopes to diversify its economy which makes setting up a business in the United Arab Emirates is a very beneficial and profitable activity. Due to this, companies from all over the world come to the country to set up their business. There are also various other factors which play a significant role in attracting business to the country.
Whenever we think of the middle east, two cities come to mind. The first city is Dubai, and the second city is Abu Dhabi. Dubai is well known for its architecture and the various services that a company can avail in the city, making it a costly affair for a budding entrepreneur. Abu Dhabi, on the other hand, is a bit cheaper and welcomes both corporates and families. This makes Abu Dhabi the underdog city for setting up a business.
Let us know about the method and reasons to set up a business in Abu Dhabi.
Abu Dhabi: Benefits of Setting Up a Company
There are various benefits of doing business in Abu Dhabi:
1. Locational Advantage
There are numerous locational advantages that the city of Abu Dhabi avails. As UAE is formed to be the meeting point of the east and the west. Many essential trade routes pass through the country and allow trade and transportation to and from the continents of Africa, Europe, and Asia. The easy accessibility also allows for quick and secure transportation of goods as well as people from one part of the world to another.
2. Availability of Free Zones
The free zone is a designated area which provides various benefits to a company and is established to improve the economy of the country. There are many free zones available in Abu Dhabi which such as twofour54, KIZAD, ADAFZ, etc. these free zones provide many benefits such as no application of taxes or import and export duties, 100% repatriation of company capital and profit and many more benefits.
3. State-of-the-Art Infrastructure
Infrastructure plays a significant role in the existence and growth of a business. Abu Dhabi consists of the latest technologies and easy to use infrastructure which allows various companies present in the area to conduct their business efficiently and effectively.
4. Rapid Development
As more and more companies are coming in, there has been an increase in the standard of living of the people in the country. This increase in development has made the country a very lucrative for all entrepreneurs and people in the business.
5. Flexible Government Policies
The government of the country understands the working of the company and the hardships it may face in the future. Accordingly, it passes laws and regulations which will benefit the incoming and budding companies. As more and more companies come into the country, there is economic growth of the country.
There are many other benefits of setting up a company in Abu Dhabi, such as cheaper in comparison to Dubai, adequate and spacious places for both corporates and households, etc.
Now that we have understood the benefits of setting up a company in Abu Dhabi, let’s now know how you can start a small business in Abu Dhabi.
Steps to Register a New Company in Abu Dhabi
To set up a company, you have to take specific measures which will ensure that your company is incorporated. These steps are given below:
1. Determine the Business Activity
First and foremost, then you need to finalize the activity that the company will be conducting. This will be a significant decision as it will decide the future of the company. This decision should be taken after performing the required trend analysis.
2. Prepare the Memorandum of Association
Prepare a Memorandum of Association of the company. A Memorandum of Association will comprise a name clause, Object clause, Liability clause, Capital clause.
3. Obtain the Necessary Approvals
The company needs to acquire the necessary licenses and approvals from the government and the local authority. In the case of individual businesses, you need to take some individual permissions and permits.
4. Submit the Application
The documents such as the MoA, the acquired licenses, the tenancy contracts, and any other material mentioned by the relevant authority should be submitted. It may take some time to register your business entirely.
5. Start Your Business
Once the application is submitted and verified by the authority, you are all set to conduct your business.
It may look like a simple process, but if not followed correctly or even a single mistake is made, the complete company formation process can affect the bottom-line of the business, and in the long run, the market may have to shut down. It is, therefore, recommended that you avail the services of a company set up consultant in Abu Dhabi.
Commitbiz will not only assist you in setting up the business but will also help you navigate the complete company incorporation process. Commitbiz also provides various services which will give you a smooth company formation experience. For more details, contact us today – we will be glad to be of service.