Small and medium enterprises (SMEs) are an integral part of the business ecosystem in the United Arab Emirates (UAE). As per the official UAE government portal, there is an estimated forecast of 1 million small scale business in UAE by 2030. The capital of Abu Dhabi is home to many of these SMEs due to its supportive business environment and pro-investment policies. If you are planning to set up a small business in Abu Dhabi, explore this guide that speaks about business ideas, benefits, and steps to start a small business.
Back to topTop Small Business Ideas in Abu Dhabi
The Abu Dhabi Vision 2030 talks about tons of investment opportunities for an SME in Abu Dhabi. Based on local demand and startup viability, the following are some popular small business ideas:
- Ecommerce: Setting up an online store is a great low-investment small-scale business in UAE.
- Event Planning: As a preferred destination for global events and conferences, starting an event management business is a great option.
- Cleaning Services: Demand for high-quality cleaning services across commercial and residential buildings has created a demand for this.
- Digital Marketing Services: With so many companies, digital marketing services such as copywriting, SEO, paid marketing, campaign management and more are in demand.
- Travel Agency: Continuous inflow of tourists in the year creates a demand for tourism-related services.
- E-Learning: An increasing demand of online education and tutoring for both local and international students.
- Fitness and Wellness Services: The rise in health-conscious residents creates a demand for fitness and wellness centres.
Why Start a Small Business in Abu Dhabi?
Before getting into the small business setup in Abu Dhabi, it is important to understand why starting a small business in Abu Dhabi makes sense:
- Global access to markets in the Middle East, Africa, and Asia.
- Active government support such as promoting entrepreneurship through funding, incubators, and simplified licensing.
- Tax incentives such as low corporate tax and no personal income tax.
- Full foreign ownership for businesses in most of the sectors.
- Advanced technical and physical infrastructure.
- Low set up costs if you choose a Tajer license in Abu Dhabi.
Steps to Start a Small Business in Abu Dhabi
If you are an entrepreneur who is looking to start a business in Abu Dhabi, don’t hesitate to get in touch with Commitbiz for a smooth licensing process. Here’s a step-by-step breakdown of how to start a small scale business in UAE, specifically in Abu Dhabi:
Step 1: Determine Nature of Business
The first step is to determine the business activity that aligns with your ideas and as per the permitted activities mentioned by the government. You can choose from any of the small business ideas in Abu Dhabi, as mentioned above.
Step 2: Choose Jurisdiction
The next step is to decide whether to start your small business in the mainland or setting up a company in Abu Dhabi free zone. Our experts can guide you on which jurisdiction will suit your business.
Step 3: Select Legal Form
Our experts will help you select the right legal structure for your small business that meets your license type and ownership regulations. You can select from legal forms such as sole proprietorship, partnership, limited liability company, branch office, etc.
Step 4: Reserve Business Name
In this step it is important to choose a unique business name and register it with Abu Dhabi Economic Development (ADDED). We will help you with it so that you comply with the naming conventions.
Step 5: Get Initial Approval
We will help you apply for an initial approval from ADDED which will help you proceed further and launch your business faster.
Step 6: Choose Business Location
A physical address or shared workspace is required, depending on your small business license in Abu Dhabi. Setting up a company in Abu Dhabi free zone also comes with flexible office requirements. We will help get your tenancy contract.
Step 7: Additional Approvals
We will help get you additional approvals from other authorities such as the Abu Dhabi Municipality, the Department of Health, the Abu Dhabi Tourism Authority, etc.
Step 8: Obtain the license
Gather all your necessary documents with our help and pay the required fees. Depending on the nature of your business, you’ll require a professional, commercial, or industrial small business license in Abu Dhabi.
Back to topWhy Choose Commitbiz?
Whether you're launching a consultancy startup in a free zone or opening a retail store in the mainland, Abu Dhabi offers the right tools and support to help your business grow. Contact us for a simplified licensing procedure of small business in Abu Dhabi. Commitbiz experts will guide you through a hassle-free business formation in Abu Dhabi.
Back to topAre there business incubators or support for SMEs in Abu Dhabi?
Yes, platforms like Hub71, Khalifa Fund, and twofour54 offer support, funding, mentorship, and networking opportunities for startups and SMEs.
Do I need to hire employees to start a small business?
No, but if your business requires staff, you’ll need to process employment visas and comply with labour laws through the Ministry of Human Resources and Emiratisation (MOHRE).
Is it mandatory to hire an accountant or auditor?
Small businesses are not legally required to appoint an auditor, but maintaining proper accounting records is essential, especially for VAT and corporate tax filing.
