Why Set Up a New Business in Abu Dhabi?

by Zaara 23, Apr 2020

Why Set Up a New Business in Abu Dhabi?

Being one of the most prosperous places in the United Arab Emirates and setting up a business in Abu Dhabi is an intelligent investment plan. This place also has various transparent and flexible business setup processes and a strategic location.

Flexible Laws for Starting a Business in Abu Dhabi

The Abu Dhabi Department of Economic Development revealed a list of 1,105 registered commercial and industrial activities that are now open to partial or full foreign ownership in the emirate. According to the type of activity, these activities are applied to companies licensed following the federal and local laws regulating business licensing controls.

Here are a few activities booming under this law:

  • All kinds of Building Projects Contracting

  • Organization and Event Management

  • Grocery & Supermarket

  • Information Technology Network Services

  • Cyber Risk Management Service

  • E-commerce through Website

  • E-commerce through social media

  • Accounting and Auditing.

LLC Registration in Abu Dhabi

It is easy to acquire an Emirates trade license, local visas, rent premises, and open a bank account from the Chamber of Commerce and Industry of Abu Dhabi. Some other advantageous features are as follows:

  • The investor can become a partner in the firm

  • The investor can run the business without the day-to-day interference of the local, national partner

  • Abundant and inexpensive supply of energy for the business

  • Competitive freight charges in comparison to other emirates

  • Competitive real estate costs in comparison to other emirates

  • Easy to open global corporate bank accounts.

Suppose you already have your business setup in Abu Dhabi and are operating business activities under the Positive List. In that case, you can adjust the status provided you comply with the regulations.

Advantages of Setting Up New Companies in Abu Dhabi

Here are some of the benefits of starting a business in Abu Dhabi.

  • 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 the Emirate. 

Under recent legislation about employment visas, successful candidates who are hired by employers are required to exit the UAE pending the release of their Employment Visas. 

  • 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. 

  • Low Cost of Starting a Business in Abu Dhabi Mainland

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 in the UAE. However, some jurisdictions are excluded from this. 

  • No Annual Audits

Organizations are usually expected to be audited, regardless of which nation they 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 authority rules and regulations or legal framework. 

  • 100% Repatriation of Capital and Profits Are Possible

Businesses in Abu Dhabi mainland have the 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. 

  • Investment Environment

Being a demonstrated surface for development, the Emirate offers a dual license in Abu Dhabi and directly plugs investors into the second-largest economy in the Arab world, and some of the fastest-growing markets in the world. The location boasts proximity to one of the busiest ports globally, and within an eight-hour flight, access to 80 percent of the world population. 

The Emirate offers investment opportunities from FinTech to Ecotourism across diverse industries and provides a vibrant place to start up a business, spend, stay, and work. The other lucrative features are as follows:

  • 94 separate foreign-country contracts to avoid double taxation of overseas investment 

  • Competitive tax rates: zero income tax, low value-added tax of only 5% 

  • Instant Availability of Capital for state-of-the-art technology 

  • Ability to treat goods of large volume 

  • The capacity for producing electricity enabled by cheap energy sources 

  • Exclusive access to the critical raw material processing sites

  • Capital availability: equity/debt through local players, such as venture funds, banks, family offices, private equity funds, SWFs 

  • Specialized Economic Zones: Attracting diversified tenants in the areas of industry, finance, media, logistics, and sustainable energy 

  • Appealing lease rates for the established workplace and warehouse spaces at competitive prices and utilities. 

Approach Towards Assistance

Get in touch with a UAE-based business consultant Commitbiz- who is the market leader in the sector and has assisted successful business setup in the UAE and can guide you professionally with the entire procedure. Contact us today to avail our exceptional services.

FAQs

What are the permitted business activities under the full foreign ownership law in Abu Dhabi?

The permitted activities are as follows:

  • All kinds of Building Projects Contracting
  • Organization and Event Management
  • Grocery & Supermarket
  • Information Technology Network Services
  • Cyber Risk Management Service
  • E-commerce through Website
  • E-commerce through social media
  • Accounting and Auditing.

What are the advantageous features of setting up an Abu Dhabi limited liability company?

The features are as follows:

  • The investor can become a partner in the firm
  • The investor can run the business without the day-to-day interference of the local, national partner
  • Abundant and inexpensive supply of energy for the business
  • Competitive freight charges in comparison to other emirates
  • Competitive real estate costs in comparison to other emirates
  • Easy to open global corporate bank accounts.

Is annual auditing required in an Abu Dhabi mainland company?

No.

What is the scenario of 100% repatriation of profits?

Businesses in Abu Dhabi mainland have the 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.

What is the import duty on Abu Dhabi goods?

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).

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