Steps to Successfully Set Up Your Business in Abu Dhabi

Abu Dhabi is an ideal destination for businesses seeking to expand into the Middle East region. The city provides a conducive business environment, strategic location, diverse workforce, and modern infrastructure that are essential for business growth and success. Strategic location and well-established infrastructure have made it a hub for Business Setup in Abu Dhabi and in the Middle East. The city offers access to key markets in the region, making it an excellent base for companies looking to tap into the growing economies of the Middle East and North Africa.

Additionally, Abu Dhabi's business-friendly policies and regulations make it easier for businesses to establish themselves and operate effectively in the region. The government has implemented various initiatives to entice foreign acquisition, such as tax incentives and streamlined procedures for company registration and licensing.

Abu Dhabi also boasts a talented and diverse workforce, comprising skilled professionals from various backgrounds and nationalities. This makes it easier for businesses to recruit top talent, ensuring the smooth running of operations and continued growth.

The Process for a Business Setup in Abu Dhabi 

1. Company Registration 

To business setup in Abu Dhabi, the first step is to select a suitable business activity and legal structure. There are various legal structures available, such as an LLC, branch office, representative office, and free zone company. Among these, the LLC is the most popular choice for investors seeking to set up a business in Abu Dhabi.

An LLC provides several benefits, including limited liability protection for its shareholders and the flexibility to conduct a wide range of business activities. LLCs need a minimum of two stakeholders and allow for up to 50 shareholders.  

2. Business Name Registration 

After selecting a legal structure, the next step in the procedure of a business setup in Abu Dhabi is to obtain a unique trade name and register the company with the Abu Dhabi Department of Economic Development (ADDED).

The trade name should be original and not resemble any existing trade names in Abu Dhabi. Once a suitable trade name has been selected, the registration process involves submitting the required documents, such as passport copies, company formation documents, and a lease agreement, and paying the registration fees to ADDED.

3. Business License 

Once the trade name registration process is complete, the next step is to obtain a business license from the Abu Dhabi Department of Economic Development (ADDED) to legally operate the business in Abu Dhabi. The type of business license required depends on the nature of the corporation's activities.

The business license is a crucial document that legally authorizes the company to conduct business activities in Abu Dhabi. It ensures that the company operates within the legal framework and complies with all relevant regulations and requirements.

4. Registration With ADCCI

Once all the necessary licenses and permits have been obtained, the company must register with the Abu Dhabi Chamber of Commerce and Industry (ADCCI) to obtain a membership certificate.

The membership certificate issued by the ADCCI is an important document that is required for opening a bank account and conducting business activities in Abu Dhabi. It works as evidence of the company's legal existence and membership in the business community in Abu Dhabi.

Additional Requirements Before Business Setup in Abu Dhabi

1. Local Sponsor

In Abu Dhabi, a Limited Liability Company (LLC) must have a local Emirati sponsor who holds a minimum of 51% of the company's shares. The local sponsor's involvement is limited to the ownership of shares to comply with UAE company law, and they are not involved in the company's operations. The local sponsor should be a UAE national or a company completely held by UAE residents.

2. Office Space 

All companies registered in Abu Dhabi must have physical office space, located in a commercial area, and in compliance with the regulations of the Abu Dhabi Municipality.

3. Bank Account 

Additionally, all companies in Abu Dhabi are required to have a local bank account for conducting business transactions and paying taxes. The procedure of opening a bank account includes submitting the necessary documents, including the company formation documents.

 Also Read: Costs of Business Setup in Abu Dhabi?