What is the cost of business set up in Abu Dhabi Mainland?

Abu Dhabi is one of the fastest-growing markets globally along with an ideal economic and supportive business environment, thereby making it one of the most popular and potential global business hubs for investors from all over the world. Moreover, it is strategically located and connected between Europe, Asia, and Africa. This makes Abu Dhabi a viable location of choice for an entrepreneur to start a company here.

Notably, the business setup in Abu Dhabi has two choices to select from, namely, mainland and free trade zone. However, undeniably, the company formation in Abu Dhabi Mainland has major benefits as compared to the free zone business set up.  This is because of the fact that Abu Dhabi mainland business set up allows you to do business and offer your services in the local as well international markets. In addition, it offers many benefits to the business owners such as government support, the validity of the commercial license for two years, the economic cost in company formation, low taxes, easy and speedy company registration process, to name a few.

So, if you are planning to start a mainland company in Abu Dhabi, the capital city of the UAE, then you are indeed making the right decision. Understandably, business setup in Abu Dhabi would involve a tailored process and various costs heads that as an investor you would require to carry out. Let us look at them.

Identify business activity

Before starting a business in Abu Dhabi Mainland, you need to decide on the type of business activity you want to take up. For this, thorough research on the profitability and viability of the business you intend to commence is required.

Decide Legal Business Structure

You need to decide on the right type of business structure which of course will depend upon your business requirements. There are majorly following types of legal business structures from which you need to choose from to carry out your business activity in Abu Dhabi Mainland:

• Sole proprietorship
• General partnership
• Limited Liability Corporation (LLC)
• C Corporation
• Public shareholding company
• Private shareholding company
• Joint Venture Company
• Civil company
• GCC company branch
• Foreign or local company branch
• Holding companies
• Representative Office

Business Ownership in Abu Dhabi Mainland

Getting proper information and business details about the processes required to start a business should be your first goal. To find out more about setting up a new business in Abu Dhabi, click on the link.

Select and register a trading name

You require selecting a valid name for your business set up which of course depends upon your business type. However, you need to make sure that the selected name is available to register and adhere to all legalities.

After this, you need to get it registered by applying to the Department of Economic Development (DED) along with all the relevant documents. Further, you also need to apply to the Ministry of Economy to get your trademark registered.

Once you receive both these approvals, you will have to submit documents to apply for your trade license.

Initial approval

Initial approval from DED is mandatory which specifies that the UAE Government does not object to you establish a business in Abu Dhabi.

To be noted that before getting the initial approval, you need approval from the General Directorate of Residency and Foreigners Affairs.

Memorandum of Association (MoA) or Local Service Agent Agreement (LSA)

Once you have decided upon the legal form of your business, you need to have a complete and signed MoA or a LSA of the business.

Business license types in Abu Dhabi

After you have decided upon your business activity, you need to decide on the type of license you would require obtaining. There are basically six types of licences:

• Industrial
• Commercial
• Professional
• Tourism
• Agricultural
• Occupational

Depending upon the nature of your business activity and area selected, you need to apply for any of these trade licenses which are issued by the Department of Economic Development (DED).

Office space

For running a business in Abu Dhabi, it is compulsory for you to have an office space to set up your business here. Worth mentioning, your office location or business premises must meet the requirements as specified by the DED, and also of the land planning regulations of the local municipalities.

In case, you have rented office premises or a warehouse, then you need to arrange your tenancy contact (Ejari) or rental agreement.

Get added government approvals

In certain cases, you may require additional authorizations from government or non-government entities depending on your business activity by paying the necessary fees.

Acquiring your trade or business licence

Once you have completed all the requisite steps, then you can collect your business licence from service centres of the economic departments or through their websites.

However, for this you will have to submit the following documents for getting a licence which is required for every legal form of businesses:

• Proof payment of initial approval and also of all the previously submitted documents
• Completed trade license application
• Copy of the lease contract
• EJARI registration certificate
• Duly attested MoA
• Approvals from other government entities concerned (if required)
• Duly attested service agent contract for companies that are 100% owned by foreigners or non-nationals)
• Copies of passport of partners
• NOC for partners (if any)
• Share capital information (If any)
• Other requirements by the DED (if any)

After reviewing the documents, the investor is referred to the Abu Dhabi Chamber of Commerce for its membership. This is followed by a visit either by DED or the Abu Dhabi Chamber of Commerce to see that all the requirements have been followed. After, this finally your licence gets issued.

Obtaining Labor Cards

For running your business in Abu Dhabi Mainland, you need to get it registered with the Ministry of Labor and the Department of Immigration. These will permit you to legally employ staff even from other countries.

Visa

To operate your business, you have to apply for a visa which of course will be based on your requirements. These primarily include:

• Work visa
• Visit visa
• Tourist visa
• Travel visa
• Transit visa

Cost of Setting up a Company in Abu Dhabi

There is undoubtedly cost or expenditure involved at every step. However, it needs worth mentioning that the cost of setting up your business will vary depending upon your business structure and activity, office premises, and other factors.

Nonetheless, the initial set up cost of setting up a company in Abu Dhabi, broadly takes into consideration the following:

Looking out to start a new business in Abu Dhabi?

Still not sure where to start on your business journey in Abu Dhabi? Then look no further and contact Shuraa. Our experienced team are here to make your business set up process in Abu Dhabi an easy and uncomplicated affair by abridging the complete incorporation procedure and determining the actual cost of starting your Mainland Company.