For the company setup and formation in Abu Dhabi, you first of all need to have a commercial license. One thing that you need to consider before starting your company in Abu Dhabi is that it would be quite different from that of your home country based company. This is the reason why all the people who are into starting their own company in Abu Dhabi must first conduct proper research to understand all the legalities of UAE. This might take some of your time but it is very important for you to take the right decisions for your business, yourself and your family.
What Should Be the First Question to Arise in Your Mind?
Structure of the company! Determining the structure of the company is very crucial for the sake of conducting planned activities in the companies. There are other important functions too but the company structure is important as the other functions would rely upon the structure of the company itself.
Onshore or Free Zone?
Initially, you need to decide whether you want to form your company in a free zone or on the mainland.
Six Free Zones to Choose from In Abu Dhabi
- Masdar City Free Zone
- Abu Dhabi Airport Business City
- Industrial City of Abu Dhabi (ICAD)
- Abu Dhabi Global Market (ADGM)
Every free zone in Abu Dhabi has its own important features which may make you form your company here.
Are you interested to set up Economic company: New guidelines for economic licenses in Abu Dhabi
Free Zones and Abu Dhabi
There are a certain set of sectors which the free zones attract. All of this is from the provision of the best products and services. Furthermore, the free zone companies in Abu Dhabi are allowed to carry out their services right in the limitations of the free zone.
What Makes Free Zones Attractive to The People?
Free zones bring along a lot of benefits for the companies in the UAE. The free zones in Abu Dhabi have the following benefits:
- Foreign ownership (100%)
- Exemptions from income and corporate tax (100%)
- Profit repatriation (100%)
- Exemptions from custom duties
- Independent regulations
With the benefits, there are some restrictions in the free zones as well. These may include:
- Limited operating area
- Engagement with a distributor for engaging with mainland clients
- Duty charges applicable for exporting products to the mainland
- Mainland license required for government tenders or contracts
Business set up in UAE free zone is quite easy because it is quick and cheap. If you do not find a business set up easy, you can always ask the legal consultants in UAE for help. They will surely provide better solutions to your problems. Business setup in kizad free zone
Also find more details: How to start a business in Abu Dhabi
Legal Structure of a Company
The legal structure of the company is the one on which all of your business activities will be dependent upon.
You can consider the three onshore structures for your company formation Abu Dhabi which are: Representative Office, Foreign Branch Office, and (Limited Liability Company) LLC company formation in abu Dhabi.
Legal Consultants and Sponsors
Engaging yourself with a local sponsor in Abu Dhabi is very important for your business set up in Abu Dhabi. This person will guide you through your path and will act as your agent.
The national service agent will be the one who sets up an office for the company. The service agents may also take visas liability. The national service agent might not have any hares in the company but they may take a fee on an annual basis.
The local sponsor is the one who holds the 51 per cent shares of the company
Cost of A Business SetUp in AbuDhabi
Cost of A Business Set Up in The Free Zone
Different free zones have different setup costs as per the activities, location, and the number of visas.
The business set up cost may include;
- Registration Fee (to be paid only one time)
- reservation fee for Name (to be paid only one time)
- License Fee (Annual)
- Share Capital
- Annual rental for locations
- Visa per person (each visa lasts for 3 years)
Cost of a business set up in Mainland
The structure, activity, a number of visas and the premises will determine the cost of business setup in UAE on the mainland.
- Fee for Government and third party (Trade License fees, Notary fees, legal translations, typing centres, government department registrations – a mix of one time and annual fees)
- Incorporation fees (documents submission, the arrangement of approvals and inspections – once)
- Fees of Sponsor (annual basis)
- Legal fees (to be paid only for once)
- Commercial premises fee (annual)
- New company registration with Immigration and Ministry of Labour (one-off, with the renewal of Establishment card only, every three years)
- Visa per person (lasts for almost 2 years)
Note that the share capital of AED150,000 is required for the business set up in Limited Liability Company.
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