Setting up a business in Abu Dhabi mainland may seem really exciting, but it is not as simple as it is in the free zones.
That is why people need to be very accurate, while following the business set up steps in forming a mainland company in Abu Dhabi, to avoid any delays.
Everyone interested should know about all the legal and administrative procedures before looking towards the business set up in UAE. Carrying out these procedures is as important as running a successful business.
There are different steps that should be carried out before starting a business in the UAE mainland. Read below for getting an insight into those procedures.
Get a Local Sponsor
The ownership regulations are what differs in both the business set up in the mainland and the free zone.
In case of the Free zones business set up, you might not need a local sponsor but so is not the case with the mainland business set up.
For the business set up in UAE mainland, one would need a UAE national sponsor.
This local sponsor will have the ownership of the 51% of the business shares while the rest of the 49% will be of the foreigner or the expat.
The expat partner will basically be the one who will manage the company and will carry on the operational procedures wholly.
If the expat is interested in forming a professional firm, the expat is allowed to own the firm but the local sponsor is still required.
The local sponsor will be hired after agreeing on an annual fee.
Register with DED
Department of Economic Development (DED) is the main body which regulates and helps in the company formation in mainland Abu Dhabi. This department is basically very important in the economic growth and the welfare of the companies in the UAE. They also help in the development of economic policies and regulations. For the issuance of license and registration of the business, the DED regulatory body is very crucial. It has a vast range of application as it helps in commercial compliance as well as consumer protection.
Verifying the Business Address
For the verification of the business address, one would need to register with Abu Dhabi Municipality. Office address and the office type depends upon the license type. Before applying for the license, the Ejari and tenancy contract should be in place with the license type.
One should be sure about the business incorporation procedures but if someone is still unsure about them, they can ask the business consultants in UAE to be there for any help needed. The business set up Abu Dhabi consultants know all the ifs and buts of the business procedures. So, if someone is looking to set up business and takes the help of a business set up,
the consultancy, they would be clear about legal issues involved and how to handle them.
Get Initial Approval
Any of the business activities will be considered illegal if the doer obtains no prior approval to carry out their business activities in UAE.
Therefore, people must get initial approval for their trade name and business activity. Be sure that the name to be chosen for the business is unique and attractive. This will help to attract more customers towards the business. Also, make sure that the trade name is similar to that of your business activity.
A good trade name will itself define what the nature of the business is. It is recommended going through the list of names restricted in UAE to be occupied as a trade name.
Such names mainly include a name of the Emirates, the states, any religious landmark or place and names of any religious, ethnic or cultural figure etc.
Get the MOA/Agreement Notarized
Getting a memorandum, or agreement of Association well drafted and notarized is one of the main steps in the formation of a business.
One can hire notary services for MOA notarization. Having a notarized contract is better because it holds the parties with their responsibilities regarding the business. So, get the MOA or the agreement notarized for your business set up as well.
The agreement or memorandum after notarizing becomes a legal document, therefore, the best practice is to get that drafted only by a lawyer who is an expert in the subject.
Choose the premises for business
A proper office space, store or business premise is required for a company formation in Abu Dhabi that suits the business type. Be sure this needs to have compliance with requirements defined by the concerned department. Also, when choosing a premise, one must make sure that space matches the business plan as well. Space as well as the location both counts a lot towards the success of the business.
Obtain Additional Approvals
If a business needs additional approvals, one should get them done in time. This will let the business owner stay away from unnecessary delays in the business set up. Business activities like insurance, financial investments, legal consultancy or firefighting services are the few that will require additional approvals.
One can seek the assistance of DED for the sake of getting the required approvals. If any services do not fall under the insurance, firefighting or legal services, then additional approvals are not required.
Acquiring a license for a Food manufacturing or servicing, health or medical services including pharmacies and chemicals related business etc. Is equally important for a business to operate in Abu Dhabi.
Final Submission of a License
This is the most important and final step for a business to be allowed to operate in Abu Dhabi. After the accomplishment of all the above-written steps, business is ready to acquire the license. In this step, all the documents are to be submitted with the DED in Abu Dhabi and the payment for the license has to be made.
With the completion of all these steps, a business would be able to acquire a license to operate and provide its services to the people.
FAR Consulting Middle East
State of art business consultancy services of FAR Consulting Middle East. can help you establish your business comparatively easier. The difficult business set up procedures may sometimes confuse the people which may keep them from establishing their business.
This is why it is better to take the consultancy services to avoid such mistakes which may harm the business or business set up in one way or the other.