Abu Dhabi is the largest Emirate and the capital of the United Arab Emirates, located on the southeast side of the Arabian Peninsula, in addition to the Persian Gulf. The city constitutes more than three quarters of the area of the country of the United Arab Emirates, and is the second busiest Emirate of the federation, after Dubai. Despite 10% of world oil reserves and is one of the largest oil producers, Abu Dhabi has been expanding its economy outside of oil exports since 2009. The city has been financing heavily in real estate, industrial development, retail and tourism.
Abu Dhabi, being the administrative capital of the UAE, is one of the most requested relocation sites in the world. It represents 95% of the country’s total oil reserve and offers various investment opportunities to almost all economic sectors.
In addition to the fact that it is prosperous and safe, it is very preferable to establish a business in Abu Dhabi because of its transparent and flexible business configuration procedures. Unlike some countries, it only takes a few days to establish a new company or open an offshore branch of your company in Abu Dhabi. For that, you must comply with the required guidelines correctly.
Here are some other advantages of establishing a business in Abu Dhabi:
- Abu Dhabi occupies a prominent place between Europe, Asia and Africa, and therefore has close access from the rest of the world
- The Emirate allows 100% foreign ownership and provides a corporate and personal income tax exemption
- There are no foreign exchange controls, fees or trade barriers.
- The living standards in Abu Dhabi are top notch, with world class facilities in medical care, residences, recreation, education and transportation.
The business setup in Abu Dhabi offers a one-stop administration and is authorized as an independent jurisdiction that allows an expatriate entrepreneur to own a company in its entirety (100%). It is not necessary to designate a UAE citizen as a branch service agent or as a partner if the business is established in a free zone. Establishing a company in the UAE has certain restrictions, so the free zones act as a gateway to carry out international trade. However, the local supply of goods (UAE) must be channeled through local distributors, and the company is supposed to pay a customs fee of 5%. The Abu Dhabi Free Zone authority provides a perfect gateway for trouble-free registration of companies in the Emirate.
Companies can legitimately move to the coast of Abu Dhabi to evade taxes or enjoy relaxed regulations. If one wants to protect their assets, the formation of companies abroad in Abu Dhabi can be a viable option. Abu Dhabi offshore companies are non-resident companies, which means that shareholders do not obtain a visa and there is no physical office. Companies in Abu Dhabi also do not receive an operating license and only obtain an Official Certificate of Incorporation. It is because they cannot carry out manufacturing, commerce or business within the Emirates.
What is the procedure for business configuration in Abu Dhabi?
Below are the steps to follow to start a business in Abu Dhabi.
1. Determine the type of economic activities
It behaves to obtain a clear understanding of your planned business activity before starting the proceedings, as legal procedures and fees may vary depending on the nature of your business.
2. Find a local sponsor
Under the jurisdiction of the UAE, foreign companies need a local sponsor (a service agent or a company owned by UAE citizens) to open a branch in Abu Dhabi. A local sponsor will provide the necessary licenses for the branch without assuming any responsibility for the contribution or capital losses.
3. Determine the legal form of business
The rules and regulations are different for different types of property and commercial establishments. You must select a type of legal entity to manage your business.
Business Link UAE helps entrepreneurs and organizations establish a company in Abu Dhabi through registration, incorporation and legal consulting services. Our experts are responsible for banking, visa, legal and licensing procedures, following the laws of the UAE. We help you through the formation of your company, with your business objectives at the center of our ecosystem.
We help you plant your business in this booming economy. It includes the handling of all legal procedures to help your company establish, establish open trade agreements and take advantage of all the state-of-the-art amenities in the region. For business configuration services in Abu Dhabi, contact us, we will be happy to help you.