The United Arab Emirates is one of the wealthiest countries in the world. Also known for its allegiance toward foreign investors and open strategy of administering worldwide business. The prestige of the UAE as a world economic center captivates the interest of many foreign entrepreneurs, and the variety of policies for launching and facilitating an enterprise in the UAE allows them to select a considerably adequate choice in each case. The United Arab Emirates has seven Emirates comprising Dubai, Abu Dhabi, Ajman, Sharjah, Umm Al Quwain, Fujairah, and Ras Al Khaimah. Each of these has its specialty and proposes its distinct financial aspects for business with distinct rules and laws of starting a business.
The Emirates of Abu Dhabi
Abu Dhabi is the capital of the UAE. Over the last few years, it has undergone a massive changeover of huge amounts of tremendous financial growth and expansion. Abu Dhabi has evolved into a vibrant center and an important partaker in several business and industrial sectors, which has enabled it to become a competitor in the international spotlight.
It wields 95% of the oil production in the UAE.
There are various free zones in Abu Dhabi, which give a suitable setting for a company to start up and also create a portal for foreign investors to hit its total potential. Abu Dhabi free zones are an endeavor to improve the local economy and encourage foreign investment. Company layout in free zones includes mainly media and logistics companies, medium & heavy enterprises. There are many inducements and facilities shareholders obtain by starting a company in Abu Dhabi’s free zones.
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Advantages of Business Setup in Abu Dhabi
Abu Dhabi proposes a vast room of advantages in favor of the entrepreneur.
Some of these boons are mentioned below.
- Most importantly, It is a prominent juncture for marketing and exchange. For instance, by starting your business in Abu Dhabi, you will have a permit to the markets of Africa, Asia, Southern, and Eastern Europe, and the Middle East. Moreover, the Emirate has establishments to put up international marketing.
- If you set up a business in the Abu Dhabi free zones, you will get tax privileges like no personal or corporate tax and no import/export duty.
- Abu Dhabi delivers a huge collection of technological solutions. With the most contemporary facilities and infrastructure. Therefore, it has become an excellent place to boost up your business operations.
- They provide access to a diverse economy. The economy of Dubai has seen a great deal of growth in the past few years. Meanwhile, the petroleum industry is still crucial to the country’s economic prosperity; it has seen advances in the field of tourism, science, and technology.
- Abu Dhabi has evolved into a major global center of business movement. The interests and attention of many huge companies are directed here. Also, they started up taking the leading roles in the area of international tourism. So, the investment capitals are keen on the performance of many large-scale projects that provide for the effective expansion of the economy in the nation.
- Business Flexibility, In Dubai or the UAE, mainland companies may do business with other mainland companies. They are adaptable enough to conduct business in any part of the UAE. Since they are limited to operating their company in their respective free zone, this facility distinguishes them from free zone businesses. Mainland companies are allowed to work for the government, while free zone companies are not allowed to work for the government and are only allowed to do private commercial work.
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Start a Business in Abu Dhabi
After learning about the benefits they provide, any investor will be ready to invest in your business. The process of setting up a business in Abu Dhabi is quite similar to the company setup in Dubai but less complicated. This part of the procedure is handled by the council in the Department of Economic Development Abu Dhabi and Abu Dhabi Municipality.
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Free Zones
Free zones in Abu Dhabi have been created with a perspective to improve the economy and stimulate foreign investment. So, these are excellent for establishing firms in logistics, media, and manufacturing areas. However, in Free Zones, services and commodities are marketed without the intervention of grim customs constraints. In addition, businesses and corporations are made tax-free to promote economic activity.
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What are the financial motives of starting a business in the Abu Dhabi free zone?
Abu Dhabi free zone provides whole foreign ownership and repatriation of capital and profits. Moreover, they also provide an exemption from taxes. So, there is only the need for a single director to enroll a business in the free zone. Also, it is the most attractive benefit of starting a business in Abu Dhabi. Therefore, establishing a business commodity in Abu Dhabi’s Free Zone is a desirable option for foreign investors. However, this could help expand business activities and hook companies looking to cropping up businesses shortly and effortlessly. In addition, the Free Zone areas in Abu Dhabi follow laws and ordinances much different from the laws that operate companies within the UAE. Businesses operating within the Free Zones are contemplated as foreign corporations or companies operating outside the UAE.
Following are the boons of the free zone in Abu Dhabi:
- First of all, you get complete ownership without the assistance of a sponsor.
- Secondly, no personal income tax and capital gain tax
- Thirdly, the whole repatriation of capital and profits from the business
- Fourthly, least import/export duty
- No corporate tax
- Zero limitation on currency movements
- Single window clearances
- Rapid licensing
- Safe and transparent laws and regulations
- Quality infrastructure with an effective communication system
- Low start-up and functioning fee
- Zero visa restrictions for recruitment.
- Business backing services with fast and efficient systems.
- Other assistance such as sponsorship and labor aid.
- Contemporary IT infrastructure along with a multi-tiered data hub.
- Easy permit to air, rail, and road transport systems.
- Impressive work setting
- 24/7 functional capacity
- Finally, available consumer market
What are the various Free Zones located in Abu Dhabi?
Abu Dhabi Frees Zones to deliver investors and entrepreneurs substantial inducements for beginning their business in the free zones.
There are 4 free zones :
- Abu Dhabi Airport Free Zone: It is developed by Skycity, which is located near Abu Dhabi International Airport. Most importantly, it is a business destination for aviation, engineering, electronics, logistics & cargo, and pharmaceutical firms.
- Masdar City: It is a global hub for clean technologies and renewable energy which is located beside Abu Dhabi International Airport. Moreover, it was founded in 2006 to promote endurable economic advancement and related study.
- Twofour54 is a media and entertainment center recognized for its output facilities, talent promoting programs, and support services for media companies.
- Khalifa Industrial Zone: Also commonly known as Kizad and is located between Abu Dhabi and Dubai. It is an industrial zone that works with the licensing of industrial programs and expansion of industrial exports.
Procedure for starting a company
Most importantly, Free Zone Authority is the governing council that registers and issues business licenses to foreign companies in UAE free zones. This is the same for forming a company in Dubai.
Following are the documents needed for the Company Formation in Abu Dhabi.
1) First, you need an Application Form
2) Then, Passport copies of the shareholders
3) Next, you need Passport size photos
4) 2-3 proposed names for your company
5) Characteristic of your business activity
6) Total number of visas required
7) Then, proof of the Address
8) Finally, a Professional Reference Letter
Keep the following points in mind, before opening your business in the free zone
» First of all, select the appropriate legal business on the base of hierarchy based on the category of activity.
» Then, consult with a local adviser to become familiar with the rights and duties of enrolling the business in Abu Dhabi.
» After that, open a bank account for the firm in a local bank.
» Finally, assemble the formal documentation and business registration
The simple procedure to start a business in Abu Dhabi’s free zone is list down:
- Firstly, determine the Category of Business Activity.
- After that register your Company Trade Name.
- Then, collect the Permits and Clearance from the Free Zone Authority.
- Finally, allocation of License.
Categories of Legal Entities in Abu Dhabi Free Zone
A corporate or private entity can register their venture in Abu Dhabi free zones, in any of the given ways:
- Freelance License
- Department of a UAE Company
- Free Zone Limited Liability Company
- Department of a Foreign Company
Also, keep in mind that the cost for starting any business will always depend on the zone you have chosen to set up your business and the type of license you have to receive. However, starting a company in a free zone is always cheaper.
Conclusion
Last but not least, there are several benefits of company formation in Abu Dhabi. They give you various inducements as well as amazing and advanced facilities to run your business smoothly. So, the services include easy and effective methods for company arrangement and entail complete support and aid from the Free Zones Authorities.
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