Abu Dhabi

Abu Dhabi is the largest Emirate and the capital of the UAE, located on the south-eastern side of the Arabian Peninsula, besides the Persian Gulf. The city constitutes more than three-quarters of the area of the country of UAE, and is the second most crowded Emirate in the federation, after Dubai. Notwithstanding the 10% of the world's oil reserves and is one of the largest oil producers, Abu Dhabi has been expanding its economy outside of oil export since 2009. The city has been funding heavily in real estate, industrial development, retail, and tourism.

Why Set Up New Business in Abu Dhabi?

Abu Dhabi, being the administrative capital of the UAE, is one of the most sought-after offshoring places in the world. It accounts for 95% of the country's total oil reserve and offers diverse investment occasions to almost all economic sectors.

Here are a few other advantages of setting up a business in Abu Dhabi:

• Abu Dhabi occupies a prominent location between Europe, Asia, and Africa – and thus has close access from the rest of the world
• The Emirate allows for 100% foreign ownership and provides an exemption from corporate and personal income tax
• There are no foreign exchange controls, quotas or trade barriers
• The living standards in Abu Dhabi are top-notch, with world-class facilities in healthcare, residences, recreation, education, and transportation.

Free Zone Company Abu Dhabi

Free Zone company formation offers single-window administration and is authorized as an independent jurisdiction that allows an expatriate businessperson to own a company wholly (100%). There is no requirement to appoint a UAE national as a service agent of a branch or as a partner if the business is set up in a free zone. Setting up a business in the UAE has certain restrictions, so, free zones act as a gateway to carry on international business trade. However, local (UAE) supply of goods has to be channelled through local distributors, and the business is supposed to pay a 5% customs duty for it. Abu Dhabi Free Zone authority provides a perfect gateway for smooth registration of companies in the Emirate.

Free zones in Abu Dhabi issue licenses:-

• Commercial Trading
• Consultancy
• Branch of a Foreign Company

Mainland Company Abu Dhabi

Abu Dhabi has a list of mainland's which are commercialized geographical areas that fall under the UAE government and its authorities. They have regularized policies and legal guidelines, which makes the city one of the most developed economies in the UAE. A mainland company in Abu Dhabi can carry out business across the UAE but permits maximum foreign shareholder equity capped at 49%.

Abu Dhabi Offshore Company

Companies may legitimately move offshore Abu Dhabi for tax avoidance or to enjoy relaxed regulations. If one wants to protect its assets, then overseas Abu Dhabi company formation can be a viable option. Abu Dhabi offshore companies are non-resident companies, which precisely means that the shareholders get no visa, and there is no physical office. The businesses in Abu Dhabi are also not issued with an operating license and only get an official Certificate of Incorporation. It is because they cannot conduct manufacturing, trading, or business within the Emirates.

Business setup in Abu Dhabi one has to obtain a specific license depending on the business activity. Few of the business licenses are mentioned as follows-

Commercial License - This license is issued to the companies engaged in general business activities like public trading companies, hospitals and clinics, construction and real estate, and business contractors

Occupational License – This license is issued to the businesses which involve individuals using their mental and intellectual capabilities, talents, and abilities to serve clients. Examples for an occupational license are law firms, accounting and audit firms, research and development firms

Professional License – This license is issued to artisans and other professionals who personally engage in the practice of a particular craft. These individuals may work alone or work up to five people. Examples for professional license include carpentry, smithery, and steelwork

Industrial License – This license is issued to the businesses who wish to set up manufacturing operations in Abu Dhabi. The Higher Corporation issues the license for Specialized Economic Zones (ZonesCorp)Tourism License – This license is issued by the Abu Dhabi Tourism and Cultural Authority (TCA). This license is granted to companies offering tourism-related services like hotels, travel agencies, boat rentals, etc.