Abu Dhabi is a great place to start a business.
Except for free zones, the Abu Dhabi Economic Department is the licensing department that issues licenses to all types of businesses in Abu Dhabi. In Abu Dhabi, a company may take one of the following legal forms:
SOLE PROPRIETORSHIP: A sole proprietorship is a business that is owned and operated by one person. As a sole trader, an investor can start a new business in Abu Dhabi. As a service agent, one must appoint a UAE national. This type of business structure is most commonly used by doctors, lawyers, and engineers.
Limited Liability Company (LLC): One of the most common entities chosen by investors for company formation in Abu Dhabi is the limited liability company (LLC). It is a separate legal entity from its owner, shareholders, and the people in charge of it, the directors. A minimum of one director and two shareholders must be appointed when forming an LLC in Abu Dhabi.
Partnership: Foreigners are prohibited from forming a partnership company in Abu Dhabi under this law. This type of business structure is only available to UAE citizens.
Public Shareholding Company: In Abu Dhabi, PSC is also known as a Joint Stock Company. It is appropriate for large projects or operations that require significant financial investment or the raising of private or public capital. A PSC in Abu Dhabi must have a minimum of ten founders, with a UAE national owning at least 51 percent of the company.
Joint Ventures: A joint venture is a contract between a foreign party and a regional party who are both licensed to conduct the desired business activity. In the United Arab Emirates, joint ventures are formed as limited liability companies (LLCs). Joint partners are seen as providing a good structure for companies working together on specific projects in practice.
Branch of a Local (UAE) Company: Unlike a foreign company branch office, UAE registered companies with a chapter in the UAE are permitted to sell and distribute goods within the country.
Branch of a Foreign Company: A foreign company's Abu Dhabi branch is permitted to invoice UAE customers, sign local sales contracts, and receive revenue from customers. To sponsor visas and licenses, a local UAE agent must be appointed.
Free Zone Company: Abu Dhabi Free Zone Companies are created to provide tax advantages. They offer benefits such as 100 percent capital and profit repatriation, 100 percent foreign ownership, no currency restrictions, and so on.
Foreign Representative Office: A non-UAE national is the sole owner and operator of a foreign representative office in Abu Dhabi. Even though the company is foreign-owned, it does not have the legal authority to sell directly in the UAE. A representative office is usually established to conduct market research in a specific region.
PROCEDURE
1. Determine the Type of Economic Activities: It is in your best interests to gain a thorough understanding of your intended business activity before beginning the procedures, as legal proceedings and fees may differ depending on the nature of your business.
2. Find a Local Sponsor: It is in your best interests to gain a thorough understanding of your intended business activity before beginning the procedures, as legal proceedings and fees may differ depending on the nature of your business.
3. Determine the Legal Form of Business: Different ownership types and business establishments have different rules and regulations. To run your business, you must choose a legal entity type.
4. Register Your Trade Name: A company's trade name identifies it and describes its nature and legal form. We assist our clients in not only establishing a business in Abu Dhabi but also in registering a trading name from the Department of Economic Development's list of registered trade names (DED).
5. Fulfill Licensing Requirements: The Abu Dhabi licensing authority issues the following types of licenses:
Agricultural License
Commercial License
Industrial License
Professional License
Tourism License
Vocational License
We assist our clients in obtaining a permit, obtaining a No-Objection Letter from the deemed jurisdiction, and translating their legal documents into Arabic by a licensed translator.
6. Get Special Approvals
A foreign investor is required to obtain approvals from the following authorities:
Abu Dhabi Customs Authority
Abu Dhabi Distribution Company
Abu Dhabi Education Council (ADEC)
Abu Dhabi Foo/d Control Authority
Central Bank
Medical Council
Ministry of Agriculture and the Department of Health
Ministry of Civil Aviation
Ministry of Economy
Supreme Petroleum Council
Telecommunications Regulatory Authority
7. Obtain the Initial Approval
Before making the initial approval, international investors must obtain approval from the General Directorate of Residency and Foreigners Affairs - Abu Dhabi (GDRFA). The business licensing formalities that permit foreign nationals to practice their desired business activity in Abu Dhabi are expected to continue with an initial approval certificate. We assist our clients in obtaining all necessary approvals from government officials, including the DED, as well as paying the legal fee for obtaining a business license.
PROCEDURE
Now that the different types of trade licensesAjman’s have been identified, the steps involved in obtaining the required license are license setting to anticipate. The steps are as follows:
The applicant has to approach either the DED Abu Dhabi, ZonesCorp, or Abu Dhabi Tourism Authority as per the type of requested activity.
Attach the documents as mentioned in the application for obtaining the license
The concerned authority reviews the application, and sometimes additional documents are required.
Once the review is completed, the applicant is referred to the Abu Dhabi Chamber of Commerce for its membership
A field visit by DED or Abu Dhabi Commercial register to know if all the terms and conditions of acquiring the license are fulfilled
A permit is issued once everyone is satisfied
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