How to start a business in Abu Dhabi

Abu Dhabi is a connecting hub for many business opportunities because it is the capital of UAE, the largest emirate, and has the second largest population in the UAE; therefore, establishing a business in Abu Dhabi is a golden opportunity. The ever-growing economy, the low tax rates and import rates, and the easy accessibility to the country make it an ideal location to start a business in UAE, all thanks to the efforts of the UAE to make it easy to do business in UAE, and they have concentrated their efforts on the capital country, Abu Dhabi.
The benefits of starting a business in UAE, especially in Abu Dhabi freezones, have been steadily increasing, and with the recent amendment, it is even possible to have 100% foreign ownership, which itself opens up limitless opportunities for a corporate as well as for a small or medium company.
So, the next question will be, “How to setup a business in Abu Dhabi?” The policies of UAE make it easy to setup a business in Abu Dhabi, welcoming both local and global investors. Here we will briefly explain the steps to starting a business in Abu Dhabi.

Step 1: Identify the type of business.

You have to have a clear idea of what type of business you will be starting and the nature of your business. The next step will be decided based on what type of business it will be. In Abu Dhabi, there are mainly six types of businesses: Industrial, professional, commercial, tourism, agricultural, and occupational. After fixing the business type, you can take the next step.

Step 2: Decide on the legal form of your business / Ownership structure

Once you have decided the type of business, you will have to determine the legal form of the company. In simpler terms, the ownership structure of the company should be chosen with scrutiny and with a clear vision of what you want for the future, as each type has a different set of rules and regulations in Abu Dhabi. The different legal forms of business are

Step 3: Register your trade name

This step is very crucial when setting up your business in Abu Dhabi, and that is choosing the trade name for your business. After fixing your name, you should register that trade name at the emirate’s Department of Economic Development (DED). For the trade name to be approved, a number of criteria have to be followed. They are as follows:

The trade name should not be offensive to the public and should not contain any obscene or indecent words.
The name should not contain any authority names or any religious or external organisation names or logos, etc.
The unique trade name should be followed by the acronym denoting the legal form of the company, i.e., LLC, PrJSC, etc.
It should define the company’s business activity.
It should be a unique name that has not been registered with any other company in the past.

After the registration process, a payment voucher or transaction number will be issued. The cost of registration can vary according to the business, and this payment has to be made within a timeframe of 30 days. DED can only register trade names, while for trademark registration in UAE, the issuing authority will be the Ministry of Economy.

Interestingly, if you are planning a trading business, the word ‘commodities’ can only be used if the company trades in more than one commodity or practises general trading on their business license.

Step 4: Obtain initial approval.

You will get the initial approval from DED to set up business in Abu Dhabi. This will be a requirement to apply for a business licence in Abu Dhabi.
The other relevant authority for approval varies depending on the type of business; for foreign companies, approval will be sought from the General Directorate of Residency and Foreigners Affairs (GDRFA).

Step 5: Obtain Memorandum of Association or a local service agent agreement

Some of the legal forms of company require a MOA, or Memorandum of Association. These are the following that require a MOA:

Limited partnership
Limited liability company (LLC)
Public joint-stock company (PJSC)
Private joint-stock company (PrJSC

Notary public, courts and UAE- law firms can prepare and attest MOAs or any other business agreements. As for a business owned by a non-GCC resident, they should have a local service agent and the court or notary public attests an agreement between these two parties.

Step 6: Get additional government approvals.

Depending on the type of business you are planning to start in Abu Dhabi, you may need additional approvals from different government authorities. They are

Executive Council
Ministry of Economy
Local Health Departments
Ministry of Justice
Local Municipal Department
Supreme Petroleum Council
Ministry of Interior
Telecommunications and Digital Government Regulatory Authority (TDRA)

Step 7: Issuing of the business licence

Finally, you have to get a business licence to start a business in Abu Dhabi. You can acquire your licence from the service centres of the Economic Department or through their websites. The process to get a business licence in Abu Dhabi has its own procedures and prerequisites. For more information, check out How to get business licence in Abu Dhabi
Beside the conventional way of opening a company in UAE, you can also start an online business in Abu Dhabi. How to start an online business in Abu Dhabi? You ask
The UAE government has created a unified online platform called Bashr. By spending only 15 minutes, you can start your online business in Abu Dhabi. Bashr can give out commercial licences as it is connected to the federal and local governments.
As for a resident of the GCC, the process is much simpler than visiting the official website of UAE’s government portal to get a commercial license.
Establishing a business in Abu Dhabi is not an impossible task. With correct guidance and help from an experienced expert in the field, you can start your business in Abu Dhabi with no hiccups or troubles along the way. Alchemist Corporate Services has experienced and skilled advisors to guide you in your business formation and help you establish your company in Abu Dhabi as you planned.
Planning to start your business journey in Abu Dhabi? Contact Alchemist Corporate Services for assistance at +971556205750.

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