Why set up a company on the mainland in Abu Dhabi?
Abu Dhabi is the capital of the United Arab Emirates. It is officially ranked as the richest city in the world. And the 420,000 Emiratis living in Abu Dhabi are worth $17 million each. Collectively, they hold assets worth more than $1 trillion abroad. Abu Dhabi has a gross domestic product of $249 billion and is home to a population of 2.9 million, the second largest in the UAE. Abu Dhabi has a relatively high purchasing power, with an average annual income of $96,000.
You can see why setting up a business in Abu Dhabi makes sense. Only 40.8 percent of Abu Dhabi’s GDP comes from oil revenues. The rest comes from trade. About 97,874 business licenses are issued/renewed each year. The fact that Abu Dhabi is the capital of the UAE means that almost all government-run companies are headquartered here. For example, Abu Dhabi National Oil Company or ADNOC is a $60 billion company. Contracting with government entities is a highly lucrative business.
Abu Dhabi also has its own infrastructure to support informal trade. It has two international airports, and four major ports: Port Khalifa, Port Zayed, Port Musaffah, and the Freeport. The Abu Dhabi Investment Authority is the third-largest sovereign wealth fund in the world. Much of the oil revenue is reinvested into the economy, supporting infrastructure development projects as well as Emirati businessmen and businesswomen. So there is plenty of room for trade.
How to open a company on the mainland in Abu Dhabi.
The first step is a business plan that complies with Abu Dhabi laws. There are 1105 commercial and industrial activities permitted by the Abu Dhabi Department of Economic Development, or ADDED. An experienced business setup consultant can help you identify the right business activity/activities from the list and apply for a business license. If all the documents are in order, you can expect to be issued a business license within a few working days.
List of documents required to open a company in Abu Dhabi
- A copy of your passport.
- A copy of your visa, if already in the UAE.
- A copy of your Emirates ID, if already a UAE resident.
- No Objection Certificate or NOC from your local sponsor, if already a UAE resident.
- Articles of Incorporation/Documents related to company formation
This must be filed for each individual shareholder in the company.
Before you can apply for a business license, you need to establish your company. This is because a business license – also known as a trade license – can be issued in the name of a company.
A company setup in Abu Dhabi consultant can help you prepare company formation documents that state the company name, the name of the owner(s), and the reason for its establishment. These documents must also be notarized by a notary public so that they are legally valid in the UAE.
The UAE has strict company name laws. For example, you are not allowed to use religious terms or country/city names in your company’s trade name. However, names of nationalities and geographical areas are allowed. A first name can only be used if it is the first name of one of the company’s shareholders. The company name cannot start with terms such as ‘Global’ or ‘International’ – these can be used elsewhere in the trade name.
Sometimes, additional approvals from various government agencies may also be required. A business setup consultant will help you with company setup in Abu Dhabi and can assist you with everything, which is why it is recommended that you have one set up in your corner. He/She will also help you find the right commercial space for your company, assist you with everything related to the lease agreement. Furthermore, he/she will help you open a corporate bank account for your business, which is not an easy matter in the UAE.
Why choose an experienced company formation specialist?
Skyline is a company set up in Abu Dhabi with offices across the UAE. They have years of experience in helping to set up companies on the mainland in Abu Dhabi. Their team of experienced professionals consists of people with industry expertise in business consulting, tax advisory, legal and corporate finance. They have so far provided professional assistance to clients in 100 countries around the world.
