For expatriates looking to start a business, the allure of a country like the United Arab Emirates extends far beyond its evocative desert splendor and cultural dynamism. For aspiring entrepreneurs, Abu Dhabi represents a growing entrepreneurial hub.
According to the World Bank, the UAE tops the Gulf region in ease of doing business for the fifth year in a row. Many budding entrepreneurs can quickly have a small business up and running in less than two weeks, requiring very little cost to kickstart the business. Its strong economy, impressive trade surplus, and favorable tax regime also provides entrepreneurs plenty of opportunity to succeed.
If you’re looking to start a new enterprise in UAE, particularly Abu Dhabi, then read on. The key steps highlighted below will ensure your budding enterprise meets all the legal and practical requirements necessary.
1. Determine the commercial and legal form of your businesses
Before approaching a commercial bank in Abu Dhabi, it’s essential to determine the structure and intended business of your company.
Different rules and regulations will apply to your business according to its legal form, ownership type, and the nature of the activity. Determining the needs and nature of your new business will facilitate a smoother process.
Services are available to provide answers to any of your inquiries. The Abu Dhabi Chamber of Commerce and Industry offers economic consultation services that provide all the necessary information and advice to investors or enterprise owners looking to start a business.
2. Obtain approval
To be issued a trade license, your business must first gain approval from concerned authorities. To do this, your business must fulfill the legal requirements as set out by Abu Dhabi’s Department of Economic Development (DED).
This requires foreign investors to register a trade name. Once the trade name certification has been obtained, investors will need to proceed with approaching relevant authorities for approval. A compulsory visit is required to the General Directorate of Residency and Foreigners Affairs (GDRFA). Depending on your business type, you may need to obtain approval from other key entities such as:
● Department of Transport
● General Authority of Youth & Sports Welfare
● Abu Dhabi Chamber
● Waste Management Center
● Abu Dhabi Environment Health and Safety Center
● Abu Dhabi Center for Technical and Vocational Education and Training
● Ministry of Foreign Affairs
3. Determine the best location
Throughout Abu Dhabi and the UAE as a whole, specific areas have been designated as “free zones.” These are economic geographical areas that offer certain advantages to foreigners looking to start a business. These advantages allow expats opportunities to receive tax exemptions (personal income and corporate), access to suitable accommodations, retain full ownership of their operations, and easy start-up and licensing procedures.
If a foreign investor prefers to operate their business outside of the free zones, a majority share of their business must be legally owned by a UAE national.
There are exceptions to this rule though. Professional expatriates who are applying for a professional license are not required to have a UAE national sponsor their operations. These include individuals such as lawyers, architects, or consultants.
4. Seek out local support
Two important aspects of finishing up the setup process are hiring a good lawyer and opening up a bank account.
Having a local lawyer will be crucial in helping you navigate the legal waters of opening a foreign business in Abu Dhabi. They can also help you negotiate the legal registration process for establishing your new enterprise.
A business bank account must be obtained once your business application has been approved and issued. A personal bank account cannot be used for business purposes. Necessary corporate documents will need to be certified before your new entity is able to open a business account.
Requirements will vary from bank to bank, so do some research to determine the right bank that can provide your business with the appropriate business loan in the UAE.
Doing business
As a business-friendly country, there are many opportunities available to foreign investors and expats to owning and operating a business. With light regulations, no sales tax, low-cost duties, and no trade barriers, starting a business in Abu Dhabi can be done in a considerably effective manner.
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