24/08/2017
If you have a viable business plan and want to tap into of one of the safest, most affluent and fastest growing markets in the world, Abu Dhabi is the right place to establish your presence. Whether you are planning to set up a new business in the Emirate or open a branch of a company based outside the country, the procedures are transparent and flexible. In most cases, it takes only a few days to complete the procedures if you fulfill all the requirements of the relevant authorities.
To start a business in Abu Dhabi, the legal and practical requirements should be understood early to reduce risks and prepare for an efficient settlement process. You must also get an overview of relevant laws, procedures and of course, the knowledge of the local culture.
Starting a Business: Key Steps
In general, starting a business in Abu Dhabi primarily involves six key steps:
Determining Economic Activity Type: It is important, prior to initiating the procedures for issuing the business licence, to determine the activity/activities of the intended business as the legal requirements and fees vary according to the nature of the activity. In addition, some activities require fulfilling requirements such as the location of the business and the total area of the facility.
Determining Legal Form of Business: There are several legal forms and structures that are appropriate to the needs and nature of your business such as an establishment, Limited Liability Company, etc. Different rules and regulations apply to each legal form and ownership type.
To know more about the ownership of business, various types of companies and the legal requirements in Abu Dhabi, please find the relevant link in the right column of the page.
Trade Name Registration: After selecting the activity and legal form of the business, a trade name which distinguishes the business from others and conform to the nature of the activity and legal form should be selected.
To know more about registering a trade name, please find the relevant link in the right column.
Obtaining Initial Approval: After obtaining the trade name certificate, the investor can start the procedures for issuing the initial approval. The initial approval is the certificate that enables an investor to proceed with the formalities of issuing a business licence, and to approach the relevant authorities for getting their approval for practicing the required business activity. For foreign investors, obtaining the approval of the General Directorate of Residency and Foreigners Affairs (GDRFA) is compulsory.
At this stage, the investor can also rent the site of his business. He can visit the Commercial Protection Division at DED and the relevant authorities to see if the proposed site meets the conditions and specifications set and whether it is suitable for the activity type.
Obtaining Approvals of Relevant Authorities: After obtaining the initial approval, which entitles the investor to approach the relevant authority, he can visit the authority to obtain the approval and fulfill the legal requirements. Based on the type of the intended business activity, the relevant authority which shall provide the approval is defined. However, some activity types only require the approval of DED.
Issuing Business Licence: After obtaining the approval of the relevant authorities, if any, the investor can go to the Department of Economic Development (DED) and fulfill all legal requirements and pay fees for issuing the business licence.
The licences issued by various licensing authorities in Abu Dhabi include Commercial Licence, Agricultural Licence, Vocational Licence, Professional Licence, Industrial Licence and Tourism Licence.
Chamber Membership
Law No. (7) of 1998 requires that all nationals and foreigners, engaged in any commercial, industrial, professional or vocational activity within Abu Dhabi Emirate, whether they are individuals, companies or branches, should join Abu Dhabi Chamber of Commerce and Industry and obtain its membership as a prerequisite to acquire a business licence.
Business Facilitation Services
To facilitate the establishment of business ventures in Abu Dhabi, the government entities as well as free zone authorities are providing support including single window services. Khalifa Industrial Zone Abu Dhabi (Kizad), for example, offers a One Stop Shop service aimed at helping businesses speed up the process of obtaining the necessary licence, special permits, approvals and clearances from the relevant authorities.
To know more about free zones in Abu Dhabi, please find the relevant link in the right column.
VIP Service from DED
Investors, who want to set up a business in Abu Dhabi, can optionally use the VIP Service provided by DED for an additional fee. After identifying the required service, DED will get in touch with the investor through one of its business relations representatives who will meet the investor and explain to him the requirements and documents needed for the required service. The business relation representative will carry out all necessary procedures for the required service on behalf of the investor.
Investors from outside the country can also take the advantages of the VIP Service. In this case, DED will play an intermediary role between the foreign investor and the concerned authorities in the country. The Department will also answer investors’ queries, guide them through the advantages of investing in the country and provide detailed data on economic sectors and appropriate investment zones according to the investment activity.
