Why should one consider setting up a company in Abu Dhabi?
The capital of United Arab Emirates is the largest and richest emirate. Holding 95% of UAE’s oil production it is no wonder that this emirate is thriving the most. But Abu Dhabi’s charm does not end just there. In a recent survey of Global Liveability Index 2021, Abu Dhabi was voted “the most liveable city in the region.” Moreover, as per a survey by Number, a global data website, who had conducted a survey for quality of life index, Abu Dhabi had been paced 1st safest city in the world.
That it is a great place to live is obvious but it is also one of the best places to conduct business as it provides diverse economy and into a fast pace of development it has become a major international centre of business activities. Following are the reasons one should consider setting up a company in Abu Dhabi:
- 100% Foreign Ownership:
Recently, in June 2021 Abu Dhabi Department of Economic Development (AD DED License) launched a new professional or commercial license that allows to conduct more than 1000 business activities. This license allows one to own 100% of their business. There is no need to fulfil the earlier requirement of a local UAE national sponsor who owns 51% of the company.
- Option of having a company set up in Mainland or Free Zones:
One can choose to set-up their business in mainland or Freezone. While setting up in Freezone would mean confining the activities to the jurisdiction of the Freezone but there are other perks. Somwtimes , selective freezones gives one the option of getting a 2nd license to set-up and operate in the mainland.
Forming a new company in mainland would allow activity all over UAE.
Few great business locations in Abu Dhabi are Abu Dhabi Global Market (ADGM), KIZAD, Al Ain and Masdar City.
- State-of-the-art Infrastructure:
There is a plethora of business and industrial activities available to choose from in Abu Dhabi supported by a strong world-class infrastructure. The new Etihad rail project is going to connect the Abu Dhabi to the key emirates and regions in the country.
- 0% Corporate or Personal Tax:
The only tax that needs to be paid is 5% Value Added Tax (VAT). Apart from it no additional income or corporate tax is levied upon the business owner.
- No minimum capital requirement:
As long as there is sufficient fund to incorporate the new company in Abu Dhabi, there is no need to put down a certain amount in any UAE-registered bank.
- No yearly audit requirement:
There is no requirement from the Government to prepare and submit yearly audits. It is just a good practice to ensure that one’s company is in good health. It may be required to do this voluntarily for perusal by investors and stakeholders.
- Trade License in Abu Dhabi is valid for two years:
Generally trade licenses need to be renewed every year but in Abu Dhabi trade license is valid for two years* giving any business-person more time to enhance their company’s core competencies instead of running around getting paperwork done.
*T&C apply
- Cheap rental schemes:
Locations to set up companies in Abu Dhabi are affordable. It is very easy to lease or rent a commercial space in Abu Dhabi. One can get low rental schemes.
With 95% of UAE’s oil production and with 11 ports and terminals, Abu Dhabi is a prime location for businesses catering to these sectors. Logistics, Supply & distribution, businesses related to marine activities and manufacturing companies that manufacture required equipment to these sectors are highly profitable. Also the emirate is well known for its excellence in Telecom and IT.
UAE had ranked 16th in 2020 out of 190 countries as per World Bank’s ease of Doing Business ranking. The advantages of setting up a business in Abu Dhabi are numerous.
Forming a new business may feel daunting without the guidance from a trustworthy partner. Flyingcolour Business setup services has been helping clients with their business needs since the past 17 years. Please feel free to mail your queries at info@flyingcolour.com or contact us at +971 4 4542366.
