The UAE is always improving the advantages and support services for the business sector operating in its emirates. In 2020, the UAE launched renewable business licenses in Abu Dhabi. However, in this special case, investors are now able to renew their licenses for 3 years. In other words, it’s a benefit to improve the ease of doing business.
In this article, you will learn everything about renewable business licenses in Abu Dhabi and their benefits. Besides, here you will find the information you need about the available licenses. In case you want to set up a business in Abu Dhabi, you’ll find important information about it. Let’s observe:
Important Information About the Current Business License Renewal Regulation.
Due to the COVID-19 pandemic, Abu Dhabi’s Department of Economic Development (DED) decided to make some improvements. For instance, one of the most outstanding changes is related to renewable business licenses in Abu Dhabi. The DED will now issue and renew licenses for industrial and commercial businesses for up to 3 years.
The main reason why this new strategy was established is to allow companies to do business easier nowadays. Besides, it’ll help to reduce the number of renewal processes and the volume of transactions conducted for customers. In other words, this initiative will boost economic activities and support all enterprises, especially small and medium-sized companies.
The DED also aims to ensure that SMEs and local businesses keep contributing to the private sector of Abu Dhabi. Therefore, it was necessary to implement new and more flexible rules to stabilize the economy like this one. Also, the DED launched other similar initiatives to achieve that goal, including e-contract and e-signature systems.
Simultaneously, Mohammed Ali Al Marar, director of the Commercial Licensing Department at Abu Dhabi’s DED, made an announcement. He mentioned that 8 economic licenses for commercial and industrial activities have been renewed for more than a year. Besides, 4 of those 8 licenses have been renewed for 2 years. Meanwhile, the remaining 4 licenses were renewed for 3 years.
What other Additional Measures Can Support the Business Entities?
Besides launching renewable business licenses in Abu Dhabi, the DED also launched new measures to support investors. Also, they make loans available to local companies to combat COVID-19. The DED launched a great number of these additional measures under “Ghadan 21”. For instance, these are some of the additional relief measures to support local companies and SMEs:
- Exempting commercial and industrial activities from the Tawtheeq fee.
- Suspending real estate registration fees.
- Providing a relief package of 5 billion AED in utility subsidies.
- Waiving industrial and commercial penalties.
- Providing a stimulus 3 billion AED credit package to support SMEs.
- Contributing with 1 billion AED in market maker fund to improve liquidity.
Investors can also enjoy many other initiatives to boost their businesses during the Coronavirus pandemic. But if you need more information about them, you can visit the DED’s website to be up-to-date.
How many types of business licenses can the Abu Dhabi DED issue?
Before setting up your company, you must choose the business activities you want to carry out. And after that, you’ll be able to apply for a business license that covers your activities. Some of the business licenses that are available in Abu Dhabi are the following ones:
- Commercial license.
- Industrial license.
- Professional license.
- Tourism license.
- Agricultural license.
- Craftsmanship license.
The Abu Dhabi business license fees are different for each available license. Besides, the cost for a license may vary depending on the free zone you choose. For instance, some licenses cost approximately AED 9,500 in KIZAD, while in ADGMFZ they cost around AED 15,000.
4. What is the process you need to complete to obtain a license in Abu Dhabi?
Although there are now renewable business licenses in Abu Dhabi, the process to obtain a business license remains the same. If you desire to obtain a business license, you must follow these steps:
- Firstly, you need to get in touch with Abu Dhabi’s Department of Economic Development (DED). The DED is the pertinent authority that issues the business licenses in Abu Dhabi. It is important to let the DED know about your business license application to start the process.
- Secondly, you must gather and submit all necessary documents along with your application form. Your application form will be also necessary to know what documents are necessary to complete the process. However, take into account that some additional paperwork might be required in some cases.
- Thirdly, the authorities will review your documents after you submit them. And then, you’re going to be referred to the Abu Dhabi Chamber of Commerce for membership.
- And lastly, you must fulfill all terms and conditions to complete the license application process. After this final step, you will receive your license to start operating your company legally.
Free zones you can choose to set up your company in Abu Dhabi.
In this emirate, you’ll be able to choose between different locations for setting up your company. For example, you find the following free zones to do business and get renewable business licenses in Abu Dhabi:
- Khalifa Industrial Zone Abu Dhabi (KIZAD).
- Masdar City Free Zone.
- Abu Dhabi Airport Free Zone (ADAFZ).
- The Industrial City of Abu Dhabi.
- Abu Dhabi Global Markets Free Zone (ADGMFZ).
However, it’s important to mention that each location may offer other additional benefits for specific industries. Therefore, make sure to select the most suitable free zone for your business before getting started.
What Benefits Do Abu Dhabi Free Zones Offer to Investors?
The advantages and benefits are the main reasons why free zones are popular among investors. Besides having renewable business licenses in Abu Dhabi, you can obtain other favorable elements to boost your company. These are some of the advantages of opening a free zone company in Abu Dhabi:
- 100 percent of foreign ownership.
- 100 percent of repatriation of profits and capital.
- Full exemption from corporate and personal tax.
- Business-friendly company regulations and legal framework.
- Friendly environment to encourage all companies to develop their business activities.
- Total exemption from import and export customs duty for products and services.
- An easy and simple company incorporation process.
- Similar industries can share a work campus in a business cluster environment.
- Several support services are available, including licensing services, postal services, visa formalities, traffic services, residential permits, and more.
- Investors and entrepreneurs have easy access to professional employees available for hire.
- The immigration process is simple and efficient.
What Types of Entities are Allowed in Abu Dhabi Free Zones?
You can find two main types of allowed entities in Abu Dhabi. Investors like you are free to establish any of these types of companies, according to their requirements. Let’s take a brief look at these types of businesses.
- Free Zone Limited Liability Company: this type of company can be divided into two secondary types; FZE and FZC. A Free Zone Establishment must have a sole shareholder, while a Free Zone Company can have 2-5 shareholders.
- Branch of an existing company: a branch must carry out the same activities as the parent company.
How can an Investor Set Up a Business in an Abu Dhabi Free Zone?
Firstly, it is essential to know how the setup process goes and what it requires. The company registration process has simple steps to follow, which can vary a little according to the location. However, other elements may influence the process, such as business activities, type of company, and more.
In order to set up a company in Abu Dhabi, you must follow these main steps:
- Firstly, select your type of business activities and a trading name.
- Secondly, register your trade name and submit the required documents.
- Thirdly, obtain the necessary approvals from the pertinent authorities.
- After that, you must apply for your business license, which will be issued within a few days.
- And lastly, you’ll receive the license you need to start operating your business successfully.
Documents to Register a Company in Abu Dhabi.
Completing the registration process requires the following documents:
- Your company application form.
- Specifications of the business activities you want to carry out.
- Copies of the shareholders’ passports.
- Passport-sized photographs of the investor.
- 2 or 3 suggestions of a trading name for the company.
- Proof of address with a validity of at least 3 months.
- The number of the necessary visas.
- The Bank or Professional Reference Letter.
However, some additional documents might be necessary according to the type of business you want to set up.
The Cost of Setting Up a New Company in Abu Dhabi.
Knowing the cost of starting a business in Abu Dhabi is important before starting to build a company. In this emirate, the business setup cost can vary depending on several elements. For example, the location, type of entity, business activities, license, and many other factors can influence the cost.
The total cost of setting up a business in this emirate must include these elements:
- The registration fee.
- The license fee.
- A reservation fee for the name.
- The share capital.
- The annual rental.
- Visa per person.
If you take into account these factors, the total cost of the setup process is approximately AED 29,500.
10. How can Connectfz Help You Obtain Your Business license in Abu Dhabi?
Getting an issued business license is one of the most important steps during the setup process. Therefore, you can count on Connectfz as your reliable business partner to complete the licensing process. We’ll help you select your ideal free zone in Abu Dhabi or any other emirate during this procedure.
After selecting the location you want to set up in, you can choose between the packages we offer. These packages include licenses, visas, facilities, and many other essential elements. Besides, you can use our professional guidance to make the business setup process even faster. Also, we can provide you with more information about renewable business licenses in Abu Dhabi.
Once you have started running your business, you can still use many of our services to make improvements. For instance, you can request our visa and government services, banking services, tax advisory services, and many others. Contact us if you want to learn more about our agency and the services available for you.
Would you like to contact Connectfz to know more about the available types of business licenses in Abu Dhabi and the UAE? If you have any questions, call us on +97143316688. You can email us at info@connectfz.ae, and you will talk to one of our representatives who will answer your questions.
Kate WilliamsSkills in Communication, Interpersonal Skills, Time Management, Teamwork, and Customer Experience. She is an enthusiastic self-starter with a passion for building relationships with people.
