Business Setup in Abu Dhabi-Reduction in business setup and license renewal fee

Abu Dhabi stands as the largest emirate and capital of the UAE. It is located on the south-eastern side of the Arabian Peninsula, besides the Gulf of Persia. Abu Dhabi constitutes more than three-fourth of the UAE’s surface area. Abu Dhabi is a great business center corresponding to about 10% of the world’s oil reserves and is one of the largest oil producers and has been expanding ever since 2009. It has also been heavily funded and invested in real estate, industrial development, retail, and tourism. With such favorable factors, business setup in Abu Dhabi could be your next venture.

Business setup in Abu Dhabi is extremely lucrative as it is one of the fastest-growing markets in the world. It is also very well located and connected to land, sea, and air routes, making it a viable location of choice. The rules for setting up a business and the corporate norms are simple in Abu Dhabi, and it takes only a few days for business set up.

What’s new?

With Dubai Expo 2020 being in the limelight currently not just in UAE but everywhere in the business world, Abu Dhabi’s new law regarding its business setup fees has become a highlight. When it comes to business setup in Abu Dhabi, the license prices have been reduced to more than 90% of its initial price, which is AED1000. The license renewal fees have also been reduced to AED1000 making it extremely feasible and easy for existing companies to continue running their business in Abu Dhabi.

This reduction in the fees is a result of consistent efforts led by the Abu Dhabi Department of Economic Development (ADDED), in collaboration with various government entities such as the Abu Dhabi chamber of commerce and industry.

What is it all about?

The new fees introduced by the Abu Dhabi government includes six activities within the new business license that will cover all fees from the Abu Dhabi government, namely: ADDED, Department of Municipalities and Transport, Abu Dhabi Chamber membership fees, CoC (Certificate of Conformity) issuance fee and Abu Dhabi fees for regulating entities. Various other fees that were existing initially for business setup in Abu Dhabi have now been entirely removed.

How will it help businesses?

There has been a significant reduction of fees in-licenses and taxes in various parts of the UAE. For Abu Dhabi, the reduction in the license is particularly significant because it is as low as 10% of what it used to be. This move by the UAE government is to enhance the ease of doing business, not just for Abu Dhabi but in most emirates of the UAE, depending upon the needs of each one of them. The good news is that this will increase Abu Dhabi’s competitiveness regionally and internationally. The introduction of a fixed fee will increase its transparency and lead to a reduction of administration for investors. This one law can help in fostering a thriving business environment of growth and innovation for the private sector, especially for small and medium-sized enterprises.

Perks of the new business license for business setup in Abu Dhabi:

• Abu Dhabi Global Market (ADGM) has now become the go-to place for Fintech ventures. An investor can easily offer either banking solutions or a customer-centric finance portal with easy to manage license.

• Those who are based outside the country and want to offer a product or service in the market can do so at the lowest fees applicable on licenses, and may not require a visa, at least initially.

• Those already employed can use this license for any freelance business and can benefit from this license at the lowest cost.

• This license directly empowers global talent as it is available to new and existing investors from all over the world at extremely low rates; this directly is beneficial to the investors as well as the government, making Abu Dhabi a pool for global talent.

• This is a very flexible arrangement for investors in Abu Dhabi to set up a business, as they do not require a physical office or address to get a license. They only need to produce an ‘Ejari’ certificate at the time of renewal of license a year later.

How MBG can help:

MBG offers a suite of business setup services in the Emirates of UAE. Our fresh perspective, in-depth knowledge can industry expertise is what sets us apart from anyone else in the market. Our business setup advisors can help you through the entire procedure of business setup in Abu Dhabi through guidance and customized solutions as per your business requirements.

For any queries related to business setup in Abu Dhabi or any other UAE emirate, click here