Abu Dhabi Mainland
Setting up a business in Abu Dhabi mainland offers numerous opportunities for entrepreneurs, thanks to the emirate’s strategic location, robust infrastructure, and business-friendly environment. The mainland jurisdiction allows businesses to operate freely across the UAE and access a broad customer base without restrictions. Below is a detailed guide on the process, requirements, and benefits of setting up a company in Abu Dhabi mainland.
Why Choose Abu Dhabi Mainland?
Abu Dhabi mainland is governed by the Department of Economic Development (DED) and allows businesses to operate without geographic restrictions within the UAE. Key benefits include:
- 100% Foreign Ownership: Recent reforms allow full foreign ownership in most business activities, eliminating the need for a local Emirati partner in certain sectors.
- Access to a Large Market: Businesses can freely trade and secure contracts with both public and private entities.
- Strong Infrastructure: Abu Dhabi offers world-class logistics, transport, and communication systems.
- Diverse Economy: The emirate encourages investment in sectors like technology, healthcare, real estate, and tourism.
1. Steps to Set Up a Company in Abu Dhabi Mainland
The first step is to determine the type of business activity your company will engage in. The DED categorizes businesses into three main types:
- Commercial: General trading, contracting, real estate, and more.
- Professional: Services such as consultancy, education, and healthcare.
- Industrial: Manufacturing and production-based businesses.
Businesses set up in Dubai mainland benefit from:
- Freedom to operate across the UAE and expand into the GCC region.
- Ability to participate in UAE government projects.
- Option for flexible business activities and locations.
The legal structure determines the ownership and operational framework of your business. Common legal structures in Abu Dhabi mainland include:
- Limited Liability Company (LLC): Ideal for most commercial activities.
- Sole Proprietorship: For individual-owned businesses offering professional services.
- Branch of a Foreign Company: Allows international firms to establish a local presence.
Select a unique trade name that adheres to the DED’s naming guidelines:
- Must not contain offensive or religious terms.
- Should align with the business activity.
- Avoid names identical to existing registered businesses.
Initial approval from the DED signifies that your business activity is permissible in Abu Dhabi. For this step, you’ll need:
- A completed application form.
- Copies of shareholder passports.
- Trade name reservation certificate.
A physical office or workspace is mandatory for mainland businesses. The tenancy contract must be registered with Tawtheeq, Abu Dhabi’s lease registration system.
For LLCs and partnerships, drafting an MOA is essential. This document outlines:
- Shareholding structure.
- Profit-sharing agreements.
- Roles and responsibilities of shareholders.
Certain activities may require additional approvals from regulatory bodies such as:
- Health Authority Abu Dhabi (HAAD)for healthcare businesses.
- Department of Tourism and Culture for tourism-related businesses.
- Abu Dhabi Municipalityfor real estate and construction companies.
The trade license is the final step in the setup process. Submit the following documents to the DED:
- Initial approval certificate.
- Trade name reservation.
- Tenancy contract.
- Approvals from other authorities (if applicable).
Once approved, the DED will issue your trade license, allowing you to commence operations.
Why Choose Abu Dhabi Mainland?
After obtaining the license, complete the following:
- Register for VAT: If your business meets the VAT threshold.
- Open a Corporate Bank Account: Choose a bank that aligns with your financial needs.
- Hire Employees and Process Visas: Apply for employee visas and labor cards through the Ministry of Human Resources and Emiratisation (MOHRE).
- Obtain Additional Permits: If required for your business activity.
The costs vary depending on factors like business activity, office space, and licensing requirements. Typical expenses include:
- Trade license fees.
- Initial approval and trade name reservation charges.
- Office rent and tenancy contract registration fees.
- MOA drafting and notarization fees.
Estimated Range: AED 20,000 to AED 50,000 for most small to medium-sized businesses.
- Unlimited Market Access: Trade freely within Abu Dhabi and across the UAE.
- Government Contracts: Mainland companies can bid for lucrative public sector projects.
- Global Connectivity: Proximity to major seaports and airports facilitates international trade.
- Support for SMEs: Initiatives like Khalifa Fund offer financial and advisory support.
For professional assistance, consultation and company formation contact Easy Step Consultancy.
