So you have decided on business setup in Abu Dhabi; it is a good initiative. You will need to obtain licenses, register your business, sign the proper startup/setup paperwork, and ensure the regulated bodies duly acknowledge the documents in the UAE.
Moreover, you have to follow the rules and regulations involved in bringing the business/company to reality. However, this is not plausible without knowing the cost or rather how much you will spend to get the business up and running in the UAE.
How to start?
First off is where you want to establish the business – mainland or the free zone. If your choice is for the mainland, then you need to get familiarized with the following steps.
As with any business, setting a business involves having the fund to invest, obtaining the licenses, and paying for them, but you can only do this with a valid employment visa. So two factors to consider are:
What type of business; is it industrial, professional or commercial oriented and the various licenses required
The legal entity of the company is a branch of a company, sole ownership, LLC, etc.
Another must-do is
Preliminary Acceptance from the DED
Before a business setup in Abu Dhabi, the DED approves to begin operations; this acceptance includes a one-time small charge that allows you sort out all your business operations for six months while you go ahead to complete all legalities and documentation of the business.
Certifying your business name
Your business name is how the business will be recognized in the UAE; the cost of the name depends on the availability and choice of name.
The fees requested are for name reservation, trade name, foreign company name, and others. This one-time payment also varies with the option of a trading name, as mentioned above.
Office Space for LLC Company Setup
For business setup in Abu Dhabi, investors must have a physical office where they operate from; this is compulsory and makes your business legit by the authorities. The presence of an office also allows the necessary officials to inspect, monitor, and ensure the existence. Furthermore, office rents paid annually or as agreed with the property owner.
Declaration of the Memorandum of Association
This document ensures the working relationship between the two parties in an LLC entity, showing in the business how many shares each party has in the business. It is also a one-time cost paid to the DED.
Detailing the terms of the LLC contract in Arabic and English
All the partners involved in a business bound by the terms and conditions of the business entity, LLC.
To avoid misunderstanding in the contract, it is in Arabic and English for the shareholders. It is written under the presence of an authorized translator.
Fee by the Department of Economic Development
Every LLC starting up in the UAE, must pay a one-time nominal fee to the Department of Economic Development or the Ministry of Economy. The charges are made annually and depend on the business type.
Trade License Fee on the Mainland
Even though trade license fees vary according to your type of business, you are required to pay a one-time security fee to the DED to avoid problems with inspectors. The Department regularly updates the charges; hence, a change in cost should be expected at intervals.
Commercial License Fee
Also known as the Tejari fee, this fee is paid annually for running a commercial business.
Chamber of Commerce Fee
Also paid annually, this is a fee paid by all trading companies. Charges differ for manufacturing and industrial companies.
Commercial Service Improvement Fee
An annual remission to the improvement work carried out by the government departments.
Administrative Service Charge
This is a one-time payment for all the paperwork and documentation involved when setting up a business in Mainland Abu Dhabi. The above-listed charges are mostly included in the DED fees.
External approval for business setup in Mainland Abu Dhabi
Aside from the mandatory approval from the DED offices in Abu Dhabi and Dubai, businesses need acknowledgment from other offices such as transportation, legal, telecommunication, engineering, oil-related services, veterinary, and architectural.
When all licenses and approval are met, the next step is getting a resident visa card to bring you close to your business.
Immigration Establishments card
The immigration service opens a file for the registered company and issues a card to the owner or manager of the business. This card is crucial, or else the company cannot recruit workers or seek resident visas for them. The card must be renewed on an annual basis, or huge penalties are imposed on the user.
The Labor Establishment Card
After the immigration card is handed out, the labor card is the next most valuable card. This card is crucial as the company cannot recruit workers, or seek resident visas for them. The card must be renewed on an annual basis to avoid paying huge fines. The card acknowledges your company/business as an entity under the Ministry of Labor and gives you the power to hire, get work permits, and seek a visa on behalf of your workers.
The E-Signature Card
This is a replacement of the former Signature Authorization Card Scheme that required the signature of the company or business owner for each transaction with the Ministry. However, after reviewing this scheme, the E-signature is a card with a number code for transacting with Ministry handed to the business owner.
Conclusion
In conclusion, the cost of setting a business in Abu Dhabi ranges from DH25, 000 to DH60, 000, and as mentioned, it depends on many factors from the business choice to the location of the business.
Are you planning to set up business in Abu Dhabi, let out in-house professionals help you through the process from start to finish. This is to avoid paying twice or falling victim to unsuitable individuals.