Foreign Investors to Benefit as Abu Dhabi Scraps Key Business Setup Requirements


The process of business setup in Abu Dhabi mainland has become more attractive to foreign investors with authorities scrapping many company formation requirements. As per a new report by the Abu Dhabi Department of Economic Development (ADDED), more than 20,000 requirements to set up businesses in Abu Dhabi have been scrapped as part of an ongoing procedural overhaul.

The reduction in requirements of business setup in Abu Dhabi has been announced by ADDED and other local and federal partner entities. The reductions are meant to align Abu Dhabi’s regulatory environment with economic growth priorities. The reductions of requirements cover key sectors including healthcare, transportation, food and agriculture, public health, and the environment.

The following is an indicative list of entities that reduced the requirements. More entities are expected to announce the reduction in business setup requirements in the coming days.

Department of Municipalities and Transport 

The Public Health Sector of the Department of Municipalities and Transport (DMT) has announced a 95% reduction in requirements from 9,654 to 511 requirements covering 1215 activities. Meanwhile, the Transport Sector of DMT has reduced requirements by 78% from 523 to 115 requirements. Business setup consultants in Abu Dhabi can guide you with further details.

Abu Dhabi Agriculture and Food Safety Authority 

Abu Dhabi Agriculture and Food Safety Authority (ADAFSA) reduced by 74% from 6,587 to 1,716 requirements covering 288 activities

Abu Dhabi Sports Council 

Abu Dhabi Sports Council reduced by 91% from 949 to 82 requirements covering 58 activities.

Department of Health 

Department of Health reduced by 56% from 1512 to 672 requirements covering 84 activities.

Abu Dhabi Police 

Abu Dhabi Police reduced by 79% from 387 to 80 requirements.

Securities and Commodities Authority 

Securities and Commodities Authority reduced the requirements for business setup in Abu Dhabi by 40% from 1160 to 700 requirements.

Abu Dhabi Department of Economic Development 

ADDED is known for leading the effort for making the process of business setup in Abu Dhabi easier for foreign investors. The department does it by adopting global best standards to define the standards that guide the company formation process. As a result of its commitment to foreign investors, ADDED has also significantly reduced its licensing requirements.

ADDED reduced its total requirements for 118 business activities from 709 to 162, which is a 77% reduction. The requirements of other ADDED-regulated business activities were reduced to just one, such as in the case of automotive parts and maintenance. Consult with business setup consultants in Abu Dhabi for details on activities regulated by ADDED.

How will the Reduction in Requirements Help Investors? 

The effort by the ADDED and other entities is meant to create an open and efficient integrated environment of business setup in Abu Dhabi. In doing so, the Department aims to position Abu Dhabi as the preferred place to do business, both regionally and globally. However, investors gain from this in the following ways:

  1. Time taken to obtain a trade license will be reduced
  2. No need to chase government entities for approvals
  3. Significant reduction in the documentation process
  4. Approval for special activities can be easily obtained
  5. Costs for additional approval from government entities eliminated

Why Set up a Business in Abu Dhabi Mainland? 

With the new reduction in business setup requirements, foreign investors are likely to renew their interest in the process of business setup in Abu Dhabi mainland. Setting up a business in Abu Dhabi mainland makes business sense as it comes with key benefits. Some of the benefits are given below:

  1. 100% foreign ownership
  2. Ability to trade anywhere in the UAE
  3. No corporate tax and no personal tax
  4. No compulsion of minimum capital for the formation of the mainland company
  5. Ability to rent an office space anywhere in Abu Dhabi mainland
  6. Affordable locations to set up an office space
  7. Excellent connectivity
  8. World-class infrastructure
  9. Benefits of the Capital city

How can Jitendra Business Consultants Help You? 

The new reductions in the requirements for business setup in Abu Dhabi tell foreign investors that the emirate is relentlessly seeking to enhance its regulations and services to facilitate a robust ecosystem for foreign investors to do business and grow. ADDED promises that more reforms and incentives are in the anvil to make the company formation process easier. However, it’s advisable to seek the help of business setup consultants in Abu Dhabi such as Jitendra Business Consultants (JBC) to effectively leverage the benefits offered by the emirate.

Our highly qualified business setup advisers in Abu Dhabi can help the investors with all key aspects of company formation such as visa processing, documentation, bank account opening etc. We also help the entrepreneurs to meet compliance requirements such as VAT, Economic Substance Regulation (ESR), Ultimate Beneficial Ownership (UBO) etc. Company formation in Abu Dhabi will become hassle-free by associating with JBC.

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