Why We Setting a Business Setup in Abu Dhabi Free Zone

Abu Dhabi Free Zone

Abu Dhabi, the United Arab Emirates (UAE) capital, is the most important economic hub of the seven emirates.

It is known for its robust infrastructure and business-friendly ecosystem, which attracts entrepreneurs and investors from all over the world.

 

A major incentive for entrepreneurs to invest in Abu Dhabi is the specially established free trade zones.

These zones target various industries, encourage foreign investment, and accelerate business growth.

Entrepreneurs can choose from the many business opportunities in Abu Dhabi’s free zones. In this article, we take a detailed look at the different free trade zones, their benefits, and the industries they target.

Entrepreneurs from all over the world are drawn to invest in Abu Dhabi’s dynamic ecosystem, particularly its free zones.

These zones offer unique benefits, such as 100 percent foreign ownership and exemption from the need for a local sponsor, making them an appealing choice for foreign investors and entrepreneurs.

Tax exemptions: A good option is to set up a company in Abu Dhabi’s free zones. Companies can benefit from exemptions from corporate and income taxes, as well as duty exemptions on imported goods.

 

Repatriation of profits: Foreign companies in the free zones can repatriate 100 percent of their profits and capital without any restrictions. This makes Abu Dhabi’s free zones attractive destinations for global entrepreneurs.

Abu Dhabi’s free zones are designed to facilitate business creation, with streamlined clearance processes and minimal bureaucracy.

These benefits not only attract foreign investment but also ensure a swift and straightforward company formation process, giving prospective business owner’s peace of mind.

The specialized infrastructure and facilities in Abu Dhabi’s Free zones foster a creative and cooperative atmosphere, custom-designed for specific sectors.

This unique ecosystem encourages like-minded businesses to collaborate, inspiring aspiring entrepreneurs with the potential for innovation and expansion.

The Abu Dhabi Free Zone offers a unique feature- the dual license option. Companies headquartered in the free zones can now extend their activities to the mainland, thanks to this permit.

This freedom and authority to develop their businesses in Abu Dhabi is sure to pique the interest of potential investors.

List of Abu Dhabi Free Zones

Abu Dhabi, therefore, has many significant free zones. Read more about the different free zones in the Emirates:

Abu Dhabi Global Market (ADGM): Abu Dhabi Global Market Free Zone is one of the largest financial districts in the world.

The benefits of ADGM include the following activities:
• Financial services for companies, financial technology, digital financial services, professional service providers, banks, and financial investments.

• There are no financial resources for information technology (IT), healthcare, hotels, technology startups, and retail
  • Special Purpose Vehicles (SPVs) are flexible asset management companies used to meet the needs of active, risk isolation, and structured finance.

ADGM staff can provide the best legal representation from a business legal structure plan, a credit institution with an established law firm (LLP), a lawyer with a commercial LLP, a company, an investment management company, and a credit institution with a law firm (LLC), a reference for a business case.

 

Masdar City:

Masdar City Free Zone is the most suitable lounge area and offers the opportunity to use all other lounge areas in the UAE.

It has a thriving ecosystem and offers extensive support to investors. The state was also tasked with reducing CO2 emissions by reducing the environmental zone and transforming it into one of the largest clusters of LEED-Platinum office buildings.

The main economic sectors in Masdar City in Abu Dhabi stimulate the following:
• Industries: Agri-tech, Clean-Tech, Conventional Energy, Lean Mobility, Bio-Tech, and Life Sciences
• Specialized clusters focusing on Smart and Autonomous Vehicle Industries (SAVI) and Agri-Food Growth and Water Abundance (AGWA)
• Accommodation, luxury facilities and recreational centers – world-class parks and recreation centers.

 

Khalifa Industrial Free Zone:

Abu Dhabi (KIZAD) KIZAD is a modern industrial and logistics services provider with multimodal connectivity across the sea, ocean, air, and economical transport networks. Thanks to the strategic alignment of our companies in Abu Dhabi and Dubai, we have received the necessary technical support for all critical markets.

Other key information from KIZAD are:
• Access to Khalifa Port for world trade
• Supported infrastructure with track and hearing protection and operation
• Competitive leasing rates and tax benefits
• Joint industrial cluster
• Flexibility in lease term and structuring
• Eco-friendly practices within our residential areas
• we offer many incentive programs for more growth and innovation.

 

Permitted business activities in KIZAD Free Zone include but are not limited to:
• Automobile manufacturers, spare parts manufacturers, retailers, and suppliers of aftermarket products and services
• Food processing, storage, and distribution
• Warehousing, distribution and logistics services provided by third parties
• Global plastics and polymers industry
• Regional and global upstream, midstream and downstream metals industry.

 

Twofour54 Free Zone:

The Twofour54 free zone, is a unique media industry in the Twofour54 free zone. It offers state-of-the-art production facilities, access to the best talent in the industry, and complete production services to support international and regional projects.

From online gaming to film production, it fosters communities where visionaries can create, connect, and thrive.

Some of the key features of this Abu Dhabi Media Free Zone are:

• No minimum capital required
• 100% ownership of the Abu Dhabi Media Free Zone
• Regulated by the Creative Media Authority
• No personal taxes
• The only media zone in Abu Dhabi, bringing together companies from the media, gaming, and entertainment industries
• Fast track company formation services for companies and film businesses: production
• Gaming
• Digital content creation
• Advertising and marketing
• Publishers and broadcasters

Some key features of ADAFZ are:

• Fully foreign-owned
• 100% exemption from corporate and income taxes
• No customs duties
• Seamless airport integration facilitates imports and exports
• One-stop shop for fast, easy registration and licensing
• In-house IT and telecommunications services
• Easy access to regional and global markets

The permitted business activities at ADAFZ are:

• E-commerce and aerospace
• Food and Aerospace
• Industrial and consumer
• New technologies.

 

Step-by-Step Process for Company Formation in Abu Dhabi Free Zones:

Abu Dhabi Free Zones offers comprehensive and optimized company incorporation and support services.

Let’s take a look at the step-by-step process for starting a business:
Step 1: Choose the Business Activity.

The first step is to choose the type of business you want to invest in. This will help you legally recognize your company by choosing from the six types of business licenses in Abu Dhabi.

These are industrial, commercial, professional, tourism, agricultural, or business licenses.

 

Step 2: Determine the Legal Form:

The next step is to find the legal structure that suits your business needs and ownership structure. This list includes the laws and regulations that apply to your business. A variety of legal forms are available to you, including general partnership, LLP, LLC, limited liability company, branch of a foreign company, and others.

Step 3: Register the Company Name:

 

The next step is to register your company name, also known as the trade name. The trade name must be unique and different from the names of other registered companies and must not contain offensive words to the public.

Choose a name that suits your business and then register it with the Abu Dhabi Department of Economic Development (ADDED).

Step 4: Obtain Initial Approval:

After fulfilling all the requirements and submitting the necessary documents, you need to apply for initial registration with ADDED.

ADDED will provide your company with a Certificate of Good Standing, which will help you move forward and start your business smoothly.

Step 5: Choose the Right Free Zone:

Now, you need to choose from the list of free zones in Abu Dhabi the one that is specifically tailored for your sector and offers you the right incentives and benefits.

Free zones in Abu Dhabi offer you various options to own or rent an office or buy land to build your factory or office building.

 

Step 6: Obtain Additional Approvals:

Now, you need to prepare additional contractual agreements, such as a Memorandum of Association (MoA), Articles of Association (AoA), and a Board Resolution.

Depending on your business activity and the free zone, you may also need additional approvals from other regulatory authorities.

Such as:

Abu Dhabi Municipality,
Ministry of Health,
Abu Dhabi Tourism Authority,
Creative Media Authority, relevant free zone authorities, etc.

Step 7: Submit Documents:

 

Please submit the following essential documents with the APPLICABLE.

 

APPLICATION/REGISTRATION:

• A director or direct application. Power of attorney for the CEO/Director (notarized and ratified) • MoA and AoA (notarized and ratified)
• Specimen signature of the CEO/Director (notarized and ratified)
• Passport photos of the manager/director
• Share capital information Now pay the license registration fee, depending on the license type you choose.

Step 8: Obtain a Business License:

Once you have submitted the documents and paid the fees, you must obtain your business license to operate legally in the free zones.

Why Choose G12?

Abu Dhabi’s free zones serve a wide range of industries, from media, logistics, and manufacturing to finance, renewable energy, and healthcare. The streamlined process for starting a business and attractive incentives make these economic zones an excellent option for business owners wishing to grow their activities in the UAE.

You can contact us to ensure a smooth company formation process in the free zones.

G12 experienced consultants will help you complete the entire company formation process smoothly and efficiently.

 

Frequently Asked Questions:

Q1. Is it possible to have a virtual office in a free zone in Abu Dhabi?

Yes, many free zones offer virtual office solutions for businesses that do not require physical office space but still need a business license and address.

 

Q2. Can I apply for a visa through a company in the Abu Dhabi Free Zone?

Yes, companies in the Free Zone can sponsor residency visas for owners, employees, and dependents, subject to the Free Zone visa quota.

 

Q3. Can I open a bank account for my company in the Abu Dhabi Free Zone?
It is possible to open a corporate bank account for your business in the Abu Dhabi Free Zone.

 

However, banks may require a physical office and proof of business activity.

Q4. Do I need a local service agent to register a company in the Free Zone?

No, unlike mainland companies, free zone companies do not require a local service agent or sponsor.

Q5. What are the minimum capital requirements?

The minimum capital investment requirements vary depending on the type of business and the Free Zone Authority.

 

Abu Dhabi’s Business Opportunities: Abu Dhabi is more than just the United Arab Emirates’ capital. It is a hub with tremendous growth potential.

With modern facilities, good infrastructure, government support, and incentives, the emirate is ideal for various business establishments.

However, many entrepreneurs agree on what the best business opportunity in Abu Dhabi is. The business consultants at G12 have identified specific high-growth business ideas for entrepreneurs looking to capitalize on the city’s dynamic market. Let’s take a look at some of the business opportunities in Abu Dhabi.

Profitable Business Ideas in Abu Dhabi If you are interested in starting a business, it is essential to understand the growing business opportunities in Abu Dhabi.

 

Check out some of the ones listed below:

 

1. Digital Marketing: With the internet’s increasing popularity over the years, digital marketing in Abu Dhabi has gained significant popularity.The word “Digital Marketing” is broad and encompasses a range of tactics and methods for using digital platforms to promote companies, products, or services.

   These consist of Search Engine Optimization (SEO), Content Marketing, Social Media Marketing, and more. Companies who want to grow and engage with their target audience must set up a digital marketing agency in Abu Dhabi.

2. Renewable Energy: By increasing its focus on sustainability and renewable energy, Abu Dhabi aims to take the lead in green projects and technologies worldwide.

The city is encouraging energy-efficient solutions in several industries and investing heavily in renewable energy projects like solar and wind power.

To demonstrate its commitment to promoting renewable energy, Abu Dhabi has established the Masdar City Free Zone to discover, generate, and manufacture energy and green technology products.

 

3. Cleaning Services: This may come as no surprise considering the many buildings, monuments, and public spaces that require regular maintenance.Especially in a modern city like Abu Dhabi, there is always a demand for cleaning services, making it an attractive business opportunity.

   From residential to commercial spaces to government facilities, reliable cleaning services are needed in many industries. By offering cleaning services in Abu Dhabi, you can tap into a growing market.

4. Event Management: Abu Dhabi’s luxury and opulence have attracted event planners and organizers from all over the world, making the city a hub for world-class events and parties.From glamorous weddings to corporate galas and international conferences, the city offers endless opportunities.

   With the increasing number of business establishments, event planners in Abu Dhabi have become indispensable in planning high-quality events.

   In order to leave a lasting impression, event management companies in Abu Dhabi are essential in fusing imagination, accuracy, and experience.

5. Accounting Services: As mentioned earlier, with the increase in business formation in Abu Dhabi, efficient accounting services have also become important. The demand for these services has increased as a result of the government’s requirements that all enterprises keep correct financial records and adhere to VAT legislation.

Why should you choose Abu Dhabi to start your business?

With Abu Dhabi Vision 2030, the Emirates has become an ideal location for startups. Vision 2030 was introduced to decrease dependence on the oil and gas sector and open up new sectors.
Thanks to business-friendly policies, advanced infrastructure, access to a skilled workforce, and much more, starting a business in Abu Dhabi can be a success.

In addition, Abu Dhabi’s strategic location provides access to various markets, making it a hub for global trade and investment opportunities. A diversified economy and focus on innovation make Abu Dhabi a breeding ground for many business opportunities to flourish.

There is no denying that there are a number of business opportunities to choose from in Abu Dhabi.

However, you should choose a position that matches your skills, interests, and market demand. Are you ready to start your business in Abu Dhabi? Use G12 services. Our business consultants will take care of all related legal issues so that you can focus on growing your business. Contact us to get started!

Q1. What is the minimum capital required to start a business in Abu Dhabi?

The minimum capital depends on the chosen business form. It should be noted that many sectors in Abu Dhabi do not have specific capital requirements.

Q2. Can foreign investors own businesses in Abu Dhabi?

Foreign investors can fully own businesses in both free trade zones and in mainland. However, a local sponsor is mandatory to conduct certain business activities in mainland Abu Dhabi.

 

Q3. What types of permits are available for businesses in Abu Dhabi?

You can choose from various business licenses, such as commercial, industrial, and professional licenses.

 

Free Zones in Abu Dhabi As the federal capital of the United Arab Emirates and the country’s largest city, Abu Dhabi’s entrepreneurial landscape continues to attract foreign investors.

Abu Dhabi is a progressive city that offers investors and entrepreneurs ease of doing business and a higher standard of living.

Abu Dhabi has more than five free zones that provide a flexible business environment with consistent government policies for foreign investors.

For foreign entrepreneurs, the environment for starting a business setup in Abu Dhabi free zones is ideal because the emirate provides the quickest path to lucrative Middle Eastern trading hubs.

Free zones in Abu Dhabi are known for their strategic location, world-class infrastructure, excellent land, air, and sea connectivity, and easy establishment procedures.

For entrepreneurs new to Abu Dhabi’s business startup landscape, figuring out which free zone is best for starting a business can be a daunting task.

However, business establishment consultants in the UAE can advise and assist you in overcoming such challenges.

Below is a comprehensive guide to starting a business in Abu Dhabi Free Zones:

Best Business Sectors in Abu Dhabi Free Zones. The business environment Free zones in Abu Dhabi are appropriate for companies of all sizes, including startups, SMEs,

sole proprietors, freelancers, and multinational corporations (MNCs).

Abu Dhabi Free Zones offers a wide range of activities to meet a variety of business needs. Abu Dhabi Free Zones serve specific industries, with each free zone representing a particular sector.

Key sectors include media and entertainment, manufacturing, medium and heavy industries, light industry, logistics, e-commerce, e-gaming, etc.

Abu Dhabi’s Free Zones List Abu Dhabi Free Zones are renowned for offering flexible and cost-effective business startup solutions to international businesspeople and investors.

Every free zone is overseen and controlled by the respective free zone authority, which has implemented investor-friendly policies and regulations.

Below is a list of the best free zones in Abu Dhabi:

 

Abu Dhabi Airport Free Trade Zone
Abu Dhabi Global Market Free Zone
Industrial City Abu Dhabi Free Zone
Free Zone TwoFour54
Khalifa Industrial Estate Free Zone
Abu Dhabi Masdar City Free Zone

Types of Legal Forms in Abu Dhabi Free Zones.

Once a suitable business plan has been selected for their business operations and an appropriate business plan.

The legal form is determined based on the number and type of shareholders in the company. Using company formation services in Abu Dhabi is a viable way to choose the proper legal structure for your business.

The following legal forms can be established in the free zones of Abu Dhabi:

1. Limited Liability Company in the Free Zone with at least two shareholders.
2. A Free Zone Limited Liability Company (FZ LLC) can be formed as a separate legal entity. Shareholders can be natural persons, legal entities, or a mixture of both.

Foreign investors must check with each free zone authority regarding the maximum number of shareholders and other mandatory requirements.

Entrepreneurs can seek advice from Abu Dhabi business incorporation consultants to understand the criteria for establishing FZ LLCs.

Starting a Business in Abu Dhabi Free Zones:

 

Setting up a business setup in a free zone in Abu Dhabi brings many benefits to foreign investors.

Given that Abu Dhabi is the UAE’s capital and largest emirate, investors have a great location when they choose to create a business there.

In addition, the emirate is one of the largest oil producers in the world. Additional benefits for investors include the presence of major financial institutions like the Abu Dhabi Securities Exchange and the Central Bank of the United Arab Emirates.

In addition, entrepreneurs are entitled to the following benefits:

100% foreign ownership

No corporate or income tax

Full repatriation of capital and profits

Excellent infrastructure

A Growing Economy
A Favorable investment climate

A variety of permits and a strategic location.

 

Benefits of the Etihad Rail Network Company formation process in Abu Dhabi free zones establishing a company in an Abu Dhabi free zone has minimal paperwork and requires minimal paperwork.

For faster company registration in Abu Dhabi free zones, foreign entrepreneurs must follow the prescribed steps and prepare the documents correctly.

With the help of business establishment consultants in Abu Dhabi, the process can be expedited. To quickly register a company in Abu Dhabi’s free zones.
Follow these

Steps:
1. Choose a business activity
2. Decide on a legal form
3. Suggest a Company name
4. Submit application form
5. Choose a facility to rent
6. Submit documents
7. Obtain a business license and operating key
8. Apply for a visa account compliance requirements for Abu Dhabi’s free in Abu Dhab’s free business account.

Compliance Requirements in Abu Dhabi Free Zones Companies operating in the UAE (mainland, offshore, and free zones) are subject to some necessary regulations that have been recently introduced.

Abu Dhabi Free Zones are also subject to rules to combat financial crimes such as money laundering, tax evasion, profit shifting, etc.

The most important regulations in this context are

The UBO (Ultimate Beneficial Ownership) Regulations
The Economic Substance Regulations (ESR)
The Anti-Money Laundering and Counter-Terrorism (AML-CFT) Regulations.

Companies licensed by Abu Dhabi Free Zones must verify their compliance status with all regulations. Companies liquidating in Abu Dhabi Free Zones must also comply with the ESR, UBO, and AML-CFT laws.

Significant fines and penalties may follow noncompliance with serious consequences, including the revocation of marketing authorization and the exchange of information with the relevant foreign authority.

Companies that have access to company formation services in Abu Dhabi can easily ensure compliance with the regulations and avoid high fines.