Start Business in Abu Dhabi Free Zones

ABU DHABI FREE ZONES

Abu Dhabi’s free trade zones are ideal for anyone wishing to launch a business in the capital as an entrepreneur or future company owner.

Free zones are designated areas in the United Arab Emirates that Gives unique regulations regarding the supply of goods inside the territory for the purpose of value-added tax (VAT). They are essential elements of the nation’s economic environment, which helps to advance this economic growth and stature internationally. These zones, which were created to diversify the economy away from reliance on oil, are essential for promoting global trade, foreign investment, and economic expansion.

Abu Dhabi, the capital of the United Arab Emirates, serves as an international hub for commercial and industrial development. Abu Dhabi, like Dubai, having set up a number of free zone areas to encourage international investment and strengthen the local economy. Organizations or companies that operate in free zone benefit from the customized business facilities, geographical position, and cheap operating costs. Abu Dhabi is ranked 9th globally and 2nd regionally in the economic performance index of the IMD World Competitiveness Yearbook (2020).In 2020, ADIO launched the AED 2 billion ($545 million) Innovation Programme that provides incentives to businesses within the emirate’s high-growth areas.

The businesses that are covered by Abu Dhabi’s free zones include small companies, media, and logistics. Right now, entrepreneurs and business owners have the option of setting up their enterprises in any of the following zones:

• Abu Dhabi (Media Free Zone Authority)
• Twofour54 Abu Dhabi
• Masdar City Free Zone
• Abu Dhabi Air ports Free Zone (ADAFZ)
• Abu Dhabi Global Market (ADGM)
• Khalifa Industrial Zone Abu Dhabi (KIZAD)

An independent Free Zone Authority (FZA) regulates each of the free zones in Abu Dhabi and is in charge of granting business establishment permits to businesses operating within the zones.

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Types Of UAE Free Zone Trade Licence

On the UAE free zone, businesses can be divided into four main licences depending on their activity type: General Trading, Commercial,
Industrial and Service. Below is a general look at each licence type.

General Trading Licence

A general trading licence in the UAE allows a company to sell, distribute, store, import, export, and re-export various goods under one licence. It covers a wide range of activities such as trading in foodstuff, furniture, electronics, and more. The licence provides flexibility within the Freezone as it permits a broad scope of commercial activities without tying down the company to specific lines of goods. However, specific activities may require a No Objection Certificate (NOC) for special approvals.

Commercial Licence

A commercial licence is necessary for companies selling products or services within the UAE and abroad. Any entrepreneur conducting economic activities in Dubai needs to apply for a commercial licence. This licence permits the purchase and sale of products and specified services. It allows for importing and selling items in the UAE, exporting them outside the country, or trading within the local market within the Freezone.

Industrial Licence

An industrial licence in the UAE is provided by a free zone’s authority and allows investors and entrepreneurs to manufacture products within the relevant free zone jurisdiction. The licence enables the import of raw materials for production and the export of finished products overseas. Businesses involved in industrial or manufacturing processes should apply for this permit, which covers importing raw materials, production, and packaging for export.

Service Licence

The service licence permits the licensee to carry out specified services within the Free Zone, such as logistics, courier services, insurance provision, travel and tour services, car rental, consulting, and staffing. Additionally, it allows accounting, legal, and business consulting organizations to operate. This licence is meant for professionals in various fields who provide specialized services, including business consulting, IT services, accounting, auditing, legal services, and other professional services.

Dubai Free Zones

Businesses in the Dubai Free Zone trade goods and services while taking benefits of unique tax and foreign ownership regulations.

Legal Forms For Company Formation In UAE Free Zones

The legal forms available for company registration in UAE free zones have been modified to meet the needs of different business kinds and investment levels. Below is a summary of the main corporate organizations and applicable legal frameworks found in UAE’s free zones:

Free Zone Establishment (FZE)

A Free Zone Establishment (FZE) registration allows for a single shareholder to form a company. This shareholder can be an individual (person) or a corporate shareholder.

FZCO (Free Zone Company) ( FZ- LLC)

An FZCO is essentially a multiple shareholder or a partnership freezone firm where there is more than one shareholder in the company with a maximum of 50 shareholders.

Branch of a Foreign Company

A branch is a separate legal entity , under the control of the parent foreign company . It is used in the UAE as a marketing tool for the parent company.

Branch of a UAE Company

A branch office setup is a separate office or branch of an existing company. The local company already has a license in the UAE. Hence, this is an expansion of the local business.

Why Abu Dhabi Free Zones For Your Company Formation?

The UAE’s status as a major global economic hub is expected to increase the importance of freezones.

ADAFZ targets are in the sectors like aviation, aerospace, airport services, logistics, cargo, and freight industries. Masdar City freezone provides clean energy start-ups with a dedicated place to experiment, show, improve, develop, and commercialise their inventions. Twofour54 is a media free zone in Abu Dhabi which provides Elite infrastructure. And more freezones with different amenities.

Abu Dhabi has a vibrant talent focusing on science, technology, and entrepreneurship. Abu Dhabi will ensure that every investor enjoys access to capital and advanced infrastructure.

These freezones will be essential to the future development of the nation because of the government’s commitment to economic innovation and diversity.

Dubai’s economy has grown significantly because of the free zones that attract foreign investment. Due to the fast company formation processes and support services provided by the free zone authorities, starting a business in Dubai free zones are simple.

Standard Required Documents to Start the Business Setup Process In UAE Mainlands

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Your Guide To Setting Up A Business In UAE Mainlands

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We Al Moheet Consultants will assist you in mainland company formation in Dubai from A to Z without any hassles and provide you post launch assistance for your visas and all corporate services that you might need in the future.

Frequently Asked Questions

Common Questions About Business Setup in the Abu Dhabi Free Zones

How easy is it to start a business in an Abu Dhabi free zone?

It is extremely simple! The process is simple and efficient, with professionals like Business Setup Consultants to assist you at every stage, allowing you to begin operations immediately and without the usual hassle.

Do Abu Dhabi Free zones concentrate on special sectors or businesses?

Yes, different free zones are focused on different sectors. Like some of them may focus on technology and innovation, and may some others focus on manufacturing, logistics, or media. This enables enterprises to find the free zone that best meets their requirements.

Do they have any restrictions on the return of profits and capital?

No, you can return all of your profits and cash with no limits, providing you complete financial freedom.