Foreign investors who are looking forward to setup a business in Abu Dhabi can look at free zones. Based on the Emirate’s economic diversification plans, international investors could boost the local economy and also reap the benefits through free-zone business setup, Abu Dhabi.
Each free zone has an independent Free Zone Authority (FZA) and their main task is to issue free zone operating licenses and provide assistance in establishing the business. Once you have registered a business as a free zone company, it will be considered as Limited Liability Company (LLC). It will be subjected to the laws and regulations of the free zone where it has been set up.
Even if the free zones vary in the focus, establishment costs and paper works, the fundamental requirements are the same in all the cases. Free-zone business setup Abu Dhabi has different set of rules for functioning unlike the onshore.
The below given procedures is for a typical free-zone business setup in Abu Dhabi. However, a free zone may skip or add some other steps. The maximum time taken to go through the procedure is 28 working days from the submission of application. HLB Hamt could prove to be a great help in carrying out your freezone business setup in Abu Dhabi.
Some of the steps needed to establish a business in Abu Dhabi is as follows:
1. The first step is to decide who will be the shareholder- you or your home company.
2. Next, you have to determine about the share capital. Many free zones have a certain limit for minimum share capital. The share capital is per the shareholder in some free zones, and in others it is for the whole company.
3. Besides, fix the company name and the person for manager role in the new company. The manager name will be kept on the trade license.
4. There is a need to submit three choices of the company name to the free zone authorities and get a name fixed for your company.
5. If your home company is a shareholder, you have to get the certificate of incorporation and an attestation from the local UAE embassy. Your home company should also pass a board resolution for a free-zone business setup in Abu Dhabi. The resolution should also be attested while applying.
6. An application for the name and activity should be given for approval. Once it is approved, you need to submit an application with complete details.
7. The shareholders and the manager should submit the application form with their passport copies. If the shareholder is a company, the attested copy of company documents should be submitted along with the manager’s passport copy. In some cases, you need to submit a short note of your business plan for free-zone business setup Abu Dhabi.
8. A preliminary approval will be given once you clearly provide all the above mentioned details. In addition, a letter to open a bank account will be issued for the investor to deposit the capital. The capital will be kept safely till the issuance of the license.
9. The bank will send a letter after depositing your capital in your bank. This has to be submitted to the free zone authorities to complete the legal registration process.
10. Some free zones don’t require showing the capital. The manager should sign on behalf of the investors on all the legal documents.
The license will be issued once the registration is done and you can start up with your business operations. The experience and expertise of HLB Hamt will work in a very efficient way to help you for setting up your free zone business in Abu Dhabi.
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