Investors all over the globe are intentionally looking for better nations in which to establish their businesses, and Abu Dhabi has emerged as one of the strongest marketplaces for many firms in recent years. When the UAE is gradually coming to the fore in spite of the pandemic outbreak, Abu Dhabi has thrown some exciting offers for entrepreneurs to kick off their business in the realm.
As the emirate aims to enhance its competitiveness and attract more investors, the Abu Dhabi Department of Economic Development (ADDED), in collaboration with other government organizations, has reduced business set-up costs by 94% to Dh1,000. Renewal licenses for current firms have also been reduced to Dh1,000, and this change is already in effect. Business licenses are an integral part of your business in Abu Dhabi because they will allow you to operate your business legally.
The new fees are applicable to the six activities in the business license and will cover all the fees of Abu Dhabi government entities, such as ADDED, the ministry of Municipal and Transport, membership fees for Abu Dhabi Chamber of Commerce, CoC (Certificate of Conformity) issuance fees and charges required by the Abu Dhabi regulatory agency based on the business type.
Being the wealthiest Emirate among others, very few individuals were interested in financing in Abu Dhabi in the past since the economy was primarily centered on oil production but the economy has changed dramatically in recent years as Abu Dhabi has altered its business laws and procedures to allow international companies to invest in the region. In the aftermath of the covid19, Abu Dhabi has taken a number of steps to help companies and encourage economic growth, which includes giving rent refunds, electricity bill reductions, and loan guarantee packages. It released a strategy last year to boost economic growth through strategic investments and several private-sector assistance programs too.
Mohamed Ali Al Shorafa, chairman of ADDED, said: “We hope this significant change in fee structure helps to further ease the set-up process for new and existing investors. Our goal for Abu Dhabi, as part of our new economic strategy, is to create a thriving business environment that encourages growth and innovation. Ease of starting and managing a business is a key lever and we strongly believe the restructuring of fees will help us achieve this goal.”
With the reforms in place, Abu Dhabi’s economy is expected to grow by 6% to 8% over the next two years, fueled by government spending, financial services, and foreign direct investment. The emirate also plans to focus on specific sectors where government entities can partner with private companies to spur the GDP.
For an entrepreneur, this could be the ideal time to sow the seeds to start something big in the capital of the UAE and reap the benefits of it. If you’re ready to take the plunge and start your own company, buckle up and don’t hesitate to collaborate with HLB HAMT.
HLB Abudhabi is a well-known business consultant firm in Abu Dhabi, UAE, who has assisted businesses in a variety of sectors in forming their businesses, regardless of their size. We have the knowledge and experience to advise our customers on the best corporate structure for their business. Our extensive expertise in the field of business consultancy helps in making the process simple and straightforward. We give you with a complete picture of how to form and manage a business in the UAE, as well as step-by-step instructions. It is our responsibility to guarantee that our clients obtain the essential permissions on schedule. We help our clients select an excellent location, obtain a trade license, obtain a tax residency (domicile) certificate, and complete all legal procedures. Our business consultants will be there for you from the start until your firm is up and running.