Company Formation in Abu Dhabi Free Zone

Abu Dhabi is the capital of the United Arab Emirates and a major hub for business and commerce in the region. Abu Dhabi Free Zones are created to promote foreign investment and expand the economy. Each Free Zone is dedicated to specific sectors such as technology, finance, logistics, and manufacturing, enabling businesses to meet their market needs efficiently. Businesses in these areas follow the rules set by the local authorities. 

Starting a business in these Free Zones is easy due to simple processes and helpful regulations. Strong infrastructure and support services will enable entrepreneurs to succeed and grow their companies in Abu Dhabi.

List of Abu Dhabi Free Zones

Here’s a list of  Free Zones in Abu Dhabi where companies can be formed:

• Abu Dhabi Global Market (ADGM)
• KIZAD (Khalifa Industrial Zone Abu Dhabi)
• Abu Dhabi Airport Free Zone (ADAFZ)
• Twofour54
• Masdar City Free Zone
• Higher Corporation for Specialized Economic Zones (ZonesCorp)
• Industrial City of Abu Dhabi (ICAD)
• ADPC Khalifa Port and Industrial Zone

Classification of Business Entities in the Abu Dhabi Freezone

Entrepreneurs can select from different business entities when setting up a business in the Abu Dhabi Free Zones. Every choice provides distinct benefits and meets various operational requirements, enabling enterprises to match their goals effectively.

• Free Zone Limited Liability: This is a separate legal entity that requires a minimum of two shareholders for its formation. These investors  may be individuals, corporate entities, or a combination.
• Branch of a Foreign Company: This business entity allows a foreign company to operate in the UAE while maintaining its original legal identity with a license secured by the Ministry of Economy and Commerce.
• Branch of UAE Company: This firm operates under the same name as the parent company and can conduct business activities aligned with its parent’s operations, benefiting from the Free Zone’s favorable regulations and incentives.
• Freelance License: A freelance permit is issued to freelancers, allowing them to operate as independent sole practitioners and conduct their business activities.

Documents Needed to Establish a Business in the Abu Dhabi Free Zone

• Application form of the company 
• Shareholders’ passport copies
• Passport-size photographs with white background 
• Name suggestions for the new business (2 or 3)
• Business activity specifications 
• Required number of visas
• 2 proofs for address (dated within 3 months)
• Bank’s reference letter
• Curriculum Vitae for freelance license 

Business Setup Process in Abu Dhabi Free Zones

1. Select the Type of Business Activity

The initial step in establishing a free zone company is to decide the legal entity you want to create. Five types of companies can be set up in a free zone, which includes the following options:

• Limited Liability Company (LLC) in a Free Zone
• Branch of a UAE Company
• Branch of a Foreign Company
• Freelance Business
• Free Zone Business Setup Options

2. Select and Register the Trade Name

Select an exclusive business name that represents your operations and complies with the Abu Dhabi Free Zone regulations. Registering this name is necessary to guarantee its legal recognition

For DED to approve a proposed trade name, it must meet the following requirements:

• It must respect public morals and the public order of the country.
• The trade name should include the company’s legal form, such as LLC, FZE, or DMCC.
• It should be unique and not previously registered.
• The name must align with the business activity and legal structure.
• It cannot include religious names, government entities, or references to external organizations or logos.

3. Choose the Business License

Choose the appropriate type of business license, depending on the selected business activity. some types of business licenses are

• Commercial/trade
• Consultancy/services
• Industrial
• Educational
• Media
• eCommerce
• Offshore
• Freelancer
• Warehousing
• Manufacturing.

4. Find an Office Space in the Abu Dhabi Free Zone.

In free zones, either purchase or rent office spaces. The size and setup of the office will depend on your company's business activity and your number of employees.

5. Approval from Abu Dhabi Free Zone Authority

Submit the required documents and applications to the Abu Dhabi Free Zone Authority for initial approval. This step is critical to ensure compliance with local regulations and obtain the necessary permits. Below is a guideline of steps and documents needed for initial approvals.

• Completed application form
• A plan outlining the business strategy.
• A copy of the current trade license or registration certificate, if applicable.
• Passport copies of shareholders and the manager.
• The notarized original RIC for the manager.
• Signature samples of shareholders and the manager.
• Property title deeds, if necessary.
• A letter explaining the investment idea and plan.
• Two years of audited financials or a bank reference certificate, if required

6. Company Registration and License Payment

Once you receive initial approval, you'll need to pay the registration and license fees, which vary based on the type of license required. After that, you must submit:

• Completed application for registration
• Memorandum and Articles of Association (Notarised and attested)
• Power of Attorney given to Manager/Director (Notarised and attested)
• Details of the company's share capital.
• Board Resolution appointing Manager/Director (Notarised and attested)
• A passport-sized photograph of the appointed manager or director, taken against a white background.
• The manager's or director's specimen signature.

The authority will prepare lease agreements, after which the trade license will be issued, and visa processing will begin.

Advantages of Company Formation in Abu Dhabi Freezone

Starting a business in Abu Dhabi Free Zones has many benefits that make it easier for entrepreneurs and investors. With simple rules, these Free Zones create a great environment for business success. Here are some key advantages of setting up a company in the Abu Dhabi Free Zones:

• Simplified Business Regulations

Operating a business in Abu Dhabi Free Zones is made easier with straightforward rules and regulations, minimizing paperwork and enabling entrepreneurs to concentrate on expanding their ventures.

• No Corporate or Personal Income Tax

Businesses benefit from a tax-free setting, free from corporate (if they are coming under qualifying activity or less than AED 375,000) and personal income taxes, allowing them to maximize their profits without tax deductions.

• Strategic Connectivity via Etihad Rail Network

The connectivity provided by the Etihad Rail network improves the transportation of goods and access to regional markets, increasing business efficiency.

• Full Transfer of Profits and Capital

Entrepreneurs can transfer all their profits and income back to their home country without restrictions, ensuring complete control over their earnings.

• Vibrant Networking and Collaboration Opportunities

Abu Dhabi Free Zones promotes networking to facilitate collaboration, exchange of insights, and development of partnerships for mutual success.

• 100% Foreign Ownership

Foreign investors can own their businesses entirely, having total control over operations and decision-making without requiring a local partner

Why Choose Us?

Reyson Badger helps you set up a company in Abu Dhabi Freezone by guiding you through the entire process. We help you choose the appropriate business activity and type of company that best fits your requirements. Our skilled team handles all required documentation, such as registering trade names and applying for business licenses. With our support, you can easily manage the details of your company formation in Abu Dhabi's Free Zones.