Essential Procedures to be Followed for Company Formation in Abu Dhabi

Paul Varghese


Abu Dhabi is the largest commercial centre of UAE. Being the capital of the country, this city is a home to numerous companies that are actively operating in different industrial sectors. Hence, businessmen and investors, looking forward to establishing a new business or open a new branch of their existing business on a foreign land, prefer Abu Dhabi. However, the company formation process in Abu Dhabi can be confusing for an inexperienced person who is unaware of the legal procedures to be followed in this regard.

Important steps to be taken for company formation in Abu Dhabi

  • First of all, to ensure that things go smoothly, it is important to avail the services of a well-known business consultancy firm operating in Abu Dhabi. The consultancy firm will guide and support you at every step for the successful company formation in this city. However, you should go through all the terms and conditions of the chosen consultancy firm before signing any legal contract with them.
  • A clear outline of the business plan should be drawn by the company owner, specifying the nature and the aim of his company formation in Abu Dhabi along with the definite business procedures and future plans for the betterment of the company.
  • Next, the company needs to be legally registered for getting a proper trade name. As there are different categories of commercial organizations that are registered in Abu Dhabi, it is necessary to identify the exact type that will fit the nature of this company. Reason (s)? The legal rules are different for different business categories here. The business consultancy you’ve hired can better help you in this matter to bear the legal responsibilities of the most appropriate category.
  • The business consultancies in Abu Dhabi help their clients to get their trade names registered in the Department of Economic Development with which they can easily set up their businesses in this city.
  • The foreigners need to get the initial approval for running their businesses in Abu Dhabi from General Directorate of Residency and Foreign Affairs. This certificate of approval is mandatory for getting the trade license as it denotes that the particular foreigner is legally allowed for carrying out his business activities in this country.
  • Finally, the trade license has to be obtained from the concerned licensing authority as per the nature of the business. Your business consultant will help you to approach the correct department with all the necessary documents including the signed application, certificate of initial approval, trade name certificate, and other relevant documents for identity.

Therefore, hiring business consultants for company formation helps business owners to establish and successfully run a business in Abu Dhabi. The benefits offered by the UAE government to overseas business persons are quite encouraging. This is why many businessmen consider setting up their offshore business in Dubai and Abu Dhabi

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