For more detailed information on the costs of setting up a business in Abu Dhabi, read on about the necessary steps and licensing.

Factors that may affect the total cost

1. The business structure: The legal structure of the business will impact how much it costs to set up and keep a business running. A business could be a sole proprietorship, LLC sole establishment, LLC company, or company branch. 
2. The company’s services: the kind of activity your company focused on is an important factor because it determines what kind of licensing is required. The business may engage in commercial activities, industrial activities, or may offer professional services. 

Licensing required to do business in Abu Dhabi.

Licensing required for every business may differ depending on your business structure or nature of its services. All the licensing listed here are mandatory for their applied fields, the services of a professional company may be required during the licensing stage to ensure that everything is done accordingly and budgeted. The cumulative costs consist of one-time fees and continuous payments. 

1. Initial Approval from DED: DED stands for the ‘Department of Economic Department”, they are responsible for approving in registering business operations. The DED charges a one-time nominal fee before approving to start a business’; however, this initial approval is only valid for six months, during which you are expected to finish the other necessary documentation. 
2. Trade name approval: Asides the legal business name registered, a trading name is a name a company prefers to be known/identified as, and this name must be approved and registered before it will be used. The cost of getting a trading name approved is a one-time payment, and it also varies depending on your instruction. Fees for reservation, commercial name, foreign company name, etc. may constitute the cumulated trade name fees 
3. Renting office space: Businesses are mandated to operate within a recognized office space so that authorities can easily verify their legitimacy. This way, authorities can easily inspect and monitor business operations as well as ensure that they adhere to immigration laws. The schedule of payment intervals occurs as per the rental agreement, which could be yearly or termly. 
4. Attestation Memorandum of Association MOA: The company’s Memorandum of Association must be drafted. It incurs a one-time cost and is usually done among the company’s shareholders and may vary according to their share capital. 
5. Drafting LLC contract: Every limited liability business contract drawn in Abu Dhabi is required to be drafted in two languages – English and Arabic to enhance understanding between partners. The contract must have mutually consented among the partners, and the charge is separate from that of the interpreter. 
6. DED fees: Business setup required DED charges licensing fees. Which are made up of 5 different feeses, some of which are one-time while others are yearly, and they all add up to the total costs of setting up a business in Abu Dhabi.

•  Mainland trade licensing fee: This is a one-time expense paid to acquire a trade license, and the cost depends on the business activities. The relevant authorities monitor business activities, and these regular checks may incur other charges.
• Commercial licensing fee: The commercial licensing fee is a yearly fee charged for carrying out business activities; it is also called the Tejari fee.
• Chamber of commerce fee: The chamber of commerce fee is an annual fee paid by businesses, and the amount depends on the business activities. Usually, companies are told the amount for general trading, but manufacturing and industrial companies will pay a different price. 

• Commercial service improvement fee: The commercial service improvement fee is a yearly fee paid for all improvement works by the government.

• Administrative service fee: The Administrative fee is a one-time fee paid to DED for the paperwork carried out. 

7. External approval: Depending on the business’ activities, you may need approval from other governmental bodies, especially for professional services like transportation services, Oil services, etc. 

8. Getting Immigration Cards

After licensing, you will need to acquire the necessary cards required to get a visa. They are 

1. Immigration establishment card: Immigration card must be applied for by the company owner to enable them to employ staff and process their Resident Visas. Yearly renewal of this card is a necessary, failure of which may attract penalties. 
2. Labor establishment card: Upon application at the ministry, a labor establishment card will issue with a registration number that permits companies to apply for work permits and visas for their staff. 
3. E-signature card: A card with a code is issued to authorized signatories of companies to be used to carry out every transaction within the ministry. This card system is a more efficient replacement for the previous Signature Authorization Card Scheme. 

In conclusion, the total costs of setting up a business in Abu Dhabi includes Licensing cost with DED and Immigration costs with the ministry of works. With these carefully followed, and with the help of a lawyer and accountant, you can have a smooth business setup in Abu Dhabi. 

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