1,000 dirhams for UAE business license?Abu Dhabi Free Zone makes it happen as setup costs fall

The latest package is “targeted at a new generation of businesses”, said the head of a Dubai-based consultancy. “By making the barriers to entry as low as possible, the authorities are targeting two new classes of business owners.

“One, those who are headquartered abroad and want to offer products or services in that market, such as online sales, technology solutions, or even gaming services. These businesses need to obtain a license to operate and will not be of much use for visas, At least initially.

“Secondly, people who might be employed here and want to freelance some of their services in their off-hours. They can also get a business license right away at minimal cost.”

The post-COVID-19 landscape requires new ways for the UAE to attract business – and new types of businesses. Jurisdictions such as DIFC and Abu Dhabi Global Market (ADGM) are now preferred locations for fintech businesses, whether those offering ‘open banking’ solutions or consumer-focused ‘buy now pay later’ portals website.

But there are other lines of business that are essentially one-person or one-person operations. They require different types of licenses.

Abu Dhabi’s Masdar City announced its intentions loud and clear on Monday, launching three commercial license packages, the lowest of which costs Dh1,000. For Package A, registered business owners can carry out two activities under a single license, paying only Dh1,000 to get started. But it doesn’t come with a visa.

The other two packages are priced at Dh7,000 and Dh12,000 respectively, with licenses allowing for four and five activities. These do come with visa regulations. Abdulla Balalaa, executive director of Masdar City, said: “Abu Dhabi’s position as an attractive global hub has been further strengthened following recent government circulars to ease the business environment, The hub promotes economic diversification, empowers global talent and supports the sustainable development of the emirate.

Balalaa’s emphasis on “global talent” is strongly echoed in all other UAE jurisdictions that cater to corporate needs.

“COVID-19 has changed the way businesses operate,” said Robin Philip, director of assurance and business consulting at A&A Associates. “As a result, we’ve seen a surge in the number of e-commerce licenses – more than 50% of the licenses we apply for now are for e-commerce establishments.

“The government is giving more flexibility to people who want to set up business in the UAE – and it’s also easier for new entrants. For example, they don’t need a business office or a physical address to get a license – and they can work without it. operating a business in Dubai/UAE for a full year. They just need to show the ‘Ejari’ certificate when renewing their license after one year.” (Ejari is a lease contract registered with the Dubai Land Department.)

Last Friday, Sharjah Publishing City launched its own limited-time promotion for aspiring entrepreneurs, with the most affordable package priced at Dh6,500. In this case, the single shareholder – with an option to upgrade – will receive a stamped licence, a Memorandum of Association (MoA) document and a tenancy agreement. However, no visa will be granted.

Free zone operators are well aware of who they are targeting with these special offers, which will run until September 5th. The “Summer Entrepreneur Package” will strengthen “the emirate’s position as a successful business incubator and entrepreneur-friendly destination,” said Salim Omar Salim, Director of Free Zones, SPC. “‘World Entrepreneur Day’ is the perfect time to highlight SPC Free Zone’s leading efforts in expanding its reach with aspiring global entrepreneurs.”

True, there is a talent race going on – and the UAE’s business jurisdiction is on fire.