AED 1000 UAE business license?Abu Dhabi Free Zone achieves this as set-up costs fall

The head of a Dubai-based consultancy said the latest package “targets a new generation of businesses”. “By keeping the entry point as low as possible, the authorities are targeting two new categories of business owners.

“One is those who are located abroad and want to offer products or services in this market, such as online sales, technology solutions, or even gaming services. These businesses need a license to operate, and at least initially, there won’t be much of a visa usefulness.

“Secondly, people who may be employed here and want to use their off-hours to provide some services as freelancers. They can also benefit immediately from obtaining a business license at the lowest cost.”

The post-COVID-19 environment requires new ways for the UAE to attract businesses — and new types of businesses. Jurisdictions such as DIFC and Abu Dhabi Global Market (ADGM) are now the go-to places for fintech businesses, whether offering “open banking” solutions or consumer-focused “buy now, pay later” portals.

But there are other lines of business that are basically the operation of a man or a woman. They require different types of licenses.

On Monday, Abu Dhabi’s Masdar City announced its intentions loudly and clearly by launching three business license packages, the lowest of which costs Dh1,000. For Package A, registered business owners can participate in two activities under this single license, paying only AED 1,000 to get started. But this does not come with a visa.

The other two packages are priced at AED 7,000 and AED 12,000 respectively, and the license allows for four and five events. These do come with visa regulations. Abdulla Balalaa, Executive Director of Masdar City, said: “With the recent government announcement to ease the business climate, Abu Dhabi’s position as an attractive global hub has been further strengthened by promoting economic diversification, enhancing global talent and supports the sustainable development of the emirate.” .

Balalaa’s emphasis on “global talent” has been echoed resoundingly in all other UAE jurisdictions that cater to businesses.

“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 e-commerce licenses – over 50% of the licenses we’re currently applying for are for e-commerce establishments.

“Government offers more flexible ways for people who want to do business in UAE – and easier for new entrants. For example, they don’t need a commercial office or physical address to get a license – they can be in Dubai/UAE Run the business for a full year. They just need to show the ‘Ejari’ certificate when they renew their license after a year.” (Ejari is a lease contract registered with the Dubai Land Department.)

On Friday, Sharjah Publishing City launched its own limited-time promotion for new aspiring entrepreneurs, with the best package priced at AED6,500. Under this condition, a single shareholder with an option to upgrade will receive a stamped license, Memorandum of Organization (MoA) document and a lease agreement. However, a visa will not be obtained.

The free zone operator is well aware that these special offers are aimed at customers 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, SPC Free Zone Director. “‘World Entrepreneurs Day’ is a great time to highlight the SPC Free Zone’s leading efforts in expanding its reach to aspiring global entrepreneurs.”

It is true that the talent race is on – the UAE’s business jurisdictions are in fierce competition.