- Abu Dhabi is slashing business setup and licence renewal fees for the private sector by almost 90 per cent.
The reduced fees will be applicable to six activities within the business licence and will cover all fees from Abu Dhabi Government entities.
The decision is intended to enhance the ease of doing business in Abu Dhabi and increase its competitiveness on regional and international levels, especially for startups and SMEs.
The new fee structure (stands at only Dhs1,000) will go into effect starting from July 27th, 2021.
Source: Gulf Business
Abu Dhabi said on Sunday that it would reduce business setup fees for the private sector, as well as licence renewal fees, to Dhs1,000.
The new fee structure will be effective from Tuesday, July 27, 2021, and marks a reduction of over 90 per cent from the existing business setup fees.
The announcement was made by the Abu Dhabi Department of Economic Development (ADDED), in collaboration with multiple government entities including the Abu Dhabi Chamber of Commerce and Industry.
The reduced fees will be applicable to six activities within the business licence, and will cover all fees from Abu Dhabi Government entities such as ADDED, the Department of Municipalities and Transport, membership fees for Abu Dhabi Chamber, CoC (Certificate of Conformity) issuance fee, and fees required by Abu Dhabi regulating entities dependent on the type of business.
Several fees have been removed entirely while others have been considerably reduced, according to the Abu Dhabi Media Office, however, federal charges for business setup and licence renewal still apply.
The decision to slash the fees is expected to enhance the ease of doing business in the emirate and increase Abu Dhabi’s competitiveness regionally and internationally.
The introduction of a fixed fee will increase transparency and reduce administration for investors. It also supports Abu Dhabi Government’s efforts to create a conducive business environment for the private sector, particularly for micro-, small- to medium-sized enterprises (SMEs).
“We hope this significant change in fee structure helps to further ease the setup process for new and existing investors,” said Mohamed Ali Al Shorafa, chairman of ADDED.
“Our goal for Abu Dhabi, as part of our new economic strategy, is to create a thriving business environment that encourages growth and innovation. Ease of starting and managing a business is a key lever and we strongly believe the restructuring of fees will help us achieve this goal.”