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Abu Dhabi Company Formation in TwoFour54 Free Zone

Introduction

TwoFour54 free zone is located in the Emirate of Abu Dhabi. Being the capital of the UAE, Abu Dhabi is highly relevant and a significant business hub within the nation. However, when one thinks of the UAE, Abu Dhabi is often not the first place to come to mind. Instead, Dubai is often viewed as the business center not only within the region, though beyond that, it is a global landmark. However, within the country, Abu Dhabi holds vast importance as it is the wealthiest of the Emirates.

Abu Dhabi, being the capital, also houses numerous government entities and essential offices within the city. In fact, all federal government offices are there. The World Bank, as of 2018, voted Abu Dhabi the No. 1 in the Arab world for ease of doing business. On top of this, the infrastructure of the city is highly advanced, and this compliments many companies and their activities.

Beyond the business advantages of setting up a company within Abu Dhabi, the city itself allows for high living standards and has been voted the safest city in the world and also one of the happiest of cities in the world.

Dubai may be the face of the country, though this creates a highly competitive environment which certainly won’t help newly arising entities. Abu Dhabi on the other hand, while by no means empty or uncompetitive will have the advantage of being so large, making up 87% of the country’s total land area. The population, however, is not equivalent to this land mass size, as fewer people are living in Abu Dhabi than in Dubai.

Of course, any location within the UAE would be useful from a global standpoint due to the country's geographical location. Being optimally placed at something of a crossroad between the east and west, access to the worldwide market, especially when one looks at the airports and other such infrastructure is a significant draw.

There are a few free zones within Abu Dhabi, and one of the most popular is TwoFour54. This free zone prides itself on its low set up costs and optimal central location. Company formation is relatively simple and is as follows.

TwoFour54 Free Zone

The free zone location is quite central in the Emirate, with good access to critical official offices and sites. With the free zone having arisen in 2008, it is highly technologically in tune, and from an infrastructural point of view, it provides the best infrastructure, ease of doing business, and simplified procedures.

All free zones have some form of specialization and TwoFour54 is no different. They cater to media entities, and this makes TwoFour54 the most significant media free zone authority in Abu Dhabi. Some of the biggest names found in the industry call TwoFour54 their home, and this should stand as a great testament to the quality of their infrastructure and work ethic.

The Media Zone Authority – Abu Dhabi, regulates the more official matters of the free zone such as the licensing processes and regulatory development. It is their responsibility to ensure the 2030 economic vision of Abu Dhabi becomes a reality, at least as far as they can help to achieve it from their end.

The first thing that requires consideration when setting up a company within the free zone is just what type of company the individual wishes to form. There are a few types that are available and mentioned, and these are as follows:

Free Zone Limited Liability Company (FZ-LLC): This involves the incorporation of a legal entity in the media zone;

Branch: This could either be a branch of an Abu Dhabi mainland entity or an object incorporated in another jurisdiction (foreign or UAE);

Sole Proprietor (Freelancer): This allows for an individual to work in their capacity as a media professional.

There are many incentives and draws to set up within TwoFour54. Some of these include:

100% foreign ownership of the company;

0% import tariffs;

100% exemption from corporate and personal income tax;

Access to Abu Dhabi Film Commission’s 30% cash rebate on production spend.

The process is time efficient and also cost efficient with no minimum required for visas, and office spaces available at better rates than can be found anywhere else and provide media entities with all of the facilities that they could desire.

The Requirements

Investors considering business setup in Abu Dhabi TwoFour54 Free Zone must be aware of below matters which require consideration. The table following shows some of the most critical factors:

Types of Setup Number of Activities Number of Employee Visa License Fees (AED) Registration Fee (one time) (AED) Office Space (AED) FZ-LLC Up to 5 (up for approval) N/A Starting from 50,000 per annum Branch Up to 5 (up for approval) N/A Starting from 50,000 per annum Serviced Desk 2 2 30,000 per annum plus 2,500 security deposit Hot Desk 1 2 25,000 per annum Emirati Entrepreneur & Khalifa Fund 1 2 Virtual Freelancer Up to 3 (up for approval) 1 6 months: 2,250

12 months: 4,500 N/A Virtual (Free access to hot desk)

Is this the Right Free Zone for you?

TwoFour54 has now been around for ten years, and as such, it has plenty of experience; this should provide comfort to any who may wish to open a new company or branch of a company there. At the same time, the costs of setting up such as requirements and office space are very reasonable, and the facilities provided are top of the range.

The location of the free zone is optimal within Abu Dhabi, and there is also the matter of personal life outside of work. If the allure of Dubai is what draws one to the UAE, TwoFour54 may not be able to appease you. However, Abu Dhabi is still a bustling location and provides an excellent opportunity to set up a company. Get in touch with our team of lawyers in Abu Dhabi to learn more about this free zone, its regulations and the procedures.