Gateway is Abu Dhabi's company formation specialist, dedicated to helping foreign companies set up their Abu Dhabi businesses correctly and cost effectively. Follow this site to know more about the business setups in Abu Dhabi.
30th April 2019
Ramadan permits will be needed for restaurants, cafes, coffee shops and any other food and beverage outlet wanting to sell food and drinks during daylight hours in Abu Dhabi during the Holy Month of Ramadan.
Why are Ramadan Permits Necessary?
As Muslims fast during daylight hours throughout Ramadan, it is forbidden for anyone not fasting to eat or drink in public. For restaurants and cafes to continue to serve food during the daytime, they are required to have a Ramadan permit. Inspections are carried out, so be sure to have this arranged if your food and beverage business intends to serve in the daytime during Ramadan.
What are the requirements for a obtaining a Ramadan Permit?
Each location and premises must obtain a specific Ramadan Permit
All designated eating areas must be concealed from the public, e.g. glass tinting or blinds must be fixed or drapes erected
Display adequate signs requesting the visitors to avoid eating, drinking and smoking in public places during daylight hours
17th April 2019
The importance of due diligence is critical when establishing a company in Abu Dhabi. I’m still amazed how many foreign companies I speak to which don’t do any due diligence when entering a foreign market.
What could doing due diligence mean for your organisation?Staying Legal – Doing due diligence upfront to understand the local laws as a foreign company enters a new market will protect it. Knowing the laws will ensure the foreign company is operating legally as it starts doing business in Abu Dhabi to avoid unnecessary penalties and fines.
Maximizing Profits – When setting up a Limited Liability Company (LLC) in Abu Dhabi there is currently a requirement for a foreign company to partner with either a wholly-owned Emirati company or an Emirati individual. The foreign company is restricted to a maximum ownership of 49% in the entity, whilst the Emirati partner is required to hold 51%. However, knowing how things work in Abu Dhabi could save a foreign company significant amounts of money, because whilst the shareholding structure is required to be 51% in favour of the local partner, the profit share doesn’t need to match this. So, the foreign company can actually, legally secure and protect the majority of its profits. Imagine not knowing this and not being able to take advantage of this opportunity and the potential loss of profits.
Protecting Ownership Of The Business – As a local partner is required in an LLC structure the importance of carrying out due diligence to appoint the right local partner is important to ensure the ownership of your organisation is secure. If your experience and connections in Abu Dhabi are limited, it is important not to rush in to appointing a local partner (aka local sponsor) and putting your business at potential risk. It’s easy to meet people and get carried away with their promises and good intentions, but take a step back and consider…would you start a business in your home jurisdiction with a random person that you just met? Incredibly unlikely! Therefore, doing due diligence to identify a suitable partner for the ownership of your business is a huge undertaking and one which shouldn’t be taken lightly. Individuals bring emotions and other risks to the business structure, so identifying a corporate nominee partner is a safe option. After all, protecting your assets is the primary concern here. If the individual is keen to open doors or making promises which are too good to be true, then most likely they are, so don’t risk the ownership of your business with such promises – a separate agreement can always be structured whereby the individual is remunerated based upon deliverables – which could be a win-win for both parties.
How Gateway Helps With Secure Business Structuring In Abu Dhabi?
Abu Dhabi’s Gateway Group works with foreign companies to understand their business intentions. We identify any potential risks and highlight ways in which to mitigate them, so their corporate structures are protected, they have operational control and they retain the profits in the Abu Dhabi business. Gateway’s experienced, on-the-ground experts ensure foreign companies have sufficient information to make informed decisions that are right for their business. Through its Special Purpose Vehicle (SPV), Gateway also provides a corporate nominee sponsorship service so clients have maximum control of their business.
To discuss setting up your Abu Dhabi business with Gateway as your local sponsor or to change your existing local sponsor to Gateway, please email us: info@GatewayToAbuDhabi.com
Written by Jenny Hunt, Founding Partner & CEO, Gateway Group of Companies, Abu Dhabi UAE
Related Blogs: 100% Foreign Ownership Is Possible In Abu Dhabi With A Foreign Branch Setup CLICK HEREHow To Choose A Local Partner CLICK HERE
By providing customised business setup, corporate local sponsorship services, and visa processing in Abu Dhabi, award-winning Gateway Group uses its on-the-ground experience and expertise to protect your business and your profits.
For assistance with your Abu Dhabi business set up, local sponsorship, visa processing and ongoing Trade License renewals, Email us: Info@GatewayToAbuDhabi.comGateway Group – We`re pretty good at what we doGateway’s Jenny Hunt: Winner CEO Today Magazine’s CEO Middle East Awards 2019: CLICK HEREGateway ranked in the ‘10 Most Promising Middle East Corporate Business Service Providers 2019‘: CLICK HEREGateway CEO, Jenny Hunt, in FORBES’ Top 100 Most Influential Women in the Middle East 2018: CLICK HEREGateway is ranked in the Top 20 Abu Dhabi blogs to follow in 2018: CLICK HEREGateway are winners of Best Company Formation Specialists 2018 MEA Markets 2018 UAE Business Awards
Gateway awarded 2018’s Most Outstanding Business Setup Services – The UAE CV Magazine 2018 Corporate Excellence Awards
4th April 2019
Does your restaurant or central kitchen have the ultimate kitchen team? If so, your business should be thriving. If not, have you considered how getting the right team in place could enhance your business and ultimately your profits and customer experience? The team dynamics in your kitchen determines its success. You may have the greatest individual chefs in the world, but if they don’t gel together, you don’t have the ultimate kitchen team.
Building your kitchen team for better business
Building the right kitchen team solely relies on the individuals themselves and their ability to work together. When interviewing for available positions within your team you will need to think of many points, including the following:
TRUST – Without trust, your group of chefs will never become a team. Trust that your team have each others’ backs. Trust that everyone will pull his or her weight. Trust that the Executive Chef or Head Chef will support the decisions and actions of the team.
EXCELLENT COMMUNICATION – Complete, consistent, timely and honest communication from the top down and the bottom up is the number one rule for successful teams. Keep the information flowing and rumours at bay by being open and honest. Its imperative that each person in the kitchen team knows what orders are coming in and how each impacts their particular duties. Communicating with each other avoids unnecessary delays and food wastage.
SHARE – Successful teams share victories, happiness and opportunities ahead. They also share the pain and the blame when necessary. Ultimately they share knowledge to encourage and develop each other.
RESPECT – Chefs who are prepared to jump in and help when needed are essential for the ultimate kitchen team, even higher grade chefs, such as sous chefs, head chefs and executive chefs should be prepared to pitch in when needed. This is leading by example, supporting the team and earns respect. Even the lower grade chefs such as chef de partie and the kitchen helper are key elements in the team and their participation and actions contribute to the overall success. Their stepping up and going above and beyond, when necessary, will earn the respect of the rest of the team, as well as help them to develop their skills and experience on the job.
ENCOURAGE – Kitchen leaders need to encourage junior team members and support them to reach for the top. Constant encouragement of “be better, I know you can be” is essential. Give them a pat on the back and then raise the bar once again.
12th March 2019?
Is a local sponsor still required for businesses in Abu Dhabi? Currently, yes!
What is the requirement for a local sponsor?
A local sponsor is required in different capacities, depending upon the structure of the business on the Abu Dhabi mainland (i.e. not a free zone company). The most common structures and their local partner requirements are as follows:
Limited Liability Company (LLC)
Local sponsor required to hold 51% of the shares. Maximum foreign shareholding currently allowed is 49%.
100% owned by a foreign company. A local partner, in this instance referred to as a Service Agent, is required to facilitate the branch registration, but they do not have any ownership of the company. An agreement is entered into and the Foreign company will pay the Service Agent an annual fee.
100% owned by a foreign individual. As with the Foreign Branch, a Service Agent is required, but doesn’t have any ownership in the business. The Service Agent will enter into an agreement with the foreign individual and receive an annual fee.
Relaxation of Foreign Ownership Restrictions
It has been long anticipated that the foreign ownership restrictions on LLCs will be relaxed. This was further enhanced towards the end of 2018 when the UAE published its new Foreign Direct Investment Law, Decree Law No. 19 of 2018. However, this will only allow 100% foreign ownership in certain sectors. These sectors are yet to be confirmed.
It is also yet to be announced what the criteria will be for foreign companies to enjoy the 100% ownership. We anticipate that that there will be requirements for knowledge transfer and Emiratisation quotas to open up more opportunities for Emiratis to secure employment in the private sector. Whether there will also be a requirement for a Service Agent is not yet clear.
What makes a good local sponsor?
Whilst a local sponsor is still needed, we suggest considering the following suggestions:
Choose a sponsor who is readily available to sign documents when required
Choose a sponsor who manages all of the companies they currently sponsor – this will mean they actively manage any blocks that may arise in the Ministry of Human Resources & Emiratisation (MOHRE), which could affect you being able to process visas for your own business
How can Gateway help as your local sponsor?
Gateway provides a corporate nominee sponsor service. This means, rather than an individual Emirati being the local sponsor it is a Gateway company which is the sponsor. This provides numerous benefits as outlined below, which are all designed to ensure that you can run your business as smoothly as possible:
Ensures your ability to maintain full control of the company, including the management, finances and personnel.
Benefit from the Western-managed corporate sponsorship platform which provides full signatory powers to Western professionals, thus limiting communication barriers and ensuring timely review and availability for signing of documents.
Gateway manages all of the companies sponsored by our Emirati partners, thus we don’t get into situations with MOHRE blocks which could prevent all our sponsored companies from processing visas, which in turn could prevent you from doing business. We manage all of our sponsored relationships very closely to ensure your business continuity.
Secures your profit 100% to retain the full amount.
Have peace of mind of a structured agreement thus removing any emotional attachment.
Business continuity during such time of succession, rather than a period of uncertainty where an individual sponsor’s beneficiaries inherit and decide what to do with their shares of the estate (including your business).
Clear termination strategy of three months, avoiding potential exit fees and timely negotiations.
Benefit from a local sponsor which already has Supreme Petroleum Council approval, thus meeting the local partner requirements for such approval. Ideal for companies wanting to work directly with ADNOC in the oil and gas sector.
Benefit from a local sponsor with both partners experienced in Classification, one of whom is an Emirati engineer and the other who is working in the Classification department and will thus fully understand your business requirements. Ideal for construction and engineering companies.
5th March 2019
Gateway is delighted to announce it is ranked in Silicon India’s ’10 Most Promising Middle East Corporate Business Service Providers 2019′ and one of only two in Abu Dhabi. CLICK HERE to read the article about Gateway’s business services.
Gateway helps great companies to setup and succeed in Abu Dhabi by providing the following essential business services:
Food & Beverage specialist consultancy including menu engineering, kitchen design, operational assessment and staff & service development
Sophisticated psychometric profiling to measure behaviour, values, practical competencies & dimensions of though – essential for having the right team in place when expanding into a new market and available in 27 language, including Arabic, making it ideal for the UAE and Emiratisation, ensuring that nothing gets lost in translation
Abu Dhabi’s first event to help startups get licensed, operate successfully, manage their finances and cashflow and reach their target markets successfully. 360° Support. And, It’s FREE!
Who Should Attend?
If you have enthusiasm, determination and are ready to take action to make changes to your life and business, then this is the event for you.
It’s a full day event with presentations & workshops hosted by industry experts in various fields sharing knowledge & experience to help entrepreneurs and startups make informed decisions about setting up & managing their businesses successfully and identifying your target customers and how to reach them.
When and where is the event?
Monday 25th March. Registrations from 8am at Abu Dhabi Golf Club.
What Extra Support is Available to Entrepreneurs at the event?
Book early to avoid disappointment
Register your place in the link: Set Up & Succeed Event RegistrationOnly 150 places available!
To make your dream happen, you need to take action!The following experts are presenting at the Set Up & Succeed Event:
Gateway Group of Companies
Setting up a business in Abu Dhabi
Choosing a local partner (sponsor)
Abu Dhabi’s new incubator licenses for startups and entrepreneurs, including baking & cooking from home
International Free Zone Authority
Find out about this new, innovative free zone and its benefits, such as no requirements to lease commercial space making it a really affordable free zone option for both consultancy and trading licenses.
‘7 Tips on how to make your business succeed’
An interactive workshop to manage and maximise your finances and cashflow.
Red Blue Blur Ideas (RBBi)
‘Users: the missing piece of your Digital strategy’
In this session, you will learn the most up-to-date digital trends to increase your visibility online, by using a user-focused approach.
‘Using journey mapping to know your business and customers better’
Chelsea Mundy-van der Spek – Tiny Bean Events
Chelsea has been there, done it and got the T shirt! She will be sharing her experiences of being a housewife and setting up an incredibly successful events business – her story is fascinating and combined with her energy, enthusiasm and determination, she’ll be inspiring everyone who is genuinely ready to take action and follow their entrepreneurial dream.
27th February 2019
Side hustling is extremely popular globally, but can you do it in Abu Dhabi, UAE?
What is side hustling?
Side hustling is a way to make extra money. Over recent years it has become a booming sector of entrepreneurs around the world, either making additional income on the side of their main salaried job or as a step to giving up their 9-5 to become financially self sufficient. The boom in side hustling has been enhanced massively due to recent advances in technology, distribution channels and of course social media.
So can you side hustle in Abu Dhabi?
Until recently, it was possible to side hustle, but it was expensive to get licensed and it was necessary to get a little creative with structuring the ownership of the license. In essence, to be able to carry out a side hustle the license fees an entrepreneur would incur would match those paid by a multi national setting up in Abu Dhabi.
However, in the latter part of 2018, the government of Abu Dhabi opened up a new license option for UAE expat residents, called Tajer, making it much more cost effective to set up a side hustle. This, combined with the waiving of local government fees for new businesses setting up in Abu Dhabi, as part of a three year strategy to stimulate the local economy, makes it a great time to start a side hustle in Abu Dhabi.
Do you need a license for your Abu Dhabi side hustle?
Absolutely! Yes! For any type of business in Abu Dhabi it is mandatory to have a license. A side hustle is the same.
What are the benefits of the new Tajer Abu Dhabi license for expat residents?
Over 1000 activities available to choose from, including trading, meaning lots of opportunities for most potential startup businesses
No office space/shop required for the first two years meaning you can work from home and save on office lease costs
Quick setup, often within a matter of hours, means you can get started straight away
License fee due at the start and then nothing to pay for the first two years
Easy bank account opening – all you need is your Tajer business license, original Emirates ID and original passport
Multiple shareholders are allowed, meaning friends can collaborate on a new business venture together
The initial license is valid for two years meaning you can focus on developing your business. Think of it as a business incubator.
Are there any limitations with Tajer license?
If you are selling via a website, it should be .ae rather than other any other suffix
Must be a UAE resident with an Emirates ID card
It is not possible to employ staff (but when you get to that point, your side hustle is obviously growing that you can afford to advance and step away from the Tajer license, alternatively you could consider outsourcing
Activities are restricted to those which don’t require special approvals
After two years, it is necessary to lease a commercial premise related to the activity on the license
After two years, standard local government license fees will be payable and these will vary upon depending upon the activity of the business.