Abu Dhabi Mainland

Built for your business needs

Abu Dhabi, the capital of the United Arab Emirates focuses on oil exports and commerce with attractions of modern towers and shopping mega centers. Establishing a business in Abu Dhabi is an excellent way to legitimately book international profits without paying any tax. Besides, there are no capital gains or personal income taxes in Abu Dhabi.

About Abu Dhabi Mainland Company

A business firm in Abu Dhabi mainland will need a local sponsor, who will hold 51% of the shares of the company. The ex-pat shareholders can hold the remaining 49% of the shares. On the other hand, an expatriate can hold 100% shares in the professional firm set up in Abu Dhabi. A local service agent is a mandatory requirement in that case. The relevant agreements with the local sponsor or local service agent must be concluded to progress the business setup formalities.

Types of licenses

For setting up a business in Abu Dhabi Mainland one must obtain a specific license depending on the type of business. Some of the trade licenses are as follows:

1. Tourism License

The Tourism license is issued by the Abu Dhabi Tourism and Cultural Authority. This license is granted to companies offering tourism-related services like hotels, travel agencies, boat rentals, and so on.

2. Occupational License

An occupational license is for businesses that involve individuals using their talents, mental and intellectual capabilities, and abilities to serve clients.

3. Commercial License

A commercial license is issued to the companies involved in business activities like public trading companies, construction and real estate, hospitals and clinics, and business contractors.

4. Industrial License

An industrial license is issued to businesses that wish to set up manufacturing operations in Abu Dhabi.

5. Professional License

A professional license is issued to professionals and artisans who are involved in the operation of a specific craft. Examples of professional licenses include carpentry, steelwork, and smithery.

Types of companies

a) Limited Liability Company

This Company is limited by liabilities which means company debts, and responsibilities are distributed between a minimum of two shareholders. As per United Arab Emirates Local Law, A Limited Liability Company has to appoint a UAE national as a sponsor with a minimum of 51% share and 49% can be taken expats.

b) Establishment

Establishment means in Abu Dhabi Mainland (ADDED) a company owned by expats with 100% ownership but there are only limited professional activities under this type of company.

c) Sole Proprietorship

Sole Proprietorship in Abu Dhabi Mainland (ADDED) means a company 100% owned by a UAE national.

d) Branch of Foreign Company

The branch of a foreign company in Abu Dhabi Mainland (ADDED) means a company 100% owned by a foreign company or UAE Free Zone company. There are some listed countries and free zones for branches of foreign company registration.

Procedure for Company Formation in Abu Dhabi Mainland

Step 1- Finalize the Basics

You need to finalize the type of business activity you are planning, the jurisdiction you consider, the business license you need, the location, and other related factors before commencing the procedure for company formation in Abu Dhabi.

Step 2- Apply for Initial Approval

The Department of Economic Development (DED) in Abu Dhabi issues initial approval for establishing a business in the Abu Dhabi mainland. We will assist you with requisite documents, certificates, and identity proofs for the initial approval.

Step 3- Find a Reliable Local Sponsor

A local Emirati sponsor is a mandatory requirement for company formation in Abu Dhabi mainland. The sponsor will hold 51% shares of the company and the authority will address all the legal and financial matters to him. We provides reliable local sponsors, who will turn constructive for the development of your business.

Step 4- Prepare Legal Structure

The Memorandum of Association (MOA) and Article of Association (AOA) form the constitution of the company. It will have the company policies, responsibilities of the individual, and authority assigned to each member and son.

Step 5- Rent/ Lease Space

You will need office space and commercial space (if required) for starting the business. Find a suitable space, as per the laid down dimension specifications, at the right location.

Step 6- Additional Approvals (if needed)

A few types of businesses will have to acquire additional approvals from ministries and departments. Prepare the application and forward it along with the requisite documents.

Step 7- Obtain Business License

Once you have completed all the above-mentioned processes, forward the application for issuance of a trade/ business license. All the documents, including approvals from ministries and departments, copies of passport, renting of office and commercial space, agreement with the local sponsor or local service agent, and notarized MOA and AOA have to be attached to the application.

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