A Limited Liability Company is the most preferred form of the company set up in the UAE. An investor can incorporate this type of corporate structure in the UAE Mainland. Under this, a minimum of 51% total shareholding must be held by a UAE National. Apart from this, a few other exceptions and rules apply to specific industries that vary from Emirate to Emirate.
Explained below, is the guide on setting up a Limited Liability Company in Abu Dhabi for an investor/entrepreneur.
What is an LLC Company?
A Limited Liability Company (LLC) is a company wherein the liability of its shareholders is limited only to the amount of their shares in the business. With a quick and hassle-free procedure and a wide range of business incentives, LLCs are commonly preferred by entrepreneurs and corporations who want to penetrate the UAE market and establish a solid footing in the Middle East region.
Advantages of LLC Company Formation in Abu Dhabi
the benefits of establishing an LLC in Abu Dhabi is as under -
- No minimum capital requirement, except for some business activities like –
- Tourism activities
- Health Care activities
- Architectural and engineering consultancy
- Shipping, freight forwarding, and logistics activities
- Companies in Dubai World Communities (Trakhees)
- Educational services
- No local corporate tax
- UAE resident visa offered to the investors
- Share of profits and losses at a different ratio of the share capital
- Investors can set up branches easily
- No limit in holding properties or offices in the Emirates
- Global/Local bank accounts are easy to open
- LLC Company is allowed to engage in all commercial or industrial activities
- An LLC Company offers unrivaled access to the broader UAE economy
Characteristics of an LLC Company in Abu Dhabi
- Minimum one director and two shareholders are required
- Appointment of a local sponsor is mandatory
- Must rent office premises and hire staff
- The managerial powers must be vested with the investing partner
- The national shareholder must have the maximum – 51% shares in the business
Procedure to Setup an LLC Company in Abu Dhabi
An LLC company can be used as the preferred vehicle for a joint venture between a foreign party and a UAE party if both the parties have a common business objective to be achieved in the UAE. Let us now understand the steps to set up your LLC Company in Abu Dhabi.
- Obtain initial approval from the Abu Dhabi Department of Economic Development (DED) for the trade name and business activity
- If your business activity requires additional approvals, this is the step where you obtain them
- Draft the company’s Memorandum of Association and have it notarized from the courts
- Finalize office tenancy contract and get this attested by Real Estate Regulatory Agency
- Submit the application form, initial approval, and other documents like MOA, tenancy contract, etc. to the DED Abu Dhabi
- After examination by the legal department, the trade name will be entered in the Commercial Register and its Memorandum of Association published in the Ministry of Economy Bulletin
- Pay the required fees
- The DED Abu Dhabi will then issue the license
- Registration of the Company with the Ministry of Labour and the Department of Immigration
- Registration with Dubai Customs Department and getting the Customs Code issued
The steps are simple and straight-forward, but if you need help, then we at Commitbiz are business setup consultants in the UAE with 13+ years of experience in this field and can help you with the procedure.
Our experts at Commitbiz closely interact with clients to help them form an LLC in Abu Dhabi, from the initial to the final phase, and also assists them with strategic ideas. We assist in -
- Getting approvals and clearances from various authorities
- Drafting Memorandum of Association and other important documents
- Finding local sponsors
- Opening bank accounts for your business
- Finding a proper office location
- Handling other documentation formalities
We have years of experience in this field and make the business setup process hassle-free
Please get in touch with us today for more information. We’d be happy to assist you.