A Limited Liability Corporation is the most common type of business set up in UAE. This sort of company structure can be formed by an investor on the UAE Mainland. A minimum of 51% of the entire ownership must be held by a UAE national. Aside from that, a few other restrictions and laws apply to specialized businesses, which differ by Emirate.
The process of LLC company formation in Abu Dhabi for an investor/entrepreneur is detailed below.
What is a Limited Liability Company in Abu Dhabi?
A Limited Liability Company in Abu Dhabi (LLC) is a firm in which the shareholders' liability is limited to the number of their shares in the company.
LLCs are often selected by entrepreneurs and organizations who wish to access the UAE market and create a stable footing in the Middle East area due to their quick and easy procedure and a wide choice of business incentives.
Benefits of Abu Dhabi LLC Company
The benefits of Abu Dhabi LLC Company are many. Let’s look at a few of them
There is no minimum capital required except for certain activities like tourism, healthcare, architectural and engineering consultancy, shipping and logistics, companies in Dubai World Communities, and educational services
There is no local company tax.
Investors can get a residency visa in the UAE.
Profits and losses are distributed in proportion to the share capital.
Investors can readily establish branches.
There is no restriction on having properties or offices in the Emirates.
LLC may easily create global/local bank accounts. The company is permitted to participate in any commercial or industrial activity.
An LLC Company provides unparalleled access to the UAE economy.
LLC Abu Dhabi – Features
Business set up in Abu Dhabi is intensely regulated to create a healthy forum for entrepreneurs. Each setup has its own characteristics and features. LLC Abu Dhabi also has certain characteristics, and they are
There must be at least one director and two stockholders.
A local sponsor must be appointed. It is necessary to rent office space and recruit personnel.
The investment partner must have managerial authority.
The national shareholder must own a minimum of 51% of the company.
Setting up an LLC Company Abu Dhabi Procedure
If both parties have a shared commercial aim in the UAE, an LLC firm is the preferred vehicle for a joint venture between a foreign party and a UAE party. Let us now look at how to set up your LLC Company - 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. Based on your activity, obtain permissions from relevant authorities.
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 Documents
Submit the application form, initial approval, and other documents like MOA, tenancy contract, etc. to the DED Abu Dhabi
Trade Name Registration
After examination by the legal department, the trade name will be entered into the Commercial Register, and its Memorandum of Association published in the Ministry of Economy Bulletin
Pay the required fees and 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
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.
Get in touch with us today for more information. We’d be happy to assist you.
Which activities of an LLC company in Abu Dhabi requires capital?
Activities like tourism, healthcare, architectural and engineering consultancy, shipping and logistics, companies in Dubai World Communities and educational services require a capital deposit.
What is the minimum number of directors an LLC should have?
There should be a minimum of one director and one stockholder.
Can an investment partner of an LLC firm in Abu Dhabi hold a managerial authority?
Yes, they can.
Is MOA necessary for an LLC Abu Dhabi firm?
Yes, it is required.
How long does it take for an LLC company formation in Abu Dhabi?
It will take approximately around 2 to 4 weeks.