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Abu Dhabi Mainland Company Formation – Mainland Company Setup in Abu Dhabi
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from 6 000 AED

Abu Dhabi Mainland Company Formation – Mainland Company Setup in Abu Dhabi

General Information

Abu Dhabi is the capital and the second-most populous city of the United Arab Emirates after Dubai. It is also the largest of the UAE’s 7 emirates. The city of Abu Dhabi is located on an island in the Persian Gulf, off the Central West Coast.

A Mainland company is a company registered with the UAE Department of Economic Development (DED). This means that if you choose to conduct business in the UAE Mainland, you will need to register a business entity with the DED, which will then issue a business licence for doing business in the UAE.

Mainland companies can take various legal forms that have specific requirements for registration procedures, operations and corporate structure.

Key Specifics

  • stable banking system;
  • ability to work with US dollars;
  • quick company registration;
  • ability to create substance in the country of registration;
  • ability to obtain a residence visa for the company’s shareholders and employees.

Registration Procedure

  1. Choose a company name to be checked for availability (at least 2 names)
  2. Define a company structure (director, shareholders, and manager)
  3. Define the company’s activities
  4. Provide documents for directors / shareholders / attorneys (either originals or notarized copies)
  5. Pay all the necessary fees
  6.  Sign the corporate documents
  7. Get the originals and the company seal

Registration Period

4 weeks

Types of Companies Available for Registration

Sole Proprietorship

​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​Activities:

  • Types of licences: industrial, commercial, trading, professional.
  • Some activities are excluded as per DED’s business regulations and others require approvals of authorities that regulate these activities.
  • If the owner is a national of a country other than the UAE or a Gulf Cooperation Council (GCC) country, they are allowed to obtain a professional licence only.
  • The owner of a Sole Proprietorship engaged in consultancy activities must have a scientific qualification for the activity selected.

Shareholders:

  • Only individuals can be shareholders.
  • A professional-type Sole Proprietorship can be owned by an individual of any nationality.

Manager:

  • A Sole Proprietorship must appoint one manager.
  • No requirements as to the residence of the manager.

Share Capital:

  • No minimum capital requirement.
  • No requirement to pay up the capital for the registration of the entity.

 Name:

  • The trade name must be related to the commercial activity of the entity.

Branch(es):

  • A Sole Proprietorship can have more than one branch. Each branch may undertake one of or all the activities included in the main business licence.

​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​Limited Liability Company

​​A Limited Liability Company (LLC) is a flexible form of enterprise that combines elements of partnership and corporate structures.

An LLC must have 2 to 50 shareholders, each of whom is liable only to the extent of his or her share in the capital of the company.

An LLC can convert into any other legal form, with the exception of public shareholding company. ​

Activities:

  • Types of licences: industrial, commercial, trading, professional.
  • Some activities are excluded as per DED’s business regulations and others require approvals of authorities that regulate these activities.

 Shareholders:

  • Both individuals and legal entities can be shareholders.
  • Starting from 1 June 2021, foreign citizens can own 100% share in a local company unless such a local company conducts activity of “strategic importance” that is subject to additional regulation.
  • Up to 100% of an LLC can be owed by GCC nationals. In this case, the capital can be distributed in different proportions as per the Memorandum of Association.

 Manager:

  • An LLC must appoint 1 to 11 managers for the business. The managers may be selected from the partners.

Share Capital:

  • No minimum capital requirement.
  • No requirement to pay up the capital for the registration of the entity.

 Trade Name:

  • An LLC must have a name derived from its activity or from the name of one or more partners.
  • The name must include ‘limited liability’.

Branch(es):

  • An LLC can have more than one branch. Each branch may undertake one of or all the activities included in the main business licence.

Branch of a Foreign Company

Activities:

  • A branch of a foreign company can practise professional activities and some commercial and industrial activities.
  • An approval from the Ministry of Economy is required for practising commercial and industrial activities.

Shareholders:

  • ​​A branch of a foreign company is 100% owned by the parent company, operates under the same name and conducts the same business as the firm opening a branch in Abu Dhabi.

 Manager:

  • ​​The Board of Directors of a foreign company must appoint a manager to open the branch and to represent the company.
  • No requirements as to the residence of the manager.

Branch of a Free Zone Company

Activities:

  • A branch of a free zone company can carry out commercial, industrial and professional business as long as the activity of the main company is authorised in mainland Dubai.

Shareholders:

  • A branch of a free zone company must be registered with the Ministry of Economy.
  • A company that is 100% owned by GCC nationals may open branches without seeking approval from the Ministry of Economy.

Manager:

  • ​​The Board of Directors of a foreign company must appoint a manager to open the branch and to represent the company.
  • No requirements as to the residence of the manager.
from 6 000 AED

*This fee does not include the fees charged by the Free Zone.

Other options – upon request.