Foreigners can now fully own professional companies in Abu Dhabi
Good times are ahead for all foreign business investors and entrepreneurs. As per the UAE law, till now if you wanted to set up your new business in this country, as a foreigner you would be able to own 49% of the company and you would be required to get into partnership with a local person who would own 51% of your company. However, the UAE government had been taking steps to simplify forming new companies to attract new businessmen and investors by moving towards less stringent terms for owning a business in this country.
Recently the Abu Dhabi Department of Economic Development (AD DED) had announced the launch of a new kind of license- the Professional License that would help a foreign business owner to have 100% ownership of their own company. The Professional License is only for professional activities. This is a specialized license for activities undertaken by professional investors with academic and professional qualification in that particular field and expertise in that area.
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The following are the benefits of the new Professional License:
- 100% foreign ownership.
- The new professional license would allow 604 business activities including Computer, IT, Accounting, Consultancy, beauty sectors, etc.
- There is a very low cost involved in acquiring this professional license which makes it even more attractive to new businessmen.
- The process for getting this license form Abu Dhabi Department of Economic Development is very easy.
- If you already have an existing company, you can adjust the status of your existing license from ‘commercial’ to ‘professional’. The process for the same is fairly simple. You can keep using your existing company registration number and the date of incorporation.
- For companies without Emirati partners, a local service agent would be required. The role of this local service agent would be to manage all licensing requirements. This person would not be liable for any financial or other obligations with respect to the company and its activities, be it in Abu Dhabi or in any part of United Arab Emirates.
- After acquiring a professional license or adjusting the status of an existing company, you are allowed to open commercial branches. No prejudice will be held because you now hold a ‘professional’ license. You just have to make sure that the commercial activities undertaken by this new commercial branch should be complementary to and in line with the professional activity for which you hold the license.
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The Abu Dhabi Department of Economic Development would be issuing the guidelines for acquiring this professional license in the near future. They are also expected to issue a Service Agent Agreement Form which will establish the relationship between the company partners and the local service agent. The website of AD DED already has the model of the professional company’s “Article of Association”.
This new development gives a huge opportunity to all foreign investors.Forming a new business or going through the process of adjusting license status may feel daunting without the guidance from a trustworthy partner. Flyingcolour Business setup services has been helping clients with their business needs since the past 17 years. Please feel free to mail your queries at info@flyingcolour.com or contact us at +971 4 4542366.
