How to setup business in Abu Dhabi
Business setup in Abu Dhabi Overview
Abu Dhabi, the capital of United Arab Emirates, is one of the most preferred destinations in the world. It offers wide investment opportunities to the entrepreneurs and in return all the economic sectors. Apart from the fact that it being a place for a safe living, business setup in abu dhabi is also hassle free due to its transparent and flexible procedures.
In many cases, the activities you want to engage in will determine the legal structure of the business however; this is not always the case. There are three main onshore structures to be considered: Professional company, Limited Liability Company (LLC), Branch of a foreign company.
Highlights of Main Land Company
•Able to capture both local and international markets and trade and serve freely without any restrictions.
•Main Land companies can attract various business opportunities from the local market.
Legal Types in Abu Dhabi Company Setup:
Limited Liability Company (LLC) Setup in Abu Dhabi:-
Limited Liability Company (LLC) is a legal type of Business operating in UAE Mainland.
Specifications:
•A UAE National is required to be nominated as a Local shareholder.
•51% of the shares would be allocated to the UAE National shareholder and the remaining 49% would be allocated to the expatriate shareholder.
•Immigration clearance is a requirement for the expat partner.
•The managerial powers will be entrusted only to the expat Partner.
The UAE national Partner will agree to sign a protection side agreement to waive his rights as a partner and will be considered as a partner for a fixed annual remuneration. The determining factor for the fee will vary on the type of activity.
•The most commonly used method of setting up a commercial company in UAE.
•Abu Dhabi LLC company has a wider scope to spread their services all over the local Market.
•No specific minimum capital requirements.
•The investor becomes the partner in the company.
•The investor gets the investor/Partner visa by which he would get the status of being an Investor and further sponsor his/her dependents.
•The investor has the option to launch branches by intimating the UAE National Share holder.
•The investor can manage the business without the day-to-day interference the local partner.
•The assets and capital created will be in the name of the company.
•Easy to open global corporate bank accounts
Professional Company setup in Abu Dhabi
A professional company that carries out any kind of professional activity is official to be wholly owned by expatriates. Professional company can be in the form of a sole establishment or a civil company, both these corporate forms have unlimited liability.
Specifications:
•UAE national must be appointed as local service agent for a sole establishment or a civil company.
•The agent shall have no direct involvement in the business and is paid an annual remuneration against the services offered.
Advantages of Professional firm incorporation
•No personal income and capital taxes
•No corporate taxation
•100% repatriation of capital and profits
•Easy to open global corporate bank accounts
•The investor becomes the owner in the company.
•The investor gets the investor/Partner visa by which he would get the status of being an Investor and further sponsor his/her dependents.
Branch of a Foreign company in Abu Dhabi
This option is most suitable for a company who wants to enter into the local market and is unavoidable to hold back their share-holding. A branch office may promote and market the products of the parent company, enter into transactions and conclude agreements in the name of the parent company, and offer services to its customer. A branch of a foreign company may carry on its main activity or business in the Abu Dhabi by establishing a Local Office after a license is issued by the Ministry of Economy and Commerce. The UAE national would be an agent in the company. The agent is not entitled to claim any rights or authority in the business of the company. His rights in consideration of his services are determined by agent agreement.
Specifications:
•A branch office is allowed to boost and advertise the products of its Main company.
•Also, it can enter into transactions and offer services to customers in the local Market.
Advantages of Branch
•No personal income and capital taxes
•No corporate taxation
•100% repatriation of capital and profits
•Easy to open global corporate bank accounts
Cost of Business setup in Abu Dhabi
As mentioned above, there are different legal types of businesses which could be setup in Abu Dhbai, the cost vary for every License. The approximate cost for business setup in Trading or service License would be approximately AED 35,000/-. As Abu Dhabi being the capital city of UAE, the rents of the office would vary compared to any other emirate which would be slightly on a higher side.
Business Setup Consultants in Abu Dhabi
Looking at the above description on the services and the overview of Business setup in Abu Dhabi, It is always advisable to hire professional business consultants for business setup process in Abu Dhabi to ease the work and get the proper guidelines at every stage. We at flying Colour business setup services have proven experience and expertise as Business consultants in Abu Dhabi and can help you with your requirements for business setup in Abu Dhabi. Please feel free to contact us. Our team of experts would be available to assist you with the requirements.
