Abu Dhabi Mainland Business and Company Formation

Abu Dhabi Mainland

Abu Dhabi Mainland Business Setup & Company Formation

Abu Dhabi Mainland Business and Company Formation

Are you looking to set up your business in Abu Dhabi but don’t know how to? Here we cover everything from requirements to set up your business in Abu Dhabi, UAE to the legal agreements in the Abu Dhabi, UAE.
We have a number of solutions for having the required license from the government and getting your business certified by the most suitable agency. All of this is without any hassle. So why not let’s get started?

Setup and Registration

How to Set Up a Business in Abu Dhabi Mainland

Setting up a business in Abu Dhabi requires you to know where you want to set up your business and what kind of business you will set up. The license is always according to the type of company you plan to set up.

For example, if you are planning to establish a professional service business, then you will require a professional license, and similarly, if your business performs trading, then a commercial license will be needed. Knowing your business type is the first step to setting up a company in the UAE.

Setting up a business in Abu Dhabi Mainland will require you to have a local sponsor, and he must own around 51% of the actual shares of the company. On the other hand, the other shareholders can only hold the remaining 49% shares of the company. This is mandatory for setting up a business, and you have to finish up a legal agreement with the local sponsor to proceed further.

There are differences between setting up a business in Abu Dhabi Mainland or setting up in Abu Dhabi Free Zone.

Let’s discuss the legal requirements to finish setting up a company.

Setup and Legal Jurisdictions

Requirements for Company Set Up and Legal Jurisdictions

This procedure is the same as setting up your business in any other emirate in the same country. If you are well aware of the whole process, then you will be able to get the license a bit earlier. After getting the license, you are good to get started with your business. Let’s talk about each step in detail:

Conclude the Basics

As discussed above, you need to ensure your business type, the type of business license you need, and where you will set up your business in UAE, i.e., location. The basics depend on the type of your business you will establish. After that, you need to get many approvals and authorizations done from relevant administrations and departments.

Apply for Initial Approval

This is the next step in setting up your company. You need to visit the Department of Economic Development (DED) in Abu Dhabi to get the initial approval for setting up your company on the Mainland. You must submit all your required documents, certificates, and some identity cards to confirm your identity so that the process can get started.

Look for a Local Sponsor

As discussed above, this requirement is a must consideration. You need to search out a local Emirati sponsor to get the company set up in Abu Dhabi. This local sponsor will hold at least a 51% share of your company shares, and he will be responsible and accountable to the government and other legal departments about everything.
You must look for a reliable local sponsor as he has all the game in his hand. You may have a very smooth procedure with a reliable local sponsor or may fall into extreme complications for not having a credible local sponsor.

Commencement of Legal Process

There are two things needed to legalize your company in Abu Dhabi. These are the Memorandum of Association (MOA) and Article of Association (AOA). These will contain all the company policies and explain the responsibilities of the individual and how much authority a company member has. We recommend you talk to some experienced head of a business set up so that you can come out clean of this legal process. It must require you to submit certain documents as well.

Rent Space

Of course, you are setting up your company, so you need a space for it. You must find a clean and suitable place depending upon your type of business. Remember, your setup location is directly proportional to your progress, so always find a good spot for you.

Approvals

You may need some additional approvals if you have a specific type of business. These additional approvals are required from departments and authorities.

Business License

When you have completed all the above requirements, you are good to have your company license. You just need to write down an application about issuing your license per your type of business. Attach all the required documents, including copies of renting of office and office space, agreement or contract with a local sponsor, passport, and MOA and AOA as well.

Benefits and Advantages

Let’s see the benefits of making your company in Abu Dhabi.

1. Complete Foreign Ownership

Previously, only foreign shareholders could not fully own setups having a commercial license. Now, ADDED recently came up with a list of hundreds of commercial activities that foreigners can avail of.

2. Trade in UAE

You can extend your business and trade in the UAE without space limitations. If you want to help government projects run smoothly, setting up a company in Abu Dhabi is a good idea.

3. No Personal Tax

With your company in Abu Dhabi, you do not need to worry about paying personal tax as you only need to pay VAT which is paid at a rate of just 5%.