Mainland Business setup in Abu Dhabi | Company Formation in Abu Dhabi

Home » Abu Dhabi Mainland

Business setup in Abu Dhabi Mainland

Abu Dhabi is the capital of the United Arab Emirates. As such, the national headquarters of all the major Government-run companies are located in Abu Dhabi. This means that it is easier to enter into lucrative Government contracts with a company in Abu Dhabi.

Abu Dhabi also has its own international airport as well as three major seaports. Khalifa Port serves the Khalifa Industrial Zone Abu Dhabi, which is one of the largest industrial free trade zones in the Middle East. Port Musaffah was built to supplement Port Zayed and now serves the Musaffah Industrial Area. Port Zayed has a cruise terminal, with tourism gaining prominence in the emirate. Abu Dhabi also hosts the Red Bull Air Race World Championship, as well as a Formula 1 race every year.

The Abu Dhabi International Airport is home to international airline Etihad, which serves 76 destinations across 49 countries. Two-thirds of the world’s destinations can be reached by means of an eight-hour flight or less from the United Arab Emirates.

How to Register a Company in Abu Dhabi

The first step is to identify the exact business activities that your company will be into. It is indeed possible for a company to engage in more than one business activity, should it so desire. A single Business License is issued for all the business activities that the company proposes to undertake.

As of 2021, a Local Sponsor is no longer required for most business activities. However, certain business activities such as Construction and Defence do require a Local Sponsor. The Local Sponsor must be an Emirati (this is the term used to refer to citizens of the United Arab Emirates) who has attained the age of 21 or a company incorporated in the United Arab Emirates that is fully owned by Emiratis. The Local Sponsor is to own 51% of the company.

It is recommended that you get in touch with a business setup consultant who can advise you on whether a Local Sponsor is required for the commercial activity that you have in mind for your company. A good business setup consultant can put you in touch with the right Local Sponsor, who has experience with the laws and regulations concerning the business activity proposed.

This is not to say that the Local Sponsor takes an active interest in the running of your company. He/She can agree to a hands-off approach, entrusting the Power of Attorney to you so that you remain in full control over your own company. The Local Sponsor is to be paid a Local Sponsor Fee in return for his/her services, which includes legally representing your company before all Government agencies. The Local Sponsor helps arrange visas for yourself, your dependent family members, and your staff.

The company formation documents need to be drawn up at the time of incorporating your company. These may be known better as the Memorandum of Association if there is only a single owner for the company, or as the Articles of Association if there are multiple shareholders in the company. If a Local Sponsor is needed for the business activity you plan to undertake, the name of the Local Sponsor must also be included in the company formation documents.

The company formation documents outline the name of the company, the reason why it is being set up, and who the shareholders are. This is where it is also important to decide on the company structure beforehand, so that the company can be incorporated accordingly.

For instance, if there is only a single owner for the business, it may be incorporated as a Sole Establishment (this is the same as a Sole Proprietorship). If there is more than one owner, the possibility of a Limited Liability Company structure may also be explored. The minimum number of shareholders for a Limited Liability Company is two and the maximum number allowed is 50. In a Limited Liability Company, all the shareholders are equal.

If you want to have minority shareholders and majority shareholders, you could look at a Private Joint Stock Company structure. If you intend to raise capital for your company by selling stock later, you should set it up as a Public Joint Stock Company.

A Branch Office is fully owned by another company – known as the parent company – and should undertake the same business activity. A Representative Office is similar to a Branch Office, except it cannot make a profit. All work needs to be outsourced back to the parent company.

A professional can set up a Professional Company, which needs a Local Service Agent. The Local Service Agent does not own any stake in the company, but legally represents the company before all Government agencies. The Local Service Agent must be an Emirati who has attained the age of 21 or a company incorporated in the United Arab Emirates that is fully owned by Emiratis. The Local Service Agent is to be paid a Local Service Fee in return for his/her services.

An experienced company formation professional can advise you on the best company structure for your business. He/She can also arrange for a Local Sponsor or a Local Service Agent if applicable, albeit one that will be the right fit for your company.

You also need to rent a suitable space for your company. If you are into providing services, you need an office. If you are planning to get into say, general trading of goods and commodities, you need a warehouse. If you plan to deal with foodstuffs, you need a temperature-controlled warehouse. A warehouse may also be required for certain business activities such as logistics.

A business setup consultant can help you procure the necessary approvals you need before applying for company registration and a Business License.

List of Documents Required for Company Registration in Abu Dhabi

The copies of the passport, visa, Emirates ID, and/or proof of residency (as applicable accordingly) needs to be furnished for every individual shareholder. For setting up a Branch Office or Representative Office, the company formation documents of the parent company, duly translated if in a foreign language, also needs to be submitted as part of the process.

If everything is in order, company registration and a Business License are granted within a matter of days. Once you receive your Business License, you can commence operations immediately. You can also proceed to open a corporate bank account for your company, so that you can make and receive payments with ease. Owing to strict anti-money laundering regulations in the United Arab Emirates, it is not easy to open a bank account, but we make it possible.

Why Choose Us for
Opening a Company in Abu Dhabi?

We have years of experience helping open companies on the mainland in Abu Dhabi. We willingly go above and beyond the call of duty, such as by letting you know of the things you should be aware of. You can count on us to tell you beforehand that there are certain rules that pertain to company nomenclature, such as the names of countries not being allowed. Religious names are prohibited by law, and the name of your company cannot begin with terms like ‘Global’ or ‘International’.

Nationalities and the names of geographical regions are allowed. First names may be allowed as long as they are the first name of one of the shareholders. We can run a search to see if the name you have in mind is available, or whether it has already been registered by another business entity. We work closely with our in-house team of legal experts to ensure that everything is above board, as it should be.