Mainland Business Setup in Abu Dhabi
Abu Dhabi being the capital gives thriving business and economic climate to those seeking to incorporate or have a Mainland Business Setup in Abu Dhabi. Abu Dhabi fully supports businesses and entrepreneurs and there are many advantages of setting up mainland business in Abu Dhabi.
How to Incorporate or Setup a Mainland Business in Abu Dhabi
Types of Mainland Business setup in Abu Dhabi
- Branch of Foreign office
- Limited Liability Company (LL.C)
- Professional firms
- Public Shareholding company
- Representative office.
Branch of Foreign Office:
The branch office is an extension of an international parent company. The branch office must also receive a trade license for the same practices which are carried out by its parent company.
Limited Liability Company (LLC)
It is one of the most common forms of business entities, an LCC can be incorporated with the participation of at least 2 shareholders and the maximum number is 50 shareholders. The percentage of liability that each partner must bear depends on the ratio of individual shareholding.
Professional Firms are committed to a particular profession for carrying out their domain-related professional practice. Unlike an LLC, this type of firm does not have a 51 percent shareholding limit.
Public Shareholding Companies
Public Shareholding Companies perform public shareholding, financial and banking, insurance activities. For the establishment process for public shareholding companies, the minimum capital required is US$ 2,725 million and is appropriate for larger projects.
Abu Dhabi allows foreign investors to establish a representative office without any shareholder in presence. A representative office is not involved in the daily activities of companies and is more geared towards the promotion of marketing activities and research.
- Documents required for mainland company formation in Abu Dhabi:
- Passport copies of the shareholders
- Proof of residence of the shareholders.
- Memorandum of Association & Articles of Association
- Bank reference letter
- A location ownership or copy of the Leasing contract.
- Business plan
- Every shareholder and manager's information sheet.
- Schematic drawing for the business location
- A proof of trade name reservation is required.
- Procedure for Mainland business formation in Abu Dhabi:
- Firstly, it is necessary to choose the type of business. Depending on the nature of the preferred business activity the legal procedures and fees are determined.
- Secondly, the foreign companies shall find out a local sponsor who will handle the required licenses for the branch office.
- Then select a type of legal form of the business is required.
- Selection of trade name and then registration of the trade.
- Then different licenses issued by the Abu Dhabi licensing authority shall be obtained.
- Approval by the Directorate-General for Residency and Foreign Affairs (DGRFA) with an initial approval certificate shall be submitted.
- The cost of Mainland company formation depends on activity, structure, premises and the number of visas. Certain fees are One-time legal fees, Annual sponsor fees, Annual commercial premises, etc which shall be paid.
License required for setting up Mainland Business in Abu Dhabi:
- Industrial license
- Professional license
- Agricultural license
- Commercial license
- Tourism license
- Vocational license
Abu Dhabi Mainland business Advantages:
- The law in Abu Dhabi is Liberal which is beneficial for setting business in Mainland.
- There is a Free movement of funds in Abu Dhabi Mainland.
- Easy access to UAE markets.
- There is a wide business scope in Mainland Abu Dhabi.
- Financial viability is attained.
- There is Benefit of Tax exemption
- The workforce in Abu Dhabi Mainland is Inexpensive.