Mainland Company Formation

Abu Dhabi is the capital of United Arab Emirates – UAE and largest among all 7 emirates of UAE is a part of Arabian Peninsula and it lies on Persian Gulf. It is the second most populous city in UAE federation after Dubai. Abu Dhabi holds 9% of world’s oil reserves and 5% of world’s natural gas reserves. This oil reserves gives Abu Dhabi one of the highest GDP per capita in the world and making it wealthiest emirates of UAE. After 2009, Abu Dhabi has started focusing on developing non-oil based economy and largely in to tourism, real estate and retail. Abu Dhabi’s sovereign wealth fund, the Abu Dhabi Investment Authority (ADIA), currently estimated at US$875 billion, is the world’s wealthiest sovereign fund in terms of total asset value as per 2009 data availability.

Why businessmen choose to do business in Abu Dhabi?

  • Abu Dhabi becoming attraction for multinational companies and Small & medium size companies due to its strong oil based and non-oil based economy.
  • It enjoys a centralized location between Asia, Europe and Africa making it very easy for international trading and logistic businesses
  • 0% income tax and 5% VAT makes it very attractive for businessmen originating from high tax paid countries
  • There no barriers on businessmen for foreign exchange
  • Lately Abu Dhabi also becomes center of attraction because of film locations in many successful films.
Depending on the activity, special approvals have to be obtained from specific Government departments like
  • Ministry Of Economy
  • Ministry Of Health
  • Ministry Of Civil Aviation
  • Supreme Petroleum Council
  • Abu Dhabi Custom Authority
  • Department Of Education and Knowledge
  • Abu Dhabi Education Council
  • Abu Dhabi Distribution Company responsible for water and power
  • Abu Dhabi Food Control Authority monitors all food items imported
  • Abu Dhabi Medical Council Governing clinical facilities
  • Central Bank Governing all financial activities
  • Abu Dhabi Tourism Authority & Department Of Culture And Tourism

Company Formation in Abu Dhabi

License to conduct business in Abu Dhabi can be availed through mainly two different licensing authorities. MATES TALENT GLOBAL Business setup can provide all the advisory related to setting up company in Abu Dhabi.

  • Department of economic development in Abu Dhabi issuing licenses for Abu Dhabi mainland businesses
  • Different free zone authorities located in Abu Dhabi issuing licenses for businesses located in Free zones

It is very much necessary to understand the business plan in order to fix the licensing jurisdiction.

Companies located in free zones are not allowed to conduct any direct business on mainland. Traders located in free zones have to sell goods through a distributor located on mainland if they want to trade on mainland. In this case 5% custom duty is charged when goods are transported from free zone to mainland.

Process to Register Company

MATES TALENT GLOBAL business setup service can assist to register company and fulfill process and documentation part. The process is as under.

  • Choosing the most appropriate business activity
  • Choosing the appropriate legal type
  • Choosing UAE national shareholder or Service agent. ( MATES TALENT GLOBAL business setup services provides corporate shareholder / service agent to provide better legal structuring)
  • Booking trade name
  • Obtaining required departmental approvals / Special approvals.
  • Obtaining initial approval / all foreign investors have to obtain an approval from General Directorate of residency and foreign affairs Abu Dhabi (GDRFA) before getting initial approval.
  • Renting commercial business place is mandatory to register mainland license in Abu Dhabi
  • Issuance of business license

Abu Dhabi Mainland Company Registration

Abu Dhabi economic department is issuing licenses for all businesses located on Abu Dhabi mainland. The most preferred legal types of licenses are as under.

  • Sole proprietor – 100% owned by expatriate – professional company
  • Limited liability Company – 51% shares owned by UAE national and 49% shares owned by expatriate. Foreign investors can own maximum of 49% in any commercial business activity.
  • Partnership / civil company – 100% owned by expatriate – professional company
  • Branch of a UAE mainland company
  • Branch of a company located in any free zone in UAE
  • Branch of a foreign company
  • Establishment license – Owned 100% by UAE national