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Establishing a company in Abu Dhabi has the potential to be profitable. One of the most popular business structures in the UAE is the Limited Liability Company (LLC). This type of company offers various benefits, including limited liability protection and flexibility in management. In this guide, we will walk you through the process of registering an LLC in Abu Dhabi, ensuring you understand each step clearly.
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An LLC, or Limited Liability Company, is a type of business entity that provides limited liability to its shareholders. In Abu Dhabi, an LLC can be formed by a minimum of two and a maximum of fifty shareholders, whose liability is limited to their shares in the capital. This structure is ideal for small to medium-sized businesses looking to establish a presence in the UAE.
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Before diving into the registration process, it’s important to understand the benefits of establishing an LLC in Abu Dhabi:
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Now, let’s explore the detailed steps involved in registering an LLC in Abu Dhabi:
The first step is to determine the nature of your business activity. The Department of Economic Development (DED) in Abu Dhabi has a comprehensive list of business activities you can choose from. This step is crucial because your business activity will determine the type of licenses and approvals you need to obtain.
Next, you need to choose a trade name for your LLC. The trade name should reflect the nature of your business and comply with the naming conventions set by the DED. Make sure the name is not already in use and is unique. Via the DED web site, you can find out if your preferred trade name is available.
According to UAE law, an LLC must have at least 51% of its shares owned by a UAE national. This requirement necessitates finding a local sponsor or partner. A person or a business can serve as the local sponsor. While the local sponsor holds a majority of the shares, the distribution of profits and management control can be structured through mutual agreements.
The Memorandum of Association (MOA) is a legal document that outlines the company’s structure, shareholders, and business activities. It should be drafted in both Arabic and English. The MOA must include details such as the company’s name, office address, capital distribution, and profit-sharing arrangements. This document needs to be notarized by a public notary in Abu Dhabi.
Before proceeding with the registration, you need to obtain initial approval from the DED. This approval indicates that the government has no objection to your business activity. To get this approval, you must submit the following documents:
Having a physical office is a mandatory requirement for registering an LLC in Abu Dhabi. You need to rent office space and obtain a tenancy contract. The office location must comply with the regulations set by the DED and the local municipality. The tenancy contract will be part of the documents submitted for the final approval.
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With the initial approval in hand, you need to submit the complete set of documents to the DED for final approval. These documents include:
Upon submission of all required documents, you need to pay the necessary license fees. The fee amount varies based on the nature of your business and the size of your office space. The DED will issue a payment voucher, and once the payment is made, your business license will be processed.
After completing the payment, the DED will issue your business license. This license officially allows you to operate your LLC in Abu Dhabi. Ensure to keep the license in a safe place as you will need it for various administrative and operational purposes.
Once you have received your business license, the next step is to register your LLC with the Abu Dhabi Chamber of Commerce. Membership in the Chamber of Commerce is mandatory and provides various benefits, including networking opportunities and business support services.
With your business license, you can now sponsor visas for your employees and their families. The number of visas you can apply for depends on the size of your office space and the nature of your business. The process involves submitting the required documents to the General Directorate of Residency and Foreigners Affairs in Abu Dhabi.
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The final step is to open a corporate bank account for your LLC. Choose a bank that best suits your business needs and submit the required documents, including your business license, Memorandum of Association, and passport copies of the shareholders. The bank may also require a board resolution authorizing the opening of the account.
Registering an LLC in Abu Dhabi involves several steps, from determining your business activity to opening a corporate bank account. While the process may seem daunting, each step is crucial for ensuring your business operates legally and efficiently. By following this guide, you can navigate the registration process with confidence and set up a successful LLC in Abu Dhabi.
The benefits of establishing an LLC in this vibrant city are immense, offering access to a thriving market and a favorable business environment. With careful planning and adherence to the legal requirements, your LLC can thrive and contribute to the dynamic economy of Abu Dhabi.