How to Register a LLC Company in Abu Dhabi

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.

Table of Contents

What is an LLC?

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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Benefits of Setting Up an LLC in Abu Dhabi

Before diving into the registration process, it’s important to understand the benefits of establishing an LLC in Abu Dhabi:

Limited Liability: Shareholders are only liable up to the amount of their share capital.
Local Market Access: An LLC can trade directly within the UAE market without restrictions.
Tax Advantages: The UAE offers a favorable tax environment, including no corporate or personal income taxes.
Business Continuity: The company can continue to operate despite changes in shareholders.
Flexibility: There are fewer restrictions on the type of business activities an LLC can undertake compared to other business structures.

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Steps to Register an LLC in Abu Dhabi

Now, let’s explore the detailed steps involved in registering an LLC in Abu Dhabi:

Determine the Business Activity

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.

Choose a Trade Name

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.

Find a Local Sponsor

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.

Draft the Memorandum of Association (MOA)

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.

Obtain Initial Approval

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:

A completed application form
Copy of the proposed trade name reservation
Copy of the shareholder’s passports
Initial approval fee

Rent an Office Space

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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Submit the Required Documents

With the initial approval in hand, you need to submit the complete set of documents to the DED for final approval. These documents include:

Initial approval receipt
Notarized Memorandum of Association (MOA)
Trade name certificate
Copy of the tenancy contract
Passport copies of shareholders and managers
No Objection Certificate (NOC) from current sponsors if the shareholder is already a resident of UAE
Approval from other relevant authorities, if applicable (e.g., Ministry of Health for medical-related businesses)

Pay the License Fees

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.

Receive the Business License

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.

Register with the Chamber of Commerce

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.

Apply for Visas

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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Open a Corporate Bank Account

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.

Call +971 4 240 6939 for Registering a LLC Company in Abu Dhabi

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.