The grand city Abu Dhabi, capital of United Arab Emirates, is considered as a window of the Middle East Region due to its strategic location. Abu Dhabi has been center of attraction for investment from the foreign investors in the industrial sectors including Aluminum, Petrochemicals, health care and financial services sector. As it has abundant industrial land, availability of cheap energy, state of art infrastructure, flexible foreign ownership regulations makes it a perfect choice for investment. Adoption of free-market economy, no income tax levied on profits, low customs duty on imports, free movement of goods have been additional reasons of attracting investments from the foreign business groups.
Foreign companies who want to do business without establishing its office, appoints Commercial Agents to handle their services. The Commercial Agency Law has many restrictions and many foreign investors prefer to set up their own business in Abu Dhabi, UAE to distribute their products or services within UAE.
Company Incorporation In Abu Dhabi can be done in any of the following legal forms:
1. General Partnership Company: This firm can have two or more partners responsible for the liability of the Company. This is confined to UAE nationals and cannot be applied to foreigners as their assets are held overseas. The partners involved in a business need to submit the following documents along with the required fees for incorporation of their partnership company:
- Copy of Partnership Contract
- Copy of Company representative signatory authentication
- Copy of lease contract
- Copy of Residence Permit page of partners
2. Limited Partnership Company: This firm will have one or more partners taking the liability along with in-commendam partner who is responsible for only the liability of the firm to the value of their share in the capital.
3. Public Joint Stock Company: A Public Joint Stock Company Incorporation Abu Dhabi requires ten founder members and the management team will be from 3 – 15. In this company 51% of the shares will be held by UAE nationals. This type of Company will be engaged in banking, insurance and other financial activities, and will have a minimum capital of AED 10 million. Following documents should be enclosed for incorporation:
- Copy of Memorandum of incorporation and Articles of Association
- Founding partners personal documents
- Feasibility study of the project
- List of places the company wishes to operate
4. Private Joint Stock Company: This Company is established by not less than three people and the Chairman, and the maximum number of directors will be UAE nationals. The minimum capital required for establishing such a company is AED 2 million. For private joint stock company incorporation, the documents similar to the public joint stock are required for submission.
5. Limited Liability Company: This is one of the most common forms of company that is incorporated in Abu Dhabi. This has a minimum of two to maximum of fifty people partnering together to form the entity. The capital required for establishing such an entity is AED 150,000. For Limited liability Company Incorporation in Abu Dhabi, the company should get the name and environmental clearance from ministry and draw up the memorandum and articles of Association.
6. Joint Venture Company: Under this type of Company Incorporation Abu Dhabi, two or more partners agree to club together to promote one or more commercial ventures under the same name. The partner’s personal documents along with the contract of joint venture and other documents should be submitted for incorporation.
7. Professional Companies: Those companies that provide professional services to businesses and other establishment come under this category. For these companies the documents to be submitted include personal information, trade name, and service offerings.
8. Abu Dhabi Free Trade Zone: Establishing a company in Free Trade Zone in Abu Dhabi is attractive option as there are several benefits given to the investor, and an excellent business environment is provided. Company Incorporation Abu Dhabi in free trade zone allows 100% foreign ownership, exemption from income tax, import and export duties, and allows 100% capital repatriation.