Business setup in Abu Dhabi – Overview

Business setup in Abu Dhabi

Abu Dhabi is the capital of United Arab Emirates. It is one of the most favored destinations in the world. It offers wide investment opportunities to the entrepreneurs and in return all the economic sectors. Apart from being the most favored locations in all aspects, Setting up a Business is also stress free due to its transparent and flexible procedures.
There are different forms of legal structures of the business in Abu Dhabi and are classified as onshore and offshore companies. In Abu Dhabi, there are 3 structures to have a Mainland Business setup.

They are: Professional company,LLC Company setup, Branch of a Foreign Company.

Significance of Main Land Company: Fulfils the requirement of having the business both local and International markets. These companies could trade in freely without any limitations.
Various business opportunities from the local market will fall in the way of Mainland companies.

Legal Types in Abu Dhabi Company Setup:

Limited Liability Company (LLC) Setup in Abu Dhabi:-

Limited Liability Company (LLC) is one of the significant legal structures of a Mainland business setup.


  1. A UAE National is required to be appointed as a Local shareholder.
  2. 51% of the shares would be vested upon the UAE National shareholder and the remaining 49% would be vested on to the expatriate shareholder.
  3. Immigration clearance is mandate for the foreign partner.
  4. The managerial powers will be delegated only to the foreign Partner.The UAE national Partner will willingly sign an MOU with the expatriate called as a protection side agreement to surrender his rights as a shareholder and will be considered as a sleeping partner for a fixed annual compensation.
  5. The defining factor for the fee will vary on the type of business.
  6. All the commercial companies are setup as a LLC companies most commonly.
  7. Abu Dhabi LLC company has a broader opportunity to spread their services all over the local Market.
  8. No specific minimum capital requirements.
  9. The investor becomes the partner in the company.
  10. The investor gets the investor/Partner visa as his residency in the country which will enable him to sponsor his dependents.
  11. The partner has the option to launch branches by informing the UAE National Share holder.
  12. The investor can manage the business without the day-to-day interference the local partner.
  13. The assets and capital created will be in the name of the company.
  14. Easy to open corporate bank accounts.

Professional Company Setup in Abu Dhabi

A professional company is that which renders any kind of professional activity. It is wholly owned by expatriates. Professional company can be in the form of a sole establishment or a civil company, both these corporate forms have unlimited liability.

The UAE National appointed would just act as a service agent of the company.
The agent shall have no direct participation in the business and is paid a fixed annual remuneration against the services offered which is mentioned in the local service agent agreement.

  1. Advantages of Professional firm incorporation
  2. No personal income and capital taxes
  3. No corporate taxation
  4. 100% repatriation of capital and profits
  5. Easy to open global corporate bank accounts
  6. The investor becomes the owner in the company.
  7. The investor gets the investor/Partner visa by which he would get the status of being an Investor and further sponsor his/her dependents.

Branch of a Foreign company in Abu Dhabi:-

Any foreign company wishing to have their presence in the local market would eventually look up to setup a branch in Abu Dhabi. A branch office is eligible to promote and market its products, enter into transactions and conclude agreements in the name of the parent company, and offer services to its customer. A branch of a foreign company may carry on its main activity in the Abu Dhabi by Setting up a Local Office. In order to be operating fullfledgly needs to obtain the license from Ministry of economy along with the department of economic development. The UAE national would be an agent in the company. The agent is not entitled to claim any rights or authority in the business of the company. His rights are in respect of his services as determined in the Local service agent agreement.

A branch office is allowed to enhance and advertise the products of its Main Company.
Also, it can enter into transactions and offer services to customers in the local Market.

Advantages of Branch

  1. No personal income and capital taxes
  2. No corporate taxation
  3. 100% repatriation of capital and profits
  4. Easy to open global corporate bank accounts

Cost of Business setup in Abu Dhabi:

The cost of business setup in Abu Dhabi varies depending on the legal type of the business.
The approximate cost for business setup in Trading or service License would be approximately AED 35,000/-. The rental space of the office or the shop will be as per the location selected by the partners.

Business Setup services in Abu Dhabi

By going through this blog, are you looking for any advisory services of business setup in Abu Dhabi, it is a must go through a professional advisory firm having a hands on experience for the same.

We at Clever Corp Business Advisory services hold a vast experience in the relevant subject and will be of your support in getting the necessary requirements accomplished for your business or company setup process in Abu Dhabi. Please feel free to contact us at +971-4-5804048 or +971-58-6412031. Our team of experts would be available to assist you with the requirements needed for company setup. Contact us at