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Setting Up A New Business in Abu Dhabi Mainland
Business Setup Consultants in Abu Dhabi
Register a New Company in Abu Dhabi, the capital city of the United Arab Emirates (UAE), offers excellent opportunities for entrepreneurs and businesses looking to establish a presence in the region.
- Get UAE Residency
- Easy business setup process
- Bank account assistance
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Business Setup in Abu Dhabi Mainland
Abu Dhabi, the capital city of the United Arab Emirates (UAE), offers excellent opportunities for entrepreneurs and businesses looking to establish a presence in the region. One of the options available for company setup in Abu Dhabi is setting up a mainland company. We will explore the process and requirements for mainland company formation in Abu Dhabi, highlighting its benefits and key considerations.
If you’re considering starting a business in Abu Dhabi, the capital city of the United Arab Emirates (UAE), you may be interested in learning about mainland company formation. New Company Register in Abu Dhabi offers a favorable business environment, strategic location, and various incentives for entrepreneurs. In this article, we will delve into the process of forming a business setup in Abu Dhabi mainland, highlighting the key requirements and benefits associated with this type of company setup in Abu Dhabi Mainland. Before we explore the specifics of mainland company formation in Abu Dhabi, let’s understand what it entails. A mainland company refers to a business entity that is registered and licensed by the Department of Economic Development (DED) in Abu Dhabi. Unlike free zone companies, mainland companies have no restrictions on the geographic location of their business activities. They can operate within the UAE market and also engage in international trade without limitations.
Benefits of Company Setup in Abu dhabi Mainland
Mainland Company Formation In Dubai Establishing a new business setup in Abu Dhabi mainland offers several advantages for entrepreneurs and businesses:
- Access to the Local Market
- No Restrictions on Geographic Location
- Full Ownership for UAE Nationals
- Potential for Government Contracts
- Flexibility in Business Activities
1. Access to the Local Market
A mainland company allows you to access the local UAE market and cater to the needs of both local and international customers. It enables you to engage in business activities across the UAE without restrictions on geographic location.
2. No Restrictions on Geographic Location
Unlike free zone companies, mainland companies have the flexibility to operate anywhere in Abu Dhabi or other Emirates of the UAE. This opens up opportunities to serve a wider customer base and expand your business network.
3. Full Ownership for UAE Nationals
For UAE nationals, mainland company formation provides the advantage of 100% ownership. This allows local entrepreneurs to have complete control and decision-making power over their business operations.
4. Potential for Government Contracts
Mainland companies have the opportunity to participate in government contracts and projects, which can be a significant source of revenue. This can contribute to the growth and sustainability of your business setup in Abu Dhabi mainland for foreigners.
5. Flexibility in Business Activities
Mainland companies enjoy greater flexibility in terms of the range of business activities they can undertake. You can engage in various commercial and professional activities, subject to obtaining the necessary licenses and approvals.
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Legal Requirements for Business Setup in Abu Dhabi Mainland
To form a mainland company setup near Abu Dhabi, you need to fulfill certain legal requirementsÂ
- Local Partner
- Trade Name Approval
- Business Activity Approval
- Memorandum of Association (MOA)
- Physical Office Space
- Licensing and Approvals
1. Local Partner
A mainland company requires a local partner who is a UAE national or a company fully owned by UAE nationals. The local partner must hold at least 51% of the shares in the company, while the foreign investor can own the remaining 49%.
2. Trade Name Approval
Selecting a unique trade name for your mainland company is important. The proposed name should be in line with the guidelines set by the Department of Economic Development (DED) in Abu Dhabi. It should not conflict with existing trademarks or violate any regulations.
3. Business Activity Approval
Obtain approval for the specific business activities you wish to engage in. The business activity must align with the UAE’s commercial activities classification and the regulations set by the relevant authorities.
4. Memorandum of Association (MOA)
Prepare the Memorandum of Association (MOA) in Arabic, stating the company’s structure, objectives, and operational details. The MOA must be notarized by a public notary.
5. Physical Office Space
Having a physical office space is mandatory for mainland companies. The office should meet the requirements set by the authorities and serve as the registered address of the company.
6. Licensing and Approvals
Mainland companies must obtain the necessary licenses and approvals from various government authorities, depending on the nature of the business activity. This ensures compliance with local regulations and allows for legal operation.
Cost Of Business Setup In Abu Dhabi Mainland
The costs of Abu Dhabi mainland company formation can vary depending on several factors, including the type of business activity, business structure, and location. Some of the common costs include:
- Trade Name Registration
- Initial Approval
- Legal Fees
- Company Registration Fees
- Commercial Office Space
- Visa and immigration fees
- Other Miscellaneous Expenses
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Register Your Business in Abu Dhabi Mainland | Company Setup UAE
The process of mainland company formation near Abu Dhabi involves the following steps:
- Choose a Business Activity
- Find a Local Partner
- Draft the Memorandum of Association (MOA)
- Obtain Necessary Approvals and Licenses
- Register the Company with Relevant Authorities
1. Choose a Business Activity
Identify the specific business activity you wish to engage in and ensure it aligns with the UAE’s commercial activities classification.
2. Find a Local Partner
Engage with a reputable local partner who meets the legal requirements and can provide the necessary support and expertise. The partnership agreement should clearly outline the roles, responsibilities, and profit-sharing structure.
3. Draft the Memorandum of Association (MOA)
Prepare the MOA in Arabic, stating the company’s objectives, shareholding structure, and operational details. Seek legal assistance to ensure all necessary clauses and provisions are included.
4. Obtain Necessary Approvals and Licenses
Submit the required documents and applications to the relevant authorities to obtain the necessary approvals and licenses for your business activity.
5. Register the Company with Relevant Authorities
Once all approvals and licenses are obtained, register new company in abu dhabi with the Department of Economic Development (DED) or the relevant authority. Pay the required registration fees and provide the necessary documentation.
Abu Dhabi Mainland Post Formation Obligations
After forming a company setup in Abu Dhabi mainland, certain post-formation obligations must be fulfilled:
- Bank Account Opening
- VAT Registration
- Labor Contracts and Employee Visas
- Annual Compliance Requirements
1. Bank Account Opening
Open a corporate bank account in Abu Dhabi to facilitate business transactions. Choose a bank that suits your business needs and provides convenient banking services.
2. VAT Registration
If your company meets the criteria for Value Added Tax (VAT) registration, ensure timely registration and compliance with VAT regulations in the UAE.
3. Labor Contracts and Employee Visas
If you plan to hire employees, ensure compliance with labor regulations, including obtaining appropriate labor contracts and employee visas.
4. Annual Compliance Requirements
Mainland companies in Abu Dhabi must comply with annual compliance requirements, such as filing annual financial statements, conducting annual general meetings, and renewing licenses and permits.
Why Choose Us
Neeja Corporate Services is one of the leading consultants and solution providers for licensing, business incorporation, and other related activities. With the right set of expertise and experience, we help entrepreneurs and business owners acquire licenses and registration in a short span of time.
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Frequently Asked Questions
In most cases, foreign nationals cannot own 100% of a mainland Abu Dhabi company. However, depending on the business activity and certain exceptions, it may be possible to have varying levels of ownership. Generally, a local UAE national must hold at least 51% ownership.
Yes, there are legal requirements that must be met. These include having a UAE national as a sponsor or local service agent, adhering to the applicable company structure and ownership regulations, and complying with the relevant commercial laws and regulations.
Setting up a company in mainland Abu Dhabi offers benefits such as access to a broader market, the ability to do business with the local population, and the opportunity to operate outside the restrictions of a free zone. It also allows for flexibility in selecting office locations within Abu Dhabi.
As of my knowledge cutoff in September 2021, there is no federal corporate tax on companies in the UAE. However, certain emirates and municipalities may impose local taxes and fees. It is advisable to consult with a tax expert or relevant authorities for the most up-to-date information on taxation.
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