Mainland Company Formation in Abu Dhabi

Starting a business in Abu Dhabi, the capital of the UAE offers a wealth of opportunities for both local and international entrepreneurs. The UAE’s favourable business environment, tax incentives, strategic location, and world-class infrastructure make Abu Dhabi an ideal location for business operations.

Filings.ae is here to help you navigate the process of setting up your business on the Abu Dhabi mainland with ease. Whether you're a local entrepreneur or a foreign investor, our team of experts provides comprehensive support at every step of the company formation journey.

Abu Dhabi: A Business Hub in the UAE

Abu Dhabi is the capital of the United Arab Emirates (UAE) and one of the most prosperous cities in the Middle East. Known for its oil reserves, Abu Dhabi has diversified its economy to become a global business hub, offering thriving sectors in real estate, tourism, construction, finance, and technology. The UAE's strategic geographical location, favourable business climate, and the government's commitment to innovation make it an attractive destination for investors and businesses.

The city offers access to a growing consumer base and provides a gateway to regional and global markets. Whether you are looking to start a small-scale business or expand a large enterprise, Abu Dhabi offers unparalleled opportunities for growth and expansion.

Why Set Up a Business in Mainland Abu Dhabi?

Setting up a Mainland business in Abu Dhabi provides several key advantages:

• Access to the Whole UAE Market: A Mainland company is not limited to any specific geographic zone and can conduct business in any part of the UAE. This includes the ability to operate in free zones and across all emirates, making it a versatile option for entrepreneurs.
• No Restrictions on Business Activities: Mainland companies can engage in a broader range of activities, unlike businesses in some free zones. This gives entrepreneurs more flexibility to grow their businesses in diverse sectors such as retail, consulting, manufacturing, and more.
• Increased Business Credibility: Operating a Mainland company often enhances the credibility of a business. Clients and partners tend to view Mainland businesses more favourably due to the regulations and compliance required to operate in the UAE.
• Unlimited Business Expansion: Unlike some other jurisdictions, there are no limits on the number of licenses a Mainland company can hold. Businesses have the flexibility to add more business activities and expand their operations as needed.
• Competitive Advantages: With no restrictions on the number of foreign employees and the ability to establish business operations across the country, Mainland companies have the potential to scale quickly and gain competitive advantages in various sectors.

Governing Authority for Mainland Company Formation

The primary authority responsible for Mainland company registration and formation in Abu Dhabi is the Department of Economic Development (DED). The DED supervises all business operations in Abu Dhabi and ensures that businesses comply with local laws and regulations.

The DED is in charge of the following tasks:

•  Issuing business licenses for companies based in Abu Dhabi.
• Regulating business activities to ensure that companies comply with the applicable laws.
• Overseeing company registrations and approving trade names.
• Ensuring compliance with the UAE’s economic and commercial regulations.

Types of Business Licenses in Abu Dhabi

The DED in Abu Dhabi offers a range of licenses based on the type of business activity. The most common types of business licenses available are:

Commercial License

A Commercial License is required for businesses that involve trading, distribution, or retail activities. This license is ideal for businesses engaged in buying and selling goods, such as retail stores, wholesalers, and import/export businesses.

Professional License

A Professional License is for service-based businesses that provide specialised services. This includes sectors like consulting, education, healthcare, legal services, and IT services. This license is suitable for businesses run by professionals, including doctors, lawyers, and architects.

Industrial License

An Industrial License is required for businesses involved in manufacturing, production, or industrial operations. This includes companies that are engaged in the processing or transformation of raw materials into finished products, such as factories or production plants.

Tourism License

A Tourism License is necessary for businesses in the tourism and hospitality industry, including travel agencies, tour operators, hotels, resorts, and entertainment establishments. With the growing tourism sector in Abu Dhabi, this license opens doors to a lucrative market.

Agricultural License

An Agricultural License is required for businesses engaged in agricultural activities such as farming, fishing, and food production. This includes companies involved in the cultivation of crops, livestock farming, and other agricultural endeavours.

Construction License

A Construction License is needed for companies involved in construction activities. This can range from building contractors and civil engineering firms to companies involved in construction equipment leasing.

Each license type has its specific requirements and regulations that must be followed. Choosing the right license depends on the nature of your business and its activities.

Types of Businesses Structure in Abu Dhabi

Abu Dhabi offers several legal forms for businesses based on their ownership structure and activities. The most common business structures include:

• Sole Proprietorship: Owned by a single individual, this structure is ideal for small businesses or freelancers.
• Limited Liability Company (LLC): A popular option for small and medium-sized businesses, where liability is limited to the extent of the capital invested.
• Civil Company: Suitable for professionals such as doctors, lawyers, and engineers who wish to operate as a partnership.
• Joint Venture: A business owned by two or more parties, combining resources and expertise.
• Branch of a Foreign Company: A foreign company can set up a branch office in Abu Dhabi, enabling it to operate in the UAE under the parent company’s brand.
• Holding Company: This structure is used by investors who wish to hold shares in other companies.
• Public Joint Stock Company (PJSC): Suitable for larger businesses with public offerings, allowing for the sale of shares to the public.
• Private Joint Stock Company (PrJSC): A private company structure used by larger entities that do not intend to offer their shares to the public.

Documents Required for Mainland Company Setup

To register your Mainland company in Abu Dhabi, the following documents are required:

• Initial Approval Receipt from the DED confirming the government has no objection to your business’s formation.
• Trade Name Reservation: You must reserve a unique name for your business with the DED.
• Lease Agreement: A signed lease agreement for office space, verified by the relevant authorities.
• Memorandum of Association (MOA) or Local Service Agent (LSA) Agreement, depending on the type of business.
• Passport Copies of all partners, investors, and shareholders.
• Visa Copies of all foreign investors, if applicable.
• Approvals from other government authorities: Depending on your business activity, additional approvals from regulatory bodies might be required.

These documents must be submitted to the DED for review, and once approved, your business will receive its license.

Procedure for Mainland Company Formation in Abu Dhabi

Setting up a Mainland company in Abu Dhabi involves a series of steps that ensure your business complies with all legal and regulatory requirements. Filings.ae is here to guide you through the process and ensure that your company is set up efficiently and effectively. Below, we outline the procedure for forming a Mainland company in Abu Dhabi.

Identify Business Activity

The first step in setting up a Mainland company is identifying your business activity. The activity you choose will dictate the type of license and legal form your company will take. There are over 2,000 business activities to choose from in the UAE, ranging from commercial, industrial, professional, tourism, and agricultural to occupational activities. Selecting the right business activity is crucial as it directly affects your company's operations, the applicable regulations, and the type of license required.

Note: Your business can have multiple business activities, and each may require a separate license. Understanding your business scope and choosing the right activity is crucial for ensuring compliance and operational efficiency.

Select the Legal Form

Once you’ve determined your business activity, the next step is to select the appropriate legal form for your business. The legal form of your company defines your business structure and determines the type of legal obligations, governance, and liabilities.

Register the Trade Name

Once you’ve identified your business activity and legal form, the next step is to register your trade name. A trade name helps differentiate your business from others and reflects the nature of your business activity. Choosing a name that complies with the UAE’s trade name regulations is essential.

Provisions for selecting the trade name:

• The name must reflect the nature of the business and the legal form (e.g., LLC, EST, PJSC).
• It must not violate public morals or public order or use names of religions, governing authorities, or logos of external bodies.
• The name must not have been previously registered.
• The name must align with the type of business activity and legal structure.

To register a trade name, investors can apply through the Department of Economic Development (DED) or their website or mobile app. Upon application, you will receive a payment voucher or transaction number, which is required for payment.

Note: The Ministry of Economy registers trademarks, while the DED handles trade name registration. Trade name certificates are renewable.

Obtain Initial Approval

After registering your trade name, you need to apply for initial approval from the DED. This approval indicates that the UAE government has no objections to the establishment of your business. It also allows you to move forward with further steps in the business setup process.

However, it is important to note that initial approval does not grant permission to operate the business. It merely indicates that the authorities have reviewed your application and have no objection to the company’s formation.

For foreign investors, approval from the General Directorate of Residency and Foreigners’ Affairs is required before obtaining initial approval. Additionally, some business activities require additional approvals from specific government entities related to legal affairs, security, financial securities, and commodities.

Prepare the Memorandum of Association (MOA) and Local Service Agent Agreement (LSA)

The next step is to prepare the legal documents required for company formation. Depending on your legal form, you may need to draft a Memorandum of Association (MOA) or a Local Service Agent (LSA) Agreement.

• MOA: Required for businesses that are structured as a Limited Liability Company (LLC), Limited Partnership, Public Joint Stock Company (PJSC), or Private Joint Stock Company (PrJSC). The MOA outlines the legal structure of the business, ownership rights, and responsibilities.
• LSA: Required for businesses that are 100% owned by non-GCC nationals. This agreement appoints a local service agent in the UAE who will act as a liaison between the company and the government.

The MOA must be attested by a notary public or a court in the UAE, and the LSA agreement must be notarized by a court or notary public as well.

Select a Business Location

All businesses in the UAE must have a physical address to operate. Your business premises must comply with the regulations set by the respective emirate’s DED, as well as the land planning and zoning regulations of the local municipality.

• Office Space: You must secure office space or a retail location before completing your registration. The lease agreement must be signed and submitted to the DED.
• Ejari Registration: In Dubai, the tenancy contract must be registered with Ejari, the UAE’s rental contract registration system.

Obtain Additional Government Approvals (If Required)

Certain business activities in Abu Dhabi require additional approvals from government authorities. Some of these activities include:

• Ministry of Interior: For general transport-related businesses, such as driving schools, car rental services, and fire equipment suppliers.
• Ministry of Justice: For legal consultancy and legal services.
• Ministry of Economy: For businesses in the insurance sector.
• Telecommunications and Digital Government Regulatory Authority (TDRA): For telecommunications businesses.
• Local Health Departments: For health-related activities.
• Supreme Petroleum Council: For oil and gas industry activities.

Submit Documents and Collect the Business License

After completing the necessary steps and obtaining approvals, you can submit the final documents to the DED. The required documents typically include:

• Initial approval receipt
• The lease contract duly attested by the relevant authorities
• MOA or LSA agreement
• Passport copies of investors and partners
• Approvals from other government entities (if required)

Upon review and approval, the DED will issue your business license, officially allowing your company to begin operations.

Compliance Requirements for Mainland Businesses

Once your Mainland business is set up in Abu Dhabi, you must comply with ongoing legal and regulatory requirements:

• Business License Renewal: Your business license must be renewed annually with the DED.
• Tax Compliance: Businesses in Abu Dhabi must comply with VAT regulations and other applicable taxes. You will need to file tax returns and maintain proper financial records.
• Labor Compliance: Adherence to UAE labour laws, including employee contracts, health and safety standards, and compensation regulations.
• Annual Audits: Certain business types, such as LLCs, must conduct annual audits and submit financial reports.
• Health & Safety Regulations: Depending on your business activity, you must comply with industry-specific health and safety standards.

How Filings.ae Helps You Set Up a Mainland Company in Abu Dhabi?

Filings.ae provides professional support throughout the entire process of Mainland company formation in Abu Dhabi. From selecting the right business activity and legal structure to assisting with document preparation and license application, we ensure that your business is set up in compliance with all local regulations. Our experts will guide you through every step, making the process seamless and stress-free.

Get Started with Filings.ae Today!

Contact Filings.ae to start the formation process for your mainland company in Abu Dhabi. We provide comprehensive support to ensure your business meets all legal requirements, allowing you to focus on growing your business in this dynamic market.