Abu Dhabi Company Formation

Abu Dhabi company formation has no specific capital requirements after minimum capital requirements in the UAE were abolished. Some companies will face no minimum share capital requirements while others will face some capital requirement in accordance with the size, nature and goals of their business. Similar to formation of a Dubai LLC, Abu Dhabi can be more advantageous for small and medium enterprises, which may have been disadvantaged by the relatively high minimum capital requirements.

Many incentives are granted for Abu Dhabi company formation industrial projects including i)a suitable plot of land will be made available at low rates ii) Public utilities, such as water and electricity are provided at very nominal and promotional rates iii) Certain industrial plants are put for rent at the various industrial zones.

Through an Abu Dhabi branch company, one can wholly own the entity and not be subject to an annual audit. For more information visit our Abu Dhabi Branch Company page.

Following Abu Dhabi company formation, our clients obtain UAE residence and employment visas. For more information, visit our Migration and Relocation services page.

The UAE ranks a positive 35th on the United Nations Human Development Index, which rates a country on its overall life expectancy, literacy, education and living standards..

Healy Consultants can open global corporate bank accounts to support Abu Dhabi company formation. Healy Consultants works with internationally recognised banks such as HSBC, Standard Chartered and Citibank to provide corporate bank account services.

As an example of the complexity of Abu Dhabi company formation, an Abu Dhabi LLC requires a minimum 51% shareholding by UAE citizens and a minimum of two shareholders. If the 49% shareholder in the Abu Dhabi LLC is a foreign corporate entity, the corporate documents of the foreign company (e g Certificate of Incorporation, Memorandum and Articles of Association, Board Resolution resolving to participate in an Abu Dhabi LLC and Power of Attorney in favour of the Abu Dhabi LLC manager) must be notarised and legalised in the country of incorporation of the parent company. In addition, these documents must then be legalised at the Ministry of Foreign Affairs in Abu Dhabi and then translated into Arabic. These requirements contribute to the complexity and costs of Abu Dhabi company formation.

To further highlight the high costs of Abu Dhabi company formation, in addition to the government fees incorporate an LLC, investors must pay to the government 5% of the annual lease rent of the office premises (and at the time of annual renewal an additional 5% of the annual lease rent for the manager’s residence also becomes payable).

To highlight the above, according to the World Bank's Doing Business 2010 Survey, the UAE is ranked negatively as the world's 33rd easiest place to do business. The survey measures factors including business start up procedures, time, cost and minimum capital required to start a business. However, the survey measures ease of business in the UAE, not specifically in Abu Dhabi. Furthermore, the UAE is negatively ranked as the world's 46th freest economy in the Heritage Organisation's 2010 Index of Economic Freedom, a measure of freedom enjoyed in  business, trade, monetary, financial, investment and labour markets. Abu Dhabi also ranks poorly at 23rd place in the World Economic Forum's Global Competitiveness Report 2009-2010.

An Abu Dhabi LLC cannot conduct insurance, banking or the investment of money for third parties.