Abu Dhabi LLC Formation
A limited liability company (LLC) is the best corporate entity to efficiently and effectively conduct business in Abu Dhabi. The following information will help you determine whether Abu Dhabi LLC formation is the optimum corporate structure to fulfill your international business objectives. |
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| Advantages of Abu Dhabi LLC formation | |
| 1. | Abu Dhabi LLC formation is an excellent way for international entrepreneurs to secure lucrative contracts in Abu Dhabi. Through this entity, it is possible to obtain a UAE trade license from the Abu Dhabi Chamber of Commerce and Industry, obtain local visas, rent Abu Dhabi business premises and open a local corporate bank account. Our preffered local bank in Abu Dhabi is the National Bank of Abu Dhabi.
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| 2. | Abu Dhabi's economy is booming, with major new projects announced in the oil, gas and construction industries, including an US$8 billion real estate island project. An Abu Dhabi LLC is an ideal vehicle through which to bid for tenders and tap opportunities in these sectors. |
| 3. | Abu Dhabi is the wealthiest Emirate in the UAE in terms of Gross Domestic Product per (GDP) per capita, which was US$ 63,000 in 2007, the third highest in the world. Moreover, Abu Dhabi is a good alternative jurisdiction to Dubai. Although the Emirate states are similarly structured, Dubai relies heavily on tourism and has an overtaxed infrastructure, while Abu Dhabi is less dependent on foreign investment and is therefore more economically stable. |
| 4. | If properly-structured, all income of an Abu Dhabi LLC is legally tax-exempt. In addition, there are no capital gains taxes, or personal income taxes for beneficiaries and employees of an Abu Dhabi LLC. |
| 5. | An Abu Dhabi LLC is an efficient and legal way in which to conduct business in the Abu Dhabi emirate. |
| 6. | An Abu Dhabi LLC which exports national industrial products is exempted from any taxes or export fees. |
| Disadvantages of Abu Dhabi LLC formation | |
| 1. | Abu Dhabi LLC formation is challenging and expensive. The minimum capital required for Abu Dhabi LLC formation is US$41,000. |
| 2. | A minimum of two shareholders is required, at least one of whom must be a UAE national who holds at least 51% share in the Abu Dhabi LLC. Healy Consultants provides reliable nominee shareholder services to fulfill this statutory requirement. 100% foreign ownership is restricted to companies involved in oil and gas-related products and services who operate in Abu Dhabi's Industrial City-2. |
| 3. | An Abu Dhabi LLC is required to rent an office premises in Abu Dhabi. However, many clients use Healy Consultants Abu Dhabi virtual office services to fulfill this statutory requirement, allowing them the opportunity to locate suitable premises at their convenience. |
| 4. | An Abu Dhabi LLC is required to allocate 10% of its net profits each year to a statutory reserve, until the reserve reaches US$20,500. |
| 5. | Following Abu Dhabi LLC formation, annual audited financial statements must be submitted to the Abu Dhabi government. |
| 6. | In the Heritage Foundation’s 2008 Index of Economic Freedom, the UAE ranks poorly as having the world's 63rd-freest economy, and scores at 30% in terms of investment freedom and capital flows. |
| Healy Consultants fees for Abu Dhabi LLC formation | |
International entrepreneurs should budget for Abu Dhabi LLC formation fees from US$29,650 to US$61,400, depending on corporate structure and professional services required. Please email us your requirements and Healy Consultants will provide you a tailored quotation. |
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| Further information | |
| Refer to the following links to read more information on Abu Dhabi company formation: | |
| Contact Us | |
For more information on Abu Dhabi LLC formation, email email@healyconsultants.com or telephone us at (+65) 6735 0120. |
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| Back to Abu Dhabi Company Formation page. | |
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ENGAGEMENT COSTS Year 1 incorporation US$22,850* Annual costs from Year 2 Nominee shareholder Company de-registration * Depending on corporate structure and professional services required. |
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