Incorporating an Abu Dhabi entity |
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Investors incorporating an Abu Dhabi entity do so to tap the opportunities of this oil-rich emirate. That said, incorporating an Abu Dhabi entity is expensive and difficult. The following information will help you determine whether incorporating an Abu Dhabi entity is the optimum strategy for your business needs. |
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| Advantages to Incorporating an Abu Dhabi Entity | |||||||||||||||||
| 1. | Many entrepreneurs incorporating an Abu Dhabi entity choose a limited liability company (LLC), which is legally tax-exempt. |
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| 2. | Abu Dhabi is not perceived as a tax haven. Abu Dhabi is a reputable and regulated trading jurisdiction. |
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| 3. | 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. |
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| 4. | An Abu Dhabi Branch company is not required to appoint a UAE national as 51% shareholder. |
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| 5. | The UAE ranks a positive 30th on the United Nations Human Development Report 2011, which rates a country on its overall life expectancy, literacy, education and living standards. |
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| 6. | The LLC is a popular form of company registration in Abu Dhabi and requires a minimum of two and a maximum of 50 members and minimum capitalization of Dh150,000 (approx US$41,000). |
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Disadvantages to Incorporating an Abu Dhabi Entity |
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| 1. | The government levies high fees for incorporating an Abu Dhabi entity. |
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| 2. | UAE company law is inconsistent and complex. |
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| 3. | The challenge of incorporating an Abu Dhabi entity is exacerbated by inefficient bureaucracy. |
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| 4. | For an LLC, 100% foreign ownership is only available to investors incorporating an Abu Dhabi entity in the free zones. Otherwise, when incorporating an Abu Dhabi entity, an LLC is required to appoint a UAE national as a 51% shareholder. However, some relaxation of foreign ownership laws is expected in the near future. |
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| 5. | After incorporating an Abu Dhabi entity, a register of shareholders and directors is available for public viewing. |
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| 6. | After incorporating an Abu Dhabi entity, annual audited financial statements need to be submitted to the Abu Dhabi government. |
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| 7. | The UAE is negatively ranked as the world's 35th freest economy in the Heritage Organisation's 2012 Index of Economic Freedom, a measure of freedom enjoyed in business, trade, monetary, financial, investment and labour markets. |
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| 8. | An Abu Dhabi Branch company cannot obtain a UAE trade license from the government. |
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Contact Us |
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For more information on incorporating an Abu Dhabi entity, email email@healyconsultants.com or telephone us at (+65) 6735 0120. |
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Buy Healy Consultants' Asia Business Set Up book, to order call +65 6735 0120 or e-mail email@healyconsultants.com
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