Mainland Company Registration in Abu Dhabi

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Legal forms of business available in Abu Dhabi, UAE, make it possible to engage in practically any commercial activity. The choice of a legal structure determines accessible activities, company possibilities in Abu Dhabi, peculiarities of obtaining a license, limitations on 100% foreign ownership, tax benefits, and the documents required for registration. If you intend to carry out legal business operations all over the UAE’s territory, obtain tax privileges, and fully control the legal entity you form, a mainland company can become an optimal solution.

Mainland Company in Abu Dhabi, UAE

What is the difference between a mainland company and other organizational and legal forms available in the UAE? Well, this structure enables entrepreneurs to conduct business operations all over the UAE’s territory, take advantage of tax benefits, and own 100% of the company, even if you are a non-resident. The mainland company combines the pluses of offshore structures and legal entities that work in free economic zones of the United Arab Emirates.

Peculiarities:

No regional limitations (mainland companies can operate not only in the FEZ but also in other regions of the UAE.
The corporate income tax equals 9%.
Mainland companies can be fully owned by foreigners (non-residents), but separate activities require participation of UAE residents (51% or more), and in some cases you will need a local agent.
You will need all the business participants (shareholders) to be present to register a company. However, there is an alternative: you can provide a power of attorney (you can sign the documents via video conference).
All the forms of mainland companies in Abu Dhabi and other emirates require a physical office (at least 20 m²). In some cases, you can do with a flexi-desk.

Features of Abu Dhabi companies registered in free zones:

Zero corporate tax
The possibility to register a company online
Zero VAT for import/export (in some free zones)
After registration, the company cannot carry out business operations in the UAE territory outside the FEZ
The office of a company registered in the free zone can only be located in the free zone itself.

Features of offshore companies in Abu Dhabi (UAE):

No status of the UAE tax resident
Zero corporate income tax
No need to rent an office
Company registration gives no right to obtain a long-term entrance visa for shareholders and/or employees
Closed registers of shareholders and beneficiaries (the information must be submitted and updated, but it is not publicly accessible)
In most cases, you will need an agent to register a company.

Advantages of Mainland Companies Registration in Abu Dhabi

All the mainland structures are interesting for business where UAE non-residents take part. The choice of a particular legal form depends on the peculiarities of each particular case. You can talk about the details with our experts at an individual session.

Why mainland companies in Abu Dhabi are well-suited for efficient business:

They can be fully controlled by foreigners (non-residents)
The company receives a license for 2 years
An Abu Dhabi mainland company is registered online, so the procedure does not take long
The license you receive will give you the right to conduct business operations in Abu Dhabi, UAE, or abroad
The legal forms available are suitable for almost any type of business
The office may be located in any region of the emirate
Opening a corporate account is as easy as it can reasonably be
You can obtain long-term visas
A mainland company has the right to participate in tenders and win government contracts
Access to important tax benefits
The requirements for authorized capital depend on the license type
Abu Dhabi is an Emirate with well-developed corporate and digital infrastructure.

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Check the list of required documents, and get the details of the process, terms, and costs.

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Mainland Company Registration: Requirements

The requirements set by the UAE’s national regulator are loyal. An Abu Dhabi company, which is in essence an onshore legal entity, is registered just as easily as a company in a typical offshore jurisdiction. Therefore, you will not encounter any problems if you meet all the requirements. However, it does not mean that we recommend venturing on your own. If you make a mistake in the process of Abu Dhabi company registration, you will save on the fee for expert support огые to face more costs and delays.

Basic requirements:

A full package of documents (see below)
Presence of all shareholders in Abu Dhabi (UAE)
A physical office is mandatory, with an area of at least 20 m²
Annual independent audit is mandatory
The licensing rules applicable to mainland companies forbid to combine professional services and business
No organizational and legal forms can open a foreign branch in Abu Dhabi (UAE)
A valid visa (or any document which gives you the right to legally stay in the UAE)
In addition to licenses for the mainland company, you may need additional documents to conduct your business.

Permitted legal structures in the UAE:

General or Limited Partnerships
LLC
Public Joint Stock Company
Private Joint Stock Company
Civil Company
GCC Company Branch
Local Company Branch
Foreign Company Branch
Free Zone Company Branch
Sole Establishment
Holding Company.

Local Sponsor

Several years ago you had to engage a local citizen or a company that operates in the Emirates to register a legal entity outside the free zone. As a result, the non-resident business owner could not totally control his business as the sponsor was required to own 51% of shares under the laws, which was considered a major disadvantage.

However, the situation changed on June 1, 2021. On this date, major changes were introduced into corporate laws that removed this restriction. At present, mainland companies in Abu Dhabi can be fully owned by foreigners and/or non-residents. Partnership is mandatory only for some kinds of activity that the UAE sees as strategically important, and they mainly regard the financial sector. Therefore, on the date of writing this article, we can say that you don’t need to engage a local partner in the majority of cases.

Package of Documents

You need to register a company in Abu Dhabi to start your commercial activities on a legal basis. It requires compliance with all the regulator’s requirements and preparing a package of documents. The precise list of documents usually depends on the company type you have selected.

Documents to be submitted:

passport (for non-residents) or identity document (for UAE citizens);
a document that confirms your legal stay in the United Arab Emirates (a residence permit or a visa; this requirement is only applicable to foreigners);
office rental or sales and purchase agreement;
Abu Dhabi company Articles of Association (it does not apply to the cases when an LLC has been established by one person).

Information you will need to provide:

Name of your prospective Abu Dhabi company
Company type
Corporate structure
Activities
Personal information on company’s key persons
UAE Pass (including a digital signature; this requirement is only applicable to the LLC).

Documents required to register public/private joint stock companies:

Expanded project rationale (business plan).

Documents required to register branches of legal entities established in other emirates of the UAE:

An official permit of the parent company’s board of directors;
A power of attorney provided by the CEO;
A package of parent company’s corporate documents.

Documents required to register branches of legal entities opened in other countries or any of the UAE’s FEZs):

A copy of the parent structure’s license.

Additional mandatory requirements for documents if the business is founded by foreigners (non-residents):

Notarization and legalization of the parent structure’s documents (you can do so in the embassy of the UAE and the Ministry of Foreign Affairs of both countries);
Translation into Arabic;
Notarization in the Ministry of Justice.

Licenses for Mainland Companies in Abu Dhabi

All activities require a special permit. It is issued for 2 years with a subsequent renewal, and the procedure of obtaining a license is quite straightforward. The license type determines the requirements for the authorized capital. There are special conditions for some enterprises.

License types and authorized capital (provided at registration):

Commercial — from AED 100,000;
Professional (typical activities include any services, such as consulting, engineering, accounting services, and so on) — from AED 300,000;
Industrial (it is issued to enterprises engaged in manufacturing activities) — from AED 500,000;
Tourist (including hotel business) — from AED 1 mln;
In case of opening a branch, the requirements for authorized capital depend on the peculiarities of the parent company.

Registration Procedure

A mainland company is a universal option of a midshore structure focused on doing real business. Its commercial activity is controlled by Abu Dhabi’s Department of Economic Development. If you intend to conduct your business operations mainly in international markets, it’s better to register your company in one of UAE’s free economic zones.

General procedure of launching a new business in Abu Dhabi (for a mainland-company):

First consultation. We discuss your requirements, estimate the approximate cost of the project, and shortlist the additional services you may need.
Payment. If you are satisfied with the conditions of our cooperation, we will send an invoice (payment options).
Preparation. You should choose an organizational and legal form for your mainland company in Abu Dhabi, determine the amount of authorized capital, sphere of activity, structure of the legal entity, and obtain licenses. Next, you will need to prepare a package of documents and information on all the company’s key persons.
Choosing an office. We will offer various options, from premises in a business center to a representative office in a rented or purchased building.
Registration. You will encounter no problems if you listen to our experts’ advice. The registrar will accept the application, and you will become the owner of a mainland company in Abu Dhabi.
Sending the package of registration documents. In the majority of cases, we will use the services of a reliable express service to deliver them.

Actions after registration (not included in the payment and preparation stage):

Opening a bank account (see below);
Registration in the UAE’s immigration service and the Ministry of Labor;
Obtaining long-term visas;
Resolution of issues related to accounting or legal support of a mainland company in Abu Dhabi.

Corporate Bank Account

Offshore companies registered in free zones often have difficulty opening a business account due to their non-resident status. However, mainland companies in Abu Dhabi will not encounter this problem as they are UAE’s tax residents that have economic substance in the Emirates. Therefore, the risk of being turned down by a bank where you want to open a business account will be much lower.

This fact does not mean that you can skip thorough preparation for the procedure, though. If you want to reduce potential risks, we recommend using a pre-approval service. We will submit your application to a few banks at once, they will check your documents and say whether they are ready to onboard your company. If you are interested in account opening, please get in touch with our experts to discuss all the details.

Cost of Registration

We charge a one-time fee for the services that is paid in advance. The amount includes basic (minimum) expenses, state commissions and duties, assistance with company registration, obtaining licenses (permits), and support at all administrative stages. As a result, you become a legal owner of a mainland company in Abu Dhabi and can start your business.

We would like to draw your attention to the fact that opening of a personal/corporate bank account, an important incorporation stage, is not taken into account in the basic version of the service package. Customers interested in additional services (choosing office real estate, post-registration company support, tax advice, accounting services, etc.) can discuss these options with our experts.

Conclusion

The procedure of mainland company registration in the UAE is a reasonable and promising solution – especially if you are interested not only in the business within the United Arab Emirates but also in easier access to Middle East and Asian markets. We will help you launch a new venture in the UAE as seamlessly as it can possible be.

We are ready to discuss corporate solutions of any complexity with our customers and take care of all legal issues involved. Our experts will answer any questions in detail. If you want to, we can provide post-registration support for your company.

Do not delay starting your business – book a preliminary individual session today!