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Abu Dhabi company registration

Healy Consultants Group PLC
04 June, 2014

Abu Dhabi has been known for its large amount of oil reserves and natural gas. The country is the fifth largest exporter of oil in the world and is very wealthy. Therefore, the UAE has an insatiable appetite for international products and services. Abu Dhabi company registration allows access to the most developed logistics and transportation infrastructure. Abu Dhabi also allows duty free exports to 17 countries in the Middle East and gives entities a favorable image in the MEA.

Before entering the market, entrepreneurs should be well aware of the following compliance considerations:

1.    The legal framework of the Emirates is a dual acting system which comprises of mainly Islamic shariah and aspects of conventional law;

2.    Abu Dhabi company directors are appointed, replaced and dismissed by the shareholders. Only the directors have the power to manage the day to day operations of the company. The identities of shareholders and directors are on the public register;

3.    The memorandum of association is a contract between the shareholders and comprises i) company activities ii) registered office address iii) shareholder and director details iv) share capital v) profit distribution method;

4.    Each Abu Dhabi entity must appoint a manager. The manager is appointed by the memorandum of association or by a separate management contract. Unless otherwise stated in the MOA, the company manager shall enjoy full powers of administration, and his acts shall be binding to the company, provided that it is supported with stating the capacity he enjoys;

5.    Following Abu Dhabi company formation, every company must lodge an annual return confirming relevant details of the company for the public register including names and addresses of all directors, address of principal place of business and details of shareholders and their shareholdings;

6.    All business activities conducted in Abu Dhabi receive government approvals and permits and licenses. There is an obligation to register particular products with the government, including food, medical equipment, cosmetics, and medicine;

7.    It is not possible to incorporate company in one Emirate and setup office in another Emirate;

8.    An Abu Dhabi company formation of an LLC is required to transfer 10% of net profits each year to a legal reserve until such reserve reaches a level of 50% of the paid-up share capital;

9.    The Department of Economic Development does not permit two different classified business activities under one license e.g. trading and manufacturing;

Foreign investors who want to set up business in Abu Dhabi enjoy the following benefits:

1.    Abu Dhabi is reducing its dependence on oil and will repeat the success of Dubai, growing its industrial and services sectors. This massive economic change presents a lower cost alternative to Dubai. For example, Abu Dhabi is aggressively building industrial free zones to compliment Dubai;

2.    To rival the successful Dubai tourism sector, Abu Dhabi is aggressively building hotels, amusement and theme parks, shopping malls, luxurious residential complexes, art galleries, and museums. The Emirate is planning to invest US$230 billion in various tourism projects over the next five years. By 2015, the Emirate is expected to attract 3 million tourists. This growth presents business opportunities for international investors interested in Abu Dhabi company registration;

3.    The Abu Dhabi Government is inviting international firms to develop its business sectors including real estate, services and tourism, health care, financial services, and industrial

4.    Business law in Abu Dhabi is being reviewed and amended by the UAE Government. The new regulations are aimed at removing unnecessary authority burdens and creating a freer and more unified legal system, which will consequently attract more foreign investments;

5.    Abu Dhabi is the second most business friendly city in the MEA with simple import and export policies and no trade barriers or quotas. Its liberal employment laws attract the most qualified labor in the MEA;

6.    There are no restrictions on inward investment, currency accounts, or the repatriation of capital and earnings;

7.    Abu Dhabi company formation is a legal perfect tax exempt headquarters for the MEA, extracting funds from regional subsidiary companies in the form of dividends, management fees, and royalties;

8.    Abu Dhabi is establishing world class industrial zones to drive the economic diversification process with priority given to petrochemicals, building materials, chemical industries, metal industries, food industries, oil and gas services, and transportation sectors. With low cost labor and land rental, together with low utility costs, we encourage our international clients to pursue these investment opportunities and Abu Dhabi business setup;

With the above advantages, by 2017, Abu Dhabi will be a cauldron of international entrepreneurs where 90% of the population is foreigners. The perfect ingredients for creativity and exchange of skills across industries and cultures, stoked by a liberal, entrepreneurial free market. The East and West blend quite happily, side by side in Abu Dhabi's business and social arena.



About the Author


Healy Consultants Group PLC

Since 2003, Healy Consultants assists international Clients with company incorporation services worldwide. Our services include: company registration, opening of corporate bank account, accounting and tax services, legal services, jurisdiction comparisons...more.

To inquire more information about global business set up; call us on +65 6735 0120 or email us at email@healyconsultants.com

 

 

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