Company Formation Abu Dhabi


Incorp International also provides Abu Dhabi Limited Liability Company formation services. You can register Abu Dhabi LLC


  • Foreign investors most commonly incorporate the free zone business entities in Abu Dhabi, whereas GCC businesses form branch offices representing their foreign companies.


  • Abu Dhabi Limited Liability Companies (LLCs) require 51% shareholding rights to be allotted to a local UAE national. Hence, an Abu Dhabi limited liability company cannot be fully owned by a foreign investor. For this matter, a majority of foreign investors prefer a commercial agreement.


  • A minimum of 2 directors are required to form an Abu Dhabi limited liability company.


  • One shareholder is required to incorporate an Abu Dhabi limited liability company.


  • It is compulsory to appoint a local resident shareholder for incorporating an Abu Dhabi limited liability company.


  • To register an Abu Dhabi limited liability company, the following steps are required:
    • Appoint a local shareholder
    • Get a company name
    • Arrange company Memorandum and Articles of Association
    • Acquire business license registration
    • Register company with the Commercial Registration Department


We at Incorp International will not need your physical presence in Abu Dhabi to set up your company. We will assist you every step of the way to set up your limited liability company in Abu Dhabi.



Advantages of Abu Dhabi Company Registration


In addition to being the fifth biggest oil exporter in the word, Abu Dhabi not only owns 9% of global oil reserves, but also 5% of natural gas in the world. As the world’s fifth largest oil exporter, Abu Dhabi is an affluent city and there is a large usage for international goods and services.


The UAE government is in charge of evaluation and amendment of Abu Dhabi business laws. New amendments are targeted at eliminating needless power emburdenments, for the aim of forming a more liberated legal structure.


Foreign businesses looking to land big contracts prefer incorporating companies in Abu Dhabi, due to the fact that its economy has a growth rate of 7.5% on an annual basis. Abu Dhabi’s GDP is also forecasted to grow fivefold by the year 2030.


Change in Economy


Abu Dhabi is shifting its focus from oil towards building upon its industrial and service sectors, following Dubai’s success in doing the same. Abu Dhabi is already expanding its industrial free zones. This huge economic transformation will offer a lesser cost substitute to Dubai.


Abu Dhabi is competing against the tourism industry in Dubai, by rapidly setting up hotels, amusement parks, museums, malls, hi-cost and lavish residential projects, etc. Abu Dhabi will invest US$230 billion in the pursuit of developing and nurturing its tourism sector over the course of the next five years. It has estimated to attract 3 million tourists by 2015-16, which signals a huge opportunity for foreign investors to set up shop there.


International investors are being encouraged by the Abu Dhabi government to develop and improve its business industry by investing in different industries, such as real estate, financial services, tourism, health care, services and industrial sectors.


Tax Advantages


There are no corporate taxes, personal income taxes, withholding taxes, VAT or capital gains taxes imposed in Abu Dhabi. This gives foreign investors the opportunity to reserve global profits while reducing international taxes.


The only exceptions to this rule are oil and gas companies which have to pay corporate taxes (55% for oil companies and 20% for gas companies).


More tax advantages come as a result of the 66 double tax avoidance agreements with Canada, China, India, Germany and Singapore.


Financial Sector


Abu Dhabi is estimated to becoming the second largest financial center of Middle East and Africa. This financial hub will give rise to scores of financial, insurance, and asset management companies and banks. For foreign investors, the advantages of earning zero tax profits in a liberal and progressive economic climate is a huge opportunity to capitalize upon.


UAE is considered a safe and dependable oasis to store huge cash deposits, whereas around the world, bank secrecy is being deliberated upon as unsafe and unreliable.


Entrance to the Middle East and Africa


Following Dubai, Abu Dhabi stands as the second most important passage to Middle East and Africa:


  1. Due to its superb logistics and transportation infrastructure, Abu Dhabi is the ideal location for product distribution. Also, Abu Dhabi permits duty free exports to 17 Middle Eastern countries, which is highly favorable for the incorporation of an offshore company by a foreign investor
  2. Following Dubai as the most friendly city in terms of business, Abu Dhabi hosts easy import/export policies and imposes no trade restrictions, as well. As a result, numerous international banking and non-banking financial institutions use Abu Dhabi as a base for operations and utilize Abu Dhabi’s superb trade finance facilities
  • There are no limitations on currency accounts, inwards investment flow or capital and earnings returns


Regional Headquarters


  1. An Abu Dhabi company incorporated by a foreign investor gives it a reputability and source of trust for the Middle Eastern and African markets, which otherwise have a negative view of foreign invested companies. As a result, foreign businesses vastly profit from the liberal business laws and policies in Abu Dhabi
  2. Foreign investors can use a Abu Dhabi incorporated Offshore Company as a lawful tax exempt vehicle, to extract funds as dividends, management fees and royalties from regional subsidiaries
  • As a highly modern and developed city, Abu Dhabi provides excellent quality for living facilities, education, entertainment and tourism
  1. Corruption in Abu Dhabi is minimal to none, following Islamic rules of business conduct and morality


Preferred Location for Entrepreneurs


  1. 90% of Abu Dhabi’s population consists of foreigners, and hence there are a lot of foreign entrepreneurs found there. This, in turn, promotes a healthy environment for creativity and interchange of skills and entrepreneur talent across a potpourri of cultures and industries, all strengthened and fuelled by the free market milieu
  2. Because of its high reputation as one of the richest nations around the globe, Abu Dhabi is an ideal location for high net worth and reputable foreign entrepreneurs. Many of the world’s most renowned and biggest brands are also found in Abu Dhabi, promoting the luxurious style of living there


Abu Dhabi is building state-of-the-art industrial zones to propel the economic modification development, with great emphasis upon petrochemicals, building resources, chemical, metal and food industries, oil and gas services, and transportation segments. Minimal labor, rental and utility costs are huge advantages for foreign investors.



Disadvantages of Abu Dhabi Company Registration


Abu Dhabi business incorporation process is costly and consists of manifold government charges, obligatory office rentals and staff employment, as well as a lofty paid up share capital.


Goods sold in the UAE are allowed only with the appointment of a UAE national as a shareholder or agent. 51% of company shares have to be owned by a UAE national.


Since UAE nationals are required to sponsor a large part of company visas and licenses, the control and management of the business is indirectly in their hands as well.


Abu Dhabi’s laws are in favor of the nationals and any disputes between a foreign investor and a national can make running a venture in Abu Dhabi very testing and challenging,


Government tenders have been backing UAE nationals and Abu Dhabi companies, since the previous few years.


In case creditors appeal folding up of an Abu Dhabi company, and if inadequate accounting records pointing towards insolvency are discovered by court auditors, then directors and shareholders are liable for outstanding company dues.