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In Abu Dhabi, the capital of the United Arab Emirates, all businesses must be properly registered and licensed with the appropriate governmental bodies. The process involves company formation, name registration, obtaining a business license, and ensuring legal compliance with local regulations. There's a range of business types to select from such as Limited Liability Company, joint stock company, sole proprietorship, or an offshore company. Understanding the legal framework for business registration can ensure a smooth, hassle-free establishment and operation of your business.
Although business registration in Abu Dhabi is streamlined, legal advice can be crucial in understanding the nuances of the process. A lawyer can aid in company formation, choice of legal form, drafting partnership agreements and ensuring compliance with Abu Dhabi's regulatory and legal requirements. They can also provide guidance on labor law, tax regime, and intellectual property rights which are essential while running a business. Lastly, they can address unexpected issues, minimizing the potential for legal snags down the line.
Abu Dhabi's business law primarily centers around Federal Law No. 2 of 2015 on Commercial Companies. It dictates the types and structures of business entities allowed, the percentage of foreign ownership and the need for a local sponsor or service agent for certain types of businesses. Commercial businesses also need to be registered with the Abu Dhabi Department of Economic Development, and certain professional activities must apply for permits and licenses from the relevant professional or regulatory body.
Subject to the completion of required documents, the process can take from 1 to 4 weeks, varying with the type of business and chosen jurisdiction.
In most cases, a maximum of 49% ownership is given to foreigners in an LLC while the remaining is given to a local UAE national. However, 100% ownership is allowed in free zones.
Note that you need a local sponsor or agent for an LLC or branch office. However, no such requirement is needed in free zones.
If you are registering an LLC or a branch office, you are required to have a physical office. For free zones, you can opt for flexible desk options.
Business termination can be a complex process with various legal obligations. It’s always advised to seek professional assistance to guide you through the process and ensure the proper cancellation of your trade license and related permits.
In addition to seeking legal advice, you can refer to the UAE Government's official website, Abu Dhabi Government’s portal, or the Department of Economic Development in Abu Dhabi for up-to-date information. You may also reach out to local business consultancies and specialists.
If you need legal assistance in Business Registration, start by identifying a reputable law firm with experience in Abu Dhabi business laws. Prepare a list of questions relevant to your business, such as legal structure, obligations, and specific licenses. Upon hiring legal help, diligently comply with their advice and guidelines as they guide you through the process.
