Abu Dhabi Limited Liability Company (LLC) License
About the Abu Dhabi Limited Liability (LLC) License
Limited Liability Company (LCC) licenses, which are issued by the Abu Dhabi Department of Economic Development (DED), are suitable for working with the government in Abu Dhabi and organisations such as ADNOC and Mubadala. LLCs are popular business structures due to the limited liability protection afforded to the owners; and, because they offer the widest selection of business activities (with the exceptions of insurance and banking) making the LLC license suitable for nearly every nature of business.
Overview
✔️ Can work with Abu Dhabi government
✔️ Shareholder liability is limited to the value of their shares
✔️ Widest range of business activities
✔️ Ability to setup local branches in multiple locations, other emirates
✔️ 100% foreign ownership - permitted with some business activities
✔️ Local sponsor required - with some business activities
✔️ Abu Dhabi mainland license, operate throughout Abu Dhabi emirate
✔️ Paid up share capital - waived
✔️ Unlimited number of visas
✔️ Corporate banking facilities
✔️ 12 months validity, renewable
Who Can Apply For an Abu Dhabi LLC License?
Who is this license suitable for?
✔️ Individuals
✔️ Entrepreneurs
✔️ Startups
✔️ Small businesses
✔️ SMEs
✔️ International organisations
Who is eligible for this license?
✔️ Applicants must be over 18.
✔️ UAE citizens
✔️ UAE residents
✔️ Non-residents (must have previously visited the UAE)
✔️ UAE companies
✔️ Non-UAE companies (proposed GM for the Abu Dhabi LLC must have previously visited the UAE)
100% Foreign Ownership
No local sponsor needed with some business activities
Mainland or Free Zone?
Abu Dhabi LLC Legal Structure & Ownership
The Abu Dhabi Limited Liability Company (LLC) license is a mainland license, issused by the Abu Dhabi Department of Economic Development (ADDED), enabling the company to work throughout the Emirate of Abu Dhabi. This is not a free zone license.
Legal Form
A Limited Liability Company (LLC) means the owners contribute capital into the business in exchange for a percentage of the shares to become shareholders. Shareholders share the profit or loss of the company in proportion to the size of their shareholding. An LLC has it's own legal identity, separate from its owners, meaning the financial liability is limited to the value of the shareholder's respective shareholding. (In certain circumstances a shareholder can be held personally liable for the company's debts, e.g. if they have directly/knowingly contravened the law, committed fraud etc.)
Ownership
An Abu Dhabi LLC requires a minimum of 2 and a maximum of 50 shareholders. In some instances, such as when activities allow 100% foreign ownership, one shareholder is permitted.
Share Capital
Minimum share capital is not defined
Local Sponsor?
There may be a requirement for an Emirati partner (local sponsor). This is determined by the business activity(ies) required for the license.
Exisiting Residence Visa
If an existing UAE resident becomes a company shareholder in their individual capacity; it is not mandatory to change their existing visa; however, they would be entitled to apply for an investor visa.
Abu Dhabi LLC License Visa
Individuals named as shareholders on the LLC license can apply for investor visas, if required. Once the trade license has been issued, it will be necessary to apply for an Establishment Card, before starting the visa application process. Upon successfully obtaining their own visa, the license holder can then sponsor their family members, providing they meet the requirements.
Relatively quick to setup
3-4 Weeks
Abu Dhabi LLC License Details
License Application
Once the documents are ready for the LLC license application to be submitted, it takes 3-4 weeks on average for license issuance. It will be longer if premises require a fit out, or special government department approvals are needed.
Trade License Validity
The LLC license is issued for a period of 12 months.
Trade License Renewal
LLC licenses need to be renewed annually. Delays in renewing the license will incur fines for the company, which will increase each month the license is not renewed.
Trade License Cancellation
When the LLC license is no longer required, the company needs to arrange liquidation and cancellation of the license from the official registry. Failure to cancel the license will incur fines accruing and liabilities relating to non-filing of tax returns.
Abu Dhabi LLC License Visa Details
Shareholder Individuals
Type of Visa
Investor Visa
Visa Validity
Two Years. To ensure it remains valid, you must not stay outside of the country for more than six months at a time.
Visa Renewal
The visa needs to be renewed every two years. Delays in renewing your visa will incur fines increase on a daily basis until the visa is either renewed or cancelled.
Visa Cancellation
When the visa is no longer required, it needs to be cancelled, any fines paid, and removed from the immigration system.
Is the Visa Mandatory or Optional?
Applying for a visa under the Abu Dhabi LLC license is optional.
Who is the sponsor of the visa?
The LLC license (your new company) sponsors your visa, which means you have full control, and that is why the license must be issued first. The license needs to be renewed and kept active all the time you want the visa.
Processing Time
Approx. 10-14 working days. However, during the process, it will be necessary for you to arrange your health insurance which may add extra days.
Visa Health Insurance
Health insurance is mandatory for all visa holders. It is your responsibility to arrange your health insurance cover. It must be arranged via an Abu Dhabi registered insurance provider or broker. It can only be applied for during the visa application process, which is the time when some of the documents required are created. Delays in arranging or renewing your health insurance incurs fines issued by the Abu Dhabi Health Authority (HAAD). Whilst the insurance and visa systems are now linked, occasionally we are still requested to provide a copy of the insurance card (not the certificate of insurance) as proof of an active policy.
We strongly urge all applicants to seek out indicative health insurance costs in advance, especially if you have any pre-existing conditions. Insurance premiums are based upon the level of coverage required, age, sex, and pre existing conditions. Applicants are often shocked at how expensive health insurance is.
Visa Medical
All visa applications, new and renewal, require the applicant to have a visa medical, which includes a blood test, screening for HIV, and an Xray, screening for Pulmonary Tuberculosis. If you haven’t previously had an Emirates ID card, you’ll also need a biometrics appointment with the Federal Authority for Identity and Citizenship, to provide your fingerprints and an eye scan. If this all sounds a bit daunting, don’t worry, our team will make all of the necessary arrangements and we’ll accompany you to the appointments with all of the paperwork you’ll need. You, literally, just have to turn up.
Requirements
Shareholders - Individual
✔️ Full name
✔️ Residential address
✔️ Mobile number
✔️ Email address
✔️ Source of funds
✔️ UAE Pass App (download on your mobile phone and register)
✔️ UID Number (only for overseas applicants)
✔️ Passport copy (minimum 6 months validity)
✔️ Visa copy (only UAE citizen and resident applicants)
✔️ Emirates ID copy (only UAE citizen and resident applicants)
✔️ No Objection Certificate (NOC) in Arabic addressed to the Abu Dhabi Department of Economic Development (only applicants who are currently working in the UAE).
General Manager (new Abu Dhabi LLC) Details & Documents
✔️ Full name
✔️ Residential address
✔️ Mobile number
✔️ Email address
✔️ Passport copy
✔️ Emirates ID Card copy (only if UAE citizen or resident)
✔️ UAE Pass App (download on your mobile phone and register)
✔️ UID Number (only if non-UAE citizen or resident)
Shareholders - Corporate
✔️ Company name
✔️ Registration number
✔️ Registered address
✔️ Phone number
✔️ Email address
✔️ Source of funds
✔️ Certificate of Incorporation
✔️ Memorandum & Articles of Association
✔️ Board Resolution to establish the Abu Dhabi LLC
✔️ Power of Attorney for the general manager of the new LLC
✔️ Power of Attorney for Gateway Group to establish the LLC on your behalf
The above documents must be notarized; legalised at the Ministry of Foreign Affairs; and, legalised at the UAE Embassy in the company's home territory.
Signatory's Details & Documents
✔️ Full name
✔️ Residential address
✔️ Power of attorney (POA)
✔️ Passport copy
✔️ Emirates ID Card copy (only if UAE citizen or resident)
✔️ UAE Pass App (download on your mobile phone and register)
Legal Documents for the new Abu Dhabi LLC
✔️ Memorandum and Articles of Association (MOA)
✔️ Power of Attorney (POA) to the General Manager
✔️ Specimen signature of the General Manager
The above documents will be notarized by the Notary Public in Abu Dhabi during the company formation process.
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Financial peace of mind
Limited financial liability for shareholders
Delving into the Details: Helpful Information You Need To Know
Business Activities
Abu Dhabi LLCs have over 4,000 business activities to choose from. Banking and insurance activities are prohibited.
Business activities determine:
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ownership restrictions. Some activities allow 100% foreign ownership, whilst others require an Emirati partner (local sponsor).
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the type of commercial premises, and any specific fit-out required.
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if any special approvals are required from any government departments.
Company Name
The owners of the LLC choose the company name, called the trade name. The trade name must reflect the nature of the business activity(ies) being applied for on the license and be unique in that it is not already in use. The approved name will automatically have the suffix 'LLC' added to reflect the legal status.
Commercial Premises
LLCs need an Abu Dhabi Tawtheeq lease contract for a commercial premise. (A Tawtheeq contract means the lease is officially registered with the Department of Municipalities & Transport. Without a Tawtheeq lease, a lessee can't open a dispute or claim against the landlord if ever needed.)
Commercial space must be:
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suitable for the activities on the license, e.g. retail activities need to have a shop or warehouse; whilst consultancy activities need office space
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large enough to accommodate the anticipated number of visas
Some business activities also have specific fit-out requirements, e.g. training activities require a training centre of 100sqm as a minimum, and have specific fit-out instructions which must be adhered to.
Employing Staff
There are no restrictions on the number of visas an LLC can apply for. However, the LLC should have a genuine need for the employees and be able to provide a suitable working environment.
The company must first arrange it's E-Channel registration in Immigration and have an Establishment Card, and register with the Ministry of Human Resources and Emiratisation (MOHRE), prior to starting tho apply for staff employment visas.
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Abu Dhabi LLC employment visas are issued for two years.
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Companies need to pay their employee salaries via the UAE's federal payroll system, the Wage Protection System (WPS).
State-of-the-art commercial premises throughout Abu Dhabi
Offices, Retail, Industrial, Hospitality
Business Bank Account Opening
LLCs can open business bank accounts and avail business banking facilities. Bear in mind, banks regularly update their account features and conditions to be competitive, reflect their current appetite for risk and to comply with industry regulations.
Exit Strategy
Abu Dhabi LLCs are suitable for these types of exit:
If the company simply intends to stop operations and close. When the time comes, it is simply a case of liquidating the business and cancelling the license.
If the intention is to create a saleable business. When the time comes to sell the company, the sale is conducted by way of a share transfer to the new owner(s).
Corporate Credibility
Robust legal structure
UAE Tax Compliance
VAT
All businesses in the UAE need to record their financial transactions and ensure their financial records are up to date.
Mandatory VAT registration - when taxable supplies and imports exceed AED375,000. Voluntary VAT registration - when taxable supplies and imports reach AED187,500. New businesses can register voluntarily if their expenses exceed the voluntary registration threshold.
Corporation Tax
Corporate tax is levied at 9% on taxable income exceeding AED375,000, whilst taxable income below this rate is subject to 0% rate. All businesses are required to register for corporation tax, whether or not their taxable income meets the threshold.
Economic Substance Regulations
The UAE's Economic Substance Regulations (ESR) require UAE mainland and free zone companies, and certain other business forms, that carry out any of the defined 'Relevant Activities' (listed below), to maintain and demonstrate adequate economic presence in the UAE relative to the activities they undertake, and to comply with notification and return filing obligations.
ESR Relevant Activities
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Banking
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Insurance
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Investment Fund Management
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Lease - Finance
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Headquarters
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Shipping
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Holding Company
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Intellectual Property (IP)
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Distribution and Service Centre.
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Why Use Gateway Group
for your business setup in Abu Dhabi
✔️ We are highly experienced in setting up Abu Dhabi Limited Liability Companies (LLCs). Our Abu Dhabi business setup team are here to help you through the company registration, from application to license issuance.
✔️ We have the ability to setup your Abu Dhabi LLC electronically - eliminating the need to complete any paperwork.
✔️ Upon completion of your license registration, you will receive an electronic copy of your Commercial Registration Certificate and Economic License, confirming the existence and validity of your new company.
Strategic Partnership
with Abu Dhabi government
Gateway Group was chosen as preferred partner for business setups by Abu Dhabi Residents Office, part of the Department of Economic Development (DED). This strategic partnership is committed to attracting Foreign Direct Investment (FDI) into Abu Dhabi and supporting foreign companies entering the market to promote the ease of doing business in the emirate.
Connect
Address
Hamdan Street
Abu Dhabi
Conrad Hotel, Dubai