Abu Dhabi Mainland Company
Any geographic region under UAE government control that is not a Free Zone is referred to as a mainland. Although they are unable to trade in the Free Zones, these commercialized areas are able to trade within the mainland.
The emirate has one of the most advanced economies in the Emirates thanks to their standardized laws and regulations. With an amendment to the Commercial Companies Law (CCL) that went into effect on June 1, 2021, an Abu Dhabi mainland company can now conduct business throughout the United Arab Emirates, enabling foreigners to own 100% of the company.
How to Start a Business in Abu Dhabi?
Establishing a business in Abu Dhabi can be very advantageous because it will have access to markets in different regions and there will be a large and knowledgeable workforce to help with business setup in the Emirate. However, if a mistake is made during the setup process, it could lead to future issues for the company.
The procedures for establishing a business in Abu Dhabi are as follows:
1. Identify the Economic Activity Type
Understanding the kind of business activity that the company will be performing is crucial. This will make it easier to comprehend all of the legal and financial requirements that the business must meet.
Additionally, it will assist in determining which licenses
2. Look for a Local Sponsor
According to UAE law, foreign businesses that wish to open a branch office in Abu Dhabi must have a local sponsor, such as a service agent or a business owned by UAE citizens. The branch office’s required licenses will be facilitated by a local sponsor who will not be responsible for any losses or capital contributions. Only specific sectors are now required to have a local sponsor, thanks to the most recent amendment.
3. Identify the Legal Form of the Business Different ownership types and business establishments are subject to different rules and regulations. The management must determine which business structure will work best before starting a company.