Business - Setting up

The primary federal legislative framework controlling commercial activities in the UAE are the Commercial Companies Law and the Trade Agencies Law.  Apart from that, there are slight variations in requirements by individual Emirates.

The Commercial Companies Law recognizes the following forms of companies in the UAE:

  • Public Joint Stock Companies
  • Private Joint Stock Companies
  • Limited Liabilities Companies
  • Limited Liability Partnerships
  • Branch Offices
  • Representative Offices
  • Professional Firms
  • Free Zone Companies and Free Zone Enterprises/Establishments

Companies set up outside of free trade zones and other designated areas must be owned at least 51% by a local UAE national and in most cases the main company representative (the chairman, the general partner, etc) must be a UAE national.

Our partner Links Group can facilitate business set up with a local UAE sponsor

Free Zones

Free zones are interesting for new businesses and entrepreneurs, as investing in a free zone will allow 100% ownership, 100% repatriation of capital and profits, no minimum capital investment, no corporate or personal tax and no need for a local partner.

To see a list of free zones in the UAE see http://www.uaefreezones.com/

In Abu Dhabi there is an Airport Free Zone and A Port Free Zone.

Companies located in free trade zones are not allowed to trade with the local UAE market directly, however – they must use authorized local agents and the import customs duty (usually 5%) has to be paid when goods are released onto the local UAE market.

Legal

There is a clear legal framework with details relating to all business activities in Abu Dhabi.

The Abu Dhabi courts have a comprehensive website that lists all the federal and local laws.  Company lawyers are advised to obtain a subscription to the e-services of the Abu Dhabi Courts.

www.abudhabi.ae (Arabic site – please click English for translation)

Legal partners in Abu Dhabi will give updated advice to support your business formation.

In order to set up a company in the UAE, all businesses (of all types) must be licensed to operate in the UAE. Licensing procedures are regulated by both the federal government licensed to operate in the UAE and individual emirates.

Depending on the type of company, the new companies are registered with ministries of economy / economic departments, local chambers of commerce or free trade zones. Requirements and regulations vary from Emirate to Emirate.

Free Trade Zone

The procedures for establishing a business in a Free Trade Zone are simpler and can be completed in a much shorter space of time. Applicants must first fill out a questionnaire from the relevant Free Zone Authority. Having submitted the questionnaire, the company is given a UAE licence application, planning documents, and a consumer request for electricity and other such services. Provisional approval is given along with a specimen lease agreement. After the company representative and the authority have met and finalized details of the project, the actual documents, which will include company or personal details, are processed. Once a legal presence has been established in the Free Zone, the business will need to lease premises or land and acquire an UAE operating licence from the FZA. (Free Zone Authority).

Different types of licenses apply in the different types of free zones, however, in general companies with trade and industrial licenses can only conduct business within the Free Zone or abroad. To sell their products in the UAE, a UAE official agent is required. Other types of UAE licenses available are service licenses (e.g. banking, insurance, air shipment etc) and national industrial licenses. For the former the services offered must be the same as those stipulated in the parent company’s licence in the UAE or abroad. The share capital of a company applying for a national industrial licence must be at least 51 % GCC and 40 % of the sale value of the product must be value-added. Licenses are renewable each year.

Business Directories & Groups

Business groups and directories in Abu Dhabi are an excellent tool to find resources and the right contact to assist with your business. The British Business Group (BBG), Australia Business Group and American Business Council (ABC) can all assist.

Often embassies and consulates have a trade / business chamber that can provide good information.