Abu Dhabi mainland is the largest of the seven emirates in the UAE. It is a hub for economic activity, serving as a global center for finance, commerce, and industry. The presence of establishments like the Abu Dhabi Global Market (ADGM) and the Abu Dhabi Securities Exchange (ADX) offers incitements to company setups for which entrepreneurs and investors around the world get attracted to start a business here.
Unlike free zones or offshore foundations, a mainland company in Abu Dhabi refers to a business entity that is registered and licensed to operate within the UAE market. They are free to trade without any restriction on geographic location as with entities in free zones and offshore jurisdictions.
However, mainland companies are required to have a local sponsor or partner, who will hold at least 51% of the company’s ownership. The local sponsors are generally assigned to the service providers of the region that work with the government and other authorities to streamline the company formation process.
Challenges Faced During The Setup of A Mainland Company
Formation of a mainland company in Abu Dhabi requires a systematic approach and a good understanding of underlying nuances is essential for its operations and growth. As a substantial amount of time and hard work is required to navigate this process, a favorable option is to have a company setup service provider like AIMS UAE that can do all the work. Some intricacies that an entrepreneur or a business can potentially face include:
- Understanding and complying with local laws, regulations, and licensing is a challenge, especially for those unfamiliar with the local business environment.
- Foreign entrepreneurs often face restrictions on ownership and are required to have a local sponsor or partner who holds the majority stake in the company
- Entrepreneurs may encounter delays in obtaining necessary permits, licenses, and approvals from government authorities.
- Language barriers and cultural differences can create communication challenges and misunderstandings, particularly for foreign entrepreneurs.
- Understanding the tax implications and financial considerations of operating a business in Abu Dhabi requires guidance.
Documents Required for Company Formation
The requirement of documents may vary on factors like business structure, type of business license, or specific documents required by the company formation service provider. However, some basic documents involve:
- AOA & MOA
- Banks reference letter
- Office lease agreement
- Board Resolution Certificate
- Approval from media-free zone
- Passport copies of shareholders
- Business Name Registration Certificate
Working with a service provider for company formation in Abu Dhabi, UAE, offers numerous benefits like –
- Availing quick approvals and permits.
- Ongoing support after company formation
- Smooth interactions with government authorities
- Guidance through various business structures and licensing options.
- Knowing local regulations and procedures streamlines company formation.
- Providing top-tier services such as accounting, taxation, visa processing, and business consulting
Work With AIMS UAE To Setup A Company In Abu Dhabi Mainland
AIMS UAE provides essential assistance for entrepreneurs and businesses who want to establish their business in the dynamic markets of the UAE. These services typically include guidance on registration requirements, working with government authorities, documentation and paperwork, and facilitating the formation process.
With years of experience in establishing companies from various fields, AIMS has fostered valuable networks and relationships with the UAE business community. This connection encourages them to work efficiently with the authorities to receive benefits and approvals while maintaining compliance for a sustainable setup. For businesses aiming to thrive in the competitive market of Abu Dhabi, AIMS UAE not only helps you with initial company setup but also serves as a strategic partner, providing ongoing consultancy and support to keep their clients ahead in the market.
Frequently Asked Question
A local sponsor typically holds a certain percentage of ownership in the company and has legal liabilities. On the other hand, a local service agent does not have any ownership stake but acts as a liaison between the company and government authorities.
The procedures typically involve choosing a trade name, obtaining initial approvals, gathering relevant documents, obtaining necessary licenses, and registering with relevant authorities.
The minimum capital required for a company set up in Dubai is AED 300,000 whereas for mainland companies in other Emirates, the minimum capital required is AED 150,000. However, the final price may vary on factors like office space, legal structure, or other miscellaneous expenses.
