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LIMITED LIABILITY COMPANY

Q: Can I convert a UAE Foreign Branch into an LLC?

There is a process to covert a Foreign Branch Office into an LLC with the DED and other UAE Government departments. The process this involves an effective share transfer, termination of NSA, reconstitution of new legal documents (MOA) and engagement of a UAE Local Partner.

Q: What is a CICPA security pass?

Employees working at the premises of any establishment which has been deemed critical to Abu Dhabi are required to register their relevant staff for security permits with CICPA. The staff can be working both onshore or offshore, at sea as well as on land.

A Limited Liability Company (LLC) is a popular business structure for entrepreneurs and corporations to establish in Abu Dhabi. The process for LLC company formation in Abu Dhabi is streamlined and manageable, and provides numerous advantages to the business. Companies and individuals looking to establish in Abu Dhabi may wish to consider whether the LLC structure is the best option for the business and shareholders.

About LLC in Abu Dhabi

Limited Liability Companies (LLC) are one of the most common types of corporate commercial entities that entrepreneurs and corporations can establish in the UAE. With a quick and easy process, and a broad range of business incentives, LLCs are widely preferred by entrepreneurs and corporations that want to penetrate the UAE market and establish a solid footing in the Middle East region.

Limited Liability Companies in Abu Dhabi can be 100% foreign owned for a majority of industries and sectors– Click here to read more about foreign ownership.

Benefits of LLC

No required minimum capital investment
No local corporate tax
Flexible office location
Flexible staff visa allocation
Ease of trade in and outside of the UAE
Reduces overhead company set up costs

Requirements

The Emirate of Abu Dhabi requires no specific minimum share capital amount, and Commercial Law has stipulated that the capital should be adequate for the company’s needs.

In relation to the requirements for establishing a 100% foreign owned LLC in Abu Dhabi, the list of activities available to be 100% foreign owned is slightly different to that of its neighbouring Emirate, Dubai.

The Abu Dhabi Department of Economic Development (ADDED) has now released a list of 1029 activities that would be eligible for 100% foreign ownership.

Abu Dhabi DED – Foreign Investor 100% owned activity list October 2021

How can we help?

At Sovereign PPG, we understand that some foreign investors might be concerned about this arrangement and the thought that another individual will hold more than half of your company. As such, we have developed a secure and trusted nominee structure for LLC company formation in Abu Dhabi that ensures the interests of our clients are fully protected in accordance with the law.

if you choose to partner with Sovereign PPG, we will be the Emirati partner of your LLC company, ensuring you can run your day-to-day business operations without any interference. This set-up also removes any pressure for you to independently find and maintain a trustworthy and reliable local sponsor relationship.

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More Information

Abu Dhabi LLC - FAQs

What are the main differences between an LLC and a Foreign Branch?

A Foreign Branch is a direct extension of the Mother Company and as such has no separate legal standing. This means the Mother Company bears full legal, financial, and technical liability for the Foreign Branch Office.

An LLC is a separate legal personality which limits the exposure of the Mother Company. If a Foreign Company establishes a new LLC in the UAE, then new LLC’s Liability is separate from the Mother Company. Shareholder liability in a LLC is, in most cases, limited to the value of their subscription to the Share Capital.

Can I convert a UAE Foreign Branch into an LLC?

What is a CICPA security pass?