LLP is an alternative corporate business form that gives the benefits of limited liability of a company and the flexibility of a partnership. The LLP can continue its existence irrespective of changes in partners. It is capable of entering into contracts and holding property in its own name. The LLP is a separate legal entity, is liable to the full extent of its assets but liability of the partners is limited to their agreed contribution in the LLP. Further, no partner is liable on account of the independent or un-authorized actions of other partners, thus individual partners are shielded from joint liability created by another partner’s wrongful business decisions or misconduct. Mutual rights and duties of the partners within a LLP are governed by an agreement between the partners or between the partners and the LLP as the case may be. The LLP, however, is not relieved of the liability for its other obligations as a separate entity. Since LLP contains elements of both ‘a corporate structure’ as well as ‘a partnership firm structure’ LLP is called a hybrid between a company and a partnership.

Company Registration in Abu Dhabi |

Overview of Company Registration in Abu Dhabi

After Dubai, Abu Dhabi is the second-largest city in the Middle East. Since the aforementioned cities are constantly competing with one another, there are several prospects for a firm to establish itself. Many businesses opt to go through the Abu Dhabi company formation process. This is a result of the tax benefits that a business can obtain. Due to several advantages linked to structure and investing, a lot of foreign investors choose to register their companies in Abu Dhabi.

Overview

A firm that is established in Abu Dhabi cannot have 100% foreign ownership. A national of Abu Dhabi must be appointed and hold 51% of the company's shares. The person can also be a local UAE citizen who resides in the UAE. There are several types of free trade zones in the nation that enable investors to take into account various chances.
Companies in all industries may be fully owned by a foreign corporation. However, there is a requirement to appoint an Abu Dhabi national for conducting business activities when it comes to a particular amount of shareholding and control. Since Abu Dhabi has more than 8 free trade zones, a foreign investor would profit the most from the establishment of a business there. In addition, there are many tax incentives that offer the greatest advantages to a candidate pursuing the registration of a company in Abu Dhabi.

Advantages of Abu Dhabi Company Registration

The advantages of company establishment in Abu Dhabi include the following:

Various Forms of Business Structure- For the purpose of registering a company in Abu Dhabi, a variety of business structures may be used. Therefore, there are various possibilities available to a foreigner for the company registration process.

Free zones- In Abu Dhabi, there are more than 8 free zones for conducting business. As a result, an investor has the option to conduct business in one of several free zones in Abu Dhabi. In Abu Dhabi, a different free zone corporation may also be founded.

Unified Law System- Abu Dhabi's legal system has altered as a result of repeated government interference. In addition to this, there are additional elements that support the growth of the legal system. This would be the rise in the number of US and UK law firms operating in Abu Dhabi. The Abu Dhabi government has reacted favourably to these businesses and modified the law to create a uniform structure.

Growth of the Tourism Industry- Abu Dhabi has one of the highest tourist-related revenues in the Middle East. For a variety of businesses, Abu Dhabi functions as a global hub and an international financial center. There are numerous places here that draw tourists. The FIFA will be held in Abu Dhabi in 2022, luring more businesses to set their shop there. Because of all the aforementioned factors, businesses may seek to diversify.

Tax Advantages- Due to the UAE's lack of any taxation, Abu Dhabi is a great place for businesses to lower their global taxation. Global tax, personal tax, withholding tax, corporation tax, and any kind of VAT will all be included in this tax. Oil and gas companies are the only businesses in Abu Dhabi that must pay taxes. Several double taxation agreements exist between Abu Dhabi and other nations.

Business Structures that can be used to Register a Company in Abu Dhabi

The business formats for forming a corporation in Abu Dhabi are as follows:

Limited Liability Company (LLC)- In Abu Dhabi, a Limited Liability Corporation, or LLC, is one of the most well-known types of corporate entity. The number of shares is the maximum amount for which the shareholders of this type of company are liable. For the creation of this kind of organization, a minimum of 2 shareholders are needed. The minimum number of shareholders for this kind of organization is 50. A minimum capital of greater than USD 40,000 would need to be subscribed in order to form an LLC in Abu Dhabi. The aforementioned business structure is an option for an applicant registering a company in Abu Dhabi.

Company in a Free Zone- In Abu Dhabi, there are more than eight free zones. When it comes to foreign ownership of the corporation, a free zone company is independent. When it comes to hiring employees, the corporation has no limits of any kind. Each free zone formed in Abu Dhabi has its own set of rules and laws. A business that is registered in one of these free zones must abide by local legal regulations.

Branch office- A foreign business may open a branch office. Establishing branch offices in Abu Dhabi is covered by the Commercial Companies Act Number 8 of 1984 and Ministerial Decision Number 69 of 1978. A local agent would be necessary to open a branch office in the United Arab Emirates. Activities that are done by the parent firm would be done by the branch office. A branch office can handle routine tasks associated with promoting the items in the nation.

Representative Office- A foreign firm may establish a representative office to perform different types of tasks, such as market research, rather than actual operations. A foreign firm is permitted to establish a representative office under Article (313) of the Companies Law.

Requirements for Abu Dhabi Company Formation Eligibility

A potential applicant must meet the following requirements in order to be eligible for the Abu Dhabi business formation process:

Minimum Capital- The applicant must first meet the minimum capital criteria for Abu Dhabi company registration. For the creation of a limited liability corporation, USD 41,000 in capital is needed. The capital requirements for businesses operating in free zones will vary depending on the circumstances.

A database pertaining to beneficial ownership- The requirements for beneficial ownership must be met when a foreign entity is established in Abu Dhabi. In order to meet their needs, the foreign business would typically engage into a shareholders' agreement. The requirements of the beneficial ownership would be stated in the shareholders agreement. Not all businesses demand a UAE national control 51% of the business. For instance, a corporation operating in a free trade zone wouldn't need a native of the UAE to manage its activities.

Suitable Agency- An applicant seeking to register a business in Abu Dhabi would need to locate an agency that is qualified to handle the necessary paperwork for Abu Dhabi company registration. Although not required, hiring an agent would make the process easier.

Registration Process in Abu Dhabi

Limited Liability Corporation (LLC)

The applicant must first select the appropriate business structure type. In Abu Dhabi, LLCs are the most popular type of business structure, hence the information following will focus on LLC registration.

The business would then need to take all the necessary actions to find a local stakeholder. This local shareholder must own a majority of the company—more than 51%. The Abu Dhabi-based business would own a 49% controlling interest in the stake.

The applicant would need to select an appropriate trade name for the business. For this, a minimum of three commercial names would be selected. The Department of Economic Development must receive the trade name application (DED). The applicant is required to start the trade name search procedure and reserve the desired trade name for the business.

With this, the applicant would have to list the initial business operations they conducted in accordance with the necessary authority. The applicant would acquire the name of the business to start operations after the aforementioned has been completed.

After the name has been reserved, the applicant must provide notarized copies of the articles of organization and other incorporation paperwork. This needs to be delivered to the appropriate Abu Dhabi Municipality.

The applicant would then need to open a corporate bank account in Abu Dhabi and deposit the start-up cash needed to form the firm.

The DED must receive documentation in addition to all the required business license documents. These documents must be translated into Arabic if they are submitted by an international business. These translations of the documents should be certified by the Justice Ministry.

The business can register with the Abu Dhabi Chamber of Commerce once the license has been issued.

Requirements for Abu Dhabi Company Registration

For the registration of a corporation in Abu Dhabi, the following requirements must be met:

In Abu Dhabi, there is no requirement for businesses to pay any kind of corporate tax. Only oil and gas companies must pay corporate taxes at a rate of 55%. Additionally, foreign banks must pay 20% corporate tax.

Non-GCC nations are subject to 5% customs taxes.

Community Security Contributions must be made in accordance with regional labor laws. Employees are required to contribute 5%, with employers contributing 12%.

Annual Financial Statements must be delivered to the Ministry of Economy in Abu Dhabi. Financial statements must also be presented to the DED along with this.

The applicant must have the required share capital before the company can be established in Abu Dhabi. This would be in compliance with the provisions of the Federal Law No. 8 of 1984 on Commercial Companies.

A manager must be chosen by a business entity to oversee its operations. The Memorandum of Association must make mention of this appointment.

The DED's requirements must be followed while filing the yearly return.

Documents Required for Abu Dhabi Company Registration

The following papers are necessary for Abu Dhabi company registration:

Articles of Association

Memorandum of Association

Shareholders Agreement

Appointed Managers

Copies of Board Resolution (For a foreign company willing to open a branch office or representative office)

Notarized Papers

Copy of the relevant share capital documents (Certificate of Paid up Share Capital)

Slip of Deposit: Money deposited in Abu Dhabi

Lease Agreement for the Premises

Approval Certificate

Bank Account Name

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FAQs

Concept of LLP

LLP is an alternative corporate business form that gives the benefits of limited liability of a company and the flexibility of a partnership.
The LLP can continue its existence irrespective of changes in partners. It is capable of entering into contracts and holding property in its own name.
The LLP is a separate legal entity, is liable to the full extent of its assets but liability of the partners is limited to their agreed contribution in the LLP.
Further, no partner is liable on account of the independent or un-authorized actions of other partners, thus individual partners are shielded from joint liability created by another partner’s wrongful business decisions or misconduct.
Mutual rights and duties of the partners within a LLP are governed by an agreement between the partners or between the partners and the LLP as the case may be. The LLP, however, is not relieved of the liability for its other obligations as a separate entity.

Since LLP contains elements of both ‘a corporate structure’ as well as ‘a partnership firm structure’ LLP is called a hybrid between a company and a partnership.

Structure of LLP

LLP shall be a body corporate and a legal entity separate from its partners. It will have perpetual succession.

Advantages of LLP

LLP form is a form of business model which:

(i) is organized and operates on the basis of an agreement.

(ii) provides flexibility without imposing detailed legal and procedural requirements

(iii) enables professional/technical expertise and initiative to combine with financial risk-taking capacity in an innovative and efficient manner

Other Countries where this form is available

The LLP structure is available in countries like United Kingdom, United States of America, various Gulf countries, Australia and Singapore. On the advice of experts who have studied LLP legislations in various countries, the LLP Act is broadly based on UK LLP Act 2000 and Singapore LLP Act 2005. Both these Acts allow creation of LLPs in a body corporate form i.e. as a separate legal entity, separate from its partners/members.

Difference between LLP & ‘Traditional Partnership’

Under “traditional partnership firm”, every partner is liable, jointly with all the other partners and also severally for all acts of the firm done while he is a partner.
Under LLP structure, liability of the partner is limited to his agreed contribution. Further, no partner is liable on account of the independent or un-authorized acts of other partners, thus allowing individual partners to be shielded from joint liability created by another partner’s wrongful acts or misconduct

Difference between LLP & Company

A basic difference between an LLP and a joint stock company lies in that the internal governance structure of a company is regulated by statute (i.e. Companies Act, 1956) whereas for an LLP it would be by a contractual agreement between partners.
The management-ownership divide inherent in a company is not there in a limited liability partnership.
LLP will have more flexibility as compared to a company.
LLP will have lesser compliance requirements as compared to a company.

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Overview Advantages of Abu Dhabi Company Registration Business Structures that can be used to Register a Company in Abu Dhabi Requirements for Abu Dhabi Company Formation Eligibility Registration Process in Abu Dhabi Requirements for Abu Dhabi Company Registration Documents Required for Abu Dhabi Company Registration How to contact Estabizz for Abu Dhabi Company Registration FAQs Blog

Overview of Company Registration in Abu Dhabi

Overview

Advantages of Abu Dhabi Company Registration

Business Structures that can be used to Register a Company in Abu Dhabi

Requirements for Abu Dhabi Company Formation Eligibility

Registration Process in Abu Dhabi

Requirements for Abu Dhabi Company Registration

Documents Required for Abu Dhabi Company Registration

How to contact Estabizz for Abu Dhabi Company Registration

Fill the form. Get a call back. Submit the required documents. Track the progress of your application. Get the expected results.

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