Abu Dhabi Limited Liability Company (LLC) License Complete Guide
Limited Liability Company (LCC) licenses, which are issued by the Abu Dhabi Department of Economic Development (DED), are suitable for working with the government in Abu Dhabi and organisations such as ADNOC and Mubadala. LLCs are popular business structures due to the limited liability protection afforded to the owners; and, because they offer the widest selection of business activities (with the exceptions of insurance and banking) making the LLC license suitable for nearly every nature of business.
Abu Dhabi LLC License - Overview
Can work with UAE federal and Abu Dhabi governments
Shareholder liability is limited to the value of the shares you hold in the company
Widest selection of business activities available: over 4,000
Ability to setup local branches in multiple locations, other emirates
Abu Dhabi mainland license, operate throughout Abu Dhabi Emirate
100% foreign ownership permitted with some businss activities
Paid up share capital - requirement waived
Unlimited number of visas
Access to business banking facilities
License valid for 12 months. Renewable annually.
Abu Dhabi LLC License - Eligibility & Suitability
Applicants must be over 18
UAE citizens
UAE residents
Non residents (must have previously visited the UAE)
UAE companies
Non-UAE companies (proposed GM for the Abu Dhabi LLC must have previously visited the UAE)
Suitable for individuals and entrepreneurs
Startups, small businesses, SMEs and international organisations.
Abu Dhabi LLC: Legal Structure & Ownership
Mainland or Free Zone
The Abu Dhabi Limited Liability Company (LLC) license is a mainland license, issused by the Abu Dhabi Department of Economic Development (ADDED), enabling the company to work throughout the Emirate of Abu Dhabi. This is not a free zone license.
Legal Form
A Limited Liability Company (LLC) means the owners contribute capital into the business in exchange for a percentage of the shares to become shareholders. Shareholders share the profit or loss of the company in proportion to the size of their shareholding. An LLC has it's own legal identity, separate from its owners, meaning the financial liability is limited to the value of the shareholder's respective shareholding. (In certain circumstances a shareholder can be held personally liable for the company's debts, e.g. if they have directly/knowingly contravened the law, committed fraud etc.)
Ownership
An Abu Dhabi LLC requires a minimum of 2 and a maximum of 50 shareholders. In some instances, such as when activities allow 100% foreign ownership, one shareholder is permitted.
Share Capital
Minimum share capital is not defined.
Local Sponsor?
There may be a requirement for an Emirati partner (local sponsor). This is determined by the business activity(ies) required for the license.
Commercial Premises
A registered address, leased in the name of the limited liability company is required for the registration of the company and throughout its duration.
LLCs need an Abu Dhabi Tawtheeq lease contract for a commercial premise. (A Tawtheeq contract means the lease is officially registered with the Department of Municipalities & Transport. Without a Tawtheeq lease, a lessee can't open a dispute or claim against the landlord if ever needed.)
Commercial space must be:
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suitable for the activities on the license, e.g. retail activities need to have a shop or warehouse; whilst consultancy activities need office space
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large enough to accommodate the anticipated number of visas
Some business activities also have specific fit-out requirements, e.g. training activities require a training centre of 100sqm as a minimum, and have specific fit-out instructions which must be adhered to.
Existing Residence Visa
If an existing UAE resident becomes a company shareholder in their individual capacity; it is not mandatory to change their existing visa; however, they would be entitled to apply for an investor visa.
Abu Dhabi Establishment License Visa
Individuals named as shareholders on the LLC license can apply for investor visas, if required. Once the trade license has been issued, it will be necessary to apply for an Establishment Card, before starting the visa application process. Upon successfully obtaining their own visa, the license holder can then sponsor their family members, if required.
Abu Dhabi LLC: License Details
Trade License Application
Once the documents are ready for the LLC license application to be submitted, it takes 3-4 weeks on average for license issuance. It will be longer if premises require a fit out, or special government department approvals are needed.
Trade License Validity
The LLC License is issued for a period of 12 months.
Trade License Renewal
LLC licenses need to be renewed annually. Delays in renewing the license will incur fines for the company, which will increase each month the license is not renewed.
Trade License Cancellation
When the LLC license is no longer required, the company needs to arrange liquidation and cancellation of the license from the official registry. Failure to cancel the license will incur fines accruing and liabilities relating to non-filing of tax returns.
Abu Dhabi LLC: Essential Information
Business Activities
Abu Dhabi LLCs have over 4,000 business activities to choose from. Banking and insurance activities are prohibited.
Business activities determine:
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ownership restrictions. Some activities allow 100% foreign ownership, whilst others require an Emirati partner (local sponsor).
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the type of commercial premises, and any specific fit-out required.
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if any special approvals are required from any government departments.
Company Name
The owners of the LLC choose the company name, called the trade name. The trade name must reflect the nature of the business activity(ies) being applied for on the license and be unique in that it is not already in use. The approved name will automatically have the suffix 'LLC' added to reflect the legal status.
Employing Staff
There are no restrictions on the number of visas an LLC can apply for. However, the LLC should have a genuine need for the employees and be able to provide a suitable working environment.
The company must first arrange it's E-Channel registration in Immigration and have an Establishment Card, and register with the Ministry of Human Resources and Emiratisation (MOHRE), prior to starting tho apply for staff employment visas.
Abu Dhabi LLC employment visas are issued for two years.
Companies need to pay their employee salaries via the UAE's federal payroll system, the Wage Protection System (WPS).
Business Bank Account Opening
LLCs can open business bank accounts and avail business banking facilities. Bear in mind, banks regularly update their account features and conditions to be competitive, reflect their current appetite for risk and to comply with industry regulations.
Exit Strategy
Abu Dhabi LLCs are suitable for these types of exit:
If the company simply intends to stop operations and close. When the time comes, it is simply a case of liquidating the business and cancelling the license.
If the intention is to create a saleable business. When the time comes to sell the company, the sale is conducted by way of a share transfer to the new owner(s).
Abu Dhabi LLC License Requirements
Individual Shareholders' Documents & Information Requirements
✔️ Full name
✔️ Residential address
✔️ Mobile number
✔️ Email address
✔️ Source of funds
✔️ UAE Pass app registration
✔️ UID Number (overseas applicants)
✔️ Passport copy (6 months validity)
✔️ Visa copy (citizen and resident applicants)
✔️ Emirates ID copy (citizen and resident applicants)
✔️ Arabic No Objection Certificate (NOC) to the Abu Dhabi Department of Economic Development (applicants employed in the UAE).
General Manager's Documents & Information Requirements
✔️ Full name
✔️ Residential address
✔️ Mobile number
✔️ Email address
✔️ UAE Pass app registration
✔️ UID Number (overseas applicants)
✔️ Passport copy (6 months validity)
✔️ Visa copy (citizen and resident applicants)
✔️ Emirates ID copy (citizen and resident applicants)
Corporate Shareholders' Documents & Information Requirements
✔️ Company name
✔️ Registration number
✔️ Registered address
✔️ Phone number
✔️ Email address
✔️ Source of funds
✔️ Purpose of transaction
✔️ Certificate of Incorporation
✔️ Memorandum & Articles of Association
✔️ Board Resolution to establish the Abu Dhabi LLC
✔️ Power of Attorney for the general manager of the Abu Dhabi LLC
✔️ Power of Attorney for Gateway Group to set up the LLC on your behalf
The above documents must be notarized; legalised at the Ministry of Foreign Affairs; and, legalised at the UAE Embassy in the company's home territory.
Corporate Shareholder Signatory's Information & Document Requirements
✔️ Full name
✔️ Residential address
✔️ UAE Pass app registration
✔️ Power of Attorney (POA)
✔️ Passport copy (6 months validity)
✔️ Visa copy (citizens and residents)
✔️ Emirates ID copy (citizens and residents)
Corporate Documents for the new Abu Dhabi LLC
✔️ Memorandum & Articles of Association (MOA)
✔️ Power of Attorney to the General Manager (POA)
✔️ Specimen Signature of the General Manager
The above documents will be notarized by the Abu Dhabi Notary Public during the Abu Dhabi LLC company formation process.
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Abu Dhabi Limited Liability Company (LLC) License. Page update 28 August 2024.