LLC Formation & Business Setup in Abu Dhabi
LLC is the most commonly adopted entity for enterprises seeking to enter business outside of a Free Zone in the UAE.
A minimum 51% of the total shareholding in a Limited Liability Company must be held by a UAE national or a company wholly owned by UAE nationals. A few other exceptions and rules apply to certain industries that vary from Emirate to Emirate.
What is an LLC?
A Limited Liability Company (LLC) is a company wherein the liability of its shareholder is restricted only to the extent of their shares in the capital.
Benefits of an LLC company formation in Abu Dhabi
LLC business setup in Abu Dhabi has numerous advantages, they are
- Investor becomes shareholder in the company
- 100% free of tax
- No definite minimum capital requirements
- Share of profits and losses at a different ratio of the share capital
- Investor can set up branches
- No limit in holding properties or offices in the UAE
- UAE resident visa offered to the investors
- Global/Local bank accounts are easy to open
How will GCC Solutions help in LLC business setup in Abu Dhabi?
GCC Solutions would act as the corporate nominee beneficial sponsor retaining 51% of the shares as a beneficiary ensuring that our clients retain 100% control of the operations of the LLC.
The Managing Partners of GCC Solutions, Mr. Ali Fikree and Mr. Omar Fikree are both qualified Civil Engineers and hold Master Degrees (with honours) from the University of Bristol in Engineering. As such GCC Solutions is able to facilitate the beneficial corporate sponsorship of companies seeking Professional Licenses in the business activities of General Contracting, Architecture, Engineering Consultancy, Interior Design and other professions that require the majority shareholder of the LLC to hold a professional qualification in Engineering as stipulated by the Abu Dhabi Municipality requirements.
UAE Commercial Companies Law changes in Limited Liability Company
The New CCL was introduced in July 2015 as Federal Law No. 2 of 2015 about Commercial Companies. It has replaced the old Federal Law No. 8 of 1984 regarding Commercial Companies.
The New UAE CCL has brought in several new changes to the old law.
Here are the new laws pertaining to an LLC company formation in Abu Dhabi, UAE:
Articles should list the date of birth with the details of the shareholders of an LLC. This was not a requirement in the former law.
One person or a corporate entity may be the sole shareholder of an LLC. The old law requires a minimum of two shareholders to form an LLC in Abu Dhabi, UAE.
Managers / Directors
LLCs in Abu Dhabi can now appoint more than 5 Managers/Directors; they should also alter the Articles according to the increase in governance positions.
Shareholders in Limited Liability Companies are allowed to pledge their shares. The pledges must be made by the establishment’s memorandum and articles of association, and be notarized.
A Limited Liability Company in Abu Dhabi has to follow the International Accounting Standards. The Old CCL allowed any standard to be used in the past.