Read This and Make Smarter Decisions before Starting an LLC in Abu Dhabi!

15Jun, 23

Read This and Make Smarter Decisions before Starting an LLC in Abu Dhabi!

The United Arab Emirates has established itself as one of the best places in the world to start a business. Depending on their commercial activity, investors have the option of establishing their company on the mainland, in a free zone, or offshore. Furthermore, Abu Dhabi has well-developed transportation services, allowing businesses convenient access to docks, airports, and other locations. For all of these reasons, forming an LLC in Abu Dhabi is the best option. Because of favorable rules enacted by the UAE government, the LLC company structure has gained popularity in recent years. The advantages of a corporation structure paired with a hassle free business partnership model can be enjoyed by investors and business partners.

Thus in this blog, Dhanguard will extensively discuss how you can form a Limited Liability Company in Abu Dhabi. So without any further ado, let’s learn!

What does a Limited Liability Company refer to?

In the United Arab Emirates, the most popular business structure is the limited liability company (LLC). A Limited Liability Company (LLC) can be founded by a minimum of two and a maximum of fifty shareholders, each of whom is only liable for their shares in the company's capital.

  • As a result, Abu Dhabi's company rules provide shareholders with complete personal liability protection.

  • With an LLC, you have a bigger pool of business activities to choose from when forming a firm. When forming a limited liability company in Abu Dhabi, you must collaborate with a local sponsor (UAE national) who will control 51 percent of the company.

  • The remaining 49 percent would be under the hands of the expatriate in this case. Local sponsors that are dependable act as silent partners for your company, allowing you to operate at full capacity.

How to start a Limited Liability Company in Abu Dhabi?

To start a Limited Liability Company in Abu Dhabi, simply follow the steps outlined below. Before, during, and after the formation of your firm, make sure you comply with all legal frameworks and commercial norms provided by the UAE government.

The following steps will guide you through the process of forming a limited liability company (LLC):

Type of Business

Understand the heart of all business activities involved in your endeavor and carefully select them from the DED and other authorities' lists.

Decide a Trading Name

For your business, reserve a trading name. Check to see whether it violates any government-mandated naming conventions.

Certification from DED

Complete the business location and acquire an initial approval certificate from the Department of Economic Development. If your trade name is denied, you won't get this certificate.


Complete all applicable paperwork, including the Memorandum of Agreement and the Letter of Support Agreement. Collaborate with a trustworthy local sponsor who can assist you with legal compliance.

Acquire Trade License

Get your company's trade license. You'll get the same if all of your paperwork presented to the authority is successfully verified.

Labour register

Apply for labour cards at the labour register, and keep track of your visa as well as your partners' visas. You'll be able to manage a legitimate LLC firm in Abu Dhabi once you've completed these steps.

Read More: Is a Trade License Required to Sell on Social Media in Dubai?

What are the Documents required to start an LLC in Abu Dhabi?

According to the type of LLC to be formed in Abu Dhabi, the following documents must be filed to DED and other authorities:

  1. Form of application for registration that is completely filled out

  2. Copies of all shareholders' and managers' passports

  3. A passport copy of the local sponsor's NOC (if manager or partner has residence visa in UAE)

  4. The Memorandum of Association is a legal document that establishes the relationship between (duly attested from a public notary)

  5. Registration of a trade name and initial approval from DED Bank for each shareholder's reference letter

  6. Location Plan and Tenancy Contract attested by both Abu Dhabi Municipality's Planning Department and Civil Defence Department 

The applicant's home country and the UAE consulate must both certify and notarize all of the paperwork.The notarization process takes time and should be completed as soon as a choice regarding establishing a business in Abu Dhabi has been made.

What is the Cost of Setting up an LLC in Abu Dhabi?

For most economic activity, the cost of forming a limited liability company in Abu Dhabi is nearly the same. The prices may vary from AED 8,000 to AED 15,000. Only the number of visas sought for, the medical insurance chosen, extra clearances from necessary governmental bodies, and the international trade name can affect the price.

Some of the required services that are charged are listed below:

Compulsory Services

  • Emirates ID   

  • Visa stamping

  • Trade license

  • Tasheel fee   

  • Immigration card       

  • MoA notary fee

  • Stamp of the company

  • Status change

  • Medical test 

  • Name approval 

  • Initial approval 

Additional Requirements

  • Foreign trade name / non-Arabic name

  • Business consultation

  • Corporate PRO services for easy Documentation

  • Labour card  

  • Employment visa       

  • Additional partner visas

  • Health insurance        

  • Office space  

  • Employee quota        

  • Additional approvals 

Benefits of forming an LLC in Abu Dhabi

New age investors and aspiring entrepreneurs want to be certain about their investments. A single blunder can result in unnecessarily wasted resources and time. As a result, we've developed a list that walks you through the benefits of forming an LLC and why you should do so as well:

Possibility of Applying for a Variety of Visas

When you establish a limited liability company in Abu Dhabi, you become eligible for an investor visa. You obtain investor status in the UAE, which allows you to stay in the country as a resident for three years. You can apply for several visas for family members, employees, and other individuals. For each visa application, the basic guideline is that you must have 100 square feet of commercial space.

If you're applying for numerous visas, it's a good idea to talk to DED first, and the department will not let you down. As a result, you may balance your business and personal lives in the UAE by securing visas for employees and family members.

 A wide range of Business Activities are Permitted

In contrast to other business structures, LLCs allow you to choose from a wide range of legitimate business operations in the UAE. More than 2,000 company operations are permissible under an LLC formation, according to the Department of Economic Development (DED). Depending on the company's business location, the operations may differ in nature and jurisdiction.

You can form a limited liability company in a variety of fields, including agriculture, finance, technology, and many more. In the United Arab Emirates, the registration process for forming an LLC is more efficient than before. You can get a trade license for your company activity in a fairly short time if you submit the proper documentation to the appropriate offices.

Easy and Wallet-Friendly Company Formation

When people think about business establishments in Abu Dhabi, the phrase "affordable" doesn't come to mind. However, it is only once you have a firm grasp of the region's economic dynamics and jurisdiction that you can appreciate the Abu Dhabi company formation model's cost-effectiveness. Because there are no overhead application expenses and you may avoid double taxation, forming an LLC company in Abu Dhabi is a cost-effective option.

Furthermore, the government never imposes hidden fees, and when you register an LLC here, you won't have to pay anything extra. The cost of forming an LLC in Abu Dhabi is estimated to be roughly AED 28,000, however, this varies a lot on the type of your firm. Some business activities necessitate special government approvals and certificates, which raises the cost of starting a business.


Starting an LLC in Abu Dhabi can be a great choice for you if you are a budding entrepreneur and looking for a profitable market to establish your Business. Be assured that our team of experts will guide you in every step and will give you undivided assistance. Thus, we hope this blog provided you with insightful information. For more information on other related aspects, feel free to check out our website as well or get in touch with our experts by visiting our Branch Office.