Abu Dhabi is a leading business hub in the UAE, offering a strategic location, access to global markets, and a pro-business regulatory environment. Registering a Private Limited Company (LLC) in Abu Dhabi is a popular choice for local and international investors seeking full operational control with limited liability.
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This guide explains the entire process to register a Private Limited Company in Abu Dhabi from start to finish, including legal requirements, documentation, timelines, and practical tips. As a global law firm, Dewey & LeBoeuf can assist every step of the way to ensure smooth, compliant company incorporation.
Why Choose Abu Dhabi for Your Private Limited Company
Abu Dhabi offers several advantages for business owners:
- Strategic Location: Central hub connecting Middle East, Asia, and Europe.
- Strong Economy: Diversified economy with government support for private enterprises.
- Legal Protection: UAE law provides limited liability for shareholders.
- Ease of Business: Streamlined registration process with Abu Dhabi Department of Economic Development (ADDED).
- Banking and Investment Access: Well-regulated banking sector and robust international trade connections.
These factors make Abu Dhabi an ideal destination for foreign investors and entrepreneurs seeking regional growth.
What is a Private Limited Company in Abu Dhabi?
A Private Limited Company in Abu Dhabi, commonly referred to as an LLC in the UAE, is a legal entity that limits the liability of shareholders to their shareholding. Key features include:
- Minimum of 2 and maximum of 50 shareholders.
- Liability limited to capital invested.
- Suitable for most commercial and industrial activities.
- Ownership Requirements: Mainland LLCs traditionally required a UAE national partner or agent holding 51% of shares, but under recent UAE Commercial Companies Law reforms, foreign investors can now hold 100% ownership in most sectors. Certain strategic sectors may still require a local partner or service agent.
Private Limited Companies are regulated by ADDED in Abu Dhabi and governed under UAE Commercial Companies Law.
Who Can Register a Private Limited Company
Both UAE nationals and foreign investors can register a Private Limited Company in Abu Dhabi. Recent reforms allow 100% foreign ownership in certain business activities without a local sponsor.
However, depending on your business activity, you may still need a local service agent or a strategic partnership with a UAE national to comply with regulations to register a Private Limited Company in Abu Dhabi.
Step-by-Step Process to Register a Private Limited Company
1. Choose Your Company Structure and Business Activity
Decide the type of Private Limited Company and select your business activity.
- Conduct a feasibility study to ensure the activity is permitted under Abu Dhabi regulations.
- Choose a trade name that complies with UAE naming conventions and is available for registration.
2. Reserve Your Company Name
Submit your proposed company name to ADDED for approval. Ensure it is unique and complies with regulations (no offensive words or restricted terms). Name approval usually takes 1–3 working days.
3. Prepare the Shareholders’ Documents
Typical documents required from shareholders include:
- Passport copies.
- UAE resident visa copies (if applicable).
- Proof of address.
- Bank references (for some cases).
If shareholders are foreign, documents may need notarization and legalization for UAE use. Dewey & LeBoeuf can assist in document verification and certification.
4. Draft the Memorandum of Association (MOA) and Local Agreements
The MOA outlines:
- Shareholding structure.
- Management roles and responsibilities.
- Profit distribution.
- Share transfer and exit mechanisms.
If there is a local service agent or partner, a formal agreement must also be drafted. These legal agreements must comply with UAE Commercial Companies Law.
5. Obtain Initial Approval
Apply for initial approval from ADDED. This confirms that shareholders and business activities are allowed. Initial approval may require background checks on foreign shareholders.
6. Lease a Registered Office
A Private Limited Company in Abu Dhabi must have a physical office in Abu Dhabi. Lease agreements must meet minimum requirements set by ADDED and must be registered officially. Dewey & LeBoeuf can coordinate with certified real estate providers for proper office documentation.
7. Finalize Company Registration
Submit all required documents to ADDED, including:
- Approved company name.
- MOA and shareholder agreements.
- Lease agreement for office space.
- Initial approval certificate.
Upon approval, ADDED issues the Commercial License, officially registering your company as a Private Limited Company in Abu Dhabi.
8. Open a Corporate Bank Account
Opening a corporate bank account is the next crucial step. Banks will require:
- Commercial License copy.
- MOA.
- Board resolution authorizing account opening.
- Shareholders’ and directors’ KYC documents.
Dewey & LeBoeuf provides support in liaising with banks, ensuring smooth account opening and compliance with UAE banking regulations.
9. Register for VAT (if applicable)
If your business turnover exceeds AED 375,000, VAT registration with the Federal Tax Authority is mandatory. Dewey & LeBoeuf can guide you through VAT registration and compliance procedures.
10. Ongoing Compliance
Once you register a Private Limited Company in Abu Dhabi:
- Maintain annual audits and submit financial statements to ADDED.
- Conduct annual general meetings if required by the MOA.
- File license renewals yearly with ADDED.
- Ensure corporate governance and labor law compliance for UAE employees.
Our firm can provide ongoing compliance management to help your company remain fully compliant and avoid penalties.
Estimated Costs and Timeline
- Name reservation: AED 100–500
- Commercial license registration: AED 10,000–15,000 depending on activity
- Office lease and registration: AED 15,000–50,000 per year
- Local service agent fees (if needed): AED 5,000–20,000 per year
- Legal drafting and incorporation services: AED 8,000–25,000
Timeline:
Company registration typically takes 2–6 weeks, depending on documentation readiness and business activity approvals.
Practical Tips for Investors from Abroad
- Use a licensed law firm to avoid legal pitfalls and ensure compliance.
- Prepare certified and legalized documents before submission.
- Choose an experienced local service agent if 51% local ownership is required.
- Plan office leasing and bank account setup in advance.
- Keep a record of all corporate filings to avoid penalties.
FAQs About Private Limited Company Registration in Abu Dhabi
Can a foreigner fully own a Private Limited Company in Abu Dhabi?
Yes, under new reforms, 100% foreign ownership is permitted for many business activities. Some restricted activities may still require a local partner.
What are the ongoing compliance requirements?
You must file annual audited financial statements, renew your commercial license annually, and comply with labor and corporate laws.
Do I need a UAE national as a director or service agent?
It depends on the business activity. Many sectors still require a UAE national partner or service agent.
How long does it take to register a Private Limited Company in Abu Dhabi?
Typically 2–6 weeks, depending on approvals, document readiness, and business activity.
Is a physical office required to register a Private Limited Company?
Yes, Abu Dhabi law mandates a registered office with a lease agreement.
Why Work with Dewey & LeBoeuf
Registering a Private Limited Company in Abu Dhabi involves multiple legal, compliance, and practical steps. Dewey & LeBoeuf provides full-service legal support:
- Drafting MOA and shareholder agreements.
- Obtaining approvals and government licensing.
- Coordinating with banks and service agents.
- Managing compliance, VAT registration, and renewals.
- Providing legal consultation for foreign investors navigating UAE regulations.
Contact Dewey & LeBoeuf today to receive a tailored incorporation plan for your Private Limited Company in Abu Dhabi. Our expert legal team ensures your business is legally compliant, operationally ready, and positioned for growth in the UAE.
E-mail: info@deweyleboeuf.com
Phone: +971 58 690 9684
Address: 26B Street, Mirdif, Dubai, UAE