Local Service Company Setup (LLC)Documents Destroying Services

There is no minimum share capital requirement for local companies in Abu Dhabi.

No additional approvals are required to register a company conducting this business activity.

The ADDED company registration provides various benefits and opportunities for entrepreneurs:

• High status and reputation. Registering a business in Mainland ensures a high level of trust from government authorities, banks, and international partners due to its strict regulatory standards, compliance, and transparency in business processes.
• Access to local and global markets. Local companies can coduct business both within the UAE and internationally. This helps to expand business, create and strengthen partnerships and and enables interaction with clients and partners worldwide.
• Strategic location. Abu Dhabi Mainland encompasses the entire mainland territory of the emirate of Abu Dhabi, providing companies with direct access to the region's key business and transportation hubs. Proximity to international airports, seaports, and major business centers ensures efficient logistics and high mobility, making Mainland an attractive choice for companies focused on local growth and global expansion.
• Full profit control. ADDED enables foreign entrepreneurs to retain 100% ownership of their company, granting full control over profits and unrestricted capital repatriation outside the UAE. This fosters an optimal environment for strategic financial planning and efficient business management, free from limitations on economic activities. For certain activities, a local Emirati partner or a Local Service Agent (LSA) may be required.
• Wide range of business activities. ADDED offers an extensive list of business activities, enabling entrepreneurs to develop projects in various industries, including trade, logistics, manufacturing, construction, agriculture, and more.
• Participation in government tenders. Local companies have the right to participate in government tenders and secure long-term contracts for major projects, enhancing financial stability and driving business growth.
• Infrastructure. Abu Dhabi Mainland provides access to diverse and modern infrastructure, including office spaces, retail and warehouse facilities, industrial zones, and commercial buildings. Local companies enjoy complete flexibility in choosing locations for renting or purchasing real estate, allowing them to tailor office and production sites to their specific business needs.

Various property options are available in Abu Dhabi Mainland for rent and purchase, provided upon preliminary request and subject to availability:

• Coworking spaces. Workspaces in modern coworking spaces, ideal for startups, freelancers, and small teams. These spaces provide the necessary infrastructure for comfortable work, including high-speed internet, meeting rooms, and networking areas.
• Private Offices. Office spaces of various sizes, ranging from small rooms to spacious office blocks suitable for medium and large companies.
• Commercial Premises and Buildings. Fully equipped premises and buildings designed for restaurants, hotels, medical clinics, schools, and other establishments.
• Retail Spaces. Retail premises located in busy areas or shopping centers, intended for various purposes.
• Warehouses. Modern warehouses of various sizes that meet high standards for storing goods. These premises can be either empty or equipped for sorting, processing, and long-term storage of products.
• Industrial Facilities. Specialized buildings intended for industrial production, including manufacturing units, workshops, and premises equipped with special-purpose equipment.
• Land Plots. Plots intended for the construction of commercial properties, warehouses, manufacturing facilities, or other business projects.
• Showrooms. Spaces with large display windows, perfectly suited for showcasing products, including cars, furniture, equipment, or other large goods.
• Staff Accomodation. Comfortable living spaces located near business areas, designed for the accommodation of employees.

The UAE imposes a variety of taxes and fees that regulate the financial activities of both legal entities and individuals. Below are the main ones:

1. Value Added Tax (VAT):
   • Since January 1, 2018, the UAE has implemented a VAT rate of 5%, which applies to most goods and services and is charged to companies operating within the country, except for those registered in designated zones.
   • A Designated Zone is a territory within a free zone that is treated as outside the UAE for tax purposes, allowing goods to be exempt from taxation, provided certain criteria are met. The main taxation rules in Designated Zones are:
     • Designated Zones are listed in the Cabinet Decision to Federal Decree-Law No. (8) of 2017 on Value Added Tax (VAT).
     • Goods tranferred between or within Designated Zones are not subject to VAT.
     • The export and import of goods between a Designated Zone and a foreign company are also VAT-exempt.
   • For local companies and those registered in Non-Designated Zones (free zones not included in the Designated Zones list), the standard tax rules set forth in the Federal Decree-Law on VAT apply.
     • Companies with an annual turnover exceeding AED 375,000 are required to register with the Federal Tax Authority (FTA) as VAT taxpayers.
     • Companies with a turnover between AED 187,500 and AED 375,000 may register on a voluntary basis.
     • Companies can offset VAT paid on purchases of goods and services (input VAT) against the VAT they collect on sales (output VAT), shifting the tax burden to the final consumer.
     • Some goods and services may be exempt from VAT or taxed at a 0% rate, such as international transportation, educational, and medical services.
2. Corporate Tax:
   • As of June 1, 2023, the UAE has introduced a corporate tax at a rate of 9%, levied on the taxable net profit of companies with income exceeding AED 375,000.
   • A 0% rate is applied to taxable income not exceeding AED 375,000.
   • Charitable, non-profit organizations and medical institutions are fully exempt from corporate tax.
3. Excise Tax:
   • Since October 1, 2017, the UAE has introduced an excise tax aimed at reducing the consumption of harmful products and funding healthcare initiatives.
   • The tax applies to alcohol, tobacco products, and beverages containing added sugar, including energy and carbonated beverages.
   • Excise tax rates vary by product category:
     • 50% on carbonated drinks (excluding mineral water)
     • 100% on tobacco products
     • 100% on energy drinks
     • 100% on electronic smoking devices and related liquids
     • 50% on products containing added sugar or sweeteners.
   • Companies dealing with excise goods must register with the Federal Tax Authority (FTA), submit monthly declarations, and maintain records. Excise tax is paid upon the import, production, or release of goods for consumption in the UAE.
4. Customs Duties:
   • Custom duties in the UAE are applied to most imported goods at a standard rate of 5% of the cost, insurance, and freight (CIF). Some product categories, such as pharmaceuticals and food items, may be exempt from duties or subject to reduced rates.
   • Goods imported into the UAE's free zones are generally not subject to customs duties as long as they remain within these zones. However, once such goods are moved to the UAE mainland, standard duties apply.
5. Personal Income Tax:
   • In the UAE, personal income is not subject to taxation.
   • UAE citizens and residents are exempt from paying taxes on their personal income, including salaries, interest, dividends, inheritances, gifts, luxury goods, and capital gains.
6. Other Local Taxes and Fees:
   • Individual emirates may impose specific local taxes and fees in line with their economic and social needs.
   • These taxes and fees are aimed at supporting public services and implementing infrastructure projects.

Abu Dhabi Mainland offers the following main types of UAE resident visas for foreign investors and company employees:

• Golden Visa:
  • Issued to top executives with a monthly salary of more than AED 30,000, as well as to investors with investments of at least AED 2,000,000 in a company or property.
  • Allows managing a business, living, and working in the UAE.
  • Grants the right to sponsor family visas.
  • Valid for ten years.
• Investor Visa:
  • Issued to foreign investors and entrepreneurs who invest in or acquire companies.
  • Allows for business management, living, and working in the UAE.Grants the right to sponsor family visas.
  • Valid for two years but can be canceled if the investor is absent from the UAE for more than six months.
• Employment Visa:
  • Issued by the company for its foreign employees.
  • Permits residency and employment in the UAE.
  • Depending on the job position, education and specialization may need to be verified.Valid for two years but can be canceled if the employee is absent from the UAE for more than six months.
  • Can be renewed alongside the employment contract.
• Dependent Visa (for family members and domestic staff):
  • Issued to the sponsor's family members and accompanying domestic staff (nannies, housekeepers, caregivers, etc.).
  • Permits residency in the UAE.
  • Valid for two years.