Corporate forms and laws: The Emirate of Abu Dhabi has made great efforts to facilitate the establishment of a business. Businessmen or foreign investors can engage in commercial and industrial activities in the emirate by establishing a local institution or branches of foreign companies or by entering into partnerships with legal or legal persons Who wish to contribute their efforts, experience and funds to establish the company. Business Ownership in Abu Dhabi: Except for the free zones that grant foreigners the right to own property in their projects, expatriates wishing to engage in commercial activities in Abu Dhabi need to have an Emirati partner or partners whose share is not less than 51% of the company's capital under the Commercial Companies Law No. (8) 1984. The Act also allows foreign companies to open branches or offices within the State provided that such branch or office appoints a citizen service agent. As for foreign companies that do not wish to have a direct presence in the country or obtain a trade license, they can discharge their products or services within the country by appointing a commercial agent in accordance with Law No. (18) of 1981 and its amendments in Law No. (14) 1998 on the regulation of commercial agencies. Types of companies and legal forms in Abu Dhabi: It is important when starting a business to know the types of companies and legal forms available, where the requirements and conditions of issuing commercial licenses vary depending on the nature of the project and its legal form. The following lines provide an overview of the different types of companies that can be established in Abu Dhabi. - Institution: An enterprise owned by one person to engage in economic activity (commercial, professional, industrial, agricultural or crafts). If the owner of the enterprise is a foreigner, he must have a citizen service agent. The Foundation takes various legal forms, an individual institution owned by a citizen and an individual institution owned by a GCC citizen, an individual institution owned by a foreign investor and a creative individual enterprise. - The Company: An entity established by means of a contract between two or more persons under which each of them undertakes to contribute to a profit-making business by providing a share of the money or providing a job and participating in the profit or loss of the project. A company incorporated in the State shall take one of the following forms: - Limited liability company: A company in which the number of partners does not exceed 50 partners and not less than two partners, and the share of citizens or citizens in the capital of the company should not be less than 51% of the total shares. - A partnership company: a company consisting of two or more partners who are jointly responsible for all the company's obligations, and all partners in the solidarity company must be citizens. A simple recommendation company is a company consisting of one or more joint partners who are responsible for the obligations of the company, as well as one or more recommending partners who are responsible for the company's obligations only by the amount of its share in the capital. Private Shareholding Company: A private joint stock company may be established by the founders who are not less than 3 and must subscribe with a total capital of not less than two million dirhams. - Public Shareholding Company: A public shareholding company is a company whose capital is divided into shares of equal value and negotiable. Each partner is liable for its share of the capital. A branch is a branch of a major local company or institution based in Abu Dhabi or in another Emirate or in a foreign country that engages in the activities or activities of the principal enterprise. It is prohibited for foreign companies or other Emirate to carry out its principal activity in the Emirate of Abu Dhabi or to establish Branches or offices prior to the issuance of a license from the Department of Economic Development. the source: Website of the Department of Economic Development
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