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Forms of Ownership and Legal Requirements

When a local or an expatriate investor decides to launch a business or industrial activity in the Emirate of Abu Dhabi, the investor may do so through establishing a local or foreign Proprietorship, or the investor may join with others willing to combine efforts, expertise and money to create a joint company.

In starting a business, it is important to find out which type (of those provided for in Federal Law No. 8 Of 1984) is more suitable for the prospective company. Article (5) of the said law provides general conditions and seven different company types:

• General Partnership (Abu Dhabi).
• Public Joint Stock Company (Abu Dhabi).
• Limited Liability Company (Abu Dhabi).
• Simple Limited Partnership (Abu Dhabi).
• Joint Participation (Venture) (Abu Dhabi).
• Private Joint Stock Company (Abu Dhabi).
• Partnership Limited With Shares (Abu Dhabi).

A company of any type other than those specified in the said article of Federal Law No. (8) Of 1984 will be viewed as null and void, with the signatories jointly and severally liable for any obligations.

To guide companies through the issuance of commercial licensing in Abu Dhabi Emirate, the Abu Dhabi eGovernment has established the Commercial Licensing Information Center (CLIC).