Abu Dhabi to allow 100% foreign ownership of professional companies
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Abu Dhabi to allow 100% foreign ownership of professional companies

Abu Dhabi to allow 100% foreign ownership of professional companies

The new licences will cover 604 activities across many fields including accounting, training and consultancy

Abu Dhabi

The Abu Dhabi Department of Economic Development (ADDED) said on Monday that it would introduce professional license across Abu Dhabi, permitting foreigners to establish and fully own professional business companies.

The licences will cover 604 professional activities across many fields such as accounting, training, consultancy, beauty centres, computer and internet network companies, among others.

ADDED said that a local services agent is required for most of the companies in case if there is no Emirati partner.

The local service agent is responsible for managing the licensing requirements without bearing any liability for any financial obligation towards the company or its activities in Abu Dhabi or elsewhere.

Also, ADDED will issue a form of service agent agreement to demonstrate and identify the relationship between all the partners.

Additionally, it has issued a model for the professional company’s Articles of Association that will be available through the Department’s website.

Along with the possibility of licensing a professional company, ADDED also highlighted that opening a commercial branch without prejudice to the professional license or its features could be possible if the commercial activity is consistent with or complementary to the professional activity.

Additionally, existing establishments can benefit from this decision by adjusting their status from a commercial to a professional operation while maintaining their registered number and date of incorporation.

The professional work license is a specialised license in professional activities, which includes any activity practiced by a professional investor within his area of experience and matching his academic or professional qualifications.

Rashid Abdulkarim Al Blooshi, Undersecretary of ADDED, said that this type of license is preferable to new investors due to its low cost, and the ease of its issuance, especially if the desired activity is consulting, where the legal form of it is either an individual establishment or group of professionals company, in case there is more than one investor.

Last month, Abu Dhabi reduced business setup fees for the private sector, as well as licence renewal fees, to Dhs1,000, marking a reduction of over 90 per cent from the existing business setup fees.

Read: Abu Dhabi slashes private sector business setup fees by over 90%

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