Advancing technology has turned the world into a global village where communicating thoughts, ideas, and documentation is no more difficult or time taking task. Technology like video conferencing, e-mails, global connectivity through the internet has changed the way information is exchanged. It proved to be a breakthrough in the business world as a lot of work can be done from your remote location, for example, documentation, various transactions, meetings with far off clients, and the list goes on.
The Internet has introduced a new way of running a business that is “Online Business” For people who do not have enough money to start up or wants to expand business in foreign countries, it’s a great opportunity. But still, several big companies prefer a proper set-up, an office, staff, paperwork, as in an online system, it is not necessary to fulfill legal documentation or defined norms between partners in papers.
So, when it comes to registering a company, there are different policies that one adopts according to their demands and priorities. Another important factor that helps one decide an optimum corporate structure is a region where you want to set-up your business; every country or state has its policies.
United Arab Emirates (UAE), known for two of its famous cities; Dubai and Abu Dhabi. They provide attractive corporate policies for beginners and foreign investors. For starting a new business setup in Abu Dhabi, one will need to look into its company formation policies; the two most common entities are LLC and free zone business.
LLC stands for Limited Liability Company; it is most commonly used in Abu Dhabi. Some key features that must be kept in mind while LLC company formation in Abu Dhabi, is that the company should have at least one director and two shareholders, 51% of the total shares must be owned by a UAE national and, it should rent an office and hire local workers there.
LLC has advantages like there are fewer legal formalities, more liability for owners. It gives tax flexibility, and it is also exempted from paying 5% customs duty on imported goods. These factors can easily attract foreign investors.