Abu Dhabi Free Zone Companies for sale
Abu Dhabi has a number of free zones and it is possible to purchase a running, operational company that can be used immediately or upon ownership transfer.
- This type of company is known as an active company, one that has an active operational business license and in most cases, an active bank account.
Customers interested to purchase a shelf company, can also consider acquiring a company that is aged.
- An aged company, means the company has been registered a number of years ago, and may or may not have any operations.
- The company’s operating license may be active or inactive license.
- With this consideration, a bank account may or may not be available.
Overview
- How to buy a shelf company in Abu Dhabi
- Abu Dhabi shelf company for sale with bank account
- Abu Dhabi Free Zone and Mainland shell companies for sale
- Points to considered when purchasing an existing shelf company
- Due diligence to be conducted when purchasing an existing company in Abu Dhabi Freezone or Mainland
- Business licenses for sale in Abu Dhabi (AUH)
How to buy a shelf company in Abu Dhabi
Depending on availability and factors that are of interest to the buyer, shell companies can be purchased in Mainland and Freezones of Abu Dhabi
Abu Dhabi Free Zone licenses for sale can be found in the below freezones:
Investors and companies interested to purchase a shelf company in Abu Dhabi’s Mainland, will receive a license issued by the Department of Economic Development of Abu Dhabi, known as Abu Dhabi Registration Authority (ADRA)
Abu Dhabi shelf company for sale with bank account
For businesses that are looking to purchase an active company in order to immediate launch their international expansion in Abu Dhabi, the capital of the UAE, it is important to have an active bank account that can be transferred, in order to begin their operations immediately.
The bank policy of whether ownership of the existing business account can be transferred to the new owner, without having to close and reopen the account is a crucial factor to consider when buying an existing Abu Dhabi license with bank account.
Certain banks will allow the business account to continue operations, by transferring the ownership of the corporate account of the current to the new owner, while other banks will request for the account to be closed and reopened, in the name of the new owner.
This important point is a crucial deciding factor, when deciding which company for sale with bank account is to be purchased in Abu Dhabi, or anywhere in UAE.
In the UAE, it is possible to hold a business bank account with local and international banks (IBs). Certain IBs also have the opportunity to issue an AE iban, as approved by the Central Bank of UAE (CBUAE) which gives them the classification of being a local UAE bank.
As banks in the UAE have different policies when it comes to transferring business accounts, it must be taken. It must be considered separately to see which bank is suitable for your business needs when transferring and purchasing a shell company.
The below list are the most common banks which a business account is held with that is capable of issuing an AE business iban account:
- Abu Dhabi Commercial Bank (ADCB)
- Abu Dhabi Islamic Bank (ADIB)
- Ajman Bank
- Al Maryah Community Bank (MBank)
- Al Masraf Bank (Arab Bank for Investment and Foreign Trade)
- Bank of Baroda (Only opens business accounts for Indian nationals)
- Bank of Sharjah (BOS)
- Commercial Bank International (CBI)
- Commercial Bank of Dubai (CBD)
- Dubai Islamic Bank (DIB)
- Emirates Islamic (EI)
- Emirates NBD (ENBD)
- First Abu Dhabi Bank (FAB)
- Invest Bank
- Mashreq Bank
- National Bank of Fujairah (NBF)
- National Bank of Ras Al-Khaimah (RAKBANK)
- National Bank of Umm Al Quwain (NBQ)
- Sharjah Islamic Bank (SIB)
- United Arab Bank (UAB)
- Wio Bank
- Zand Bank
Businesses in the UAE are not able to open a business bank account with the following list of banks, as they are either solely serve the purpose of being a representative office in the UAE, or only have open account for personal use:
- Al Ahli Bank of Kuwait
- Al Hilal Bank
- Arab African International Bank
- Arab Bank PLC
- Bank of China
- Barclays Bank PLC
- BNP Paribas
- CitiBank
- HSBC Bank Middle East Limited
- Industrial and Commercial Bank of China (ICBC)
- National Bank of Bahrain
- National Bank of Kuwait
- National Bank of Oman
- Standard Chartered Bank
Abu Dhabi Free Zone and Mainland shell companies for sale
Before deciding where to purchase a company in Abu Dhabi, there are certain factors to be considered such as:
The legal form of the company
Different free zones have different naming schemes.
In some freezones, the name of FZCO (Freezone Company) is given if the company that has two shareholders, while a freezone business license is issued the title of FZE (Freezone Entity) if there only has one shareholder, whether that shareholder is in an existing legal entity or individual shareholder.
- If the new owner that is looking to purchase the existing FZCO shell company only has one shareholder, the legal form of the company will change from FZCO (Freezone Company) to FZE (Freezone Entity). Which means the bank account will have to be closed as the legal structure of the company has changed.
It should be noted that certain free zones also call a free zone company FZCO, but only have one shareholder in the company.
- In such cases, switching ownership from one person to another may not result in the closing of the bank account, depending on the policy of the bank.
Where to purchase an existing company in Abu Dhabi
Abu Dhabi Freezone licensed companies for sale
Shell companies in Abu Dhabi Freezones has a number of different business activities for sale including: service, trading, manufacturing.
Abu Dhabi currently has five Freezones in which shelf companies can be purchased from.
- Abu Dhabi Airports Free Zone (ADAFZ): This Freezone offers licenses in various Abu Dhabi and Al Ain airports with a focus for companies in aviation service/trading, cargo/logistics, as well as those providing services directly to Abu Dhabi Al Ain Airports and companies located within them, such as freight forwarders and repackaging companies.
- Abu Dhabi Global Market (ADGM): ADGM is Abu Dhabi’s main financial freezone, operating independently and has their own legal and regulatory framework based on English Common Law, separate from the rest of UAE’s legal system.
- This is the best freezone in Abu Dhabi to purchase a shelf company, for customers that requires the assurance and familiarity of the legal system from their home country.
- Khalifa Economic Zones Abu Dhabi (KEZAD): Abu Dhabi’s best freezone for international trade and logistics related work.
- An industrial focused freezone in Abu Dhabi with direct port access at Khalifa Port.
- Acquiring a shell business license in this Abu Dhabi free zone is ideal for businesses involved any form of trading, logistics and manufacturing of automotive vehicles/accessories spare parts, food, metal, and pharmaceuticals.
- An industrial focused freezone in Abu Dhabi with direct port access at Khalifa Port.
- Masdar City Free Zone: With a vision for attracting companies focused on sustainability and clean technology, Masdar City the best freezone in Abu Dhabi to purchase an existing businesses involved in renewable energy, environmental technology, and eco-friendly urban development.
- This freezone also has a number of other variety of activities available for sale in the service and trading sector.
- Twofour54: As a media and entertainment free zone, Twofour54 is the primary hub for creative industries in Abu Dhabi. It provides a supportive ecosystem for media and entertainment businesses, from production companies to digital content creators.
Abu Dhabi Mainland DED company for sale
ADRA – Abu Dhabi Registration Authority is the only one licensing authority responsible for issuing licenses in the Mainland of Abu Dhabi.
The most common business activities for sale in Abu Dhabi Mainland companies are:
- Agricultural License: For agricultural and farming activities such as crop cultivation (growing of animal feed such as grass, wheat and whey) and animal breeding.
- Commercial License: Abu Dhabi’s version of trading license and is issued for businesses engaged in local general trading within UAE, retail shops, import and export for international trade.
- Industrial License: For businesses involved in manufacturing and processing (packaging or repackaging).
- Professional License: Individuals or companies that offer service such as consulting, legal services offered by law firms, accounting (bookkeeping)/audit work, and similar service based businesses.
- Tourism License: Companies looking to purchase an existing license in the hospitality sector and travel agencies with a focus on local UAE inbound and international outbound tourism sector.
Points to considered when purchasing an existing shelf company
It is important to clearly outline ahead of time, what the reason is for acquiring a company is.
The most popular reasons for purchasing a shelf company in Abu Dhabi includes:
- Acquiring a company with more visa quotas than normally allocated.
- An aged company offers credibility in negotiation of business.
- Do you need a specific business activity or can consider purchasing a company with another activity and changing it to the one you require, meaning the most important aspect of the ready made company is the age of the license? (If you go this route, it will be unlikely that the party you need to show this license to will be aware that you change the activity)
- Budget.
- Immediate access to a “warmed up” bank account, that is capable of receiving conducting large volume transactions, without additional questions raised by the bank such as the company’s ability to land large contracts.
- Operating from a virtual flexi desk versus renting a physical rental office.
- Obtaining Abu Dhabi Freezone or Mainland license or activity.
- What is the reason for the choice and could an alternative be acceptable?
- Time to setup a new license versus purchasing a ready made company with bank account in Abu Dhabi.
- Certain business activities can be type intensive. To register a new license and therefore will be better to purchase an existing company, such as financial licensed and regulated companies.
- Will the company be owned by an individual or a company?
- If companies looking to purchase a shelf company in Abu Dhabi and have the shelf company be owned by an existing legal entity, whether local or international, will need to prepare the current company’s (the company to own the new business) documents for attestation in the company’s home country and here in UAE, such as:
- Board resolution
- Certificate of good standing/incumbency
- Minutes of meeting
- Memorandum of association (MOA)
- Articles of association (AOA0
- Registry of owners/shareholders
- Registry of directors
- Trade license
- If companies looking to purchase a shelf company in Abu Dhabi and have the shelf company be owned by an existing legal entity, whether local or international, will need to prepare the current company’s (the company to own the new business) documents for attestation in the company’s home country and here in UAE, such as:
Due diligence to be conducted when purchasing an existing company in Abu Dhabi Freezone or Mainland
No matter where the shell company is to be purchased from, it is necessary to conduct the proper due diligence to accurate identify risks and benefits associated with purchasing an existing license in Abu Dhabi.
1. Financial Due Diligence
- Potential liabilities in tax owed to the Federal Tax Authority for Corporate Tax (CT) and Value Added Tax.
- Review any hidden losses and debt with accounts payable owed to creditors as liability can be transferred to the new company owner.
- The Etihad Credit Bureau report can identify the company’s financial standing with financial institutions such as banks and other similar companies in real time.
2. Legal Due Diligence
- Check to make sure the company’s licensing is up to date with the relevant licensing authority such as:
- Abu Dhabi Freezones.
- Abu Dhabi Registration Authority.
- Government entities responsible for issuing external approvals for companies that requires such compliance.
- Landlords.
- Lease agreements such as car rental.
- The company does not have any pending legal cases registered against them by any Abu Dhabi courts or other courts in the UAE.
3. Employment Due Diligence
- Check with the Ministry of Human Resources and Emiratization to ensure there are no outstanding cases against the company made by previous or current employees such as unpaid salary or end of service gratuity.
- Ensure all employees have valid visas or work permit for employees that have their own visas currently.
- Make sure the Mainland company is register with Wages Protection System (WPS) and pays salary through this system.
- Freezone companies do not require WPS and can pay monthly salaries direct to the employee’s bank account.
Business licenses for sale in Abu Dhabi (AUH)
Free zones and Mainland Abu Dhabi companies for sale generally share the same list of available businesses activities. Mainland offers 100% of all business activities available in Abu Dhabi, while freezones offer 95% of total available business activities that can be registered in AUH.
Which business activity is available for sale depends on which Freezone is selected.
The below list is an overview of business activities available in the Emirate of Abu Dhabi.
How BUH consulting can assist
Our team will work with you to understand your requirements in identify a suitable, active shelf company for sale with bank account that meets your personal bank account.
From negotiations, transfer and post transaction, our team is there to assist throughout the process.
Contact information
For a tailored solution, contact us to discuss about your requirements.
Email: – sam@buh-consulting.com
Phone: +971585086656
Whatsapp: +971585086656
Telegram: BUHConsultingAE