Business Formation In Abu Dhabi & Masdar City

Special Financial Zones

Specialised financial zones in Abu Dhabi, which include Masdar City, are exempt from the mandatory 51% national equity for an LLC, enabling 100% overseas ownership, in addition to 100% repatriation of profits and capital, zero percent income tax, and also 100% import and export tax exemptions.

Trademark, Patents and Copyright

The UAE has existing laws which defend against infringement of intellectual property, as well as patents and trademark. The country is also a member of international bodies, treaties and conventions which protect the same, namely, World Intellectual Property Organization (WIPO), World Trade Organization, Paris Convention, Patent Cooperation Treaty (PCT), WIPO Copyright Treaty, WIPO Performances and Phonograms  Treaty (WPPT) and the Rom Convention.

Work visas, Wages and Salaries

Non-UAE nationals who go to work in Abu Dhabi must secure a work and residence permit, which requires a sponsor – a person or business who is responsible for repatriating the foreigner at the end of  his or her employment contract. A medical certificate, which is obtained from an accredited hospital following a routine blood test, is needed for the issuance of a work or residence permit, which is renewable every three years.

Non-UAE national employees are entitled to a minimum paid holiday leave of 30 days per year, excluding public holidays, as well as to pertinent sick and maternity leaves. Termination from employment may be in the form of written agreement, at the end of a determined term contract, or even in the case of an unlimited time period agreement, no less than 30 days’ notice. Criminal offences which include intoxication may possibly result in termination without warning.

Moreover personnel in Abu Dhabi are entitled to end-of-service bonus settlement, which can be calculated based on the employee’s basic salary (fashionably around 50% to 70% of the total remuneration depending on the employer’s HR policy). The gratuity, according to the law,  equates to 21 days’ pay per year for each of the initial five years, and a  full 30-days’ pay per year for each succeeding year so long as the  overall amount does not go over two years’ worth of the employee’s current salary.

 Labour-related disputes fall under the jurisdiction of the Federal Ministry of Labour and Social Affairs, which has a branch in each of the seven emirates, with the primary office located in Abu Dhabi.

Sick leave

Workers who become ill after the three- month probation period are entitled to a sick leave not exceeding 90 days, successive or otherwise, in respect of each year of service, to be calculated as follows:  the first 15 days with entire pay, the next 30 days at half pay and any subsequent periods without pay.

Hajj / Umrah

Each employee shall be permitted, once in the course of his service with an employer, to special unpaid leave to perform Hajj or Umrah; such leave shall not be deducted from other periods of leave due to him and shall not exceed 30 days.

Paid Public Holidays

Each worker shall be entitled to leave with full pay on the following occasions:

• New Year’s Day (Hijrah): one day
• New Year’s Day (Gregorian): one day 
• Eid al Fitr: two days 
• Eid al Adha and eve of the holiday three days 
• Birthday of Prophet Mohammed: one day 
• Al Isra and Al Mi’raj: one day 
• National Day: one day

Repatriation

Upon expiry of contract, the employer shall bear the price of the worker’s repatriation to his point of hire or to another point that was mutually agreed upon. Where a worker joins a different employer upon expiry of his contract, the latter shall bear the price of the worker’s repatriation at the end of his service.