Abu Dhabi, the capital of the United Arab Emirates (UAE), offers a dynamic environment for entrepreneurs, investors, and multinational companies to set up their business. With its strong infrastructure, stable economy, and investor-friendly policies, Abu Dhabi is an ideal destination for business setup in the Middle East.
Jeemfinance.com provides everything you need to know about business setup in Abu Dhabi, including types of business structures, legal requirements, cost breakdown, and steps involved.
Why Choose Abu Dhabi for Business Setup?
- 100% Foreign Ownership – Available in most sectors under the new UAE Commercial Companies Law.
- Tax Advantages – No personal income tax, and corporate tax exemptions for certain sectors and free zones.
- Strategic Location – Access to the GCC, Africa, Europe, and Asia markets.
- Political & Economic Stability – Safe, secure, and well-regulated business environment.
- Government Support – Initiatives like TAMM, ADDED, and Hub71 foster innovation and streamline registration processes.
Business Structures Available in Abu Dhabi
You can choose from several legal forms depending on your business activity and ownership preferences:
1. Mainland Company
- Can operate across the UAE and globally.
- 100% foreign ownership allowed (in most sectors).
- Registered with Abu Dhabi Department of Economic Development (ADDED).
2. Free Zone Company
- Ideal for export/import businesses and tech startups.
- 100% ownership with customs benefits.
- Operate within a specific free zone.
- Popular Free Zones:
- Abu Dhabi Global Market (ADGM)
- Khalifa Industrial Zone (KIZAD)
- Masdar City Free Zone
- Twofour54 (media sector)
3. Offshore Company
- No physical presence required in UAE.
- Primarily for holding companies, international trading, and asset protection.
Step-by-Step Guide to Setting up a Business in Abu Dhabi
Step 1: Choose the Business Activity
- Select from over 2,000 permitted activities listed by ADDED.
- This determines the license type: Commercial, Industrial, or Professional.
Step 2: Select Legal Structure
- Sole Proprietorship
- Limited Liability Company (LLC)
- Civil Company
- Branch Office
- Free Zone Company
Step 3: Register Trade Name
- Choose a unique business name via the TAMM portal.
- Comply with UAE naming guidelines.
Step 4: Apply for Initial Approval
- From ADDED (mainland) or relevant Free Zone Authority.
Step 5: Prepare Legal Documents
- Memorandum of Association (MoA)
- Lease agreement (Ejari or Tawtheeq)
- Shareholder agreements (if needed)
Step 6: Get Office Space
- Required for all licenses.
- Choose flexi-desk, co-working, or physical office.
Step 7: Obtain Business License
- Pay the fees and receive the trade license.
- Valid for 1 year, renewable.
Step 8: Visa & Bank Account
- Apply for investor and employee visas.
- Open a UAE corporate bank account.
Cost of Business Setup in Abu Dhabi
Costs vary depending on the business type, location (mainland vs. free zone), and office requirements:
| Item | Approximate Cost (AED) |
| Trade Name Registration | 750 – 1,000 |
| Initial Approval | 1,000 – 2,000 |
| License Fee | 10,000 – 25,000 |
| Office Rent | 5,000 – 20,000+ |
| Visa (Investor/Partner) | 3,500 – 6,000 |
| Total Estimated Setup Cost | 20,000 – 50,000+ |
Note: Free zones may offer packages starting from AED 12,000
Final Thoughts
Starting a Business in Free Zone Fujairah Abu Dhabi is a strategic decision that offers long-term benefits. With full foreign ownership rights, tax-friendly laws, and world-class infrastructure, the emirate is one of the most attractive investment hubs in the region
