Business setup in Abu Dhabi

Abu Dhabi offers three clear routes for business setup: mainland companies through ADDED/Abu Dhabi Business Centre, free zone company formation in ADGM, Masdar City, or the airport freezone, and offshore entities for global market operations outside the UAE. Expect a typical setup cost of AED 20,000–30,000, with the fee increasing for foreign trade names and any special approvals. Corporate tax is 9% on taxable income above AED 375,000, while qualifying free zone businesses may keep a 0% rate; VAT is 5% when you meet the registration threshold, so confirm the latest guidance and zone news before you choose. Timelines are practical: many licences issue online via TAMM within minutes, payment is due within 30 days of the voucher, and Hub71’s ADGM tech licence eligibility review averages 21 days. Mainland licences allow trading across the UAE, while free zones provide one-stop services, clear company laws, and flexible offices; ADGM financial services require In Principle Approval. A consultant or an agency can help select the best zone versus mainland by company cost and renewal fee, map approvals (TDRA, Supreme Petroleum Council, Ministry of Interior), and manage visas, banking, and compliance for new abudhabi companies, including options favored by UK founders and other experts.

Abu Dhabi in plain English: why build here now

Abu Dhabi is where serious capital meets patient policy. The Emirate has doubled down on infrastructure, regulation, and talent. It shows in the way you can register a company, open a bank account, and hire a team without wading through red tape. The process is not “click and done,” but it is predictable. Predictable is gold when you’re entering a new global market.

The city’s playbook is simple: make the rules clear, keep the fees transparent, and move fast. Whether you choose the mainland or a free zone, the point is the same—get your business setup done with minimal friction and then scale. Add in world-class logistics, including the airport and deep-water ports, and you have a base that works for B2B services, e-commerce, R&D, and finance.

Mainland, free zone, offshore: which lane fits your company

On the mainland, you register with the Abu Dhabi Department of Economic Development (ADDED). You can trade across the UAE without restriction, bid for government work, and open branches freely. It’s the default route for companies with local customers and on-the-ground operations. Think retail, healthcare, construction, consultancy, and SaaS selling into the domestic market.

Free zones are ring-fenced jurisdictions that offer their own company regulations, swift licensing, and focused communities. Abu Dhabi’s roster includes ADGM (finance and tech), Masdar City (sustainability, R&D), and the Abu Dhabi Airport Freezone for logistics and aerospace. Free zone companies can operate in the UAE under specific rules, but their core promise is international reach and simplified setup inside the zone.

Offshore companies and when they make sense

“Offshore” refers to entities set up for holding or international operations without onshore activity. They are not for trading locally in abu dhabi. They can be useful for IP holding, group finance, or as a UK subsidiary’s parent in a tax-efficient structure. Be careful: banks expect clear substance and audited trails. Offshore is a tool, not a hiding place.

Licence categories and activities: choose with intent

Start with your business activity. Abu Dhabi recognises six licence types: industrial, commercial, professional, tourism, agricultural, and occupational. Your activity dictates your licence, your legal form, and whether you’ll need extra approvals. A management consultancy, an e-commerce store, and a manufacturing plant do not walk the same path.

Match the activity to your revenue model, not your ambition. If you sell software subscriptions, a professional licence is typical. If you trade goods, you need a commercial licence and, often, a customs code. Tourism, healthcare, and education add sector regulators on top of the economic licence. Getting this wrong is the costliest “cheap” mistake founders make.

From trade name to initial approval: the fast lane

Pick a trade name that is unique and compliant. In the UAE, the name must not breach public order, reference a religion or government body, or duplicate an existing name. Include the legal form suffix where required (LLC, PJSC, etc.). You register the trade name with ADDED; trademarks live with the Ministry of Economy. Keep the two concepts separate.

Apply for initial approval through ADDED or the TAMM platform. Initial approval means the government has no objection to your company moving forward. It is not a licence to trade yet. Foreign founders may be asked for immigration clearances. Some activities require pre-approvals even before you can get initial approval (for example, financial services in ADGM or certain security-related businesses).

The paperwork that trips founders up

For LLCs and joint stock companies, you will draft a Memorandum of Association (MOA). For certain professional firms owned 100% by non-GCC nationals, a Local Service Agent (LSA) agreement can be needed. These documents are prepared and attested in the UAE—by law firms, notaries, or courts—so plan time for signatures and attestations.

Free zones set their own templates. ADGM uses Articles of Association, board resolutions, and due diligence packs that include source-of-wealth proofs for UBOs. If you are applying for a tech-startup incentive in ADGM, line up your Hub71 approval letter early. Missing one supporting document can stall an otherwise clean file.

Offices, leases and the remote-first reality

Every UAE company must show a compliant business location. On the mainland, you secure a tenancy contract that matches zoning rules. In ADGM and other zones, you will register your lease within the jurisdiction. Flexi-desks work for many service businesses. For warehouses, expect inspections and fit-out approvals.

If your model is digital and does not need a physical shop, the Emirate allows online operations under specific licences. Abu Dhabi’s TAMM platform can issue certain licences within minutes once your documents are in order. But even with remote-first companies, regulators still expect a real place of business and records they can verify.

Extra approvals many companies forget

Sector approvals can sit on the critical path. Healthcare requires Department of Health (DoH) approvals. Tourism and hospitality may involve the Abu Dhabi Department of Culture and Tourism. Architects and engineers deal with the Municipality. Telecom activities touch the TDRA. Insurance activities run through the Ministry of Economy, and financial services in ADGM require in-principle authorisation before incorporation.

If you plan on oil and gas services—onshore or offshore—expect oversight from the Supreme Petroleum Council or its successor authorities. Transport-related activities can require Ministry of Interior approvals. When in doubt, ask early. The best consultants map approvals in week one and avoid mid-process surprises.

Licence issued. Now what? Visas, banking, compliance

With your licence in hand, you apply for the establishment card (for immigration), then visas for you and your team. A good bank account follows a robust KYC pack: licence, MOA or Articles, UBO chart, board resolutions, leases, and real invoices or contracts. Treat the bank as a partner; show your substance and why your company deserves an account.

Tax has modernized. Corporate tax is set at 9% on taxable income above AED 375,000 for onshore businesses. VAT is 5% on taxable supplies if you cross the thresholds. Free zone companies can achieve a 0% corporate tax rate if they qualify under the “Qualifying Free Zone Person” regime and stick to qualifying activities, with substance and audited accounts. Add UBO filings, Economic Substance Regulations (ESR), and, where relevant, AML policies for higher-risk services.

Corporate tax snapshot for free zones

Abu Dhabi’s free zones—ADGM, Masdar City, and the airport freezone—offer 0% corporate tax for qualifying income. To keep it, maintain adequate substance in the zone, earn qualifying revenues, and avoid disqualifying mainland transactions unless they are properly structured. Most companies will still file returns even at 0%. Plan for transfer pricing, intercompany agreements, and clean bookkeeping from day one.

Cost, fees, and a realistic timeline

Expect a sensible budget for a new company. Costs vary by zone, activity, and headcount. Add extra if your trade name is foreign, your activity is regulated, or your office requires inspections. Do not anchor your budget to an ad promising “all-in setup for AED 5,000.” That price rarely includes what you actually need to operate.

A typical mainland or free zone setup runs two to six weeks if documents are ready. Banking can add two to four more weeks depending on risk. If you need sector approvals, double the time. Smart founders overlap tasks—lease negotiation, bank pre-application, and visa planning—so the clock runs in parallel.

Item Typical cost (AED) Notes
Trade name and initial approval 800–1,500 Varies by zone and name choice
Licence fee (year 1) 5,000–12,000 Mainland or free zones differ
MOA/attestation/legal 2,000–6,000 Depends on structure
Office/flexi-desk lease 6,000–25,000 Zone and size sensitive
Immigration card and visas 2,500–5,000 per person Plus medical/ID
Bank account setup 0–5,000 Some banks charge relationship fees

Numbers are indicative. Ask for an itemised fee schedule before you pay any agency.

Three launch routes I recommend

ADGM for finance, fintech, SPVs and global HQs

ADGM is a common law island with regulator-grade clarity. If you are a fund manager, a payments firm, or a family office, you start with in-principle approval, then register the company with Articles, resolutions, and KYC. SPVs are popular for holding shares in operating companies across the region and the uk. Substance matters: keep directors, records, and an office on Al Maryah or Al Reem Island.

Masdar City for climate tech, R&D, and clean manufacturing

Masdar City combines a free zone with a liveable, sustainable district. The community is packed with labs, pilots, and partners who care about energy, water, and circular economy. For a hardware startup or a testing facility, it’s hard to beat the ecosystem. The zone’s services team is known for responsive licensing and pragmatic renewals.

Abu Dhabi Airport Freezone for logistics, aerospace, and e-commerce

If speed and connectivity drive your model, the airport freezone puts you next to cargo, customs, and last-mile partners. Companies handling MRO, drone tech, cross-border e-commerce, and high-value goods gravitate here. Clearance is faster, and your team can literally walk to the warehouse. For regional distribution, it’s a strong anchor.

Common mistakes and how to dodge them

  • Picking the wrong activity to “save” on the licence. Regulators will catch it; banks will flag it; audits will be painful. Choose the right activity up front.
  • Signing a lease in the wrong zone. If your licence is in a free zone, your office must be in that zone unless specifically allowed.
  • Underestimating compliance. UBO, ESR, VAT, and corporate tax filings are not optional. Put basic accounting in place from day one.
  • Banking too late. Pre-engage a bank as soon as you have initial approval. It saves weeks.
  • Believing in “one-fee covers all.” Always ask for a line-by-line cost. Clarify what happens at renewal.

If you’re expanding from the UK or running offshore operations

UK founders love the UAE for time zone, tax, and flights. To avoid split-residence headaches, anchor management and control where you intend to be taxed. Board minutes, IP location, and employment contracts should tell the same story. If your uk company invoices your Abu Dhabi company, price it at arm’s length and document the transfer pricing.

Offshore structures can simplify cap tables and IP licensing, but banks and regulators expect real substance. If your holding company is in a free zone, ensure it has directors, an office, and active board governance in the UAE. Keep intercompany agreements current and make payments through the banking system, not via personal accounts.

Who to hire and what to expect from consultants

A good consultant is not just a form-filler. The best experts map your activities, legal form, and zone choice to your hiring plan, tax position, and banking risk. They will flag when a professional licence beats a commercial one, or when a mainland branch is smarter than a new company.

Insist on clarity. Ask the agency for: a scope of services, a timeline, a document checklist, and a fixed fee with out-of-pocket costs listed separately. Push for weekly updates. If your activity needs extra approvals, get those fees and timelines in writing. When your consultant speaks to a regulator on your behalf, ask for the email transcript or a note.

Quick news radar to watch

Free zone tax rules are evolving. Guidance continues to define what counts as qualifying activity and how related-party revenues are treated. Keep an eye on official news, especially for ADGM and Masdar City zones, and how they apply substance tests to services companies.

Abu Dhabi’s push into entertainment, sports, and tourism has opened niches for event operators, hospitality tech, and retail brands. If you follow abudhabi news, you’ll see steady investment in venues and visitor flows. For businesses that feed on footfall or global traffic, the timing is good.

The step-by-step flow, condensed

  • Define the activity and pick mainland or free zone.
  • Choose legal form (LLC, branch, free zone company) and confirm ownership rules.
  • Reserve a compliant trade name and file for initial approval via ADDED or the zone portal.
  • Draft and attest MOA/Articles; prepare UBO chart and source-of-wealth proofs.
  • Secure office or flexi-desk; register lease where required.
  • Obtain sector approvals if your activity is regulated.
  • Pay licence fee and collect the business licence.
  • Apply for establishment card, then visas; open your bank account.
  • Register for VAT if needed, set up accounting, and mark corporate tax/ESR deadlines.

At every stage, keep your documents clean and your story consistent. That’s how companies move from “new” to “operational” in Abu Dhabi without drama.

Topic Abu Dhabi mainland (ADDED) ADGM – Abu Dhabi Global Market (financial free zone) Masdar City Free Zone Abu Dhabi airport freezone (ADAFZ) KEZAD Free Zone (Khalifa Economic Zones) Offshore/SPV holding (ADGM SPV / RAK ICC) Branch of foreign company (e.g., UK parent)
What it is Onshore business under Abu Dhabi Department of Economic Development Common-law financial free zone on Al Maryah Island; strong for finance, tech, SPVs Sustainability-focused free zone in Masdar City; tech, R&D, clean energy Free zone next to Abu Dhabi International Airport; logistics, trading, aviation Industrial and logistics hub; warehouses, manufacturing, e-commerce No retail activity in UAE; holding, asset protection, structuring No separate legal personality; Abu Dhabi-registered branch of a foreign company
Typical legal forms LLC, Sole establishment, Civil company, PJSC/PrJSC, Branch Ltd company, LLP, Foundation, SPV FZ-LLC, Branch FZ-LLC, Branch FZ-LLC, Branch ADGM SPV (Ltd) or RAK ICC; Foundation in ADGM Branch of UK Ltd or PLC; Representative office
Popular activities Trading, services, consulting, restaurants, contracting Asset management (with FSRA authorisation), fintech, HQ, professional services, SPV R&D, tech, clean energy, professional services, media, education Cargo, freight, aviation services, MRO support, trading, e-commerce Manufacturing, assembly, cold storage, 3PL, trading, e-commerce Holding shares, IP holding, financing within group Market entry to bid contracts; regulated activities routed via ADGM if needed
Licence types Commercial, Professional, Industrial, Tourism, Agricultural, Occupational Commercial (non-financial) or Financial services (FSRA); Tech startup licence via Hub71 Service, Trading, Industrial, Freelancer Trading, Service, Industrial Trading, Industrial, Service, E-commerce Not a trading licence; SPV/holding only Branch licence mirrors parent activity; representative office for marketing only
Ownership 100% foreign ownership allowed for most sectors 100% foreign ownership 100% foreign ownership 100% foreign ownership 100% foreign ownership 100% foreign ownership 100% foreign ownership of branch; parent fully liable
Office options Leased office or flex-desk if activity allows; tenancy contract required Physical office on Al Maryah/Reem; SPVs via CSP/co-working exemptions possible Flexi-desk, dedicated office, labs; sustainability-focused buildings Flexi-desk, offices, warehouses near airport Warehouses, land, light industrial units, flex offices Registered office via CSP; no retail space Physical office or desk per activity and visa quota
Regulatory authority ADDED and Abu Dhabi Business Centre ADGM Registration Authority + FSRA (for financial services) Masdar City Free Zone Authority ADAFZ Authority KEZAD Group / Free zone authority ADGM Registration Authority or RAK ICC ADDED (onshore branch) or relevant free zone authority
Steps to set up (short) 1) Choose activity 2) Pick legal form 3) Trade name 4) Initial approval 5) MOA/LSA 6) Lease 7) Extra approvals 8) Pay fees and collect licence via TAMM 1) Name check 2) In-principle approval (financial firms) 3) Articles/resolutions 4) Lease registration 5) Due diligence (UBO, source of wealth) 6) Pay fees and issue licence 1) Select activity 2) Name and initial approval 3) Lease/flexi-desk 4) Incorporation docs 5) Approvals if required 6) Licence 1) Activity and name 2) Initial approval 3) Facility allocation 4) Incorporation docs 5) Customs code 6) Licence 1) Activity and name 2) Facility lease 3) Incorporation docs 4) Approvals if any 5) Licence 1) Choose CSP 2) Name check 3) Incorporation docs 4) KYC/UBO/SOW 5) Registration; no trading 1) Parent documents legalised 2) Name and initial approval 3) Lease 4) Approvals if any 5) Branch licence
Trade name rules (all routes) Must reflect activity and legal form (LLC, PJSC, etc.); no religious or government names; not previously registered; register trade name with ADDED; trademark with MoE Same core rules; sensitive words (Bank, Emirates, Abu Dhabi) need evidence; abbreviations may require explanation Follows UAE naming rules Follows UAE naming rules Follows UAE naming rules Follows UAE naming rules; holding/SPV suffixes permitted Must align with parent name or approved local variation
Key documents Passports/IDs, initial approval, MOA/LSA, lease, extra approvals, payment voucher Articles, resolutions, IDs, UBO and source of wealth proof (≤3 months), lease; Hub71 letter for tech licence Application forms, IDs, MOA, lease/flexi-desk, sector approvals if required Application forms, IDs, MOA, facility lease, customs registration Application forms, IDs, MOA, facility lease, HSE for industrial Incorporation form, IDs, UBO/UBS docs, CSP appointment, registered address Legalised parent docs, board resolution, PoA, IDs, lease
Indicative first-year government cost (AED) 8,000–15,000 plus office; activity-dependent 18,000–40,000 for non-financial; financial firms higher 12,000–25,000 plus office/lab 15,000–30,000 plus facility 6,000–12,000 licence plus warehouse/land ADGM SPV 7,500–15,000; RAK ICC 4,000–8,000; CSP extra 10,000–20,000 plus office
Typical consultant/agency fee (AED) 3,000–8,000 for end-to-end setup 7,000–20,000; more for FSRA projects 4,000–10,000 4,000–10,000 4,000–10,000 3,000–8,000 (SPV/ICC admin) 4,000–10,000
Average timeline to licence 3–10 working days after complete file 5–20 working days non-financial; FSRA 3–6 months 5–10 working days 5–10 working days 5–10 working days 2–7 working days 5–10 working days
Visas and quotas Establishment card then visas; quota based on office size Visa allocation tied to office; SPVs often 0–2 via CSP Flexi-desk supports small quota; can scale Quota aligned to facility; good for logistics teams Larger quotas with warehouses and industrial units Usually no visas for pure SPV; possible via CSP in ADGM Quota per office; manager visa common
Office space and rental Physical address required; tenancy contract; some activities can use flex-desk; online-only via TAMM for eligible activities Lease on Al Maryah/Reem; register lease; SPV exception via CSP Flexi-desk or office; sustainable buildings; lab-ready options Offices and warehousing adjacent to airport Warehouses, land plots, light industrial units, offices Registered address via CSP; no retail premises Office or desk in Abu Dhabi
Extra approvals (examples) Municipality, DoH, Tourism, TDRA, Supreme Petroleum Council, Ministry of Justice FSRA for financial services; Hub71 letter for tech licence Activity-based (e.g., education, R&D lab) Customs code, aviation-related clearances HSE and industrial permits None for holding; regulated if doing FS activities (not allowed) Sector regulator if required; mirrors parent’s regulated status
Banking notes Local banks ask for UBO, source of funds, lease, invoices; choose banks with SME desks Strong for cross-border and institutional banking; prepare substance and audited accounts Good for startup-friendly banks; show business plan and contracts Logistics/trade banks; prepare customs/trade flow proof Industrial/trade banks; provide facility photos and contracts SPV account possible with strong KYC; group relationship helps Bank under branch; parent financials required
Corporate tax (CT) 9% on taxable profits above AED 375,000; small business relief may apply Possible 0% if Qualifying Free Zone Person rules met; otherwise 9% Possible 0% if qualifying; otherwise 9% Possible 0% if qualifying; otherwise 9% Possible 0% if qualifying; otherwise 9% No UAE CT on pure holding income; watch CFC rules in owner’s country 9% on UAE-sourced profits; permanent establishment rules apply to UK and others
QFZP snapshot (free zones) N/A Maintain adequate substance; derive qualifying income; audited accounts; comply with de minimis; no elective mainland revenue unless within rules Same as ADGM; check activity list and related party rules Same Same N/A N/A
VAT Register at 375,000 AED threshold; 5% VAT standard rate Same 5% rules; some free zone supplies may be zero-rated; watch designated zone rules Same Same Many KEZAD areas are designated zones for VAT on goods Not VAT-registered unless making UAE taxable supplies Register if making taxable supplies in UAE
Customs and free zone benefits Standard onshore customs Free zone customs benefits; no duty within zone; duty on mainland imports Similar free zone customs benefits Prime for air cargo; fast customs processing Strong seaport access; designated zone VAT relief for goods Not applicable Onshore customs via branch
Audit and filings Maintain books; audits often not filed; CT and ESR may require audited accounts based on thresholds Audited financials commonly required; strong governance Audit may be required by licence type; recommended for CT Audit may be required; recommended for CT Audit may be required; industrial entities usually audited Minimal filings; keep board resolutions and registers Follow UAE accounting and CT rules; audited accounts recommended
Pros Trade across UAE freely; access to government tenders; broad activity list World-class legal framework; international credibility; ideal for finance and SPVs Green brand, incentives, cohesive community; startup-friendly Airport adjacency; fast logistics; e-commerce friendly Low licence cost; scalable industrial land; logistics hubs Low cost, privacy, clean holding structure Quick entry; keep global brand; no capital required
Cons Office lease required; extra approvals can add time Higher costs; more documentation; FSRA process is rigorous Sector-focused; office still required Activity scope narrower; facility-dependent Industrial focus; facility commitments No trading in UAE; needs CSP; banking can be slower Parent fully liable; scope limited to parent’s activities
Best fits Retail, onshore services, restaurants, contracting, government suppliers Asset managers, fintech, family offices, global HQ, SPVs Clean-tech startups, R&D labs, sustainability brands Cross-border e-commerce, freight forwarders, aviation support Manufacturing, 3PL, e-commerce fulfillment, cold chain Holding shares/IP, ring-fencing risk, group treasury (non-regulated) UK and global firms testing the market; tender-driven projects
Cost control tips Use flex-desk if permitted; bundle name/initial approval via TAMM; avoid foreign trade name premiums Pre-clear name; prepare SOW/UBO early; consider Hub71 incentives Start with flex-desk; upgrade as team grows Match facility to exact footprint to avoid idle rent Start with pre-built units; negotiate power and HSE early Compare CSP packages; keep structure simple Legalise parent docs in one batch; reuse across authorities
“New abudhabi company” quick checklist Choose activity and zone; name reservation; initial approval; MOA/LSA; lease/desk; extra approvals; pay and collect licence; establishment card; visas; bank account; VAT if needed Same flow; in-principle approval for financial services Same flow Same flow Same flow Incorporate holding/SPV; no trading Register branch; mirror parent activity
Trade name and payment reminders Name must include legal form (LLC, PJSC, etc.) and not breach public order; pay trade licence within 30 days of voucher to avoid cancellation Sensitive words need consent; English docs accepted; notarisation only if requested Follow UAE naming rules Follow UAE naming rules Follow UAE naming rules Follow UAE naming rules Align with parent name; minor variations allowed with approval
Latest news snapshot Corporate tax now in force; free zone zero-tax depends on qualifying status; online setup via TAMM is faster for many activities ADGM clarifies use of sensitive terms; Hub71 tech licence requires prior approval (review ~21 days) Incentives and one-stop services expanding; sustainability reporting in focus Cargo and e-commerce growth anchored by new airport capacity Manufacturing and logistics demand rising; designated zone VAT rules key Global minimum tax and CFC rules may affect ultimate owners UK–UAE business ties remain strong; branches must observe UAE CT and UK PE rules
When to use consultants and experts Complex activities, extra approvals, multi-shareholder MOA drafting, visa planning, banking FSRA permissions, SPV structuring, cross-border tax, governance R&D approvals, lab HSE, grants Customs, bonded operations, multi-shipper flows Industrial licensing, HSE, utility planning CSP selection, board governance, multi-jurisdiction ownership Legalisation, tax PE analysis, tender compliance
Typical services from consultants Activity scoping; name and initial approvals; MOA/LSA; tenancy; licence; establishment card; visas; VAT; bookkeeping; annual renewals Regulatory strategy; policies and procedures; AML/CFT; filings; audit coordination Business plan; licence; facilities; incentives; visas; renewals Facility allocation; customs code; importer code; e-channel; visas Industrial permits; EHS; customs; supply chain setup Incorporation; registers; resolutions; agent services; filings Legalisation; branch registration; banking; HR onboarding
Airport, port and market access City-wide retail and services; mainland trading International finance networks; global market credibility Near airport and key highways Direct tarmac access; fastest air cargo routes Khalifa Port proximity; land–sea–air corridors Not applicable; holding only Use mainland or zone logistics depending on branch location
Off-shoot of existing business Register a branch or create a subsidiary LLC; mirror or expand activities ADGM holding + mainland operating LLC for dual needs Use Masdar for R&D; mainland for retail roll-out Set up free zone trading arm for GCC distribution Build manufacturing hub; sell via mainland distributor Add ADGM SPV as parent holding; retain foreign ops Simple branch for bids; upgrade to LLC as team grows
Total first-year budget planner (indicative, AED) 20,000–60,000 including licence, visa pack, basic office 40,000–120,000 depending on activity and office; FSRA much higher 25,000–80,000 based on office/lab 30,000–90,000 with facility and customs 25,000–150,000 based on warehouse/land 12,000–40,000 with CSP and bank 25,000–70,000 with office and visas
Index