Business Setup in Abu Dhabi Mainland

business setup in abu dhabi mainland

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Business Setup in Abu Dhabi Mainland

Abu Dhabi, the largest emirate and the capital of the UAE, is globally recognized for its abundant oil reserves, playing a pivotal role in the UAE's economic strength. However, the emirate has steadily diversified its economy over the years to reduce dependence on oil. As of 2023, more than 143,000 active businesses were operating in Abu Dhabi, a significant milestone that showcases its commitment to fostering a diverse and robust business environment​.

Abu Dhabi's economic diversification is evident in its expansion into industries such as tourism, finance, technology, and manufacturing. The non-oil sector has grown to comprise over 50% of the emirate's GDP, signaling a shift towards a knowledge-based economy. Notably, Abu Dhabi ranks as the second-largest economy in the Middle East, trailing only Saudi Arabia. The city's competitive edge is further bolstered by its rank at 16th on the global Ease of Doing Business Index​.

The Abu Dhabi Mainland, governed by the Abu Dhabi Department of Economic Development (ADDED), provides entrepreneurs and investors with a streamlined business setup process. With over 3,000 business activities available across various sectors, companies can choose from a wide range of industries such as healthcare, renewable energy, and real estate. This flexibility has made Abu Dhabi a prime destination for both regional and international companies looking to establish a presence in the Middle East​

In recent years, Abu Dhabi has also seen a remarkable increase in foreign investment, growing by over 300% since 2011. This surge is attributed to the city's favorable regulatory framework, robust infrastructure, and investor-friendly policies like the Golden Visa program, which has attracted global talent and innovation-driven businesses. The ADDED plays a critical role in supporting the business community by offering services such as business licensing, investment facilitation, and legal guidance​



Abu Dhabi Mainland Business Setup Advantages

Full Foreign Ownership

International businesses do not require a local Emirati sponsor to be a partner to operate, maintaining 100% ownership. Unless operating in certain strategic industries.

No Minimum Capital Requirement

There is no minimum share capital required and there are exemptions from annual audits.

Tax Exemptions

Tax exemption for personal income tax and tax relief of up to $100,000 for corporate tax, especially for SMEs.

Collaboration with Government Entities

Businesses with an Abu Dhabi Mainland License can work directly with government bodies.

No Trade Restrictions

With an Abu Dhabi Mainland License, your business can operate anywhere in the UAE and outside the country as well.

Extended License Validity

Unlike other regions where licenses need annual renewal, Abu Dhabi provides a 2-year validity for commercial licenses.

Flexible Office Locations

Unlike free zones, businesses in the mainland have the freedom to choose from a wide range of office locations and commercial spaces anywhere in Abu Dhabi.

Proximity to Key Industries

Abu Dhabi Mainland offers proximity to some of the most important industries in the UAE, such as oil and gas, finance, tourism, healthcare, and real estate.

Licenses Available in Abu Dhabi Mainland

  • Commercial License: For businesses operating in public trading, real estate, construction, hospitals and clinics, and other related sectors. 
  • Occupational License: For businesses with individuals providing specialized services based on their skills, intelligence, and talent. 
  • Professional License: For businesses offering specialized services in specific crafts. 
  • Industrial License: For businesses in manufacturing or industrial operations, including production of goods and materials.
  • Tourism License: For businesses in the tourism sector.
  • Agricultural License: For businesses involved in agricultural activities, including farming, fisheries, and livestock management.
  • Freelancer License: For individuals who wish to work as freelancers in various fields such as media, design, IT, or consultancy.
  • Craftsmanship License: Similar to an occupational license but focused more on trades or manual labor.
  • Foreign Branch Office License: For foreign businesses looking to open a branch in the Abu Dhabi Mainland.
  • Civil Company License: For partnerships of professionals who offer non-commercial services. 
  • E-Commerce License: For businesses conducting trading activities online through websites or e-commerce platforms.
  • Media License: For businesses and individuals engaged in media-related activities, including media production, broadcasting, advertising, and publishing services.
  • Transport License: For businesses that provide transportation and logistics services, including car rental companies, courier services, and logistics providers.
  • General Maintenance License: For businesses involved in the maintenance of buildings, properties, or facilities.
  • Event Management License: For businesses that manage, organize, and host events or conferences.
  • Restaurant and Cafeteria License: For businesses involved in food and beverage services.
  • Healthcare License: For medical and healthcare-related businesses.
  • Sports and Recreational License: For businesses that manage sports facilities or offer recreational services.
  • Educational License: For businesses providing education and training services.

Abu Dhabi Mainland Business Setup Process

Timeline: 2 to 6 weeks

01 Choose a Business Activity

Select the business activity that aligns with your intended operations, choosing the right one is crucial for the license approval.

02  Select a Legal Structure

Decide on the legal structure of your business, such as Sole Proprietorship, Limited Liability Company (LLC), or Branch Office.

03  Register Trade Name

Choose and register a unique trade name for your business with the ADDED, ensuring it complies with their regulations.

Takes 1 day

04 Get Initial Approval

Apply for initial approval from the ADDED, which confirms that the government has no objection to your business activity and legal structure.

Takes 2 to 3 days

05 Draft Memorandum of Association (MOA)

Draft the MOA for your business, especially if forming an LLC, which outlines the company’s ownership and structure. 

Takes 1 to 2 days

06  Lease an Office Space

Secure operating space, the lease agreement is a mandatory requirement for the license issuance.

Takes 1 to 3 days 

07  Obtain Approvals from Relevant Authorities (if applicable)

Some business activities require additional approvals from sector-specific authorities (e.g., healthcare, education).

Takes 2 to 4 weeks 

08 Submit Final Application

Once you have the initial approval, lease agreement, and all relevant documents, submit the final application to the ADDED for review.

Takes 2 to 5 days

09Pay License Fees

After your application is approved, pay the required license fees, including license costs and registration fees.

Takes 1 day

10Receive Trade License

After the payment, you will receive your business trade license, officially allowing you to start operations in Abu Dhabi Mainland.

Takes 1 to 2 days after payment

11 Apply for Visas

Once you have the trade license, apply for visas for yourself, shareholders, and employees. 

Takes 1 to 2 weeks

Documents Required in Abu Dhabi Mainland

Required documents for the Abu Dhabi Mainland license vary based on the legal structure of the business: Limited Liability Company, Sole Proprietorship and Branch Office.

Entity Type Required Documents
Limited Liability Company (LLC) Passport copies of all partners
Copy of residence visa (if applicable)
Emirates ID (if applicable)
No Objection Certificate (NOC) from sponsors (if applicable)
Trade name reservation certificate
Initial approval certificate
Memorandum of Association (MoA)
Tenancy contract (office space)
Passport-sized photos of all partners
Sole Proprietorship Passport copy of the owner
Copy of residence visa (if applicable)
No Objection Certificate (NOC) from sponsor (if applicable)
Trade name reservation certificate
Initial approval certificate
Tenancy contract (office space)
Passport-sized photos of the owner
General Partnership Application form
Partnership agreement
Passport copies of partners
Initial approval certificate
Lease agreement for office space
Branch Office Passport copy of the General Manager
Board resolution to open a branch in Abu Dhabi
Certificate of incorporation and memorandum/articles of association of parent company
Trade name reservation certificate
Initial approval certificate
Power of attorney for the branch manager
Tenancy contract (office space)
Audited financial statements of the parent company (if applicable)

License Cost in Abu Dhabi Mainland

The cost of setting up a business in Abu Dhabi Mainland varies depending on the type of license you require, the starting price of all licenses is AED 10,000.

In addition to the license fees, other potential costs include office space, which can vary significantly based on location and size. Local sponsor fees if applicable and visa and permit costs also add to the overall expenses.

*Note the price is an estimate and will vary in reality. For an accurate cost breakdown, get in touch with our consultants.

Frequently Asked Questions

What are the key benefits of setting up a business in Abu Dhabi Mainland?
Can a foreign investor own 100% of a business in Abu Dhabi Mainland?
What is the validity period of a commercial license in Abu Dhabi Mainland?
Is there any minimum capital requirement for setting up a business in Abu Dhabi Mainland?
What are the office space requirements for setting up a business in Abu Dhabi Mainland?
What types of business licenses are available in Abu Dhabi Mainland?
What is the process to set up a business in Abu Dhabi Mainland?
Can businesses in Abu Dhabi Mainland participate in government tenders?
What is the cost of setting up a business in Abu Dhabi Mainland?
Do businesses in Abu Dhabi Mainland need to undergo annual audits?

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