Abu Dhabi company formation · 2026

Business Setup in Abu Dhabi Company formation in the UAE capital, mainland or free zone

Start your company in Abu Dhabi with 100% foreign ownership, licence fees from AED 790 and a licensing process that runs fully online through TAMM. A&A Associate guides you from choosing the right ADRA licence to opening your bank account, so you can trade with the capital's government and enterprise clients from day one.

  • 100% foreign ownership
  • ADRA licences from AED 790
  • Mainland, free zone or remote setup
  • Licences issued in days
Home/Business Setup in Abu Dhabi

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100%Foreign ownership
AED 790ADRA licence fee from
940+Activities on the Instant Licence
9%Corporate tax above AED 375K
Why Abu Dhabi

Why set up a business in Abu Dhabi?

Abu Dhabi is the UAE capital and its largest economy. It is home to ADNOC, Mubadala, ADQ and most federal ministries, which makes it the place to be if your clients are government or large enterprises.

Aerial view of Abu Dhabi, the UAE capital and a leading location for business setup
The UAE capitalFederal ministries and sovereign funds
Set up remotelywith the ADRA Virtual Licence

Government and enterprise contracts

A mainland licence lets you bid for contracts across the emirate and the wider UAE.

100% foreign ownership

Most commercial, professional and industrial activities no longer need an Emirati partner.

Competitive tax

0% personal income tax. Corporate tax is 0% up to AED 375,000 of taxable profit and 9% above.

Set up from abroad

The ADRA Virtual Licence lets investors outside the UAE register a company before they arrive.

Fully digital licensing

Applications, renewals and amendments run through the TAMM government platform.

World-class infrastructure

Khalifa Port, Zayed International Airport and a 90-minute drive to Dubai.

Business setup in Abu Dhabi mainland or free zone

Mainland or free zone: where should you set up in Abu Dhabi?

Choose the mainland if you sell to UAE customers or government; choose a free zone if you trade internationally or need a sector-specific regulator. The ADRA Dual Licence lets an Abu Dhabi free zone company also operate on the mainland.

Business owners reviewing an Abu Dhabi mainland trade licence with an A&A Associate consultant

Not sure which fits? We compare mainland and free zone options for your activity, free of charge. Ask an expert →

CompareAbu Dhabi mainlandADRA, part of ADDEDAbu Dhabi free zonesADGM, KEZAD, Masdar, twofour54, ADAFZ
Licensing bodyAbu Dhabi Registration Authority (ADRA)Each free zone authority
Where you can tradeAnywhere in the UAE and abroadInside the zone and abroad; mainland via Dual Licence or a distributor
Foreign ownership100% for most activities100%
Government contractsYesLimited
OfficeTawtheeq-registered tenancy (not needed for Virtual or Freelancer licences)Flexi-desk to warehouse, by package
Typical first-year costAED 20,000–35,000 for an LLC with office and one visaAED 15,000–50,000+ depending on zone
Best forTrading, contracting, consultancy, F&B, government suppliersFinance (ADGM), industry and logistics (KEZAD), tech and sustainability (Masdar), media (twofour54)

Comparing free zones across the UAE? See our UAE free zone comparison

Get a free comparison
Abu Dhabi trade licence

Abu Dhabi business licence options in 2026

ADRA offers several licence routes. Picking the right one is the single biggest cost decision in your business setup.

01

Standard Economic Licence

The full mainland licence for any activity, with a physical office and a visa quota.

All activitiesOffice requiredVisas by office size
02

Instant Licence

Fast-tracked for UAE nationals, residents and GCC nationals. Documents can follow within one month.

AED 790–5,500940 activitiesLease required
03

Virtual Licence

For foreign investors living outside the UAE. Sole proprietorship or LLC, with just a passport and photo.

AED 790–5,500No officeSet up remotely
04

Freelancer Licence

A home-based licence for UAE nationals and residents working on their own.

IndividualsHome-based
05

Tajer Abu Dhabi

Small-scale trading and online selling for eligible Emirati and GCC owners.

E-commerceSmall trading
06

Dual Licence

Lets an Abu Dhabi free zone company operate on the mainland too.

Free zone + mainland
An Abu Dhabi economic licence being handed to a new business owner

Every licence also has an activity category

Commercial, professional, industrial, tourism, agricultural or crafts. Extra activities cost AED 100 each on the Instant and Virtual licences, and some activities need approval from Abu Dhabi Municipality, the Department of Health or the Department of Culture and Tourism.

Find my licence
Free zone business setup in Abu Dhabi

Free zones in Abu Dhabi

Each free zone has its own regulator, packages and focus sectors. Pick the one that matches your activity.

ADGM

Abu Dhabi Global Market: an international financial centre on Al Maryah Island with English common law. Financial services, holding companies, family offices and the Hub71 tech ecosystem.

KEZAD

Khalifa Economic Zones Abu Dhabi: industrial and logistics zones next to Khalifa Port for manufacturing, warehousing and trading.

twofour54

The Abu Dhabi free zone for media, gaming, film and entertainment companies.

Abu Dhabi Airports Free Zone

ADAFZ: logistics, trading and aviation businesses at Zayed International Airport.

Company formation in Abu Dhabi

Company formation in Abu Dhabi: legal structures

Your legal form decides who can own the company, how much personal liability you carry and which licence routes are open to you.

Most popular

Limited Liability Company (LLC)

Owners1–50 shareholders
LiabilityLimited to capital
Best forMost trading, contracting and service businesses

Sole Establishment

Owners1 individual
LiabilityUnlimited
Best forSmall traders and professionals

Civil Company

Owners2+ professionals
LiabilityUnlimited, shared
Best forConsultancies, engineering and medical partnerships

Branch of a foreign company

OwnersParent company
LiabilityParent is liable
Best forOverseas firms entering Abu Dhabi

Branch of a UAE or GCC company

OwnersParent company
LiabilityParent is liable
Best forCompanies from Dubai or other emirates expanding to the capital
Setting up a business in Abu Dhabi

How to start a business in Abu Dhabi: step-by-step

The official ADRA sequence, from choosing your activity to opening your bank account. Our PRO team handles TAMM, ADRA, Tawtheeq and the Chamber for you.

Licence in days

Instant licences can be issued within days; standard licences follow once documents and any external approvals are ready.

Start my company
  1. 01

    Choose your business activity

    Pick your activities from the ADRA list and the licence route that suits them.

  2. 02

    Select your legal form

    LLC, sole establishment, civil company or branch, depending on ownership and liability.

  3. 03

    Reserve a trade name

    Register a unique name on TAMM that follows UAE naming rules.

  4. 04

    Get initial approval

    ADRA confirms it has no objection to your activity and shareholders.

  5. 05

    Secure your business location

    Lease an office or shop and register the tenancy contract on Tawtheeq (not needed for Virtual or Freelancer licences).

  6. 06

    Sign contractual agreements

    A Memorandum of Association for LLCs, or a Local Service Agent agreement where required.

  7. 07

    Obtain additional approvals

    If your activity needs them: Abu Dhabi Municipality, the Department of Health or the Department of Culture and Tourism.

  8. 08

    Pay the fees and receive your economic licence

    Your licence is issued through TAMM once all documents and approvals are in place.

  9. 09

    Register, apply for visas and open a bank account

    Abu Dhabi Chamber registration, establishment card, residence visas and your corporate bank account.

A&A Associate consultant completing company registration in Abu Dhabi with a client
Checked before filingWe review your documents before submission
Abu Dhabi company registration

Documents for company registration in Abu Dhabi

Passport copies of shareholders and manager
Passport-size photos
UAE visa or entry stamp, or Emirates ID for residents
NOC from current sponsor if employed in the UAE
Three trade name options
Tawtheeq-registered tenancy contract
Memorandum of Association or Local Service Agent agreement
External approvals where the activity needs them
Branch or Virtual Licence? Branches need the parent company licence, board resolution and articles, attested by the UAE embassy and MOFA. The Virtual Licence needs only a passport and photo.
Business setup cost in Abu Dhabi

Business setup cost in Abu Dhabi

Official ADRA fees for the Instant and Virtual licences start at AED 790 and go up to AED 5,500 including six activities. A standard mainland LLC with a small office and one investor visa usually costs AED 20,000–35,000 in the first year.

Typical first-year total
AED 20,000 – 35,000Standard mainland LLC with office and one visa
  • Economic licence and initial approval
  • Tawtheeq-registered office
  • One investor visa and establishment card
  • Fixed A&A fees agreed in writing
Cost itemTypical range (AED)
Trade name and initial approval500–1,500
Economic licence fee (Instant or Virtual)790–5,500
Memorandum of Association notarisation1,000–3,000
Office rent, Tawtheeq-registered (per year)15,000+
Abu Dhabi Chamber membership1,000–3,000
Establishment card and immigration file1,500–2,500
Investor visa (per person, 2 years)4,000–6,000
Licence route
Business activity
Office size
Number of visas

Extra activities cost AED 100 each on the Instant and Virtual licences. The Virtual Licence needs no office, which removes the biggest cost line. Renewals cost less than year one because your Memorandum, establishment card and bank account are already in place.

After company formation

After your licence: visas, banking and tax

What every new Abu Dhabi company needs to plan for once the licence is issued.

Visas

Residence visas

For investors, family and staff, with mainland quotas linked to your office size.

Bank

Corporate bank account

With UAE banks that onboard Abu Dhabi licences; we prepare the compliance file.

0% / 9%

Corporate tax

0% up to AED 375,000 of taxable profit and 9% above. Registration with the Federal Tax Authority is mandatory.

AED 375K

VAT registration

Mandatory once taxable supplies exceed AED 375,000 a year; optional from AED 187,500.

7 years

Accounting records

Keep records for at least seven years. Emiratisation targets apply to larger private companies.

Business setup consultants in Abu Dhabi

Why choose A&A Associate as your business setup consultants in Abu Dhabi?

A decade in the UAE

Ten years setting up mainland, free zone and offshore companies.

The right licence first

We compare the Standard, Instant, Virtual and free zone routes for your activity before you spend.

Fixed, transparent fees

Agreed in writing before we start, with no hidden government charges.

In-house PRO team

Handles TAMM, ADRA, Tawtheeq, Chamber and immigration. PRO services

Everything under one roof

Bank account, visas, accounting, VAT and corporate tax after your licence.

Business owners celebrating after company formation with A&A Associate
10 yearsA decade of excellence
One teamLicence, visas, banking and tax
Award-winning business setup firm Superbrands UAE's Choice award Global Business Outlook award winner Great Place to Work certified
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FAQ

Frequently asked questions about business setup in Abu Dhabi

Quick answers on cost, ownership, licences, timelines and tax for Abu Dhabi companies.

A&A Associate business setup consultant

Still have a question?

Speak to an Abu Dhabi business setup consultant today. The first consultation is free.

+971 50 483 6190 info@aaconsultancy.ae Chat on WhatsApp

How much does it cost to set up a business in Abu Dhabi?

ADRA's Instant and Virtual licences cost AED 790–5,500 including six activities. A standard mainland LLC with a small office and one investor visa usually costs AED 20,000–35,000 in the first year.

Can a foreigner own 100% of a company in Abu Dhabi?

Yes, for most activities on the mainland and in all free zones. A short list of strategic activities still requires Emirati participation.

How long does company formation in Abu Dhabi take?

Instant licences are issued within days. A standard licence usually takes 5–10 working days once documents and approvals are ready; regulated activities take longer.

Can I set up a business in Abu Dhabi without living in the UAE?

Yes. The Virtual Licence lets foreign investors outside the UAE register a sole proprietorship or LLC with just a passport and photo, and no office.

Do I need an office for an Abu Dhabi trade licence?

Standard and Instant licences need a Tawtheeq-registered tenancy contract. Virtual and Freelancer licences do not.

Should I choose the mainland or a free zone in Abu Dhabi?

Choose the mainland if you sell to UAE customers or government, and a free zone if you trade internationally or need a specialist regulator. The Dual Licence lets free zone companies also operate on the mainland.

What business can I start in Abu Dhabi?

The Instant Licence alone covers 940 activities across commercial, professional, industrial, tourism, agricultural and crafts licences. Popular choices are general trading, consultancy, IT, F&B, contracting and e-commerce.

How many visas can I get with an Abu Dhabi licence?

On the mainland, your visa quota depends on your office size. Free zones offer fixed visa packages.

Do Abu Dhabi companies pay corporate tax?

Yes: 0% up to AED 375,000 of taxable profit and 9% above. Registration with the Federal Tax Authority is mandatory, and businesses with revenue under AED 3 million can elect Small Business Relief for tax periods ending by 31 December 2026.

Why use a business setup consultant in Abu Dhabi?

The licence route and legal form decide your cost and visa options. A consultant compares them, handles TAMM, ADRA and approvals, and opens your bank account, so you avoid rework and delays.

Get a line-by-line cost estimate for your Abu Dhabi company within 24 hours

Tell us your activity and budget. An Abu Dhabi setup consultant will call you back with a written quote and the right licence route.

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