Setting up a business in Abu Dhabi can be an excited venture for entrepreneurs due to the Abu Dhabi city’s rapid economic growth, low taxes, and strategic location. However, navigating the regulatory environment requires precise knowledge. This guide breaks down the key steps to establish your business, complete with insights into licenses, costs, and requirements for different business types. Let’s dive into everything you need to know for setting up a business in Abu Dhabi, tailored to your unique needs.
Before beginning the process, it’s essential to determine the type of business you wish to establish. Abu Dhabi categorizes businesses into various economic activities, such as:
Each of these categories requires specific approvals and licenses. The type of license you apply for directly impacts your ownership structure, the capital required, and potential investors. For example, free zones offer 100% foreign ownership but may restrict you to operating within the zone.
Abu Dhabi provides various licensing options depending on where and how you want to operate your business. Below are the primary types:
Each license comes with its own advantages. Consider factors such as ownership requirements, scope of operations, and tax benefits. A clear understanding of these factors can help you decide the most cost-effective and operationally flexible location for your business.
Before registering your business, you need to secure a trade name with the Department of Economic Development (DED). This process involves ensuring the name complies with UAE naming conventions and verifying that the name is not already registered. You can complete this step through TAMM, a centralized portal for government services in Abu Dhabi.
Once the trade name is approved, you need to obtain initial approvals for your business activity. Depending on your sector, this could involve specialized regulatory bodies such as the Department of Health, the Tourism Authority, or the Ministry of Economy.
For businesses with partners, a Memorandum of Association (MOA) outlines the responsibilities, profit-sharing ratios, and obligations between the partners. This is a crucial legal document, especially for LLC formations, and must be notarized by an official notary public.
To operate in Abu Dhabi’s mainland, you are required to lease office space. However, the Tajer Abu Dhabi license allows certain businesses to start operations without the need for a physical office, making the process faster and more cost-effective.
Submit all your documents to the DED or free zone authority for the final business license. Depending on the nature of your business, you may need additional permits such as environmental permits for industrial activities or health and safety certifications for food-related businesses.
After receiving your business license, you can apply for residency visas for yourself, your family, and employees. Additionally, opening a UAE corporate bank account is crucial for managing business transactions. If your business qualifies, you can apply for a Golden Visa that offers long-term residency for investors and entrepreneurs.
Low Taxes: Enjoy a corporate tax rate of 0% for most businesses. Strategic Location: Abu Dhabi is a gateway between Europe, Asia, and Africa, making it ideal for international trade. Incentives for Entrepreneurs: The Abu Dhabi Investment Office (ADIO) offers incentives for startups and SMEs, including access to the Ventures Fund.
If you need personalized guidance for setting up a business in Abu Dhabi, reach out to our team of experts for a free consultation. We specialize in streamlining the process, ensuring compliance, and offering competitive business packages tailored to your specific needs.
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The cost of setting up a business in Abu Dhabi can vary based on several factors, including the type of license, office space, and whether you set up in the mainland or a free zone. For mainland businesses, the typical cost ranges from AED 10,000 to AED 25,000 per year for licensing. Free zone licenses tend to be more affordable, starting at AED 9,000, but the fees can rise depending on the specific zone and services required. Additional costs include visa fees, office space, and government registrations, which can push the total setup cost upwards of AED 50,000
Small service-based businesses, such as consultancy firms, e-commerce setups, or freelance businesses, are among the easiest to start in Abu Dhabi. The Tajer License, which allows business activities without needing a physical office, is ideal for small ventures. This license significantly simplifies the setup process, making it a great choice for startups or solo entrepreneurs
Foreign entrepreneurs in Abu Dhabi can enjoy 100% ownership of their business in both free zones and several sectors on the mainland. The introduction of updated business laws in 2021 allows full foreign ownership, removing the need for local sponsors in many industries. Foreigners can choose from a wide array of business types, including consultancy, trading, or industrial businesses, depending on the economic activity
Abu Dhabi offers an Instant License that allows entrepreneurs to start a business quickly without needing prior approvals for certain business activities. You can apply online through platforms like TAMM and have your business up and running in two steps. This is ideal for small businesses and freelancers. The Instant License is particularly useful for service-based businesses and startups
In 2024, business setup costs remain competitive. On the mainland, expect to pay between AED 10,000 to AED 25,000 for licensing, while free zone setups start at approximately AED 9,000. Additional expenses include visa processing (AED 3,000 to AED 7,000 per employee), office rental, and government fees
Some of the most profitable sectors in Abu Dhabi include:
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