Who should set up a business in Abu Dhabi?
Abu Dhabi suits founders who sell to the capital's government and large companies, or who work in finance, energy, industry, logistics, clean tech or media. It is the UAE's capital, and ADDED reports that non-oil sectors made up 54% of its GDP in Q3 2025.
- Government and corporate suppliers: ADRA says a mainland licence is needed to take part in Abu Dhabi Government tenders. A company in an Abu Dhabi economic free zone can add one through the Dual Licence.
- Finance, wealth and holding structures: ADGM is an international financial centre with its own courts that apply English common law.
- Industry, trade and logistics: KEZAD Group runs 12 economic zones, with Khalifa Port as its sea gateway.
- Clean tech, biotech and media: Masdar City Free Zone targets clean tech, biotech and smart mobility, and twofour54 targets media and gaming.
Abu Dhabi is not always the best fit. If you only serve clients outside the UAE and want the lowest yearly cost, compare packages on our UAE free zones page. If most of your customers are in Dubai, read business setup in Dubai first.
Who licenses businesses in Abu Dhabi, and which route fits?
Mainland companies are licensed by the Abu Dhabi Registration Authority (ADRA), and free zone companies by their own zone. ADRA was set up by an Executive Council resolution in 2024 as an arm of the Abu Dhabi Department of Economic Development (ADDED). It describes itself as the central business registry for the emirate's mainland.
Mainland: ADRA, ADDED and TAMM
You apply on TAMM, the Abu Dhabi Government services platform, signing in with UAE PASS. TAMM still lists the licence services under the Department of Economic Development. Some ADDED pages still name the Abu Dhabi Business Centre, an ADDED division, as the licensing provider. Office leases are registered on Tawtheeq, which the Department of Municipalities and Transport runs.
Free zones in Abu Dhabi
ADDED lists six free zones: the five below and the Industrial City of Abu Dhabi.
| Free zone | Focus | Worth knowing |
|---|---|---|
| ADGM (Abu Dhabi Global Market) | Financial services, wealth and asset management, professional services | Covers Al Maryah and Al Reem Islands; a physical office is required except for SPVs |
| KEZAD | Trade, logistics and industry | 12 zones over 550 sq km; offers free zone and domestic (mainland) zones |
| Masdar City Free Zone | Clean tech, biotech, smart mobility | Over 1,000 activities; FZ-LLC or branch |
| twofour54 | Media, gaming, content and production | Regulated by the Creative Media Authority; freelancer licence available |
| Abu Dhabi Airports Free Zone (ADAFZ) | E-commerce, logistics, aerospace, pharma, food | Desk, office, warehouse and hangar options linked to the airport |
Mainland or free zone compared
| Factor | Mainland (ADRA) | Abu Dhabi free zone |
|---|---|---|
| Where you can trade | Across the UAE | Inside the zone; mainland work needs a Dual Licence (economic free zones) |
| Office | Tawtheeq lease, except Virtual and Freelancer licences | Desk or office from the zone's packages |
| Government tenders | Eligible | Through a Dual Licence |
| Ownership | 100% foreign for most activities | 100% foreign |
| Corporate tax | 0% up to AED 375,000, 9% above | Same, or 0% on qualifying income for a Qualifying Free Zone Person |
For holding assets rather than trading, ADGM's special purpose vehicles (SPVs) are exempt from its office rule. Offshore companies in other emirates are covered on our offshore page, and the full comparison is in mainland vs free zone.
How much does business setup in Abu Dhabi cost in 2026?
A mainland LLC in Abu Dhabi pays about AED 6,900 to 7,300 in government fees before office rent and visas. That is based on the fees TAMM lists, checked on 22 October 2026. The licence fee itself is AED 790 for up to six activities. Most of the rest is the Abu Dhabi Chamber membership and two company fees.
Government fees for a new mainland licence
| Fee as listed on TAMM | AED | Who pays |
|---|---|---|
| Trade name reservation | 50 | All |
| Initial approval | 15 | All |
| Organisational entities fee (licence, up to 6 activities) | 790 | All |
| Each activity after the sixth | 100 | Extra activities |
| Registration in the economic register | 10 | All |
| Licence issuance | 10 | All |
| Establishment contract notarisation | 50 | Companies |
| Social contributions | 1,500 | Companies |
| Ministry of Economy fees | 2,500 | Companies |
| Sole proprietorship establishment fee | 50 | Sole proprietorships |
| Abu Dhabi Chamber membership | 1,650 commercial, 2,000 professional, 150 craft | By activity type |
| Establishment card (ICP) | 315 | All |
| Tawtheeq lease registration | 50, plus 1% for leases over 4 years | Where a lease is needed |
The LLC total adds every line marked All or Companies, one Chamber fee and the Tawtheeq fee, for up to six activities. ADRA quotes a basic cost of AED 1,200 for the Standard Economic Licence with six activities, and AED 790 to 5,500 for the Virtual and Instant licences. Your activities and legal form decide the final figure.
What else to budget for
- Office rent: set by the market. Tawtheeq registration is AED 50; the rent is the larger cost.
- Visas: each residence visa adds ICP fees, a medical test, Emirates ID and health insurance.
- External approvals: regulated activities need sign-off from bodies such as the Department of Health or Abu Dhabi Municipality.
- Professional fees: drafting, submissions and PRO work.
Ofin's package bands (indicative estimates)
Ofin groups its Abu Dhabi mainland setups into three bands. These are Ofin's own estimates of a typical total setup (licence, office, any visa and approvals), not official fees. Ofin shares a cost breakdown before you start, and your written quote confirms what each band covers.
| Ofin band (estimate) | AED | Suits |
|---|---|---|
| Consultant or advisor (professional licence) | 14,000 to 18,000 | Solo consultants with no staff |
| Service business (1 visa) | 18,000 to 25,000 | Agencies, tech and service SMEs |
| Trading company (commercial licence) | 25,000 to 35,000 or more | Import, export, retail and distribution |
Free zone entry packages are cheaper but more limited. On the zones' own sites (checked 22 October 2026), ADAFZ's Starter package is AED 6,000 a year (2 activities, smart desk, no visa). Masdar City Free Zone's Startup package is AED 7,000 (2 activities, licence only, plus 5% VAT).
Which licence types and activities can you choose?
The Standard Economic Licence covers most companies, and the Virtual Licence is the route for founders who live outside the UAE. ADDED groups activities into six types: industrial, commercial, professional, tourism, agricultural and occupational. The Standard licence alone covers more than 1,100 activities.
| Licence | Who it is for | Office | Fee on ADRA's page |
|---|---|---|---|
| Standard Economic Licence | UAE nationals, residents and GCC nationals; all legal forms | Required; optional in year one for some activities | Basic AED 1,200 with 6 activities |
| Virtual Licence | Founders living outside the UAE; sole proprietorship or LLC | Not required | AED 790 to 5,500 |
| Instant Licence | Nationals, residents and GCC nationals; 940 activities | Lease required | AED 790 to 5,500 |
| Freelancer Licence | Nationals and residents, including employees; 100+ activities | Not required | Basic AED 1,200 |
| Dual Licence | Companies already in an Abu Dhabi free zone | Tenancy contract on TAMM's list | Basic AED 1,200 |
| Tajer Abu Dhabi | Emiratis, GCC nationals, residents with Emirati partners | None for the first 3 years | AED 790 to 5,500 |
Each extra activity costs AED 100. The Mobdea licence (for Emirati women) and the Farms and Small Producers licence are for UAE citizens. Activities such as healthcare and tourism also need approval from bodies like the Department of Health or the Department of Culture and Tourism.
Do you need an office, and how do visas work?
Office rules
Most mainland licences need a lease registered on Tawtheeq. The exceptions are the Virtual and Freelancer licences, which you can run from home, and Tajer Abu Dhabi for its first three years. For some activities, the Standard licence makes an office optional in the first year. TAMM asks for an approved lease again at renewal, except for Freelancer, Mobdea and early Tajer licences.
Visas for owners, staff and family
UAE residence visas are issued by the Federal Authority for Identity, Citizenship, Customs and Port Security (ICP). Your company first gets an establishment card, which TAMM charges at AED 315. TAMM's start-a-business list also includes opening an establishment file with the Ministry of Human Resources and Emiratisation (MoHRE). Each residence permit is linked to an Emirates ID.
- Owners: you can apply for the Green Visa for investors and business partners, which runs for 5 years, is renewable and needs no sponsor. See our investor visa guide.
- Larger investors: Abu Dhabi's Golden Visa for non-real-estate investors runs 10 years. It needs AED 2 million in a company or deposit, or AED 250,000 of tax paid a year for 2 years. See golden visa.
- Freelancers: Freelancer Licence holders can get Abu Dhabi residency for themselves and their families.
- Family: ICP asks for a monthly income of AED 4,000, or AED 3,000 with employer housing. You can sponsor a spouse, unmarried daughters and sons under 25.
Can foreigners own 100% of an Abu Dhabi company?
Yes, for most activities. Federal Decree-Law No. 26 of 2020, in force from early 2021, allowed 100% foreign ownership of mainland companies, and Federal Decree-Law No. 32 of 2021 consolidated it. The Cabinet can set extra conditions for activities of "strategic impact".
The federal list keeps full foreign ownership out of these areas:
- Security, defence and military activities
- Telecommunications
- Banking, exchange, financing, insurance, and bank note or coin production
- Commercial agencies, Hajj and Umrah organising, Quran recitation institutes
- Fishing, natural pearl and marine animal catching
ADRA's legal forms include the LLC, Sole Proprietorship LLC, Establishment, partnership, limited partnership and joint stock companies. A UAE or foreign company can open a branch with the same legal form and activities as the parent. Depending on your legal form and ownership, ADRA may ask for an MoA or a Local Service Agent (LSA) agreement. Freelancers do not need one, and federal law no longer requires branches of foreign companies to appoint an Emirati agent. ADDED says most activities have no minimum capital.
Renewal and ongoing compliance
You renew the licence on TAMM for one year or more, depending on the licence type and how long your lease runs. Renewal fees are AED 890 plus AED 20 in renewal and register fees, plus the same Chamber fee you paid at setup. Unrenewed licences move to an expired registry, and ADRA can revoke a licence expired for three years or more.
| Obligation | Rule |
|---|---|
| Beneficial owners (UBO) | Register them on TAMM as part of the licence application |
| Corporate tax registration | Within 3 months of incorporation |
| Corporate tax rate | 0% up to AED 375,000 of taxable income, 9% above |
| Corporate tax return | Within 9 months of the end of each tax period |
| Small Business Relief | Revenue up to AED 3 million, for tax periods ending by 31 December 2029 (Ministerial Decision No. 131 of 2026) |
| VAT registration | Mandatory above AED 375,000 of taxable supplies and imports; voluntary above AED 187,500 |
Keep proper accounts, because corporate tax starts from your accounting profit. See corporate tax and VAT registration for the detail.
Abu Dhabi or Dubai: how do they compare?
Both mainlands allow 100% foreign ownership for most activities and follow the same federal corporate tax and VAT rules. The real differences are the authority, the portal, the lease system and the licence menu.
| Point | Abu Dhabi | Dubai |
|---|---|---|
| Mainland licensing | ADRA, an arm of ADDED | Department of Economy and Tourism (DET) |
| Setup services online | TAMM | Invest in Dubai |
| Lease registration | Tawtheeq | Ejari |
| Licence menu | 8 licence paths listed by ADRA, including Virtual and Freelancer | 8 types listed by Invest in Dubai, including eTrader and Instant |
Choose the emirate where your customers, staff and premises will be. See Dubai mainland company setup for the Dubai side.
Setting up in Abu Dhabi from India
Indian founders can set up in Abu Dhabi without moving first, using the Virtual Licence, but Indian law still applies to the money you send.
- Attested documents: MOFA attests documents issued outside the UAE through the UAE mission in that country. A corporate shareholder's company certificate must also be translated into Arabic. See attestation.
- FEMA rules: resident individuals invest under the Overseas Investment Rules, 2022, through their designated AD bank. The UAE company must have limited liability, so choose an LLC rather than a sole proprietorship. Individuals can invest only in an operating business outside financial services. You file Form FC, and the bank obtains a UIN before the money goes. You then show proof of investment within six months and file an Annual Performance Report each year. Individuals cannot lend to the UAE company.
- Funding limit: an individual's investment counts towards the Liberalised Remittance Scheme limit of USD 250,000 per financial year (April to March).
- Indian companies: they follow the same Form FC and UIN route through their AD bank.
- Bank account: UAE banks apply their own KYC checks to the company and its owners; see corporate bank account.
- Tax residency: a UAE visa does not settle your Indian tax position. Plan it with an adviser before you rely on it.
Our business setup from India guide covers these steps in more depth.
How Ofin helps
Ofin's UAE desk handles an Abu Dhabi mainland setup from activity choice to bank account, with Ofin Legal's Mumbai team on the Indian side. Ofin Legal has a 4.9★ Google rating and has served 5,000+ clients since 2019.
- Choosing activities, licence type and legal form (LLC, sole proprietorship or branch)
- Trade name reservation and approvals
- Office and Tawtheeq guidance, and the licence application on TAMM
- Investor and employee visas, Emirates ID and PRO services
- Corporate bank account support
- Corporate tax and VAT registration, and accounting
- Document attestation, and India to UAE tax and FEMA advice
In Ofin's experience, the licence is usually issued in 3 to 10 working days once documents are ready, and full setup with visas takes up to about three weeks. Government approvals can take longer. Call or WhatsApp the UAE desk on +971 50 523 5779 for a written cost estimate.
