Thinking about starting a business in Abu Dhabi in 2025? With 100% foreign ownership, zero personal income tax, and streamlined licensing, Abu Dhabi is now one of the most attractive destinations for global entrepreneurs. This guide walks you through every step of the company setup process in Abu Dhabi – from choosing the right license to securing government approvals.
If you’re searching for a business setup company in Abu Dhabi to simplify the process, you’re already on the right path.
Company setup in Abu Dhabi requires completing a few crucial steps efficiently. In this blog, we’ll take a detailed look at all the key steps involved in the company setup process in Abu Dhabi.
Company setup in Abu Dhabi
How to Start a Company in Abu Dhabi?
Business setup in Abu Dhabi involves several steps and legal considerations. Let’s explore the key steps to help you understand how to start a business in Abu Dhabi.
STEP 1: Identify the Right Type of Business Activity
First, determine the nature of activities performed by your business. After that, ensure compliance with local regulations before structuring the business concerning licensing fees and legal requirements.
There are six main types of licenses in the UAE:
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Industrial
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Professional
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Agricultural
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Tourism
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Occupational
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Commercial
Based on the commercial activity, your business can be registered under either Abu Dhabi Free Zone Company Formation or Abu Dhabi Mainland Company Formation, depending on your operational goals and licensing needs. If you’re considering a free zone company setup, this is where you decide the jurisdiction.
STEP 2: Decide Ownership Structure
The next step in your business setup in Abu Dhabi is choosing a legal structure. Business ownership structures in Abu Dhabi include:
- General Partnership
- Limited partnership
- Limited liability company (LLC)
- Public joint-stock company (PJSC)
- Private joint-stock company (PrJSC)
- Civil company
- Local company branch
- GCC company branch
- Foreign company branch
- Free zone company branch
- Sole Establishment
- Holding companies
For those targeting international markets, a freezone business setup can offer full foreign ownership and streamlined regulations.
Ready to start your dream business in Abu Dhabi? Get a free consultation from our experts today.
STEP 3: Trade Name Registration
Register your company’s trade name with the Department of Economic Development in Abu Dhabi (ADDED). To choose a distinctive and appropriate trade name, you must fulfill the following requirements:
- The name shouldn’t be in violation of morality or public order.
- The names or logos of any governmental bodies or religions should not appear in the name.
- An acronym (the company’s legal form) must come after a unique name.
- The goal of your business endeavor should be reflected in the name.
- Verify that no other companies have previously used your trade name.
Whether you choose a Mainland company setup or a free zone jurisdiction, trade name compliance is a must.
STEP 4: Obtaining Initial Approvals
After registering the trade name, secure initial approval from ADDED. This approval confirms that the UAE government has no objections to you starting a business in Abu Dhabi and allows you to proceed with license applications.
STEP 5: Apply for the Business Licences
After obtaining all necessary approvals, apply for your business licence. This step is critical in the Abu Dhabi company formation process. You’ll need the following documents:
- Receipt of original approvals.
- Documents previously submitted.
- Attested copies of lease contract by the Real Estate Regulatory Agency.
- Attested Memorandum of Association.
- All approvals required from other government entities.
- Duly attested contact details of your local sponsor in the UAE.
A Business setup company in abu dhabi can help manage these documents and fast-track the licensing procedure.
Conclusion
Foreign investors enjoy company setup in Abu Dhabi for its many advantages, including tax benefits, simplified incorporation, and flexible ownership options. From choosing your business activity to obtaining licences, every step in the business setup in Abu Dhabi has become streamlined and investor-friendly.
If you’re seeking expert business setup services, trust a team that understands every nuance of Abu Dhabi’s legal landscape.
How Arabian Business Center Helps You?
With years of experience in PRO services, VAT support, local sponsorship, and virtual office solutions, Arabian Business Center is your go-to consultancy for smooth Mainland company setup and freezone business setup. Whether you’re interested in a free zone company setup or a business setup company in Abu Dhabi, we’ve got you covered.
Planning to start a business in Abu Dhabi in 2025? Let us handle the legal formalities and approvals while you focus on building your brand. Speak with one of our expert consultants today and get started with your business setup in Abu Dhabi.
Frequently Asked Question
The process involves:
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Identifying your business activity.
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Choosing a legal structure (e.g., LLC, sole proprietorship, branch office).
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Registering a trade name with the Department of Economic Development (ADDED).
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Obtaining initial approvals.
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Securing office space.
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Applying for the business license.
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Processing visas and labor cards.
Yes, recent reforms allow for 100% foreign ownership in many sectors, especially within free zones. However, some activities may still require a local sponsor or service agent.
Mainland: Allows you to operate anywhere in the UAE and internationally. May require a local sponsor for certain activities
Free Zone: Offers benefits like 100% foreign ownership, tax exemptions, and simplified import/export procedures. However, businesses in free zones may have restrictions on trading directly with the UAE mainland
The timeframe varies based on the business type and approvals required but typically ranges from a few days to several weeks. Arabian Business Center aims to expedite this process for clients.
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