Business Setup in Abu Dhabi

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Business Setup In Abu Dhabi

Abu Dhabi is the capital of the United Arab Emirates and a growing business center for the region. Abu Dhabi accounts for almost all of the UAE’s oil reserves and also offers investment opportunities in a wide variety of sectors.
Business setup in Abu Dhabi is much preferred because of its transparent and flexible business setup procedure. The government has established guidelines for businesses, which can be followed to create a new company within a few days.

Making What’s Possible in Business setup

-Legal House


Advantages of business setup in Abu Dhabi

  • Abu Dhabi, on the southeast coast of the Persian Gulf, is the capital of the United Arab Emirates. It lies between Asia and Africa and is easily accessible from Europe.
  • The law allows 100% foreign ownership and exempts corporate and personal income tax.
  • There are no restrictions on foreign exchange, quotas, or trade barriers.
  • Abu Dhabi is home to some of the world’s most advanced healthcare facilities, as well as excellent security and career opportunities.

Process involved for business setup in Abu Dhabi:

Before starting a business in Abu Dhabi, you should be aware of the facts and guidelines that apply to all businesses in the emirate.
Plan the business activities:
The Department of Economic Development offers a list of business activities. You must choose one that is suitable for your business. The DED determines the legal
proceedings and fees associated with each activity.
Determine the type of legal entity.
Different business establishments must comply with the respective rules and regulations for their legal forms. In this case, you need to select a legal entity type to mn your company.
Tradename registration:
When choosing a trade name for your company, you need to be sure that it is easy to pronounce and does not include any foul or controversial words. If you plan to name your company after a person, you must use their full name. After choosing a name and registering it with the DED, make sure you choose a professional logo to go along with it.
ADDCI membership:
As per Law No. 7 of 1998, all individuals and businesses operating in Abu Dhabi are required to obtain a business license from the Abu Dhabi Chamber of Commerce and Industry
Get an Abu Dhabi business license
The government offers 4 main types of business licenses:
l. Commercial License in Abu Dhabi
2. Industrial License in Abu Dhabi
3. Professional License in Abu Dhabi
4. Tourism License in Abu Dhabi
Businesses in Abu Dhabi must acquire one of five business licenses to operate legally. Legal houses can assist you in the application process and help you obtain a permit and obtain No-Objection Letter. Once your application is approved, you must pay the required fee, then save it.
Document submission and initial approval:
To begin your business, you must submit all necessary documents to the respective licensing department and obtain approval from GDRFA (General Directorate of Residency and Foreigners Affairs). All paperwork will be thoroughly inspected; once it is approved, you will receive an approval certificate that allows you to complete additional legal formalities.

How to Get a Business License in Abu Dhabi

To open a business in Abu Dhabi, you must obtain a business license by following these steps:

  • You should contact the appropriate legal authorities for your chosen business activities.
  • Attach all necessary documents to your application for a business license in Abu Dhabi.
  • Your application will be reviewed by the authorities concerned, who might request additional documents.
  • When your documents are reviewed, you will be granted membership at the Abu Dhabi Chamber of Commerce and Industry. After that, the commercial register from Abu Dhabi DED will come on a field visit to verify whether or not all the terms and conditions to acquire a license are fulfilled. If everything is in order, you will be issued the permit to commence business in Abu Dhabi.
Company formation process in Abu dhabi


Company formation in Abu Dhabi Mainland

When you set up a business on the mainland of Abu Dhabi, you will have a number of options to choose from. However, one thing that is required across the board is a local sponsor. This is a requirement under UAE Company Law, requiring that 51% of shares be owned by a UAE national.

Company Formation in Abu Dhabi Free zone

Abu Dhabi is the largest emirate in the United Arab Emirates, which offers several prominent Free Zones for business. Economic stability, 100% ownership, tax incentives, and healthcare policies are just a few of several reasons why business setup is so popular in this location. The city is known for its luxury and attracts both entrepreneurs and tourists from around the world. Setting up a company in Abu Dhabi Free Zone requires some paperwork, but it can be done quickly if you enlist Legal House’s help.

Free Zone business setup in Abu Dhabi has numerous advantages. Entrepreneurs are exempt from certain government regulations, such as customs duties and income tax. The Free Zones are independent jurisdictions that can be fully owned without having to partner with a UAE national to serve as a local sponsor. The Abu Dhabi Free Zone Authority (FZA) issues Free Zone licenses and registration.

Abu Dhabi Free Zones:
Eight Free Zones have been established in Abu Dhabi to boost the economy, promote foreign investment and drive growth. Companies can register in the Abu Dhabi Free Zone even from outside the country. Three of these zones are particularly popular with investors:

• Twofour54 Free Zone
• Masdar City Free Zone
• Kizad Free Zone Abu Dhabi

The cost of setting up a business in Abu Dhabi is:

As per the government, the business setup cost in Abu Dhabi has been reduced to AED 1,000 (from AED 15,500). The new fee structure was announced in July 2014. This is a 94% reduction from the previous amount. The cost to set up a business varies according to factors like location and legal entity.

Documents required to get Abu Dhabi License are:

The following are the necessary documents required to get Abu Dhabi license.

  • Memorandum of Association
  • Trade name registration copy
  • Tenancy contract copy
  • Bank authentication letter
  • No objection letter from the local sponsor
  • Passport copy and resident permit
  • Business plan copy

After you submit the required documents to the legal authorities, they will inspect them thoroughly. Once approved, you will receive a business license fee voucher. You must pay the fee and then obtain your Abu Dhabi Business License. The business consultant and legal experts at legal house will help you acquire your business license in Abu Dhabi. Our service is affordable, and we can assist you with the paperwork needed to obtain a business license within a few days.

Required For company Setup

business activity

Business plan sheet and legal Entity


Abu Dhabi , UAE

Legal document

MOA, POA , Ejari

office space

Viltual Office ,Flexi Desk, Rentals

Frequently Asked Questions

The legal requirements for setting up a business in Abu Dhabi vary depending on the type of business structure and the activity of the business. Generally, businesses in Abu Dhabi must be registered with the Abu Dhabi Department of Economic Development (DED), obtain necessary licenses and permits, and comply with local laws and regulations.

The different types of business structures available in Abu Dhabi include sole proprietorship, partnership, limited liability company (LLC), and branch or representative office of a foreign company. The most common business structure for foreign investors is an LLC.

The costs associated with setting up a business in Abu Dhabi vary depending on the type of business structure and the activity of the business. Costs may include fees for registration, licenses, permits, visas, and legal services. It is important to consult with a legal or financial advisor to understand the specific costs associated with setting up a business in Abu Dhabi.

It is possible for a foreign investor to own 100% of a business in Abu Dhabi in certain sectors, such as technology and renewable energy. In other sectors, such as oil and gas, certain restrictions may apply. It is important to consult with a legal advisor to understand the specific requirements and restrictions for foreign investment in Abu Dhabi.

A local sponsor is a UAE national or a company wholly owned by UAE nationals who acts as a sponsor for a foreign investor in setting up a business in Abu Dhabi. The local sponsor must hold at least 51% of the shares in the business and can provide assistance with obtaining necessary approvals and licenses. It is important to work with a reputable and tmstworthy local sponsor like us.i.

Business registered in Abu Dhabi can operate in other emirates or countries, but may require additional approvals and licenses depending on the activity and jurisdiction.

Common challenges faced by businesses in Abu Dhabi include navigating complex regulatory and legal requirements, finding qualified and skilled employees, and managing costs and competition