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Can Foreigners Start a Business in Abu Dhabi? Legal Guide for 2025

HomeCan Foreigners Start a Business in Abu Dhabi? Legal Guide for 2025
  • 7/17/2025Author: Shanoob

Can Foreigners Start a Business in Abu Dhabi? Legal Guide for 2025




If you're considering business setup in Abu Dhabi, you're not alone. With its robust economy, business-friendly environment, and modern infrastructure, Abu Dhabi has become one of the most attractive destinations for entrepreneurs worldwide.

And the good news? As of 2025, it's easier than ever for foreigners to start and fully own a business in the UAE capital.


Is 100% Foreign Ownership in Abu Dhabi Possible?

Yes, absolutely.

The UAE government has introduced major legal reforms to attract global investment. Today, 100% foreign ownership in Abu Dhabi is allowed across a wide range of activities — especially in professional, commercial, and industrial sectors.

This is a huge shift from the earlier model that required an Emirati sponsor for mainland companies. Now, depending on your business activity and legal structure, foreign investors can have full control over operations and profits — without needing a local partner.

Before proceeding, it's important to confirm that your specific activity falls under the approved categories for 100% foreign ownership in Abu Dhabi.


Steps to Setting Up a Company in Abu Dhabi

Curious about how the process works? Here's a simple step-by-step overview of setting up a company in Abu Dhabi:

 1. Choose your business activity
      This determines your license type and approval requirements.

 2. Select a legal structure
      Choose between Sole Proprietorship, LLC, Branch Office, or other models.

 3. Reserve your trade name
     Make sure your name complies with UAE naming rules.

 4. Apply for initial approvals
      These vary based on your sector and business activity.

 5. Secure a business location
      A physical office is mandatory for mainland licenses, while Free Zones offer flexible options.

 6. Submit documentation
      This includes passport copies, shareholder info, and activity forms.

 7. Pay the government fees
      Includes registration, licensing, and other administrative costs.

 8. Receive your trade license
      Once approved, you’re ready to begin operations.

The process for business setup in Abu Dhabi is streamlined and can often be completed in 3 to 10 working days, especially when guided by experts.


Cost of Starting a Business in Abu Dhabi

Let’s talk numbers.

The cost of starting a business in Abu Dhabi depends on several factors — including whether you're choosing a mainland or Free Zone setup, the number of visas required, and the type of office space you need.

Here’s a general breakdown:

 - Mainland license: Starts from AED 15,000 to AED 25,000

 - Free Zone license: Starts from AED 5,750 (for limited activities without visas)

Additional expenses may include:

  •  - Office or desk space rental

  •  - Visa and medical processing

  •  - Sector-specific approvals (if applicable)

Understanding the cost of starting a business in Abu Dhabi upfront can help you plan effectively and avoid unexpected delays.


Benefits of Business Setup in Abu Dhabi for Foreigners

There are several compelling reasons why more international entrepreneurs are choosing business setup in Abu Dhabi:

  •  - 100% foreign ownership in Abu Dhabi is now permitted in most sectors

  •  - No personal income tax, allowing you to maximize profits

  •  - Streamlined licensing and registration processes reduce setup time

  •  - Access to global markets through a strategic geographic location

  •  - Advanced infrastructure for logistics, tech, and communications

  •  - A vibrant ecosystem of Free Zones, incubators, and support services

Whether you're setting up a company in Abu Dhabi for the first time or expanding an existing brand, the city offers the right environment to launch, operate, and scale — with confidence and full control.


Your Next Steps: Let’s Make It Happen

Starting a business abroad may feel overwhelming — but it doesn’t have to be. With the right knowledge and support, setting up a company in Abu Dhabi becomes a smooth and rewarding process.

That’s where experienced business setup consultants in Abu Dhabi come in. They help you navigate legal requirements, select the right structure, and manage your paperwork efficiently — saving you time, money, and stress.

If you're ready to take the first step toward your dream venture in the UAE, we’re here to help.

Reach out to us today at info@ventureuae.com or call +971 24477741.
Let’s turn your business idea into reality — right here in Abu Dhabi.

Frequently Asked Questions

Yes, foreigners can fully own and operate businesses in Abu Dhabi, provided the chosen business activity is eligible for full foreign ownership.

Absolutely. Expats can now own up to 100% of their business in most UAE emirates, including Abu Dhabi, without needing a local partner.

The cost of a business license in Abu Dhabi starts from AED 5,750 in Free Zones and AED 15,000 or more on the Mainland, depending on your activity and visa needs.

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