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How to Set Up a Business in Abu Dhabi: 2025 Step-by-Step Guide

HomeHow to Set Up a Business in Abu Dhabi: 2025 Step-by-Step Guide
  • 5/12/2025

How to Set Up a Business in Abu Dhabi: 2025 Step-by-Step Guide




Abu Dhabi, the capital of the UAE, continues to attract entrepreneurs from across the globe thanks to its thriving economy, strategic location, and government support for innovation and startups.

Whether you are an expat, a local entrepreneur, or an investor, understanding the business set up in Abu Dhabi process is crucial for success in 2025.

In this step-by-step guide, we will walk you through everything you need to know about business registration in Abu Dhabi, associated costs, and the most common questions business owners ask when planning their launch.


Step 1: Choose Your Business Activity

Before you begin, you must decide on the type of business activity you plan to undertake. Abu Dhabi’s Department of Economic Development (ADDED) offers hundreds of activity categories. Your activity determines the type of license you'll need — whether commercial, industrial, or professional.


Step 2: Select the Right Legal Structure

Your company structure can be:

  • Sole Proprietorship
  • Limited Liability Company (LLC)
  • Foreign Branch
  • Civil Company
  • Free Zone Entity

Each structure has different requirements regarding ownership, liabilities, and business registration in Abu Dhabi.


Step 3: Decide on Mainland or Free Zone

In Abu Dhabi, you can choose between setting up your business in the mainland or a free zone:

  • Mainland companies can trade anywhere in the UAE and globally.
  • Free Zone businesses enjoy full foreign ownership, tax exemptions, and fast-track licensing but have restrictions on trading directly within the UAE without a local distributor.

Step 4: Reserve Your Trade Name

Choose a unique trade name that reflects your business. You’ll need to get it approved by ADDED. Avoid religious or political terms, and make sure the name fits the UAE's naming guidelines.


Step 5: Apply for Initial Approval

This approval confirms that the government has no objection to your business activities. It's a crucial step in the business set up in Abu Dhabi process.


Step 6: Prepare Legal Documents

Depending on your legal structure and activity, you will need:

  • Memorandum of Association (MOA)
  • Lease agreement (if setting up on the mainland)
  • Local service agent agreement (if required)

Consider hiring business consultancy services to ensure your documentation complies with local laws and is processed smoothly.


Step 7: Secure a Business Location

A physical address is mandatory. For mainland businesses, you'll need to secure a tenancy contract and get it attested via the Tawtheeq system.


Step 8: Final Approval and Licensing

Once all the paperwork is submitted and verified, ADDED will issue your trade license. At this point, you are officially ready to operate your business.


How much does it cost to set up a business in Abu Dhabi?

The business setup cost in Abu Dhabi varies depending on the business activity, license type, and location. On average, you can expect:

  • AED 10,000 to AED 30,000 for a mainland license
  • AED 5,000 to AED 15,000 for a free zone license

Other costs include office space rental, visa fees, and document notarization. Engaging business consultancy services can help you budget accurately and avoid hidden charges.


Can a foreigner start a business in Abu Dhabi?

Yes, a foreigner can fully own a business in Abu Dhabi, especially in free zones and for many mainland activities as per the updated UAE Commercial Companies Law. In fact, foreign investment is encouraged, and business set up in Abu Dhabi has become significantly more accessible in recent years.


How can I start a small business in Abu Dhabi?

To start a small business:

  • Choose a low-cost activity
  • Register in a free zone (ideal for solo entrepreneurs)
  • Use a shared desk or virtual office to cut overhead
  • Apply for a freelancer or professional license (if applicable)

This allows you to keep your business setup cost in Abu Dhabi low while still operating legally and efficiently.


Is Abu Dhabi a good place to start a business?

Absolutely. Abu Dhabi offers:

  • A tax-friendly environment
  • Political and economic stability
  • High-quality infrastructure
  • Access to global markets

These factors, combined with streamlined business registration in Abu Dhabi, make it an excellent destination for startups and established businesses alike.


Conclusion

Setting up a business in Abu Dhabi in 2025 is a streamlined and rewarding process with the right guidance. From choosing the right license to budgeting your business setup cost in Abu Dhabi, every decision matter. For a hassle-free experience, it’s wise to work with trusted business consultancy services that understand the local landscape and can accelerate your path to success.

Whether you are eyeing a small venture or a large enterprise, business set up in Abu Dhabi offers endless opportunities in a vibrant and supportive business ecosystem.


Need help getting started?

Reach out to us at info@ventureuae.com or call us on +971 24477741 – our team is ready to assist you with expert guidance every step of the way.

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