Business Setup in Abu Dhabi
Last updated: November 2026
Business setup in Abu Dhabi has run through a new registrar since 6 January 2025. The Abu Dhabi Registration and Licensing Authority (ADRA), an arm of the Department of Economic Development (ADDED), keeps the commercial registry for the mainland and the non-financial free zones. Mainland applications go through TAMM, the emirate's government services portal, with a UAE PASS login; free zone companies apply to their zone. ADGM is the exception: the financial free zone on Al Maryah and Al Reem islands registers companies through its own Registration Authority, under its own civil and commercial laws.
We handle the choice and the filings. We match your activity to the mainland, ADGM, KEZAD, twofour54 or Masdar City Free Zone, prepare the licence application and file the beneficial owner records and corporate tax registration. Then we introduce the company to UAE banks. Each case gets a written quote, since the activity, the office and the visa count set the total.
| Quick facts | Value |
|---|---|
| Local company form | LLC (limited liability company) or Sole Proprietorship LLC on the mainland, FZ-LLC at Masdar City, private company limited by shares in ADGM, equivalent of an LLC / private limited company |
| Mainland registrar | ADRA, part of ADDED, operating since 6 January 2025 |
| Application portal | TAMM, with a UAE PASS login |
| Foreign ownership, mainland | 100% in more than 1,000 listed activities |
| Free zones | ADGM, KEZAD, twofour54, Masdar City Free Zone, Abu Dhabi Airports Free Zone |
| Minimum capital | None for a mainland LLC, an ADGM private company or a twofour54 company; USD 50,000 authorised capital for an ADGM public company |
| Corporate tax | Federal 9% (rate applicable in 2026) beyond AED 375,000 of taxable income |
| VAT | 5%; compulsory registration once annual taxable supplies and imports top AED 375,000 |
| Tax registration | Due at the FTA three months after incorporation |
Why Set Up a Business in Abu Dhabi
Three recent rules shape the case for a foreign founder.
Ownership opened in June 2021. ADDED published a list of more than 1,000 activities open to 100% foreign ownership and set no minimum capital for them. Strategic impact activities, such as defence, banking, insurance and telecoms, stay with their federal regulators under Cabinet Resolution No. 55 of 2021.
One number follows the company. Since 6 June 2024 the Unified Economic Licence has given each business a single reference number across the mainland and the non-financial free zones.
Companies from other emirates expand more easily. Since 13 February 2025 a company registered elsewhere in the UAE can open an Abu Dhabi branch without premises for its first year, across 1,200 activities.
Business Setup in Abu Dhabi: Mainland, ADGM or a Free Zone
Customers decide the route. A free zone company counts as outside the UAE mainland jurisdiction, so direct sales to mainland customers need a distributor, a branch or a mainland company. ADDED's Dual Licence is the Abu Dhabi bridge: it lets a free zone company of the emirate operate outside its zone.
| Route | Licensing body | Built for | Legal forms | Office |
|---|---|---|---|---|
| Abu Dhabi mainland | ADRA, through TAMM | Selling directly to mainland customers | LLC, Sole Proprietorship LLC, partnerships, public joint stock companies | Premises under a tenancy contract; none under the Freelancer licence |
| ADGM | ADGM Registration Authority | Financial services and holding companies under English common law | Private and public companies, restricted scope companies, LLPs, partnerships, foundations, branches | Registered office in ADGM at all times |
| KEZAD | KEZAD, part of AD Ports Group | Automotive, food, life science, logistics, metals, polymers, speciality chemicals | Confirmed per activity | Offices, workstations, mainland plots |
| twofour54 | twofour54, regulated by the Creative Media Authority | Media, gaming, entertainment | New company, branch, freelancer (Sole Proprietor licence) | Hot desks to private offices |
| Masdar City Free Zone | Masdar City Free Zone | Life sciences, space technology, AI, energy | FZ-LLC, branch of a foreign or UAE company | Virtual desk or flexidesk |
ADGM suits holding structures, KEZAD industrial and logistics businesses, twofour54 media firms and Masdar City technology companies. Our UAE free zone comparison sets these zones against those of the other emirates, and Dubai mainland company formation covers the onshore route in Dubai.
Company Types Available in Abu Dhabi
Three systems, three lists of forms.
Mainland. ADRA registers general partnerships, limited liability companies (LLCs) and public joint stock companies, among other forms. The federal Commercial Companies Law lets an LLC have between 2 and 50 partners, or just one owner (Federal Decree-Law No. 32 of 2021, Art. 71). It styles an LLC with one owner a Sole Proprietorship with Limited Liability (Art. 72). There is no statutory minimum capital, though every contribution must be fully paid when the company is incorporated (Art. 76).
ADGM. Its forms are listed in the table above. Under the Companies Regulations 2020 a private company needs at least one director, one of them a natural person, and no company secretary (sections 144, 145 and 287). A public company needs two directors and a secretary, and its authorised capital must be at least USD 50,000 (section 701).
What is an ADGM restricted scope company?
An ADGM restricted scope company is a private company reserved for certain owners. It serves subsidiaries of groups filing consolidated accounts publicly or of companies formed by Emiri decree, and companies of one individual or one family (2017 guidance). ADGM's 2021 checklist requires at least one authorised signatory who is a UAE or GCC national or a UAE visa holder.
Abu Dhabi Free Zones: ADGM, KEZAD, twofour54 and Masdar City
The zones license companies under their own rulebooks. Four are profiled below, followed by a note on Abu Dhabi Airports Free Zone.
What is ADGM?
ADGM stands for Abu Dhabi Global Market, the emirate's financial free zone, established under Abu Dhabi Law No. 4 of 2013. Federal Law No. 8 of 2004 applies every federal law there except the federal civil and commercial laws, which ADGM replaces with its own, based on English common law. Cabinet Resolution No. 41 of 2023 extended the zone from Al Maryah Island to Al Reem Island. ADGM company formation runs through ADGM's online registry, the zone's public register, and financial firms also need authorisation from the FSRA, ADGM's financial regulator.
KEZAD: Khalifa Economic Zones Abu Dhabi
KEZAD stands for Khalifa Economic Zones Abu Dhabi, the trade, logistics and industrial zones of AD Ports Group. Besides free zone space it offers mainland plots in its Domestic Economic Zone, plus offices and workstations. KEZAD states that a licence issues in under 24 hours once approvals are in. Its startup brochure still says free zone companies pay no corporate tax, which is too broad, as the tax section shows.
twofour54
twofour54 is Abu Dhabi's media free zone, built for media, gaming and entertainment businesses. Its regulator is the Creative Media Authority, not the Media Zone Authority that older guides still name. Freelancers can hold its Sole Proprietor licence, and the zone sets no minimum share capital.
Masdar City Free Zone
Masdar City Free Zone states 100% foreign ownership for its FZ-LLCs and branches. Its list runs to more than 1,000 activities, focused on life sciences, space technology, AI and energy. A virtual desk or flexidesk meets the office requirement, and registration takes a few working days, according to the zone's licence and registration page.
Abu Dhabi Airports Free Zone
Abu Dhabi Airports Free Zone was listed separately from KEZAD when the Unified Economic Licence launched in June 2024. We confirm its activities, legal forms and office options when we quote.
How to Register a Company in Abu Dhabi: Step by Step
We act as your formation agent and business setup consultants for Abu Dhabi, preparing every filing below and coordinating it with ADRA or the zone registrar. On the mainland the steps run through TAMM:
- Activity and legal form. Choose the activity from ADDED's list, then the legal form; the activity decides which approvals apply.
- Trade name and initial approval. Reserve the name and apply for initial approval on TAMM, which runs in parallel with the next steps.
- Approvals from other authorities. Depending on the activity, approval may be needed from Abu Dhabi Municipality, the Department of Health, the Department of Culture and Tourism or, for food, ADAFSA.
- Premises. Sign a tenancy contract for the business premises.
- Constitutional documents. Sign the Memorandum of Association, or the Local Service Agent agreement where the legal form requires one. The MoA is written in Arabic, and Arabic prevails in a bilingual text (Commercial Companies Law, Art. 14).
- Economic licence. ADRA issues the licence and records the company in the commercial registry.
- Corporate tax. File the FTA registration on EmaraTax no later than three months after incorporation (FTA Decision No. 3 of 2024).
ADRA publishes no official timeline for a mainland licence, so we set a date for your file once the activity and approvals are clear. ADRA's business setup guide lists each stage.
In ADGM the file goes online to the Registration Authority with a signed lease, because the company must keep a registered office in the zone at all times. For KEZAD, twofour54 and Masdar City, the UAE government portal describes the general free zone sequence. In order, the founder picks the zone and activity, settles the legal form, books a trade name showing it and receives the licence within 14 working days of approval.
Required Documents
ADRA and each zone set their own document lists; these items appear on most files:
- Passport copy; ADGM asks for passports of every current and past nationality
- Proof of residential address; ADGM accepts one no older than three months
- Know-your-customer and beneficial owner forms, plus a business plan if the zone wants one
- A sponsor's no-objection letter, if the founder already lives in the UAE on a residence visa
- Corporate shareholders: certificate of incorporation, constitution and a board resolution approving the investment; ADGM also wants the registers, certified, with an English translation
Corporate documents are notarised and attested before filing. For a mainland file we confirm with ADRA which documents need an Arabic translation.
Abu Dhabi Licence Options and Renewal
Abu Dhabi calls its trade licence an economic licence, and ADDED issues it in several versions:
| Licence | Who can hold it | Key condition |
|---|---|---|
| Standard Economic Licence | Every legal form | Normal procedure, with premises |
| Virtual Licence | Investors living abroad | 13 sectors plus strategic sectors |
| Freelancer | UAE citizens and foreigners | Remote work without an office |
| Tajer Abu Dhabi | UAE citizens and residents | Electronic licence for specific commercial activities, no premises for an initial period |
| Dual Licence | Abu Dhabi free zone companies | Activity outside the zone |
ADDED's licence list has the full menu, and our UAE trade licence guide explains the commercial, professional and industrial categories.
Renewal deserves a diary entry. An unrenewed licence moves to ADRA's expired registry, and since 31 October 2025 ADRA has been clearing licences expired for three years or more, which face revocation. The trade licence guide covers what renewal requires and when to start.
Timeline and What Our Package Covers
Published speeds differ: KEZAD states under 24 hours once approvals are in, Masdar City a few working days and ADGM a few days, while ADRA publishes no mainland timeline. The tax registration and the visas then run on their own clocks. Compare jurisdictions in our table of company formation time by country.
Our package covers the route review, trade name and approvals, constitutional documents, licence application, beneficial owner filing, corporate tax registration, visa applications and the bank introduction. The quote names each item for your case.
Corporate Tax and VAT for Abu Dhabi Companies
Tax is federal. Abu Dhabi companies pay 9% (rate applicable in 2026), but only on the part of taxable income beyond AED 375,000; the rest stays at 0%. Federal Law No. 8 of 2004 keeps federal law other than civil and commercial law in force inside financial free zones, so ADGM companies sit in the same tax system.
A free zone company gets the free zone 0% rate only on qualifying income, and only while it holds Qualifying Free Zone Person (QFZP) status. One failed condition costs that status for the period and the next four; our free zone comparison lists the conditions.
Small Business Relief is an election for a resident company whose revenue has not passed AED 3 million in any period: it is then treated as having no taxable income. The election is available for tax periods ending on or before 31 December 2029 (Ministerial Decision No. 131 of 2026); QFZPs and members of multinational groups cannot use it. VAT runs at 5%: a company must register once its taxable supplies and imports go past AED 375,000 in 12 months, and may register voluntarily above AED 187,500.
Withholding tax on payments to non-residents is 0% (Corporate Tax Law, Art. 45). Everything else federal sits in the tax section of our UAE company formation overview, and corporate tax rates by country sets the 9% against other jurisdictions.
Visas and Work Permits in Abu Dhabi
Visa law is federal; the quota is local. Each free zone files its companies' work permits and residence visas, and the package or office fixes how many. ADGM has its own employment law; elsewhere zone rules sit on top of Federal Decree-Law No. 33 of 2021. The medical test and Emirates ID biometrics require each applicant to be in the UAE. Our Dubai business setup guide covers the visa process in detail.
Banking for Abu Dhabi Companies
Banks come last, once the licence is issued. A founder with an Emirates ID, or with the application filed, qualifies for a UAE bank account in principle; each bank then applies its own conditions. We assemble the licence, constitutional documents and beneficial owner register into one file and introduce the company to UAE banks that fit its activity. How we run introductions is set out on our bank account opening page.
Compliance and Reporting Obligations
Two regimes apply. ADGM keeps its own rules, and the rest of the emirate follows the federal ones.
| Obligation | Mainland, KEZAD, twofour54, Masdar City | ADGM |
|---|---|---|
| Beneficial ownership | Cabinet Decision No. 109 of 2023: owners of 25% or more recorded within 60 days and filed with the registrar; changes within 15 days | Statement of initial beneficial ownership under ADGM's own beneficial ownership regulations |
| Annual filings | Licence renewal with ADRA or the zone authority | Annual confirmation statement and accounts |
| Corporate tax return | Nine months after the tax period closes | Same federal rule |
| Audited accounts | All QFZPs, plus taxable persons whose revenue tops AED 50 million (Ministerial Decision No. 84 of 2025) | Same federal rule |
We do not provide nominee shareholders or nominee directors in Abu Dhabi; outside ADGM, every company files its beneficial owners with the registrar under Cabinet Decision No. 109 of 2023. That Decision exempts financial free zones, and ADGM keeps its own beneficial ownership register.
A mainland LLC also appoints an auditor, LLCs with one owner included (Commercial Companies Law, Arts. 27 and 102; Cabinet Decision No. 77 of 2022, Art. 12). No economic substance report is due for current years; the last ones covered financial years ending on or before 31 December 2022. The e-invoicing mandate reaches large companies first: revenue of AED 50 million or more goes live on 1 January 2027, other businesses on 1 July 2027. A company that sells only to consumers is outside the mandate for now. Our accounting and tax compliance service keeps the tax and audit dates.
Setting Up in Abu Dhabi as a Non-Resident
Founders who live outside the UAE have a licence built for them. ADDED's Virtual Licence lets a non-resident investor own an LLC or a Sole Proprietorship LLC outright, applying online with a passport copy and a UAE PASS account. No prior approvals are needed, and no residence procedure comes first.
Outside the Virtual Licence, a foreign owner can still hold 100% of a mainland company in the listed activities, or of a free zone company. What a non-resident must do in person we confirm with ADRA or the zone. One federal rule needs a local answer. Article 11(4) of Cabinet Decision No. 109 of 2023 requires a contact person living in the UAE who can answer the registrar's questions on beneficial owners. It covers mainland and commercial free zone companies.
A residence visa needs a trip: the medical test and the Emirates ID biometrics take place in the UAE. A non-resident who wants residence plans that visit after licensing. For other jurisdictions, see the foreign ownership and director requirements comparison.
Frequently Asked Questions
How do I open a company in Abu Dhabi?
Pick the route first: an ADRA mainland licence through TAMM, ADGM's Registration Authority, or a free zone such as KEZAD, twofour54 or Masdar City. Then reserve the trade name, obtain the approvals, sign the lease and the constitutional documents, and collect the licence. Corporate tax registration follows within three months.
Is ADGM a free zone?
Yes. ADGM is a financial free zone, governed by Federal Law No. 8 of 2004 and created by Abu Dhabi Law No. 4 of 2013. It covers Al Maryah Island and, since Cabinet Resolution No. 41 of 2023, Al Reem Island. It registers companies through its own Registration Authority and keeps its own beneficial ownership rules.
How does ADGM differ from other UAE free zones?
Like DIFC in Dubai, ADGM runs its own legal system. Its company law follows English common law, it has its own employment law, and financial firms are authorised by the FSRA. Commercial zones such as KEZAD and Masdar City fall under Cabinet Decision No. 109 of 2023 on beneficial owners, from which ADGM is exempt.
How long does ADGM business setup take?
ADGM states that registration takes a few days once the file is complete. That file includes passports of every nationality held now or before and a signed lease for the registered office. Regulated financial activities also need FSRA authorisation, which is a separate approval.
Who should consider setting up a company in ADGM?
Three groups: financial firms that need FSRA authorisation, groups that want a holding company under English common law, and families or single owners who qualify for a restricted scope company. ADGM's private company needs only one director and no secretary. Trading and industrial businesses usually fit KEZAD better, and media firms twofour54.
What determines the total for setting up a company in Abu Dhabi?
The total depends on the route, the activities on the licence, any approvals from bodies such as the Department of Health, the office or premises, and the visa count. A regulated financial business in ADGM adds the FSRA authorisation work. Once the activity list is fixed, the written quote follows.
What is the leanest way to start a company in Abu Dhabi?
The leanest setup skips premises and visas the business does not need. ADDED's Freelancer licence works without an office, Masdar City accepts a virtual desk or flexidesk, and twofour54 offers hot desks and a Sole Proprietor licence for freelancers. Founders living abroad can apply online for the Virtual Licence. Each component left out lowers the total.
Can a founder living abroad get an Abu Dhabi licence?
Yes. ADDED's Virtual Licence lets an investor living abroad own an LLC or a Sole Proprietorship LLC outright. The application runs online with a passport copy and UAE PASS, needs no prior approvals and does not start with a residence procedure. The company still names a UAE resident to the registrar for its beneficial owner data.
Get Started: Set Up in Abu Dhabi
Start with three facts: the planned activity, the shareholder structure and the visa count. Send them by phone, email or our contact form. We reply with the route we recommend, mainland, ADGM or a free zone, and a written quote.
Call +48 2222 5 2222 or email info@companyformation24.com to start.
Content prepared by Aleksandra Kowalska, Corporate Client Service. Approved by Tomasz Bielski, Managing Director.
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