Abu Dhabi Mainland is an ideal location for starting a business, offering full foreign ownership in many sectors and access to the entire UAE market. Unlike free zones, businesses here can operate across the Emirates and work directly with local and government clients, including big government contracts.
With easy registration, profit repatriation, and low taxes, Abu Dhabi Mainland is a strong choice for both new and experienced business owners.
Business Setup
Company Formation
Bank Account Opening
Visa Services
Commercial License
This license allows companies in Abu Dhabi to engage in trading and service activities. Businesses can operate in areas like retail, real estate, construction, healthcare, and logistics.
Industrial License
This license is for businesses involved in large-scale manufacturing. It permits activities like setting up factories, managing supply chains, processing goods, and food production.
Professional License
This license suits service-based businesses focused on expertise and skills. It covers consulting, accounting, healthcare services, and educational training.
Determine Business Activity
Begin by selecting the primary business activity, as it will define licensing requirements. The Abu Dhabi Department of Economic Development (ADDED) categorizes activities into commercial, industrial, and professional. Ensure that your chosen activity aligns with ADDED guidelines and permissible locations within Abu Dhabi.
Choose the Legal Structure
Select an appropriate legal structure for your company, such as an LLC, sole proprietorship, or branch office. LLCs are common for foreign investors due to limited liability and flexibility, but some structures, like partnerships, are limited to UAE nationals.
Register a Trade Name
Choose and register a trade name that reflects your business activity. The trade name must be unique and comply with UAE regulations (e.g., no religious terms or names of countries). Submit this name for approval to the ADDED, ensuring it meets the required standards.
Obtain Initial Approval
Apply for initial approval from ADDED, allowing you to proceed with additional setup steps. Initial approval requires:
- Passport copies of all shareholders
- Emirates IDs of involved individuals
- A No Objection Certificate (NOC) if the applicant is employed elsewhere in the UAE.
Arrange a Local Sponsor (if applicable)
If your business structure requires a local sponsor (e.g., for foreign-owned LLCs in certain sectors), identify a UAE national or locally-owned entity to hold 51% ownership. Sponsors typically provide support in meeting local legal requirements but do not engage in company operations.
Secure Office Space and Ejari Registration
To complete licensing, lease an office space in a commercial area and register the tenancy contract through Ejari to confirm the business location. Office space is mandatory, as virtual or shared spaces are not permitted for mainland companies.
Draft and Notarize the Memorandum of Association (MoA)
Apply for Additional Government Approvals
Certain business activities, such as healthcare or construction, require approvals from specialized government departments (e.g., Department of Health for medical establishments). Ensure these sector-specific approvals are secured before proceeding.
Finalize the Business License
Submit all finalized documents, including the MoA, tenancy contract, and required approvals, to ADDED to receive the business license. Pay the license fees, which vary depending on business activity and structure, and await the issuance of the license.
Open a Corporate Bank Account
Once licensed, open a local bank account to manage business finances. Bank requirements may vary, but common documents include the trade license, MoA, and proof of residency.
100% Foreign Ownership
Long License Validity
Wide Market Access
Strategic Location
Government Contracts
No Capital Requirement
Full Profit Repatriation
Tax Incentives
Sole Proprietorship
Ideal for individual entrepreneurs who want full control and profit retention. Foreigners may need a UAE national as a local agent for government-related processes.
Limited Liability Company (LLC)
Popular due to limited liability, where shareholders are only liable up to their investment. Supports up to 50 shareholders and allows full foreign ownership in many sectors.
Partnership
Reserved for UAE nationals, with partners fully liable for business obligations. Suitable for businesses where partners share responsibilities.
Limited Partnership
General partners manage and are fully liable, while limited partners only invest and have liability limited to their investment. Appeals to passive investors.
Public Shareholding Company
Best for large businesses needing significant capital. Requires at least 10 founders, with UAE nationals owning at least 51%. Shares can be publicly traded.
Private Shareholding Company
For medium to large companies, requiring at least three shareholders and a minimum capital of AED 2 million. Shares are not publicly traded, allowing controlled ownership.
Joint Ventures
A flexible partnership between local and foreign entities, operating under a UAE partner’s name. Allows foreign investors market access with shared ownership.
Branch of a Local (UAE) Company
Branches of UAE companies allow local entities to expand operations across Abu Dhabi and beyond, conducting business under the parent company’s framework and complying with UAE regulations.
Branch of a Foreign Company
Enables international companies to operate in Abu Dhabi without creating a new legal entity. Operates under the parent company’s authority and local laws.
Foreign Representative Office
Used mainly for market research and promotions, without direct sales. Ideal for companies testing the UAE market with minimal operational commitment.
Type of Business Activity
Choose an activity that fits the allowed categories (e.g., commercial, industrial, professional) as it affects license type and approvals.
Ownership Structure
Decide on an ownership type like LLC, sole proprietorship, or branch. Some sectors allow full foreign ownership, while others need a local sponsor.
Compliance with Industry Regulations
Certain sectors (e.g., healthcare, education) need extra approvals from regulators. Prepare for additional compliance if in a regulated industry.
Required Documentation
A physical office is required for registration. Budget for rent and Ejari. Some licenses may allow shared or virtual offices.
Office Space Requirements
Gather documents like passport copies, trade name approval, initial approvals, and tenancy contracts. Requirements vary by business type.
Tax and Financial Obligations
Abu Dhabi has no corporate or income tax, but a 5% VAT applies to some goods and services. Register for VAT if required.
Leaders HUB is renowned as one of the top business setup consultants in Dubai, with over 15 years of experience facilitating a wide range of businesses throughout the UAE. Our deep connections with government officials and key authorities, combined with our extensive expertise in consultancy, streamline the process of establishing your business in Dubai. Additionally, we offer comprehensive financial, legal, and corporate services to support our clients throughout their business endeavors.
We are here to provide comprehensive support for your Business Setup in Abu Dhabi Mainland, from preparing your documents to completing the process. Connect with us now to begin your journey with a FREE consultation!
