Need personalized guidance? Start with a free consultation to understand the complete process tailored to your specific requirements.

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.

Abu-Dhabi-Mainland

License Types for Abu Dhabi Mainland Business Setup

Mainland Company

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.

Free Zone Company

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.

Offshore Company

Professional License

This license suits service-based businesses focused on expertise and skills. It covers consulting, accounting, healthcare services, and educational training.

Steps to Set Up a Mainland Company in Abu Dhabi, UAE

one-rizmona

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.

2 - rizmona

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.

3 - rizmona

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.

4 - rizmona

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
null

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.

6

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.

7

Draft and Notarize the Memorandum of Association (MoA)

Prepare and notarize the MoA with all shareholders, detailing capital contributions, profit distribution, and management roles. This document formalizes company ownership and operational agreements, especially for LLCs and partnerships.

8

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.

9

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.

10

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.

Start Your Business Journey with Our Professional Support!

Advantages of Setting Up Business in Abu Dhabi Mainland

100% Foreign Ownership

Wide Market Access

Government Contracts

Full Profit Repatriation

Long License Validity

Strategic Location

No Capital Requirement

Tax Incentives

Required Documents for Issuing Abu Dhabi Mainland License

  • Trade Name Approval Certificate: Proof of approved business name from ADDED
  • Passport Copies: Valid passports of all shareholders and managers
  • Residence Visa and Emirates ID: Required for UAE-based shareholders and managers
  • No Objection Certificate (NOC): Needed if any shareholder works elsewhere in the UAE
  • Initial Approval Certificate: Preliminary approval from ADDED to proceed with licensing
  • Memorandum of Association: Notarized document detailing ownership and responsibilities
  • Tenancy Contract (Ejari): Registered contract confirming the business address
  • Bank Reference Letter: Financial reference showing business stability
  • Sector-Specific Approvals: Extra approvals may be required from relevant authorities

Legal Structures for Company Formation in Abu Dhabi Mainland

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.

Factors to Consider Before Starting a Business in Abu Dhabi Mainland

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.

Office Space Requirements

A physical office is required for registration. Budget for rent and Ejari. Some licenses may allow shared or virtual offices.

Required Documentation

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.

Trade License Renewal Process in Abu Dhabi Mainland:

  • Confirm License Expiry Date

    Check your license expiry to renew on time and avoid penalties.

  • Verify Tenancy Contract

    Ensure your tenancy contract is valid for at least three months after the renewal date and is registered with Ejari.

  • Gather Required Documents

    Prepare these documents: current trade license, passport copies of partners, Emirates IDs, Ejari tenancy contract, and a filled BR/1 form. Check with DED for any additional needed documents.

  • Select Renewal Method

    Choose to renew either online through the TAMM Platform or in-person at a DED Service Center.

  • Complete Payment and Submit Application

    After submitting documents, pay using the payment voucher from DED and keep proof of payment.

  • Obtain the Renewed License

    Download your renewed license from TAMM (for online applications) or collect it at DED (for in-person applications). Processing takes about 10-15 days.

Rizmona Consultancy 15 Years Experience

Business Setup Consultants in Abu Dhabi Mainland

How Riz & Mona Consultancy Can Help?

Riz & Mona Consultancy 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!

10000 Happy Clients Rizmona

FAQS

How much is the professional license in Abu Dhabi?

The cost of a professional license in Abu Dhabi generally starts from AED 10,000, varying by activity and approvals.

What is the cheapest mainland license in UAE?

The “Tajer Abu Dhabi” license starts from AED 1,000 and allows certain businesses to operate without an office.

How much is the license for Abu Dhabi airport free zone?

The license cost in the Abu Dhabi Airport Free Zone starts around AED 15,000, depending on activity and office space.

Can I own 100% of my business in Abu Dhabi Mainland?

Yes, 100% foreign ownership is permitted in many sectors under recent UAE reforms.

Do businesses in Abu Dhabi Mainland need to undergo annual audits?

Annual audits are generally not mandatory for mainland companies unless required by specific regulatory authorities.

How long does it take to set up a mainland business in Abu Dhabi?

Setting up a mainland business in Abu Dhabi typically takes 2 to 4 weeks, subject to approvals.

Is a foreigner allowed to start a business in Abu Dhabi?

Yes, foreigners can start businesses in Abu Dhabi with options for full ownership in many sectors.

What is the validity period of a commercial license in Abu Dhabi Mainland?

A commercial license in Abu Dhabi Mainland is valid for one year, renewable annually.

What taxes are applicable to companies in mainland Abu Dhabi?

There is no corporate tax, but a 5% VAT applies to certain goods and services.