Starting a Business in Abu Dhabi: A Step-by-Step Guide for 2025
Abu Dhabi continues to attract entrepreneurs and investors from around the world, thanks to its strategic location, progressive economic reforms, and strong infrastructure. Whether you're launching a tech startup, a consultancy, or a retail business, setting up in the UAE capital offers a wealth of opportunities—provided you follow the right steps.
Here’s a step-by-step guide to help you start your business in Abu Dhabi in 2025.
- Identify Your Business Activity
Start by defining the nature of your business. Abu Dhabi’s Department of Economic Development (ADDED) classifies hundreds of permitted activities, each linked to specific license types. Choosing the correct activity is essential, as it determines the approvals and compliance requirements you'll need.
- Choose the Right Jurisdiction
Abu Dhabi offers three main jurisdictions:
- Mainland: Allows you to operate across the UAE and take on government contracts.
- Free Zone: Offers benefits like 100% foreign ownership and tax exemptions, ideal for international businesses and startups.
- Offshore: Suitable for businesses not operating within the UAE but seeking to hold assets or manage international operations.
Each jurisdiction has distinct rules, costs, and operational scopes, so your choice should align with your business goals.
- Select a Legal Structure
Your legal structure affects everything from liability to taxation. Common structures include:
- Limited Liability Company (LLC)
- Sole Proprietorship
- Branch of a Foreign Company
- Civil Company (for professionals and service-based businesses)
The LLC remains a popular choice for investors targeting the local market with flexibility in ownership and control.
- Reserve Your Trade Name
Your trade name should reflect your business activity and follow UAE naming guidelines. Avoid religious terms, political references, or offensive language. Once approved, you can move on to initial approvals.
- Obtain Initial Approvals
Depending on your activity, you may need preliminary approval from ADDED or a Free Zone Authority. This signals that the UAE has no objection to your business proceeding with setup. Activities related to health, education, or media may also require additional external approvals.
- Secure Office Space
A physical address is mandatory for most business types. Abu Dhabi offers a wide range of workspace options—from coworking spaces for small teams to full-fledged office units. Free zones often provide flexi-desk or smart office solutions for startups and freelancers.
- Prepare Legal Documentation
You’ll need to submit key documents, such as:
- Memorandum of Association (MOA)
- Lease agreement or Ejari (tenancy contract)
- Passport and visa copies of shareholders
- No Objection Certificate (if applicable)
- Additional approvals depending on the activity
Documents may need to be legally translated and attested.
- Finalize Your Business License
Once your documents are in order and fees are paid, your license will be issued. You can now operate legally in Abu Dhabi, open a corporate bank account, and start hiring staff.
- Apply for Visas and Corporate Bank Account
You can now apply for residence visas for yourself, partners, and employees. The number of visas permitted depends on your office size and business type. Most banks in the UAE will require your trade license, shareholder documents, and a business plan to open a corporate account.
- Stay Compliant and Plan for Growth
After setup, ensure ongoing compliance with license renewals, accounting records, VAT or corporate tax obligations, and employee contracts. Many businesses also benefit from advisory services to keep up with evolving regulations and funding opportunities in Abu Dhabi.
Why Work with Setup in Abu Dhabi
Partnering with a trusted local expert can make all the difference in navigating the setup process smoothly. At Setup in Abu Dhabi, we support entrepreneurs, SMEs, and global companies through every stage of their setup journey. From choosing the right jurisdiction and legal structure to arranging office space, banking, HR support, and legal compliance, we make sure your business starts on strong footing and stays ahead in a competitive market.
Contact us today to turn your business idea into a reality in Abu Dhabi!