Business Setup in Abu Dhabi Free Zones
With a GDP of AED 1.02 trillion in recent years and plans to double it, Abu Dhabi is perfect for business. It offers great incentives and has several specialized free economic zones. Its market is shaped by rising entrepreneurs, foreign investors, and seasoned businessmen.
Why Choose Company Formation in Abu Dhabi, UAE?
- Diversified economy with strong government support and long-term stability.
- World-class infrastructure, industrial zones, and innovation-driven initiatives.
- Competitive costs, skilled workforce, and high quality of life.
There’s a total of 7 free zones in the emirate currently, each offering specialized services and infrastructure for new companies and businesses. With a range of business activities available, you need a business license to start.
A lot of people get confused when it comes to starting their business setup. If you’re among them and need a guide, this one walks you through the process for business setup in Abu Dhabi and everything you should know before starting.
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Types of Business License in Abu Dhabi
- Trade License
- Services License
- Industrial License
- Media License
- Educational License
- E-Commerce License
- Freelancer License
- Offshore License
- Warehousing License
- Manufacturing License
For businesses in retail, trading, or import/export. Issued by DED or free zones. Requires trade name approval, office lease, and import/export code. Benefits include full ownership in free zones and market access. Some mainland activities may need a local agent.
For advisory and professional services like IT, legal, or marketing. Requires proof of qualifications, a business plan, and office space. Issued by DED or free zones. Offers low setup costs, 100% foreign ownership, and access to local and global clients. Some activities need regulatory approvals.
For manufacturing and production businesses. Requires approvals from environmental and industrial authorities. Issued by MoIAT or free zones. Benefits include industrial zone incentives, tax exemptions, and reduced utility costs. Setup costs are high, and strict regulations apply.
For advertising, publishing, film, and content creation. Issued by media-focused free zones like twofour54. Requires content approvals and compliance with media laws. Offers networking, tax benefits, and flexible office options. Limited to free zone operations unless a mainland permit is obtained.
For schools, training centers, and universities. Regulated by MoE, KHDA, or ADEK. Requires accreditation, compliance, and facility approvals. Benefits include demand-driven opportunities and incentives. Strict licensing rules apply, with curriculum oversight.
For online businesses, digital platforms, and marketplaces. Issued by DED or free zones like Dubai CommerCity. Requires domain registration, payment gateway setup, and logistics arrangements. Benefits include low overhead and tax exemptions. Some business models require local distributors.
For independent professionals in media, IT, and consulting. Issued by free zones like twofour54, with minimal setup costs. Requires proof of expertise, no office needed. Benefits include 100% income retention and flexible work arrangements. Limited to specific industries, with no hiring ability.
For companies operating internationally but incorporated in UAE. Issued by JAFZA, RAKICC. Requires a board structure, no office, and prohibits local trade. Benefits include tax efficiency, privacy, and asset protection. Restrictions on UAE business activities apply.
For storage, logistics, and distribution businesses. Issued by the Department of Economic Development or free zones like JAFZA. Requires safety compliance, warehouse lease, and zoning approvals. Benefits include duty-free storage, proximity to ports, and scalable space. High rental and regulatory costs apply.
For factory-based production and large-scale industries. Issued by MoIAT and industrial free zones. Requires factory design approval, environmental permits, and high capital investment. Offers incentives like reduced utilities and tax exemptions. Compliance and setup costs are significant.
Top Selling Abu Dhabi Free Zone
Promotions
Basic
STARTING FROM
AED 11,900.00
Save up to AED 1,785.00
- Trade License
- Official Company Stamp
- Expiry Reminder Services
- Brand Identity (Logo/Letterhead/Business Card Design)
- Bank Account Opening Assistance (UAE)
- Free IBG Fee on 1st Renewal
- Free IBG Fee on 1 Investor Visa
- Door-to-door document delivery (within Dubai)
- VAT & Accounting and Bookkeeping Consultation
Basic
STARTING FROM
AED 17,900.00
Save up to AED 2,685.00
- Trade License
- Official Company Stamp
- Expiry Reminder Services
- Brand Identity (Logo/Letterhead/Business Card Design)
- Bank Account Opening Assistance (UAE)
- Free IBG Fee on 1st Renewal
- Free IBG Fee on 1 Investor Visa
- Door-to-door document delivery (within Dubai)
- VAT & Accounting and Bookkeeping Consultation
Basic
STARTING FROM
AED 21,900.00
Save up to AED 3,285.00
- Trade License
- 2 Free Visas for Life
- Official Company Stamp
- Expiry Reminder Services
- Brand Identity (Logo/Letterhead/Business Card Design)
- Bank Account Opening Assistance (UAE)
- Free IBG Fee on 1st Renewal
- Free IBG Fee on 1 Investor Visa
- Door-to-door document delivery (within Dubai)
- VAT & Accounting and Bookkeeping Consultation
Executive
STARTING FROM
AED 25,400.00
Save up to AED 3,810.00
- Everything from Elite Plus
- Free IBG Fee on 1 Employee Visa OR Free IBG Fee on 1 Dependent Visa
- VAT Registration – One time only
- Email Setup Assistance
- Dedicated Account Manager
- VIP Assistance for Company Incorporation & 3 visa applications
Basic
STARTING FROM
AED 23,900.00
Save up to AED 3,585.00
- Trade License
- 2 Free Visas for Life
- Official Company Stamp
- Expiry Reminder Services
- Brand Identity (Logo/Letterhead/Business Card Design)
- Bank Account Opening Assistance (UAE)
- Free IBG Fee on 1st Renewal
- Free IBG Fee on 1 Investor Visa
- Door-to-door document delivery (within Dubai)
- VAT & Accounting and Bookkeeping Consultation
Executive
STARTING FROM
AED 27,400.00
Save up to AED 4,110.00
- Everything from Elite Plus
- Free IBG Fee on 1 Employee Visa OR Free IBG Fee on 1 Dependent Visa
- VAT Registration – One time only
- Email Setup Assistance
- Dedicated Account Manager
- VIP Assistance for Company Incorporation & 3 visa applications
Basic
STARTING FROM
AED 25,900.00
Save up to AED 3,885.00
- Trade License
- 2 Free Visas for Life
- Official Company Stamp
- Expiry Reminder Services
- Brand Identity (Logo/Letterhead/Business Card Design)
- Bank Account Opening Assistance (UAE)
- Free IBG Fee on 1st Renewal
- Free IBG Fee on 1 Investor Visa
- Door-to-door document delivery (within Dubai)
- VAT & Accounting and Bookkeeping Consultation
Executive
STARTING FROM
AED 29,400.00
Save up to AED 4,410.00
- Everything from Elite Plus
- Free IBG Fee on 1 Employee Visa OR Free IBG Fee on 1 Dependent Visa
- VAT Registration – One time only
- Email Setup Assistance
- Dedicated Account Manager
- VIP Assistance for Company Incorporation & 3 visa applications
Basic
STARTING FROM
AED 27,900.00
Save up to AED 4,185.00
- Trade License
- 2 Free Visas for Life
- Official Company Stamp
- Expiry Reminder Services
- Brand Identity (Logo/Letterhead/Business Card Design)
- Bank Account Opening Assistance (UAE)
- Free IBG Fee on 1st Renewal
- Free IBG Fee on 1 Investor Visa
- Door-to-door document delivery (within Dubai)
- VAT & Accounting and Bookkeeping Consultation
Executive
STARTING FROM
AED 31,400.00
Save up to AED 4,710.00
- Everything from Elite Plus
- Free IBG Fee on 1 Employee Visa OR Free IBG Fee on 1 Dependent Visa
- VAT Registration – One time only
- Email Setup Assistance
- Dedicated Account Manager
- VIP Assistance for Company Incorporation & 3 visa applications
Basic
STARTING FROM
AED 29,900.00
Save up to AED 4,485.00
- Trade License
- 2 Free Visas for Life
- Official Company Stamp
- Expiry Reminder Services
- Brand Identity (Logo/Letterhead/Business Card Design)
- Bank Account Opening Assistance (UAE)
- Free IBG Fee on 1st Renewal
- Free IBG Fee on 1 Investor Visa
- Door-to-door document delivery (within Dubai)
- VAT & Accounting and Bookkeeping Consultation
Executive
STARTING FROM
AED 33,400.00
Save up to AED 5,010.00
- Everything from Elite Plus
- Free IBG Fee on 1 Employee Visa OR Free IBG Fee on 1 Dependent Visa
- VAT Registration – One time only
- Email Setup Assistance
- Dedicated Account Manager
- VIP Assistance for Company Incorporation & 3 visa applications
Basic
STARTING FROM
AED 21,900.00
Save up to AED 3,285.00
- Trade License
- Official Company Stamp
- Expiry Reminder Services
- Brand Identity (Logo/Letterhead/Business Card Design)
- Bank Account Opening Assistance (UAE)
- Free IBG Fee on 1st Renewal
- Free IBG Fee on 1 Investor Visa
- Door-to-door document delivery (within Dubai)
- VAT & Accounting and Bookkeeping Consultation
Basic
STARTING FROM
AED 27,900.00
Save up to AED 4,185.00
- Trade License
- Official Company Stamp
- Expiry Reminder Services
- Brand Identity (Logo/Letterhead/Business Card Design)
- Bank Account Opening Assistance (UAE)
- Free IBG Fee on 1st Renewal
- Free IBG Fee on 1 Investor Visa
- Door-to-door document delivery (within Dubai)
- VAT & Accounting and Bookkeeping Consultation
Basic
STARTING FROM
AED 31,900.00
Save up to AED 4,785.00
- Trade License
- 2 Free Visas for Life
- Official Company Stamp
- Expiry Reminder Services
- Brand Identity (Logo/Letterhead/Business Card Design)
- Bank Account Opening Assistance (UAE)
- Free IBG Fee on 1st Renewal
- Free IBG Fee on 1 Investor Visa
- Door-to-door document delivery (within Dubai)
- VAT & Accounting and Bookkeeping Consultation
Executive
STARTING FROM
AED 35,400.00
Save up to AED 5,310.00
- Everything from Elite Plus
- Free IBG Fee on 1 Employee Visa OR Free IBG Fee on 1 Dependent Visa
- VAT Registration – One time only
- Email Setup Assistance
- Dedicated Account Manager
- VIP Assistance for Company Incorporation & 3 visa applications
Basic
STARTING FROM
AED 33,900.00
Save up to AED 5,085.00
- Trade License
- 2 Free Visas for Life
- Official Company Stamp
- Expiry Reminder Services
- Brand Identity (Logo/Letterhead/Business Card Design)
- Bank Account Opening Assistance (UAE)
- Free IBG Fee on 1st Renewal
- Free IBG Fee on 1 Investor Visa
- Door-to-door document delivery (within Dubai)
- VAT & Accounting and Bookkeeping Consultation
Executive
STARTING FROM
AED 37,400.00
Save up to AED 5,610.00
- Everything from Elite Plus
- Free IBG Fee on 1 Employee Visa OR Free IBG Fee on 1 Dependent Visa
- VAT Registration – One time only
- Email Setup Assistance
- Dedicated Account Manager
- VIP Assistance for Company Incorporation & 3 visa applications
Basic
STARTING FROM
AED 35,900.00
Save up to AED 5,385.00
- Trade License
- 2 Free Visas for Life
- Official Company Stamp
- Expiry Reminder Services
- Brand Identity (Logo/Letterhead/Business Card Design)
- Bank Account Opening Assistance (UAE)
- Free IBG Fee on 1st Renewal
- Free IBG Fee on 1 Investor Visa
- Door-to-door document delivery (within Dubai)
- VAT & Accounting and Bookkeeping Consultation
Executive
STARTING FROM
AED 39,400.00
Save up to AED 5,910.00
Executive Contains
Business Incorporation Starter Pack
- 1 Free Visa Processing for Employee from A to Z
- OR
- 1 Free Visa Processing for Dependents from A to Z
- Health Insurance Assistance
- VAT Registration – One Time Only
- Email Setup Assistance
- Dedicated Account Manager
- VIP assistance for visa application and Company incorporation
Basic
STARTING FROM
AED 37,900.00
Save up to AED 5,685.00
- Trade License
- 2 Free Visas for Life
- Official Company Stamp
- Expiry Reminder Services
- Brand Identity (Logo/Letterhead/Business Card Design)
- Bank Account Opening Assistance (UAE)
- Free IBG Fee on 1st Renewal
- Free IBG Fee on 1 Investor Visa
- Door-to-door document delivery (within Dubai)
- VAT & Accounting and Bookkeeping Consultation
Executive
STARTING FROM
AED 41,400.00
Save up to AED 6,210.00
- Everything from Elite Plus
- Free IBG Fee on 1 Employee Visa OR Free IBG Fee on 1 Dependent Visa
- VAT Registration – One time only
- Email Setup Assistance
- Dedicated Account Manager
- VIP Assistance for Company Incorporation & 3 visa applications
Basic
STARTING FROM
AED 39,900.00
Save up to AED 5,985.00
- Trade License
- 2 Free Visas for Life
- Official Company Stamp
- Expiry Reminder Services
- Brand Identity (Logo/Letterhead/Business Card Design)
- Bank Account Opening Assistance (UAE)
- Free IBG Fee on 1st Renewal
- Free IBG Fee on 1 Investor Visa
- Door-to-door document delivery (within Dubai)
- VAT & Accounting and Bookkeeping Consultation
Executive
STARTING FROM
AED 43,400.00
Save up to AED 6,510.00
- Everything from Elite Plus
- Free IBG Fee on 1 Employee Visa OR Free IBG Fee on 1 Dependent Visa
- VAT Registration – One time only
- Email Setup Assistance
- Dedicated Account Manager
- VIP Assistance for Company Incorporation & 3 visa applications
Process and Timeline
- 1Should be 18 years old and above
- 2Should not have any criminal records
- 3The business should be legally permissible
- 4Should be an individual, corporate or mixed of both
Required Documents
- Suggest 2-3 company names
- Define commercial activity
- Fill out registration form
- Shareholders’ passport copies
- Passport photos (white background)
- Specify visa requirements
- Provide 2 proofs of address
- Bank/professional reference letter
- CV for freelance license
License Package Fees
Standard License – Zero Visa Package
Starts from
AED 11,900
Standard License – With Visa Package
Starts from
AED 17,900
Immigration Fees
Establishment Card – New
AED 2,000
Establishment Card – Renewal
AED 2,200
Visa Application Fees
Residence Visa – 3 years
AED 3,750
Additional AED 1,000 on the visa fee if applying for an Investor/Partner Visa and an AED 48,000 share capital is required.
Change Status
AED 1,600
Applicable if within the UAE application only.
Medical Test
Normal (48 hours) – AED 450
VIP (within 24 hrs) – AED 750
Emirates ID – 3 years
AED 375
Company Registration
Trade Name Approval
1 business day
Shareholder’s Security Approval
5-7 business days
Trade License Issuance
3-4 business days
Establishment Card Application
1 business day
Establishment Card Issuance
5-7 business daysResidence Visa Application
Electronic Visa Application
5-7 business daysClient Arrival (if outside the UAE) | Change Status (if within the UAE)
Depends on the client | 2-3 business daysMedical Test
1 business dayMedical Test Result Release
Normal - 2 business days | VIP - within the dayEmirates ID Typing
1 business day
Obtaining Health Insurance
Depends on the client | Mandatory if applying in Dubai & Abu Dhabi
Visa Approval
5-7 business days
Emirates ID Biometrics & Photo Capturing
Approx. 15-20 business days from the date of Emirates ID typing
Emirates ID Issuance
5 business daysHow to Start Business Setup in Abu Dhabi Free Zones?
There is a range of diversified commercial activities offered in the emirate. You have to finalize the ones you will conduct and choose your license type accordingly. This is an important step, you will be required to update your license if you add new commercial activities.
Among different options like Free Zone Limited Liability Company, Office Branch, Freelance business, and Free Zone Establishment, you have to choose a business structure that suits your company goals, ownership, and operations.
You have to apply for a trade name. Choose several possible options. Ensure they’re not offensive and do not in any way go against the norms of the country. It is important to come up with a niche-specific name or something that’ll be easy to market for a long term strategy.
You have to submit the plan of your business operations to the free zone authorities and they will provide you with an initial approval. This step is crucial and may require professional assistance if you aren’t accustomed to the corporate environment of the UAE.
You have to lease or buy a place for your business operations. It can be a warehouse, office, shared space, or anything that your goals and budget allow. Explore the options that your chosen free zone provides.
Based on the chosen commercial activities, you have to select the license type. Each license type comes with its perks and scope. Before applying, you have to give much thought to the structure of your operations or it’ll cause you to choose the wrong license.
You need a corporate bank account in the name of your business for all your financial matters. Once the business license is in hand, this step will be easy. Choose a bank and follow their given steps to open a bank account.
If you’re a foreign national or your employees are, start the visa process. Free zones in the United Arab Emirates offer packages with a certain number of visa approvals for company employees. You can explore that or hire a professional consultancy to do the process for you.
With everything in hand, you are now legally allowed to operate your business in your free zone. Spare some budget for marketing to help you sustain and grow in the competitive market of free zones in Abu Dhabi.
Benefits of Company Formation in Abu Dhabi
Full foreign ownership
Profit & capital return
No personal/corporate tax
No import/export duty
Industry-focused hubs
Favorable business laws
Quick immigration process
One-stop govt services
Service Highlights for Free Zone Businesses
Media Services
Shams provides media services to support business growth. From gaming to production, various solutions are available. Location sourcing and other essential services help streamline media projects.
Concierge Services
Personalized concierge services handle banking, translation, and more. Experienced assistants take care of essential tasks, saving time and effort. Productivity increases with expert support.
Tax & Accounting
Qualified professionals manage tax and accounting tasks. Compliance and financial accuracy remain a priority. Businesses can concentrate on expansion while experts handle finances.
Types of Legal Entities for Starting a Business
Free Zone Limited Liability
Ownership & Structure: A Free Zone LLC is a separate legal entity. It can have one or more individual or corporate shareholders.
Capital Requirement: The required capital depends on the business type and free zone rules. Some free zones may not require a minimum capital.
Branch of a Foreign Company
License & Setup: A foreign company can open a branch in a Free Zone. It must get a license from the Ministry of Economy and Commerce.
Control & Operations: The branch is not a separate company. It operates under the parent company’s name and follows UAE regulations.
Branch of a UAE Company
Expansion & Presence: A UAE company can open a branch in Free Zones, Mainland, or Offshore areas. It operates under the same name as the parent company.
Benefits & Access: A Free Zone branch gets tax benefits, while a Mainland branch can trade in the local UAE market.
Freelance License
Structure & Identity: A freelance permit allows individuals to work as sole practitioners. They must use their legal name, not a business name.
Flexibility & Costs: No physical office investment is needed, ideal for consultants, creatives, and independent professionals.
Top Sectors to Join in Abu Dhabi Free Zones
Technology & IT
Finance & Fintech
Healthcare & Biotech
Energy & Sustainability
Logistics & Trade
Media & Entertainment
Education & Training
Manufacturing & Industry
E-Commerce & Retail
Tourism & Hospitality
If you're still confused, you can hire a professional consultancy to help you figure out a working plan of action. This can also prove to be immensely helpful in conducting the process for company formation.
Frequently Asked Questions
What is the difference between setting up a free zone company and a business on the mainland?
A free zone company is limited to operating within the respective free zone or conducting international business, whereas a business on the mainland can trade directly in the UAE market without restrictions.
How do I choose the right free zone for my business in Abu Dhabi?
It depends on your type of business, industry, and operational needs. Different free zones provide specialized environments, such as Masdar City Free Zone for sustainability-focused ventures, Abu Dhabi Airports Free Zone for air-based services and media-focused zones like twofour54.
What are the key steps and documents needed to register a company in Abu Dhabi Free Zones?
The company registration process includes selecting a type of legal entity, choosing a trade name, obtaining initial approval from the respective free zone authorities, and submitting required documents such as shareholder passports and business plans.
How much does it cost to set up a business in an Abu Dhabi Free Zone?
The license cost, registration fees, and business setup packages vary based on the type of company, number of shareholders, and specific free zone area. Additional costs include visa fees, office space, and legal documentation.
What are the main benefits of Abu Dhabi Free Zones for investors and entrepreneurs?
Abu Dhabi Free Zones offer flexible business regulations, full ownership, tax exemptions, and support services for new businesses. They also provide access to airport services, logistics hubs, and advanced infrastructure.
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