How to Get a Business License in Abu Dhabi?

Abu Dhabi has quickly become a thriving business hub in the UAE, attracting entrepreneurs from all over the world. Whether it’s the strategic location, world-class infrastructure, or supportive government policies, the emirate offers countless opportunities for new ventures. In fact, a 16% jump was witnessed in new economic business Licenses in Abu Dhabi last year, showing its strong and growing economy. However, before any business can begin operating legally, obtaining a business license is a non-negotiable requirement.

This blog outlines everything needed to navigate the process of securing a business license in Abu Dhabi. From understanding the different types of licenses to learning about the business license cost in Abu Dhabi, it provides a complete overview.

Many entrepreneurs choose to set up a business in Abu Dhabi. The reasons are clear; the emirate offers a stable and growing economy.

• Strategic Location: Abu Dhabi bridges Europe, Asia, and Africa, making it a prime location for international trade.
• World-Class Infrastructure: The emirate boasts advanced seaports, airports, and digital networks that support business operations.
• Pro-Business Government: The Abu Dhabi Department of Economic Development (ADDED) fosters a transparent, pro-business environment, making the city the top choice for ease of doing business in the Middle East.
• Digital Processes: The TAMM portal  (tamm.abudhabi) simplifies the business setup process, reducing paperwork and saving time.
• Credibility: A business license from Abu Dhabi signals legitimacy to customers, banks, and partners, laying the foundation for business success.

ADDED issues with different Licenses based on your business activities. You must choose the correct category. Here are the main types.

• Commercial License: This is for businesses involved in trading. This includes buying or selling goods, importing, exporting, and running retail shops.
• Professional License: This License is for service-oriented businesses. It covers consultants, lawyers, doctors, engineers, and other professionals who use their skills and education.
• Industrial License: You need this License to manufacture or produce goods. This applies to factories, workshops, and large-scale production units.
• Tourism License: This is for any business in the travel and hospitality sector. Examples include hotels, travel agencies, and tour operators. You often need extra approval from the Department of Culture and Tourism (DCT).
• Agricultural License: This License covers businesses related to farming, livestock, and fisheries.
• Occupational License: This License is for skilled craftspeople and technicians. This includes activities like carpentry, plumbing, or electrical work.

When choosing a business license in Abu Dhabi, it’s also important to understand the different types of companies you can establish in the UAE. To learn more about the various company structures available, check out our blog on types of companies in the UAE.

A Special License: The Trader License (Tajer Abu Dhabi)

The “Tajer Abu Dhabi License” (also known as the Trader License) is an excellent option for small businesses, especially one-person companies owned by Emiratis or GCC nationals. It also suits limited liability companies (LLCs) where a resident is in partnership with an Emirati. 

This popular option is perfect for home-based businesses in Abu Dhabi. It allows entrepreneurs and freelancers to run their business legally from home without needing a physical office for the first three years. This significantly reduces the startup costs for a business license in Abu Dhabi. It’s also an ideal online business license for e-commerce and digital service activities.  

This License is designed for entrepreneurs and freelancers. It allows you to operate your business legally from your home. The biggest benefit is that you do not need a physical office space for the first three years. This significantly lowers your starting business license cost in Abu Dhabi. It is also an ideal online business license in Abu Dhabi for many e-commerce and digital service activities.

Abu Dhabi offers two major setup options which is Mainland and Free Zones. If you want to operate across the entire UAE market, Abu Dhabi Company Formation on the mainland is ideal.
But if your business benefits from 100% ownership, customs advantages, and sector-specific clusters, consider Abu Dhabi Free Zone Company Setup to access tax incentives and simplified trade.

Here is a simple table to help you compare.

For those interested in starting a business in Abu Dhabi and exploring the different license types, understanding how to navigate the entire process is crucial. You can find a comprehensive step-by-step guide to launching your business in the city in our detailed blog: How to Start a Business in Abu Dhabi.

People from all over the world can apply for a business License. This includes UAE nationals, residents, and non-resident foreign investors.

Before you apply, you must choose a legal form for your business. This defines your company’s structure. Here are the most common options for setting up a business in Abu Dhabi Mainland.

• Sole Proprietorship: This structure is owned by one individual. The owner is 100% responsible for the company’s profits and debts. In the mainland, Sole Proprietorship is often reserved for UAE nationals or GCC nationals. However, foreigners can open a professional service sole proprietorship with a Local Service Agent (LSA).
• LLC: This is the most common and flexible structure. A Limited Liability Company (LLC) separates your personal finances from the business debts. This means your personal assets are protected.
• Partnership: This is a business owned by two or more partners who share profits and liabilities.
• Branch of a Foreign Company: An existing international company can open a branch in Abu Dhabi.

A major recent change is very important for foreign investors. Before, you needed a local UAE partner to own 51% of a mainland LLC. This rule has changed. The UAE government now allows 100% foreign ownership for most mainland businesses. ADDED has a list of over 1,100 activities where foreigners can own 100% of their Limited Liability Company (LLC).

Once you complete the preparation steps, you are ready to apply. The process is now mostly digital through the TAMM portal.

Here is the step-by-step workflow for how to get a business license in Abu Dhabi.

1. Gather Your Necessary Documents:
   • Copies of your passport and visa (if you are a resident).
   • A copy of your Emirates ID (if you are a resident).
   • Your tenancy agreement (Tawtheeq document) for your office.
   • The Initial Approval certificate.
   • A Memorandum of Association (MOA) is required if you are setting up a Limited Liability Company (LLC). This is your company’s legal contract.
2. Submit Your Online Application:
   • Log in to the TAMM portal using your UAE Pass (your national digital identity).
   • Fill out the online application form.
   • Upload all your prepared documents.
3. Pay the Applicable License Fees:
   • After the authorities review your application, you will receive a payment voucher.
   • This voucher details your final Abu Dhabi business license fees.
   • You can pay this fee online through the portal.
4. Receive Your License and Begin Operations:
   • Once you pay, you will receive your official business License.
   • This is often issued as a digital copy. You can print it and display it at your office.
   • You are now legally ready to set up a business in Abu Dhabi and start your operations.

The digital process is very fast. For simple applications, especially the online business license Abu Dhabi (Trader License), approval can come in just a few hours.

Cost Breakdown for Business License in Abu Dhabi

Planning your budget is a vital step. The cost of a business license in Abu Dhabi varies depending on whether you choose to set up on the mainland or in a free zone. 

• For a mainland setup, license fees range between AED 15,000 to AED 25,000, with additional costs for registration, government approvals, and office space. 
• Free zone licenses are generally more affordable, starting at AED 5,000 and going up to AED 15,000, with some zones offering flexible office space options.

For a detailed cost breakdown, including visa fees, office space, and other essential expenses, visit our blog: Business Setup Cost in Abu Dhabi Complete 2025 Guide.

The process is simple, but small mistakes can cause delays. Here are common issues to avoid.

• Choosing the Wrong Business Activity: If your licensed activity does not match your real business, you can face fines.
• Missing Special Approvals: Forgetting to get a permit from the Health Department or another authority can stop your application.
• Delayed Renewal: You must renew your License every year. If you forget, you will get fines and could have your business shut down.

Tips for a Smooth Process

1. Check the Activity List First: Before you do anything else, carefully read the official ADDED activity list. Make sure the activity you want is available.
2. Use the TAMM Portal: Always use the official TAMM portal. This platform has the most up-to-date forms and procedures. It is the fastest way to get your License.
3. Consult Experts for Clarity: If you are unsure about the business license requirements in Abu Dhabi or the costs, talk to a business setup consultant. They can give you clear, expert advice for your specific situation.

Getting your License is a major milestone, but it is not the final step. Now you must run your business and stay compliant.

Here are your immediate next steps:

• Open a Corporate Bank Account: You must have a separate bank account for your business.
• Recruit Staff and Process Visas: You can now sponsor residence visas for your employees.
• Register for Taxes: You may need to register for Value Added Tax (VAT) and Corporate Tax with the Federal Tax Authority (FTA).

You also have ongoing duties. You must:

• Renew Your License: Most Licenses are valid for one year. You must renew your License on time to avoid penalties. You can also renew it online via TAMM.
• Keep Good Records: Always maintain proper financial records and invoices.
• Update Your License: If you change your business location, add an activity, or change partners, you must update your License with ADDED.

Setting up a business in Abu Dhabi involves choosing your activity and legal form, like a Sole Proprietorship or Limited Liability Company (LLC). You then get initial approval, prepare your documents, and submit your application on the TAMM portal.

Abu Dhabi’s commitment to digital services makes this process more efficient than ever. With an economy that grew by 16% in new Licenses last year, the opportunity is real.

This guide gives you the map to get started. For personal advice tailored to your unique business idea, we recommend you contact a professional business setup consultant. They can guide you through every choice to ensure your success.