Business Setup Cost in Abu Dhabi: Complete Fees Guide 2026

8 min read

Oct 6, 2025

Feb 19, 2026

Business Setup Cost in Abu Dhabi: Complete Fees Guide 2026

Table of Contents

Introduction

Starting a business in Abu Dhabi involves several key expenses, and understanding these business setup cost in abu dhabi upfront is crucial for success. With a stable economy and a government that actively supports new ventures, Abu Dhabi offers a range of affordable options for both mainland and free zone setups.

Abu Dhabi’s government has introduced many business-friendly changes, such as 100% foreign ownership, simplified digital licensing, reduced setup costs, and sector-specific incentives. These changes are part of a larger plan called the Abu Dhabi Economic Vision 2030.

When you decide to start a business in Abu Dhabi, you have two main options: setting up on the mainland or in a free zone. A mainland company lets you trade anywhere in the UAE, while a free zone company offers benefits like 100% foreign ownership and tax exemptions. Each option has different costs and benefits.

This blog will walk you through all business setup cost in Abu Dhabi. We will cover license fees, office space, visa costs, and other hidden charges. Understanding the cost to set up a company will help you make the best decision for your new venture.

Cost of Starting a Business in Abu Dhabi Mainland Business

A business setup in Abu Dhabi Mainland allows you to work with any company in the UAE, including government agencies. Thanks to recent reforms, foreign entrepreneurs can now own 100% of their mainland businesses for most activities, without needing a local Emirati sponsor. This has made the mainland a very attractive and affordable option. The main authority you will deal with is the Abu Dhabi Department of Economic Development (ADDED).

License & Registration Fees

Getting your trade license is the first major step. The Abu Dhabi mainland license cost depends on your business activity and legal structure.

Item	Cost Range (AED)	Notes
Trade License Fee	15,000 to 25,000	The cost changes based on your specific business activity.
Registration & Name Approval	1,000–2,000	These are standard one-time fees paid to ADDED.
Government Approvals	2,000–5,000	This includes fees for any necessary inspections or approvals from other ministries.

Good to know: Abu Dhabi offers one of the most affordable mainland setup options in the entire UAE, making it perfect for new businesses.

Office Space Costs

Every mainland business needs a registered address. Your choice of office space will significantly impact your total business setup cost in Abu Dhabi. The city offers a wide range of options to fit every budget.

Type	Annual Rent (AED)	Notes
Central Business District	15,000–50,000	For premium office locations in the heart of the city.
Suburban/Peripheral Areas	10,000+	More cost-effective options are just outside the city center.
Tajer Abu Dhabi License	0 (or very low cost)	This special license for certain activities does not require a physical office, saving you thousands.

Visa & Labor Costs

If you and your employees plan to live and work in Abu Dhabi, you will need residency visas. The cost depends on the number of people you hire. These fees are a standard part of doing business in the UAE.

Item	Cost Range (AED)	Notes
Residency Visa (2 years)	3,000–7,000	This is a per-person cost and includes medical tests and Emirates ID fees.
Labor Card & Immigration	1,000–2,000	Standard government fees for each employee you hire.

Example: Mainland Business Setup – Marketing Consultancy

Business Type: Marketing Consultancy
Legal Structure: Sole Proprietorship
Location: Suburban Abu Dhabi
Employees: 2 (including owner)

Cost Component	Estimated Cost (AED)	Notes
Trade License Fee	18,000	Typical for professional services
Registration & Name Approval	1,500	One-time ADDED fee
Government Approvals	3,000	Includes inspection and ministry clearance
Office Rent (Suburban Area)	12,000	Small office outside CBD
Residency Visa × 2	6,000 × 2 = 12,000	Includes medical and Emirates ID
Labor Card & Immigration × 1	1,500	For one employee (owner exempt)

Total Estimated Setup Cost: AED 48,000

Cost Breakdown: Free Zone Business Setup in Abu Dhabi

Free zones are special economic areas that offer unique benefits, such as 100% foreign ownership, 0% corporate and income tax, and 100% repatriation of profits. If you plan to do business internationally, consider establishing your business in an Abu Dhabi Free Zone. Popular zones include KIZAD, Masdar City Free Zone, and twofour54.

License & Registration Costs

Each free zone has its own pricing structure. The license package you choose often depends on your business activity and the number of visas you need.

Item	Cost Range (AED)	Notes
License Fee	5,000–15,000	Some zones, like twofour54, offer packages starting at AED 5,000 for freelancers.
Registration Fee	1,000–3,000	This is a one-time fee for setting up your company in the zone.
Capital Requirement	0–150,000	Some zones require you to show a minimum amount of capital, while many others do not.

Office Space Options

Free zones offer flexible and modern workspace solutions. This is a great way to manage your Abu Dhabi business setup cost while getting a professional address.

Type	Annual Rent (AED)	Notes
Flexi-desk	10,000–20,000	A shared desk in a co-working space. Perfect for startups and solo entrepreneurs.
Executive Office	25,000–50,000	A private, fully-serviced office for your team.

Visa Costs

Visa processing in free zones is known for being fast and efficient. The costs are generally similar to the mainland, but many zones offer packages that can save you money.

Item	Cost Range (AED)	Notes
Residency Visa	3,000–7,000	Costs are similar to mainland visa fees per person.
Bundled Visa Packages	Varies	Many free zones offer packages that include the license and one or more visas at a discounted price.

Additional Costs to Consider for an Abu Dhabi Business

Beyond the main fees, there are other expenses you should include in your budget. Being aware of these costs will help you avoid surprises and ensure a smooth setup process.

Item	Cost Range (AED)	Notes
Legal & Consultancy Fees	5,000–15,000	Professional guidance ensures accurate documentation and compliance, preventing costly mistakes during setup.
Bank Account Setup	2,000–5,000	Fees for opening a corporate account. Some banks may also require an initial deposit.
Utilities & Insurance	3,000–10,000	Includes operating costs like electricity, internet, and business insurance.
Business Activity Costs	Varies	Certain activities, such as trading, manufacturing, or working in regulated sectors, can have higher setup costs due to specific regulations and requirements.
Office Space & Fit-Out Costs	Varies	Office size, location, and the need for custom fit-outs can push your expenses higher than the basic rent. Additional utility costs and maintenance should also be factored in.
Additional Approvals & Inspections	2,000–10,000	Some sectors (municipality, health, environment) require additional approvals or inspections, adding extra costs.
Local Sponsor Fees	Varies	If your business activity still requires a local sponsor, you will need to explicitly clarify and include this cost in your budget.
Renewal Fees	Similar to Initial Costs	Annual renewal fees for licenses, visas, and other government services typically follow a similar range as the initial setup fees.

Key Insights

No Minimum Capital Requirement: ADDED (Abu Dhabi Department of Economic Development) does not impose a minimum capital requirement for most business activities, making it more accessible for entrepreneurs to get started without significant upfront investment.
Low Setup Costs: Overall, Abu Dhabi offers some of the most affordable business setup options in the UAE, with significant government incentives to encourage entrepreneurship.

By factoring in these additional expenses and understanding the unique cost structures related to different business activities, you can create a more realistic budget for your Abu Dhabi business setup and ensure a smoother establishment process.

Example: Free Zone Business Setup – E-Commerce Company

Business Type: Online Retail (E-Commerce)
Free Zone: KIZAD
License Package: Flexi-desk with 2 visas

Cost Component	Estimated Cost (AED)	Notes
License Fee	10,000	E-commerce activity license
Registration Fee	2,000	One-time company setup fee
Capital Requirement	0	No minimum capital required
Flexi-desk Office	15,000	Shared co-working space
Residency Visa × 2	6,000 × 2 = 12,000	Includes medical and Emirates ID
Bundled Package Discount	-3,000	Discount on combined license + visa

Total Estimated Setup Cost: AED 36,000

Cost-Saving Tips for 2025

You can achieve a low-cost business setup in Abu Dhabi by being smart with your choices. Here are some effective tips to reduce your initial investment:

Leverage new license options: For certain micro-businesses, ADDED has introduced mainland license options for as low as AED 1,000. Check if your activity qualifies.
Use the Tajer Abu Dhabi license: If you don’t need a physical office, the Tajer license completely removes the cost of rent from your budget. This license is designed for businesses that operate online or from home, including freelancers and small-scale entrepreneurs. It applies to over 100 business activities and is a cost-effective option for new businesses.
Choose flexi-desk packages in free zones: Instead of renting an expensive private office, start with a flexible desk. It provides a professional address and workspace at a fraction of the cost.
Opt for bundled deals: Many free zones offer all-in-one packages that combine license, registration, and visa costs. These bundles often provide the best value for money.

Know more: How to Open a Company in Abu Dhabi?

Final Note

The business setup cost in Abu Dhabi is more affordable and flexible than ever before. With supportive government initiatives and a variety of options on both the mainland and in free zones, the city welcomes entrepreneurs with open arms.

By understanding the different costs involved, from licenses and office spaces to visas, you can create a realistic budget. Whether you choose the broad market access of the mainland or the specialized benefits of a free zone, careful planning is the key to your success. Abu Dhabi provides the perfect foundation to build and grow your business in 2025 and beyond.

Frequently Asked Questions

The lowest possible cost can be achieved with a license that doesn’t require an office, like the Tajer Abu Dhabi license. Including basic registration and fees, you could potentially start for as little as AED 7,000 to AED 9,000. This makes a low-cost business setup in Abu Dhabi a real possibility for many entrepreneurs.

Not always. While free zones offer attractive packages, recent mainland reforms have made it very competitive. For example, a mainland license without an office (Tajer) can be cheaper than a free zone package that includes a mandatory flexi-desk. It is best to compare the total Abu Dhabi business setup cost for both options based on your specific needs.

For most business activities, you no longer need a local Emirati sponsor. The UAE’s commercial companies law allows for 100% foreign ownership of mainland businesses. This major reform has significantly simplified the process and reduced costs for foreign investors looking for a business setup in Abu Dhabi Mainland, though some strategic sectors may still have specific ownership rules.

The Tajer license, also known as the “Trader” license, is designed for freelancers and small businesses that operate from home or online. Its biggest advantage is that it eliminates the legal requirement for a physical office space. Since annual office rent is a major expense, choosing the Tajer license drastically cuts down your initial and ongoing costs.

No, in most cases, foreign entrepreneurs do not need a UAE national partner to set up a business in Abu Dhabi. Recent reforms allow 100% foreign ownership for most business activities. However, certain industries like oil and gas may still require a local partner.

After the initial setup, you must plan for annual renewal costs. These include renewing your trade license, establishment card, and any rental agreements for your office space. You should also budget for employee visa renewals, utility bills, insurance, and potential fees for accounting and auditing services to stay compliant with UAE regulations.

The timeline can vary, but the process has become much faster. For a straightforward application in a free zone or on the mainland, you can often get your license issued within a few days. The complete process, including immigration and opening a bank account, might take anywhere from two to four weeks, depending on the complexity of your business.

While the system is quite transparent, new entrepreneurs might overlook some costs. These can include translation fees for legal documents, attestation fees for certificates from your home country, and initial approval fees from external government bodies, depending on your business activity. Working with a professional consultant can help you anticipate and budget for all potential expenses.

Masdar City Free Zone is an excellent choice for technology, sustainability, and renewable energy startups. It offers a unique innovation ecosystem. Another great option is twofour54, which is a media and entertainment hub but also supports creative tech and digital businesses. When you plan to start your business in Abu Dhabi Free Zones, research each zone’s specific focus.

Yes, it is possible. You can be the owner of a UAE company without being a resident. However, to actively manage the business from within the UAE, open a corporate bank account easily, and sign documents, having a residency visa is highly recommended. Many operational tasks can be managed remotely, especially if you have staff on the ground.

Just Drop Your Info Below We’ll Get In Touch With You

Share a link

Facebook

Instagram

About the Author

Joel Dsouza

Joel Dsouza is a Chartered Accountant and compliance specialist with extensive experience advising over 1,000 startups and SMEs on company registration, tax structuring, and regulatory compliance. As a member of ICAI and Co-Founder of Safe Ledger, Joel combines his deep financial expertise with a global perspective to help entrepreneurs navigate complex business environments. Focused on the UAE market, he is dedicated to empowering international and local business owners with clear, practical guidance on company setup, tax optimization, and ongoing compliance making him a trusted advisor for businesses aiming to succeed in the dynamic UAE economy.

View All

What Is Sole Proprietorship Business?

If you’re wondering what a sole proprietorship business is, a sole proprietorship business is the easiest way to start a business by one person. In this, the owner runs the entire business, manages the daily tasks, keeps the profits, and legally there’s no difference between the person and the business. If you’re planning to open […]

Joel Dsouza·2/20/2026

How to Start a Business in Dubai as a Foreigner?

The UAE’s modern commercial laws and foreign investment framework allows foreigner to easily start a business in Dubai. These regulations simplify market entry and allow international entrepreneurs to operate legally with fewer restrictions. Foreign investors can establish companies in Dubai under mainland or free zone jurisdictions with 100% ownership for most business activities. The Department […]

Joel Dsouza·2/17/2026

SAIF Zone UAE: Ideal Location for Business Setup in Sharjah

Sharjah Airport International Free Zone (SAIF Zone), UAE, is one of Sharjah’s top business hubs, known for its cost-effective business setup. It serves as a strategic gateway for companies and investors aiming to expand in the Middle East. Indian entrepreneurs often prefer the SAIF Zone in the UAE to explore opportunities for company setup, trade […]