How to Open a Company in Abu Dhabi? Process and Fees

You must submit the correct documents to complete the company setup in Abu Dhabi without delays, as per Abu Dhabi Department of Economic Development (ADDED) instructions.

• Passport Copies: Provide clear and valid passport copies of all shareholders, directors, managers, and authorized signatories.
• Passport-Size Photographs: Submit recent photographs with a white background as per UAE specifications.
• UAE Visa or Entry Stamp: Attach a copy of the UAE residence visa or entry stamp if you are currently in the UAE.
• Trade Name Reservation Certificate: Submit proof that authorities have approved and reserved your business name.
• Initial Approval Certificate: Provide the approval that confirms your eligibility to proceed with company formation.
• Memorandum of Association (MOA): Submit a signed MOA outlining ownership structure, shareholding, and management roles, where applicable.
• Business Plan: Include a brief business plan if required for setting up a company in Abu Dhabi free zones or for regulated activities.
• No Objection Certificate (NOC): Provide an NOC from your current sponsor or employer, depending on visa status or employment contracts.
• Shareholder or Board Resolution: Submit a resolution approving company formation, especially when a corporate shareholder is involved.
• Certificate of Incorporation (Corporate Shareholders): Provide incorporation documents of the parent company, duly attested if issued outside the UAE.
• Ultimate Beneficial Owner (UBO) Declaration: Declare the individuals who ultimately own or control the company, as per UAE compliance rules.
• POA: Submit a Power of Attorney (POA) if you authorize a representative or consultant to complete the process on your behalf.
• Office Lease Agreement or Flexi-Desk Contract: Provide proof of a registered business address to activate your license. Offshore companies do not require office space, and some free zones allow shared desks or zero-visa packages.
• External Authority Approvals: Submit additional approvals if your business operates in regulated sectors such as healthcare, education, finance, or food trading.

Likewise, offshore companies are typically registered through UAE offshore jurisdictions and do not operate physically in Abu Dhabi, even if managed from the emirate.

Below is a detailed breakdown of each step involved in company setup in Abu Dhabi:

1: Decide the Jurisdiction

• Choose between a mainland or free zone setup based on where you want to operate.
• Select a mainland company if you plan to serve UAE customers directly or work with government entities. Free zone company registration in Abu Dhabi offers simplified compliance, tax benefits, and industry-specific support.

2: Finalize the Business Activity

• Identify the exact activity that matches your business operations.
• Refer to the approved activity list issued by ADDED or the free zone authority.
• Avoid broad or incorrect classifications that may restrict operations later.
• Confirm whether the activity requires special regulatory approvals.

3: Reserve a Trade Name

• Choose a unique and compliant business name.
• Follow UAE naming guidelines, including restrictions on religious or offensive terms.
• Reserve the trade name with the relevant authority before proceeding.

4: Apply for Initial Approval

• Submit an application to confirm shareholder eligibility and business intent.
• Provide passport copies and basic company details.
• Obtain confirmation that authorities allow you to proceed with incorporation.
• Note that initial approval does not permit business operations.

5: Prepare and Sign Legal Documents

• Draft the Memorandum of Association (MOA) or equivalent incorporation documents.
• Clearly define ownership structure, shareholding, and management roles.
• Notarize documents if required by the chosen jurisdiction.

6: Secure Office Space or Flexi Desk

• Lease a physical office or choose a flexi-desk facility as permitted.
• Register the lease agreement with the relevant authority.
• Match the office size to the visa and operational requirements. This is applicable to mainland companies.

7: Obtain the Trade License

• Pay the license and government fees.
• Receive your commercial, professional, or industrial license.
• Start legal business operations upon license issuance.
• Display the license at your business premises, if applicable.

8: Complete Immigration and Visa Formalities

• Open an establishment card and immigration file.
• Apply for investor and employee visas under the company.
• Complete medical tests, Emirates ID, and visa stamping.
• Maintain visa compliance to avoid penalties.

Thinking of company setup in the UAE but unsure where to begin? SafeLedger simplifies the entire setup process for you, from selecting the right business activity and jurisdiction to handling licenses, documentation, visas, and ongoing compliance. Contact us today!

Starting a company in Abu Dhabi involves several costs, which vary based on your chosen jurisdiction, business activity, and company size. The table below sheds light on the typical costs of company registration in Abu Dhabi.

Moreover, by understanding these costs and planning your budget carefully, you can choose the right setup and start your Abu Dhabi business confidently and efficiently.

Post-Registration Compliance for Companies in Abu Dhabi

After setting up your company in Abu Dhabi, staying compliant is crucial for smooth operations and long-term success. Even in the UAE’s investor-friendly environment, businesses must follow certain post-registration requirements.

Key Post-Registration Compliance Requirements:

• Annual License Renewal: Renew your trade license before it expires to continue operations legally. Late renewal can attract fines and suspension of business activities.
• Corporate Tax Obligations: Companies must file corporate tax if taxable profits exceed AED 375,000. Free zone entities may enjoy exemptions if they meet regulatory conditions.
• VAT Registration and Filing: Businesses must register for VAT at 5% if their taxable turnover exceeds AED 375,000 in a 12-month period. Companies with a turnover above AED 187,500 may opt for voluntary registration. Maintain invoices, accounting records, and file periodic returns on time.
• Economic Substance Regulations (ESR): Relevant business activities (headquarters activities, holding companies, etc.) must demonstrate economic presence in the UAE and submit annual ESR notifications to authorities.
• Accounting and Audit Requirements: Maintain proper accounting records. Companies must undergo annual audits to ensure transparency and compliance.
• Immigration Compliance: Keep employee visas, Emirates IDs, and medical requirements up to date. Non-compliance may result in penalties or visa cancellation.
• Other Regulatory Approvals: Businesses in regulated sectors (healthcare, education, finance, food) must maintain approvals and renew permits as required.

Even with a clear process, many entrepreneurs make avoidable mistakes while starting a business in Abu Dhabi. Being aware of these pitfalls helps you save time, money, and stress.

• Choosing the Wrong Business Activity: Selecting an activity that doesn’t match your operations can lead to delays, additional approvals, or fines. Always check the official activity list for your jurisdiction.
• Ignoring Jurisdiction Differences: Mainland, free zone, and offshore setups have different benefits and restrictions. Choosing the wrong jurisdiction may limit your market access or increase costs.
• Underestimating Costs: Many founders overlook visa fees, office rent, or regulatory approvals, which can push their first-year expenses higher than expected.
• Incomplete Documentation: Missing or incorrect documents are the most common cause of delays in license approval. Prepare all required paperwork, including MOA, visas, and approvals.
• Neglecting Post-Registration Compliance: Failing to renew licenses, file VAT returns, or maintain employee visas can result in fines, business suspension, or legal issues.
• Relying Solely on DIY Setup: Attempting to navigate the process without professional guidance may cause errors, missed approvals, or longer timelines.

Avoiding these mistakes ensures a smoother setup and helps your Abu Dhabi business operate legally and efficiently from day one.