Complete Guide on Business Setup in Abu Dhabi

Company formation in UAE capital, companies and investors must perform two things before being regarded as legitimate: the purchase and incorporation of commercial business licenses. These criteria demand the implementation of specific particular application processes to allow companies to operate in the emirates to be legitimized.

Apart from the Persian Gulf, Abu Dhabi is the largest Emirates and Capital of the UAE, on the southeast edge of the Arab Peninsula. The city forms the second crowded Emirate in the Federation after Dubai and forms more than three-quarters of the country of the UAE. Although Abu Dhabi is one of the world’s major oil producers with one of its 10% oil reserves, its economy has expanded outside oil exports since 2009. The city has financed property, industrial, retail, and tourism development extensively.

Why Should you set up a business in Abu Dhabi?

Abu Dhabi is one of the most sought-after offshore locations in the world and the administrative capital of the UAE. It represents 95% of total oil reserves in the country and offers different opportunities for investment to nearly all sectors of the economy.

Besides being affluent and safe, it is wise to establish a business setup in Abu Dhabi because of its transparency and flexibility in starting a business. In contrast to several nations, a new company or an offshore subsidiary is only set up in Abu Dhabi a few days before you start operations. To that end, you must correctly comply with the necessary standards.

  • The investor can be a partner in the company. 
  • Without the daily meddling of local, national partners, the investor can operate the business. 
  • A rich and cheap supply of energy 
  • Concurring charges for freight 
  • Competitive cost of property World bank accounts easy to open.

However, a foreigner who invests in Abu Dhabi first may not know where to support and benefit. Therefore, it is reasonably necessary at this moment to comprehend the booming sector in Abu Dhabi.

How to Start a New Business in Abu Dhabi?

You find processes laborious and perplexing if you don’t know how to register an organization in Abu Dhabi. Emirates Zone is a professional training firm that supports and supports the registration of investors and businesses in Abu Dhabi so they may swiftly and economically set up their offices. Get your trusted business professionals on the right foot today in Abu Dhabi with the help of the Emirates Zone!

Decide the Type of Business Activity

Before you start the procedures, you have a thorough grasp of your business, as legal actions and fees can differ based on your company’s nature.

Find Local Sponsor For Business

In the UAE, international corporations need to open a branch office in Abu Dhabi through a local sponsor (an agent or a company owned by UAE nationals). Without liability for capital contribution or losses, a local sponsor will provide the required permits for the branch office.

Decide Legal Structure of Business

For various types of ownership and business establishments, rules and laws vary. To run your business, you have to choose a legal entity type.

Register Business Name

A business name differentiates an enterprise and describes its essence and legal status. We help our customers establish a business in Abu Dhabi and register a trading name from the Department of Economic Development (DED).

Fulfill License Requirements For Business

We help our customers receive a license, take advantage of the No Objection Letter from the deemed jurisdiction and get legal documents from a licensed translation into Arabic.

Get Initial Approval For Business

Before the initial approval for international investors, you will need authorization by the General Directorate for Residency and Foreign Affairs – Abu Dhabi (GDRFA). The company license procedures allowing foreign citizens to exercise their business activity in Abu Dhabi should continue by the initial approval certificate. Business setup consultants in Dubai, UAE helps in obtaining all the essential permits from the officials concerned, including DED, and paying the business licensing money legally.

Requirements For Company Setup in Abu Dhabi

Before establishing a new firm in Abu Dhabi, you must know guidelines, characteristics, facts, and regulations to avoid future difficulty.

Local Sponsor

A local sponsor refers to local services officers and nominee shareholders with foreign investment in Mainland Abu Dhabi. A sponsor must have a family membership card with an Emirati (national UAE). If a person wishes to start their business in the mainland of Abu Dhabi, they must have a local sponsor. Hence, local sponsor is mandated to possess 51% of shares in Abu Dhabi, while foreign investors will own the remaining 49%. It is crucial to understand what one expects from them when selecting a local sponsor. 

Chamber Membership

Law No. (7) of 1998 requires all nationals and foreigners involved in any commercial, industrial, professional or vocational activity, whether they are individuals, companies, or branches, to join the Chamber of Commerce and Industry of Abu Dhabi and to acquire a license in Abu Dhabi, as a prerequisite.

Pro Services

Each Abu Dhabi corporation requires a Liaison Officer (PRO or a Public Relations Office). Abu Dhabí PRO Services refer to all government documents and paperwork processing activities, including visa applications, firm licenses, approvals documentation, and labor cards.

Trade License

Renew the business license annually. Therefore, Depending on the kind of license and business activities involved, commercial license prices may vary. Each trading license has different activities.Legal Structure For Company Formation in Abu Dhabi.

The Department of Economics of Abu Dhabi is the licensing service that licenses all companies except for accessible areas in Abu Dhabi.

Sole Proprietorship

As a lone trader, an investor can start a company in Abu Dhabi. A UAE national with 51 percent shares should be a service agent. This sort of company structure is mainly helpful for doctors, attorneys, and engineers.

LLC Company

LLC is one of the most popular organizations chosen by an investor for the Abu Dhabi business. It is a separate legal entity, i.e., its owners, shareholders, and managers separately. The LLC must appoint a minimum of one director and two shareholders in Abu Dhabi.


Hence prohibits foreigners from establishing a partnership in Abu Dhabi. Only UAE citizens are subject to this type of business structure.

Public ShareHolding Company

PSC is Abu Dhabi Joint Stock Company. It is ideal for significant projects or operations involving substantial money investments or private or public capital mobilization. A PSC in Abu Dhabi may have at least ten founders, 51% of whom should belong to a UAE national

Joint Venture

A joint venture is a partnership between a foreign party and a regional party licensed for the intended business activity. The Joint Undertakings in the United States work up as LLC. As a result In practice, joint partners allow organizations to work together for specific projects to have an appropriate structure.


Thus UAE is promoting the establishment of businesses in all Emirates by local and foreign investors. Abu Dhabi is one of the UAE’s most successful Emirates. Registration for the company in Abu Dhabi is very straightforward and quick. Henceforth all documents are correctly complete and all relevant permissions secure. Foreign investors may also form companies, either in Abu Dhabi or in one free-range zone of Abu Dhabi that permits 100% foreign ownership if they partner with a local investor visa. If you still face any issue while setting new business in abu dhabi. Hire a business setup consultant in uae for the same. 

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