Abu Dhabi Mainland Company Set Up

Setting up a mainland company in Abu Dhabi involves choosing a business activity, securing a local partner or service agent, and obtaining necessary approvals from the Abu Dhabi Department of Economic Development (ADDED). This process allows businesses to operate across Abu Dhabi and the UAE mainland, offering flexibility in location and access to a wide range of business opportunities including government contracts and local market engagements. Working with local advisors can streamline the setup process and ensure compliance with regulatory requirements.

Advantages of Setting Up Your Business in Abu Dhabi

Low Company Setup
Cost

Business appeal includes no minimum share capital requirement or obligatory annual audits for firms under the Mainland License. 

Wider Scope of
Business

With Abu Dhabi Mainland License, businesses can operate across the UAE, expanding their consumer base and boosting profits significantly.

Long Term License
Validity

Abu Dhabi distinguishes itself by providing commercial licenses with a two-year validity, reducing the hassle and expenses of annual renewals.

Repatriation of Capital and Profits

Abu Dhabi Mainland companies can repatriate all profits and capital, have full ownership, and are exempt from income taxes, with only 5% VAT.

Tourism Sector Development

Abu Dhabi stands out as a prominent global tourist destination, annually hosting major commercial and sporting events that boost its tourism sector.

Ability to Work with Government Bodies

Can engage in government contracts, enabling them to bid for various government-funded projects and increase revenue opportunities.

Affordable Office Spaces

Choosing the right office space is pivotal when launching a business. In Abu Dhabi, you have the option to rent or lease affordable spaces.

Types of Licenses Offered in Abu Dhabi Mainland

Commercial License

Permits business operations in public trading, healthcare, construction, real estate, and related sectors.

Professional License

This license is granted to companies whose employees offer services in specific crafts such as carpentry and steelwork.

Occupational License

An Occupational License allows legal practice in specific professions or trades, ensuring regulatory compliance and public protection.

Tourism License

The license is issued by the Abu Dhabi Tourism and Cultural Authority for businesses in the UAE’s tourism sector, including hotels and travel agencies.

Agricultural License

These licenses are granted to companies involved in various agriculture, fisheries, and livestock activities within the designated jurisdiction.

Industrial License

Granted to companies intending to establish manufacturing operations in Abu Dhabi for industrial activities such as production, assembly, and packaging.

The price for setting up an Abu Dhabi Mainland Company starts from AED 15,000.

Depending on the complexity of your business, and number of visa applications, setting up a company under the Abu Dhabi Mainland license usually ranges from AED 15,000 – AED 30,000.

Creative Zone can offer you different packages tailored to your business needs.

Receive an estimate of your business setup cost now!

Types of Business Structures in Abu Dhabi Mainland

Branch Office

The Branch Office extends a company’s presence, whether local or foreign, functioning as the regional headquarters in Abu Dhabi.

Public Shareholding Company

A Public Joint Stock Company mandates a capital of AED 10,000,000, with transferable shares and distinct business names.

Private Shareholding Company

A Private Joint Stock Company requires a minimum capital of AED 2,000,000 and involves at least three shareholders.

Joint Venture

An Abu Dhabi Joint Venture involves two or more entities governed by a contract, conducted in the name of a UAE national partner.

Limited Partnership

In a Limited Partnership, general partners share joint liability for debts, while limited partners have no management role.

Sole Proprietorship

A Sole Proprietorship is a business owned by one individual, allowing 100% foreign ownership for professionals of any nationality.

Steps for Setting Up Your Company in Abu Dhabi Mainland

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1) Determine the Nature of Business

The first and one of the most critical steps in setting up business in Abu Dhabi Mainland is choosing the right trade license and company structure. Since there are requirements for each type, it is better to know the business activity and legal structure of your company beforehand. The Abu Dhabi Department of Economic Development (DED) is the one responsible for issuing licenses for business registrations in Abu Dhabi.

2) Register Trade Name

Choose the right and appropriate name for your company. There are certain guidelines that you have to follow in choosing a company name. Creative Zone can provide you a comprehensive guide for choosing your trade name.

3) Get Approvals from Authorising Authorities

Once you have selected your business activity, company structure, and trade name, you can now seek preliminary approvals from the Abu Dhabi Department of Economic Development.

Some of the documents needed for getting a preliminary approval are:

· Approved trade name

· For foreign investors: Approval from the Department of Naturalization and Residence, along with valid passport copies

· Copy of Emirates ID (if applicable)

· No objection certificate

Our team at Creative Zone can assist you in meeting all these requirements for a faster and hassle-free process.

4) Licensing Approvals

Upon submission of all documents, payment must be made. After this, you can now collect your trade license

How to Start a Business in Abu Dhabi?

Setting up a business in Abu Dhabi can be a very beneficial decision as the business will have access to the markets of various regions, and also there will be an ample and expert workforce that will assist in business setup in the Emirate, but an error during the setup process and can result in future problems for the business.

Below are the steps to be followed for setting up a company in Abu Dhabi:

1. Determine the Type of Economic Activities

It is very important to understand the type of business activity to be performed by the business. This will help in understanding all the requirements to be fulfilled by the company, both legally and economically.

It will also help in understanding which licenses will be required for conducting the business activity without any hindrance.

2. Find a Local Sponsor

As per the UAE jurisdiction, foreign companies need a local sponsor (a service agent or a company owned by UAE nationals) to open a branch office in Abu Dhabi. A local sponsor will facilitate the necessary licenses for the branch office without bearing any liability for capital contribution or losses. With the recent amendment, the requirement for a local sponsor has been limited to only certain sectors.

You can consult our business setup experts to know more about the requirement of a Local Sponsor.

3. Determine the Legal Form of the Business

Rules and regulations are different for different ownership types and business establishments. Before establishing a business, the management needs to figure out which business structure will be the most suitable.

Here are a Few Legal Entities:

  • Private Joint Stock Company (PRJSC)
  • Public Joint Stock Company (PJSC)
  • Limited liability Company (LLC)
  • Simple Commandite Company
  • Joint Liability Company

Other Types of Companies:

  • Civil Company
  • Sole Establishment
  • GCC Company Branch
  • Local Company Branch
  • Foreign Company Branch
  • Free zone Company Branch
  • Foreign Companies’ Representative Offices

4. Register Your Trade Name

Registering a trading name is very important for a business, as any other organization in the country cannot use the trade name once registered. We help our clients set up a business in Abu Dhabi and register a trade name from the list of registered trade names provided by the Department of Economic Development (DED).

5. Fulfil Licensing Requirements

Apart from licenses, many other permits and approvals are required, and to start a business, the management needs to acquire them.

License Types

Some of the license types are as follows:

⮚Tourism

The Abu Dhabi Tourism and Cultural Authority issues a tourism license. This license is granted to companies offering tourism-related services like hotels, travel agencies, boat rentals, and so on.

⮚Occupational

An occupational license is for businesses that involve individuals using their talents, mentaland intellectual capabilities, and abilities to serve clients.

⮚Commercial

A commercial license is issued to the companies involved in business activities like public trading companies, construction and real estate, hospitals and clinics, and business contractors.

⮚Industrial

An industrial license is issued to the businesses that wish to set up manufacturing operations in Abu Dhabi.

⮚Professional

A professional license is issued to professionals and artisans who are involved in the operation of a specific craft. Examples of professional licenses include carpentry, steelwork, and smithery.

6. Obtain the Initial Approval

The foreign businessman must get approval from the General Directorate of Residency and Foreigners Affairs – Abu Dhabi before starting the process to set up a business. We help our clients get all the necessary approvals from the concerned officials, including the DED, and help them pay legal the fee for getting a business license issued.

Documents Required for Preliminary Approval

  • For foreign investors: Approval from the department of Naturalization and residence
    valid passport copies
  • Approved Trade Name
  • A No Objection Certificate
  • Copy of Emirates ID, if applicable

7. Get Special Approvals

Many businesses require special approvals or permits which can be obtained after contacting the relevant authorities. Upon submission of all documents, the license must be collected from the concerned authority.

In additional DED, there may be special approvals required from government bodies like:

  • Central bank
  • Medical Council
  • Ministry of Civil Aviation
  • Abu Dhabi Customs Duty
  • Supreme Petroleum Council
  • Abu Dhabi Education Council
  • Abu Dhabi Distribution Company
  • Telecommunication Regulatory Authority
     

Our Business Setup Services in Abu Dhabi

It can be challenging to go through all these steps alone in a foreign land. Hence it is advised to get help from company formation consultants in Abu Dhabi.

We at Brightlink are business setup consultants and can help you with the following services:

  • Setting up a Branch Office in Abu Dhabi
  • Public Relations Officer (PRO) services
  • Value Added Tax (VAT) registration
  • Intellectual Property Protection
  • Accounting and Bookkeeping
  • Business Registration
  • Local Sponsorship
  • Tax Consulting
  • Legal advisory
  • Auditing

So, for business setup services in Abu Dhabi, contact us, and we’ll be glad to assist.

Frequently Asked Questions

Abu Dhabi Mainland refers to areas where businesses can operate without geographic restrictions imposed on certain activities. It allows companies to trade directly in the local market without the need for a local partner (except for certain activities reserved for UAE nationals)

Legal entities can be established as sole proprietorships, civil companies (partnerships), limited liability companies (LLCs), or public and private joint-stock companies, depending on the nature and scale of the business.

Generally, for most activities, a local sponsor or partner (UAE national) is required. However, some activities may allow 100% foreign ownership, especially those in certain free zones or with special licenses.

  1. Determine the business activities and legal structure.
  2. Reserve a trade name and obtain initial approvals.
  3. Draft and notarize the Memorandum of Association (MOA).
  4. Obtain approvals from relevant authorities (depending on the nature of business).
  5. Rent office space and obtain necessary licenses.
  6. Register with the Chamber of Commerce and Industry and obtain a business license.
  1. Department of Economic Development (DED) for business licensing.
  2. Ministry of Economy (MOE) for approvals related to commercial activities.
  3. Abu Dhabi Chamber of Commerce and Industry for registration and membership.

Minimum capital requirements vary depending on the legal structure and business activity. It is important to check with relevant authorities for specific details.

Yes, certain industries such as healthcare, education, legal services, and food-related businesses may have additional regulatory requirements and licensing procedures.

The timeline can vary based on the type of business and completeness of documentation. On average, it may take several weeks to a few months to complete all procedures.

  1. Access to the local market without geographical restrictions.
  2. Ability to bid for government contracts.
  3. No currency restrictions.
  4. Potential for growth and expansion within the UAE and regionally.

While free zones typically offer specific incentives, businesses in Abu Dhabi Mainland may benefit from general incentives aimed at promoting economic growth, depending on the sector and business activity.

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