Comprehensive Guide to Starting a Business in Abu Dhabi (2025)

How to Start a Business in Abu Dhabi: The Ultimate 2025 Guide for Entrepreneurs

Abu Dhabi is one of the world’s most business-friendly cities, combining a dynamic economy, strategic location, and advanced digital government services. With recent reforms, setting up a company has never been easier—whether you’re a local resident or an international investor. This guide walks you through every step, highlights unique opportunities, and includes original insights, expert perspectives, interactive tools, and up-to-date regulatory details for 2025.

Why Choose Abu Dhabi for Business?

• Strategic Location: Gateway between East and West, with world-class infrastructure and connectivity.

• Tax Benefits: No personal income tax, corporate tax exemptions for many sectors, low import duties.

• Digital Transformation: Instant online business setup services via Bashr and TAMM platforms.

• Foreign Ownership: 100% foreign ownership in Free Zones, and recent reforms now allow full foreign ownership in certain mainland sectors.

• Quality of Life: Safe, cosmopolitan, and offering a high standard of living for employees and founders.

Step 1: Decide on Business Activity and Legal Structure

Business Activity
Abu Dhabi offers hundreds of licensed activities—commercial, industrial, professional, tourism, and more. Your activity determines the type of license required and influences your location eligibility (mainland or Free Zone).

Legal Structure
Common options include:

• Limited Liability Company (LLC): Most popular for mainland, often requires a UAE national partner (51% ownership), but select sectors now permit 100% foreign ownership.

• Sole Proprietorship: For individuals, with some restrictions.

• Branch Office: For existing foreign companies.

• Free Zone Entity: Ideal for international companies, 100% foreign ownership, but trade within the UAE may be restricted.

Step 2: Choose Mainland or Free Zone