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Guide · Company setup

Business setup in Abu Dhabi: mainland or a free zone?

Business setup in Abu Dhabi follows one of two routes: a mainland license from the Abu Dhabi Department of Economic Development (ADDED), applied for on the TAMM platform, or a license from one of the emirate's free zones, such as ADGM, KEZAD, Masdar City Free Zone, twofour54 or Abu Dhabi Airports Free Zone. Choose the mainland to trade across the UAE; choose a zone for its sector focus and full foreign ownership.

Global Sky PRO teamUpdated 10 November 20264 min read

Key takeaways

  • Abu Dhabi mainland licenses are issued by the Department of Economic Development (ADDED), and you apply on TAMM.
  • ADDED sorts activities into six categories: industrial, commercial, professional, tourism, agricultural and occupational.
  • The UAE government portal lists five Abu Dhabi free zones: ADGM, KEZAD, Masdar City, Abu Dhabi Airports Free Zone and twofour54.
  • ADGM is a financial free zone with a legal framework based on English common law, and it charges registration fees in US dollars.
  • ADDED's Dual License lets companies registered in Abu Dhabi's free zones operate outside the free zone.

Mainland or free zone: how the two routes differ

Both routes give you a company and visas. They differ on who licenses you, where you trade and what premises you need.

From ADDED, the UAE government portal and the zones' own websites, checked 10 November 2026.
PointMainland (ADDED)Abu Dhabi free zone
Licensing authorityADDED, through TAMMThe zone's own authority
Where you tradeAcross the UAEIn the zone; on the mainland via a distributor, a mainland branch or ADDED's Dual License
Foreign ownershipUp to 100% for many activities; strategic ones can be restricted100%
PremisesTenancy contract, unless you qualify for an online license with no premisesDesk, office, warehouse or land in the zone
Staff visasMOHRE work permit, then an ICP residence visaThrough the zone authority

New to free zones? Read what is a free zone. Weighing offshore too? See mainland vs free zone vs offshore.

How to get an Abu Dhabi mainland license from ADDED

You apply on TAMM, Abu Dhabi's government services platform. ADDED sets out eight steps:

  • 1. Pick your activity. It decides which of ADDED's six activity categories you fall under.
  • 2. Choose a legal form, such as a limited liability company or a partnership.
  • 3. Reserve a unique trade name with ADDED.
  • 4. Get initial approval from ADDED.
  • 5. Sign the contracts: a memorandum of association (MOA) or a local service agent agreement, depending on legal form and ownership.
  • 6. Find a location and sign a tenancy contract.
  • 7. Collect extra approvals, for example from the Abu Dhabi Municipality or the Department of Health.
  • 8. Submit documents, pay the fees and receive your license.

ADDED says a business that needs no physical premises can get an online license instantly through TAMM. Its setup pages don't publish a license price, so check the total on TAMM before you sign a lease.

In January 2025, ADDED launched the Abu Dhabi Registration and Licensing Authority (ADRA) to oversee business registration on the mainland and in non-financial free zones.

We prepare the trade name, contracts and application and follow up with ADDED; see mainland company formation.

ADDED license types and foreign ownership

Separately from its six activity categories, ADDED lists seven license types. These five matter most to founders.

From ADDED's licensing requirements page (updated 27 October 2026), checked 10 November 2026.
ADDED licenseWho it's for
StandardAny legal form, through the traditional setup steps
VirtualPeople living outside the UAE starting a business in Abu Dhabi
FreelancerCitizens and foreigners in set fields, working remotely without an office
Abu Dhabi TraderUAE citizens and residents, for set commercial activities, issued online
DualAbu Dhabi free zone companies operating outside their zone

Under Federal Decree-Law No. 32 of 2021, foreigners can own up to 100% of a mainland company, but activities with strategic impact can carry ownership restrictions.

Abu Dhabi free zones compared

Each zone has its own authority, activities and packages. The UAE government portal lists these five; ADDED also names Industrial City of Abu Dhabi.

From each zone's own website, checked 10 November 2026. Prices at the time of writing; rent and visas are extra.
Free zoneFocusPublished price
ADGMFinancial free zone on Al Maryah and Al Reem islands, under English common lawUSD 5,800 to register a non-financial company
KEZADIndustry and logistics next to Khalifa Port; free zone and mainland optionsAED 0 for a new industrial, trading or service license (up to 5 activities); AED 5,000 to renew after 2 years (general trading AED 15,000). Lease, establishment card and visas extra
Masdar City Free ZoneLife sciences, AI and energy; over 1,000 activitiesStartup package AED 7,000 + 5% VAT (license and registration, up to 2 activities; activities limited and subject to approval)
twofour54Media, gaming and entertainment, regulated by the Creative Media AuthorityNot published
Abu Dhabi Airports Free ZoneAviation, MRO, logistics and trading at Zayed, Al Bateen and Al Ain airportsNot published

ADGM's Registration Authority licenses non-financial and retail firms; financial firms apply to its Financial Services Regulatory Authority (FSRA) first. Companies must keep a physical office address in ADGM. The January 2025 fee overview lists USD 5,800 to register and USD 5,300 a year to renew. Fees at the time of writing; confirm the current schedule with ADGM before you apply.

For packages and documents, see kezad and masdar city free zone.

Visas for owners and staff

For Abu Dhabi visas, the UAE government portal points you to ICP; Dubai visas go through GDRFA Dubai.

On the mainland, you register the company with MOHRE, each employee gets a MOHRE work permit, and the residence visa follows it. In a free zone, the zone authority handles work permits and visas; ADGM, for example, offers a 2-year employee visa.

As an owner, compare the investor visa, the green visa and the golden visa, or read visa options for business owners.

Which route suits your business

  • You'll sell across the UAE: an ADDED mainland license.
  • You're in financial services: ADGM, where the FSRA regulates financial firms.
  • You need port-side land or a factory: KEZAD.
  • You're in life sciences, AI or energy: Masdar City Free Zone.
  • You work in media or gaming: twofour54.
  • You're in aviation or air logistics: Abu Dhabi Airports Free Zone.

Compare the yearly total, including rent, visas and renewal. Looking at other emirates? See business setup in Sharjah or how to start a business in Dubai.

Global Sky PRO prepares and submits your application and follows up; ADDED or the zone authority decides. See free zone company formation.

Sources

Official sources checked on 10 November 2026. This guide explains published rules in plain English and is not legal or tax advice. Rules change; we check the current position for your case before you act.

FAQs

Questions about this topic

Short answers here. Your situation may differ, so ask us before you decide.

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Who issues business licenses in Abu Dhabi?

On the mainland, the Abu Dhabi Department of Economic Development (ADDED), and you apply through TAMM. Free zone companies are licensed by their own zone authority instead.

Source: u.ae: Steps to start a business on the mainland

What is TAMM?

TAMM is the Abu Dhabi government's services platform. ADDED says you apply for its licenses through its eServices on TAMM, and a business that doesn't need physical premises can get an online license instantly.

Source: ADDED: Establishing your business

How much does a business license cost in Abu Dhabi?

ADDED's setup pages don't publish a single mainland price; you pay the fees on TAMM at the final step, so check the total for your activity first. Free zones set their own fees: Masdar City Free Zone's startup package is AED 7,000 plus 5% VAT for license and registration with up to 2 activities, at the time of writing.

Source: ADDED: Establishing your business

Can a foreigner own 100% of a company in Abu Dhabi?

In many cases, yes. Federal Decree-Law No. 32 of 2021 allows up to 100% foreign ownership of mainland companies, though activities with strategic impact can be restricted, and ADDED lists 100% foreign ownership among free zone benefits.

Source: u.ae: Full foreign ownership of commercial companies

Can I start a business in Abu Dhabi from outside the UAE?

Yes. ADDED's Virtual License is for people living outside the UAE who want to start a business in Abu Dhabi, and ADDED's licenses are applied for on TAMM.

Source: ADDED: Licensing requirements

Which free zones are in Abu Dhabi?

The UAE government portal lists ADGM, KEZAD, Masdar City, Abu Dhabi Airports Free Zone and twofour54. ADDED's list also includes Industrial City of Abu Dhabi.

Source: u.ae: Starting a business in a free zone

Is ADGM a free zone?

Yes. ADGM calls itself a financial free zone with a legal framework based on English common law, and its jurisdiction extends across Al Maryah and Al Reem islands.

Source: ADGM: Jurisdiction

How much does it cost to set up a company in ADGM?

At the time of writing, ADGM's fee overview (January 2025) lists USD 5,800 to register a non-financial company and USD 5,300 a year to renew, both including a USD 300 data protection fee. Check office, visa and establishment card costs separately.

Source: ADGM: Overview of fees 2025

Can an Abu Dhabi free zone company work on the mainland?

Yes, with the right license. ADDED's Dual License lets companies registered in Abu Dhabi's free zones operate outside the free zone; otherwise a free zone company sells locally through a licensed distributor or a mainland branch.

Source: ADDED: Licensing requirements

Do I need an office for an Abu Dhabi mainland license?

Usually, yes: ADDED's standard steps include a business location and tenancy contract. ADDED says a business that doesn't need physical premises can get an online license through TAMM, and its Freelancer License lets you work remotely without an office.

Source: ADDED: Establishing your business

Which authority handles visas in Abu Dhabi?

For Abu Dhabi, the UAE government portal points you to ICP to track visa applications, while Dubai uses GDRFA Dubai. Mainland staff need a MOHRE work permit first; free zone staff apply through the zone authority.

Source: u.ae: Track visa application and validity

Does Global Sky PRO issue the license?

No. We prepare and submit your application and follow up; ADDED or the free zone authority decides.

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