Doing Business in Abu Dhabi | Guide for Foreign Entrepreneurs & Investors
Imagine you are running a business in 2025, and the prime reason you are looking to succeed in the long run is strategic management, profitability, global success, and the ability to thrive across every socio-economic and developmental aspect. How would you initiate and run a business in places like the UAE? How, unlike many other regions, has the UAE become a global hub for business growth? Have you ever considered building your own business in the UAE? If your answer to these questions is yes, then you should know how Abu Dhabi is emerging as an attractive destination for businesses across all sectors in the UAE.
Doing business in Abu Dhabi has now become an entrepreneur’s preferred choice due to its strategic location, strong government support, and suitability for both small businesses and expanding global enterprises. There are certain factors that foreign entrepreneurs and investors need to understand when doing business in Abu Dhabi. This guide breaks down some of the key factors that are imperative for successfully operating a business in the emirate.
Why Foreign Entrepreneurs Should Start a Business in Abu Dhabi
Abu Dhabi is an international business hub with rich cultural and socio-economic diversity, home to more than 100 nationalities. The emirate is globally recognized for its abundant oil reserves, iconic skyline, and world-class luxury amenities. It hosts leading businesses across sectors such as hospitality, finance, real estate, and more — many of which have gained global recognition and contributed significantly to business profitability in Abu Dhabi.
For foreign entrepreneurs and investors, Abu Dhabi offers strong resources and institutional support through an investor-friendly environment, opportunities for full foreign business ownership, and attractive tax advantages.
- Full business ownership
Foreigners have the benefit of claiming or owning 100% ownership in most sectors on the mainland and in free zones, so they can eliminate the need for local sponsors. The free zones for a foreigner to start a business include Abu Dhabi Global Market (ADGM) (finance), KIZAD (logistics/industrial), Twofour54 (Media/creative), Master City (green energy), ADAFZ (aviation), and Industrial City of Abu Dhabi. These zones provide tailored incentives, profit repatriation and dual licensing.
Mainland | Onshore areas where businesses has the advantage of the flexibility to conduct business throughout the UAE. |
Free zones | Economic areas that provides connectivity to local, regional and international markets. |
- Tax and Financial Incentives
The absence of personal income tax is complemented by a low 9% corporate tax rate, which is often exempt for small businesses and free zone entities. Programs such as the Abu Dhabi Investment Office (ADIO) offer grants, rebates, and co-investment opportunities, particularly for technology and innovation-driven startups. - Infrastructure and Location
World-class infrastructure, including top-ranked ports, airports, and advanced digital hubs, ensures seamless logistics and connectivity. Abu Dhabi’s location as a gateway between the East and the West provides businesses with access to major markets across Europe, Asia, and Africa. - Economic Stability and Government Support
Consistently ranked high for ease of doing business, Abu Dhabi offers political stability, robust legal protections, and a highly skilled workforce. Government initiatives such as the Smart Manufacturing Incentive and the Golden List Program further support SMEs through subsidies, incentives, and preferential access to government procurement.
How Investors Can Benefit in Abu Dhabi
For investors, Abu Dhabi provides tax exemptions, full ownership rights, and targeted financial incentives that drive high returns and economic stability. More than that, the government programs further enhance the profitability through subsidies and market access.
Ownership and Tax Advantages
Without local sponsors, investors can secure 100% foreign ownership in mainland and free zones. A 9% corporate tax applies with exemptions for small businesses and free zone entities, alongside no personal income tax or currency repatriation limits.
Lifestyle and Visa Perks
Golden Visa offers long-term residency with discounts on properties, mortgages, and health insurance for investors. High livability rankings support family relocation, paired with political stability and world-class infrastructure. These factors enable long-term investment security.
Besides these, Investors have the perks of getting grants, rebates, and co-investments from the Abu Dhabi Investment Office (ADIO). Also, the strategic location of Abu Dhabi connects to GCC, Europe, Asia, and Africa markets, making it a diversified economy in tourism, finance, and renewables, ensuring the growth of businesses.
Steps in Setting up a Business in Abu Dhabi – Key Points to Consider for Entrepreneurs & Investors
Step 1: Choose a Business Activity
Determine the type of business activity you plan to undertake, as this will define how your business is legally recognized under the licenses issued by the Abu Dhabi Department of Economic Development (ADDED).
Step 2: Select a Legal Structure
Choose a legal form that best suits your business objectives, ownership preferences, and operational requirements. The business structures involved include general partnerships, limited liability companies (LLCs), public joint stock companies, and other applicable legal entities.
Step 3: Choose a Trade Name
The trade name must be unique and registered with the Abu Dhabi Department of Economic Development (ADDED).
Step 4: Apply for Initial Approval
Initial approval must be obtained from ADDED. This approval allows you to proceed with the remaining formalities and helps expedite the business setup process.
Step 5: Draft the Memorandum of Association (MOA) or Local Service Agent Agreement (LSA).
Prepare the required legal documents based on the selected business structure.
Step 6: Secure a Business Location
Identify a suitable business location and obtain a valid tenancy contract.
Step 7: Obtain a Business License
After submitting all the required documents and completing approvals, you can proceed to acquire your business license and officially commence operations.
Documents Required for Starting a Business in Abu Dhabi
Mainland Setup Documents
- Passport copies of shareholders and managers
- Proof of address and recent bank statements
- No Objection Certificate (NOC), trade name reservation, initial approval from ADDED, and the Memorandum of Association (MoA)
- Valid tenancy contract with Tawtheeq registration
- Power of Attorney (if applicable)
Free Zone Setup Documents
- Completed company application form
- Passport copies of shareholders
- Passport-size photographs
- List of 2–3 proposed company names
- Detailed description of business activities
- Required visa details
- Two address proofs
- Bank reference letter
Additional Requirements
Notarized documents such as the Articles of Association, shareholders agreement, and board resolution may be needed for complex business structures
Need help getting started?
At Index Legal Translation, we assist startup enthusiasts from around the globe in establishing their businesses in Abu Dhabi. By partnering with certified legal professionals, we ensure that the notarization, translation, and attestation of your documents are handled accurately —without misguidance or inappropriate legal terminology.
Our services have benefited businesses across multiple sectors operating in Abu Dhabi, helping them build strong global connections and expand successfully. Index Legal Translation supports you through every complexity you may face when starting a business in Abu Dhabi.
Contact us today and secure your place in the UAE’s global business hub.
FAQ
Are notarizations and attestations required for the MoA?
Abu Dhabi mainland business setups require the Memorandum of Association (MoA) to undergo notarization and attestation for legal validity, especially with foreign shareholders. This process verifies signatures and document authenticity before submission to the Department of Economic Development (ADDED). Free zones typically do not mandate a traditional MoA, relying instead on zone-specific application forms
Index Legal Translation offers notarization and attestation services for mainland business startups, our services are reliable, and we deliver attested documents on time
Which documents require translation into Arabic and certification?
In Abu Dhabi business setups, official documents submitted to authorities like the Department of Economic Development (ADDED) must often be translated into Arabic by a certified translator and notarized for legal validity.
Mainland-Specific Translations
Memorandum of Association (MoA) requires a certified Arabic translation alongside the original, followed by notarization. Tenancy contracts and shareholders’ agreements need Arabic versions, if not originally in Arabic. Passports and identity proofs for non-Arabic speakers must include certified translations; bank statements and NOCs also require them for submission.
Free Zone Translations
Minimal requirements, as zone authorities like KIZAD or Masdar accept English documents. Application forms, CVs, and business plans rarely need Arabic unless specified for visas. Address proofs and reference letters suffice in English, streamlining the process.
Conclusion
Abu Dhabi is undoubtedly the right choice if you are planning to start a business in the UAE. With its strategic location, strong government support systems, and a wide range of sectors open for investment, Abu Dhabi offers an ideal environment for businesses to grow. But are these factors alone enough to successfully run your business in Abu Dhabi?
The documents submitted for business registration and subsequent procedures must be legitimate, accurate, and compliant with legal requirements. For this reason, professional translation becomes a crucial part of the process.
At Index Legal Translation, all translations are handled by UAE-registered translators and delivered with certified stamps. Our legal translators are fully qualified and licensed, ensuring precise translations without misinterpretation. We provide smooth, accurate translations that fully comply with trade license and visa requirements.