TRW & Co · Company formation
How to Set Up a Company in Abu Dhabi Mainland
Company setup in Abu Dhabi mainland runs through the Abu Dhabi Department of Economic Development and the TAMM platform, with registration now overseen by ADRA. Most foreign investors form a limited liability company they can own outright. This guide explains licence types, legal forms, the step-by-step process, premises, renewals and the mistakes that delay licensing.
Key pointThe activity list on your licence drives ownership conditions, sector approvals, premises and visa capacity, so choosing activities is the most consequential decision in Abu Dhabi mainland setup, not the paperwork that follows.
At a glance
ADDED licenses, TAMM delivers
Economic licences are issued by the Abu Dhabi Department of Economic Development and applied for, renewed and amended through the TAMM government services platform.
ADRA since January 2025
ADDED launched the Abu Dhabi Registration and Licensing Authority in January 2025 to oversee business registration on the mainland and in non-financial free zones.
Full foreign ownership possible
Under the federal Commercial Companies Law, most activities can be fully foreign-owned, subject to conditions for strategic-impact activities and sector regulators.
Several licence products
ADDED offers a Standard Licence for all legal forms, plus dual, freelancer, virtual and trader licences for specific situations and investor profiles.
Premises are tied in
Licences depend on a registered tenancy of suitable premises; industrial and stock-holding activities need sites that meet zoning and safety requirements.
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The short answer: company setup in Abu Dhabi mainland
Company setup in Abu Dhabi mainland means obtaining an economic licence from the Abu Dhabi Department of Economic Development (ADDED), applied for through the TAMM government services platform. You choose your activities, reserve a trade name, select a legal form (most foreign investors use a limited liability company), register premises, sign constitutional documents and pay the licence fees. Since January 2025, registration is overseen by the Abu Dhabi Registration and Licensing Authority (ADRA), created within ADDED.
A mainland licence lets you trade directly with customers throughout the emirate and, subject to licence scope, the wider UAE. For most activities a foreign investor can now own the whole company, without a UAE national partner. The exceptions are activities treated as having strategic impact, and some regulated sectors where a sector regulator adds its own conditions.
This guide covers the onshore route. If you are weighing Abu Dhabi's free zones or its common-law centre instead, see our guides to Abu Dhabi free zones and setting up a company in ADGM.
The legal framework and who regulates what
Three layers of rules apply to company setup in Abu Dhabi mainland. Federal law sets the corporate rules: the Federal Commercial Companies Law (Federal Decree-Law No. 32 of 2021, as amended) governs legal forms, capital, governance and the removal of the general national-ownership requirement. Federal tax, labour, immigration and anti-money laundering law apply in full.
At emirate level, ADDED licenses economic activity and, through ADRA, keeps the register of economic establishments. ADDED states that ADRA oversees registration on the mainland and in the emirate's non-financial economic free zones and is building a unified database of establishments. See the ADDED announcement on ADRA.
Sector regulators sit on top. Healthcare, education, food, tourism, financial services, media and industrial activities each need approvals from the relevant authority before or alongside the economic licence. Disputes are heard by the courts of the Abu Dhabi Judicial Department unless the parties agree arbitration or, where permitted, another forum.
| Body | Role |
|---|---|
| ADDED / ADRA | Trade names, economic licences, amendments, renewals and the establishment register |
| TAMM | Single digital channel for ADDED and other Abu Dhabi government services |
| Sector authorities | Activity-specific approvals (health, education, tourism, industry, media, etc.) |
| Municipal lease registration | Registration of commercial tenancy contracts for licensed premises |
| MOHRE and ICP | Establishment registration for labour and immigration; work permits and residence visas |
| Federal Tax Authority | Corporate tax and VAT registration |
Licence types: commercial, professional, industrial and more
ADDED groups its permissions into economic licences and permits. Within economic licences, ADDED lists a Standard Licence, which accommodates all legal forms of business, alongside specialised products: a Dual Licence for free zone establishments operating outside the free zone, a Freelancer Licence, a Virtual Licence for individuals living outside the UAE, an Abu Dhabi Trader Licence and licences reserved for UAE citizens. See the official ADDED licensing requirements.
In practice, advisers still describe a standard licence by the nature of the activity:
- Commercial — trading, import and export, retail, general trading and many services. Most foreign-owned operating companies hold commercial activities.
- Professional — consultancy, design, IT services and other skills-based activities. ADDED has extended professional licensing that permits full foreign ownership across a broad list of professional services.
- Industrial — manufacturing, assembly and processing. Industrial activities usually need further approvals, a suitable plot in an industrial area and environmental and civil-defence clearances.
- Civil and craft activities — some professional partnerships and specialised trades are structured as civil companies; whether that form suits you depends on the profession and the ownership mix.
The activity list drives everything else: who can own the company, which approvals are needed, what premises you need and how many visas the establishment can support. Choose activities narrowly enough to obtain approvals quickly, but broadly enough to cover the contracts you actually intend to sign.
Choosing a legal form for foreign investors
For foreign investors, company setup in Abu Dhabi mainland usually means one of four forms. Our wider guide to legal forms of business in the UAE covers the full list.
| Form | Ownership | Liability | Typical use |
|---|---|---|---|
| Limited liability company (LLC) | One or more shareholders; full foreign ownership for most activities | Limited to capital | Operating businesses, joint ventures, trading and services |
| Sole proprietorship LLC (one-person company) | Single individual or corporate owner | Limited to capital | Founder-owned or subsidiary businesses |
| Branch of a foreign or UAE company | Parent company | Parent fully liable | Extending an existing group's activities onshore |
| Civil company / professional firm | Professionals, subject to activity rules | Partners may bear wider liability | Some professional practices |
The LLC is the default because it ring-fences liability, allows several shareholders and is familiar to banks and counterparties. A branch is attractive where the parent wants to contract in its own name and consolidate results, but the parent then stands behind every liability. For the trade-offs, see our guide to opening a branch of a foreign company in the UAE.
Full foreign ownership does not mean no conditions. For activities with strategic impact, and in regulated sectors such as banking, insurance, healthcare and education, sector approvals or ownership conditions still apply. Check the activity against current ADDED and sector-regulator requirements before you draft the memorandum of association, because changing the ownership structure after licensing is slower than getting it right first.
Step by step: the ADDED and TAMM process
The sequence below reflects how company setup in Abu Dhabi typically runs through TAMM. Exact steps differ by activity and legal form.
- Select activities and legal form. Confirm the activities against ADDED's activity list, check whether any sector approval is needed and choose the legal form.
- Reserve the trade name. Apply through TAMM for a trade name that complies with naming rules. Avoid names that suggest a regulated activity you do not hold. Note that a trade name is not a trade mark; see our note on trade names and trade marks.
- Obtain initial approval. ADDED issues an initial approval that lets you proceed with premises, documents and external approvals.
- Secure and register premises. Lease commercial premises that suit the activity and register the tenancy contract. Industrial and some service activities need specific zoning or inspections.
- Draft and sign constitutional documents. Prepare the memorandum of association (and articles where applicable), sign before the competent authority or notary, and provide legalised documents for corporate shareholders.
- Obtain sector approvals. Where required, secure approvals from the relevant health, education, tourism, media, industrial or financial regulator.
- Pay fees and receive the economic licence. Pay licence fees through TAMM. The licence is issued electronically, along with registration in the establishment register.
- Complete post-licence registrations. Register with MOHRE and ICP for an establishment card, apply for visas, open the bank account and register for corporate tax and, if required, VAT.
ADDED and TAMM publish the current service requirements; always check the live service card, because document lists and fees change.
Premises, renewals and amendments
Premises are where many mainland timetables slip. An economic licence is tied to an address, and the tenancy must be registered in the emirate's lease system before the licence is issued or renewed. Shared offices and business centres can work for service activities, but trading activities that hold stock, and any industrial activity, need premises that meet zoning and safety rules.
Licences are renewed through TAMM. Renewal typically requires a valid registered lease, payment of renewal fees and any outstanding fines, and confirmation that sector approvals remain valid. Late renewal can trigger penalties and complicate visa renewals and banking.
Amendments, such as adding an activity, changing the trade name, moving premises or transferring shares, also run through TAMM. Share transfers in an LLC require an amended memorandum signed before the authority. For a national view of what must be kept up to date each year, see our guide to trade licence renewals and amendments.
What drives cost and timing
Published fee schedules change, and the total cost of company setup in Abu Dhabi depends far more on your choices than on the headline licence fee. Rather than rely on a quoted package price, budget for each of the following components and check current amounts on the relevant TAMM service card.
- Licence and registration fees, which vary by activity, legal form and the number of activities.
- Premises, usually the largest recurring cost, and one that rises with headcount and stock.
- Sector approvals, which add their own fees, inspections and waiting time.
- Document work abroad: notarisation, apostille or legalisation, and certified translation of parent documents.
- People costs: establishment card, visas, medical tests, Emirates ID and mandatory health insurance.
- Ongoing compliance: accounting, audit where required, tax filings and renewals.
Timing follows the same pattern. An individually owned service company with a ready lease can move quickly; a company with corporate shareholders, a regulated activity or industrial premises will take longer, mostly because of steps outside ADDED's control.
Illustrative scenario: an engineering consultancy expands to Abu Dhabi
This scenario is illustrative and does not describe a real client.
A UK-headquartered engineering consultancy has won a framework agreement with an Abu Dhabi developer and needs to invoice locally and second engineers to project sites across the emirate. It considers an ADGM company, a free zone company with a dual licence and a mainland entity.
Because the client base is onshore and some public-sector clients prefer a mainland counterparty, the group opts for company setup in Abu Dhabi mainland as a single-shareholder LLC owned by the UK parent. Engineering consultancy needs an approval from the relevant engineering authority, so the activity is selected with that approval in mind. The parent's documents are apostilled and translated, a small serviced office is leased and registered, and the memorandum is signed under a power of attorney.
After licensing, the company registers with MOHRE and ICP, sponsors engineers' visas, registers for corporate tax and VAT, and puts intra-group service agreements in place to support transfer pricing.
Risks and common mistakes
Choosing activities that do not match the contracts
Banks, customers and inspectors read the licence. If a company invoices for services that are not on its activity list, it risks fines, problems at renewal and difficulty opening or keeping a bank account. Conversely, piling unrelated activities onto one licence can trigger extra approvals and slow the process. Map the revenue lines you expect for the next two years and choose activities that cover them cleanly, with room to add more later through an amendment.
Assuming full foreign ownership applies to every activity
The Commercial Companies Law removed the general requirement for a UAE national majority shareholder, but it allows authorities to set conditions for activities with strategic impact, and sector regulators can impose their own ownership or licensing conditions. Before signing a lease or drafting the memorandum, confirm with ADDED and the relevant regulator that the planned ownership is permitted for each activity, and check whether a local service agent or partner is required for that activity.
Underestimating premises requirements
A licence needs a registered lease of premises suitable for the activity. Founders sometimes sign a lease that cannot be registered for the chosen activity, or a virtual arrangement that does not support the number of visas the business needs. Check zoning, the landlord's permissions and whether the space supports your headcount before signing. Industrial activities need particular care because civil defence and environmental approvals depend on the site.
Ignoring post-licence compliance
Licensing is the start, not the end. Companies must register for corporate tax within the deadlines set by the Federal Tax Authority, keep beneficial-ownership registers, follow Wage Protection System rules for payroll, meet Emiratisation obligations where they apply and renew the licence and establishment card on time. Missing any of these can block visa processing. Our guide to annual compliance for UAE companies sets out the calendar.
Cross-border angle
Foreign parents need their documents to work in the UAE. Corporate shareholders from Apostille Convention countries and other jurisdictions must follow the appropriate legalisation route, and documents not in Arabic or English may need certified translation. Leave time for this; it is often slower than the Abu Dhabi side.
Groups from India, Bangladesh, Saudi Arabia, the UK, Singapore and China should also check home-country rules on outbound investment, controlled foreign companies and permanent establishment, and plan how profits and fees will flow back. The UAE's network of double tax agreements can help, but only if the UAE entity has genuine substance and obtains a tax residency certificate where needed.
Abu Dhabi mainland contracts are typically subject to UAE law and the Abu Dhabi courts unless the parties agree arbitration. Where representation before the onshore courts is needed, we work alongside locally licensed advocates.
Checklist for company setup in Abu Dhabi
- Confirm that an onshore licence is the right fit, compared with ADGM or an Abu Dhabi free zone.
- Select activities and check ownership conditions and sector approvals for each.
- Choose the legal form (LLC, one-person LLC, branch or professional firm).
- Reserve the trade name and obtain initial approval through TAMM.
- Lease and register suitable premises before final licensing.
- Prepare legalised parent documents, powers of attorney and the memorandum of association.
- Plan establishment card, visas, bank account, corporate tax and VAT registration.
- Diarise licence renewal, lease renewal and annual compliance dates.
TRW & Co advises on structure, ownership and activity selection, coordinates the ADDED and TAMM process and prepares the constitutional documents for company setup in Abu Dhabi. See our practice areas or contact us to plan your entry.
Frequently asked questions
01Can a foreigner own 100% of a company in Abu Dhabi mainland?
For most commercial and professional activities, yes. The federal Commercial Companies Law removed the general requirement for a UAE national majority shareholder, and ADDED has expanded licensing that permits full foreign ownership across a broad range of professional services. Activities with strategic impact, and regulated sectors such as banking, insurance, healthcare and education, may carry ownership conditions or extra approvals. Check each planned activity with ADDED and any sector regulator before drafting the memorandum of association.
02What is TAMM and how is it used for company setup in Abu Dhabi?
TAMM is Abu Dhabi's unified digital platform for government services. ADDED's economic licensing services, including trade name reservation, licence issuance, renewal, amendment and cancellation, are accessed through TAMM. Applicants create an account, choose the relevant service, upload documents and pay fees online. Other authorities whose approvals may be needed for your activity also use TAMM, which makes it the main channel for company setup in Abu Dhabi mainland.
03What is ADRA?
ADRA is the Abu Dhabi Registration and Licensing Authority, launched by ADDED in January 2025 following an Abu Dhabi Executive Council resolution. ADDED says ADRA oversees business registration on the mainland and in the emirate's non-financial economic free zones, coordinates with other bodies to streamline licensing and is building a unified database of economic establishments. For applicants, the practical channel remains TAMM, but ADRA is the body behind registration decisions.
04Do I need an office for an Abu Dhabi mainland licence?
Generally, yes. A standard economic licence is tied to registered premises suitable for the activity, and the lease must be registered and kept valid for renewals. Some specialised licences, such as the freelancer and virtual licences, are designed for people without physical premises, but they come with activity and eligibility limits. Trading companies holding stock and industrial operators need premises that meet zoning, civil defence and environmental requirements.
05Should I choose Abu Dhabi mainland, ADGM or an Abu Dhabi free zone?
Choose the mainland if your customers are onshore, you need to trade throughout the emirate, or you will bid for government work. Choose ADGM if you need common-law governance, a holding or fund vehicle, or a financial services licence. Choose an Abu Dhabi free zone for activities that suit its specialism, such as logistics, media or clean technology. Many groups combine them, for example an ADGM holding company with a mainland operating subsidiary.
06How are Abu Dhabi mainland licences renewed?
Renewals are processed through TAMM. You typically need a valid registered lease, payment of renewal fees and any outstanding fines, and confirmation that sector approvals remain valid. Late renewal can lead to penalties and can affect establishment card and visa renewals, as well as banking. Diarise the renewal date and the lease expiry together, because a lapsed lease is the most common reason a renewal stalls.
Sources and official materials
- ADDED — Licensing requirements — Economic licence types and licensing services
- ADDED — Launch of ADRA — Role of the Abu Dhabi Registration and Licensing Authority
- TAMM — Abu Dhabi Government Services — Digital channel for licensing services
- ADDED — Establish your business — Official overview of setting up in Abu Dhabi
- UAE Legislation portal — Federal Commercial Companies Law and amendments
- Federal Tax Authority — Corporate tax and VAT registration
General information only, current as at 27 October 2026. It is not legal advice and does not create a lawyer–client relationship. UAE law differs between the onshore jurisdiction, the DIFC, ADGM and the free zones, and changes frequently; check current official sources and take advice on the facts of your matter.
