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Abu Dhabi free zone company formation is a fast, efficient and an affordable route to business journey in UAE. Abu Dhabi, the capital of the Emirates, is a central global hub for trade and investment. Free zones in Abu Dhabi are especially dedicated to various sectors like technology, finance, logistics, manufacturing, AI, healthcare, and other medium and heavy industries, making them the perfect choice for both startups and large-scale businesses. 

Dubiz Business Setup provides range of Abu Dhabi free zone company setup services including trade licensing, business bank account setup, UAE VAT and tax advice, company auditing, and freezone visa application. Our free zone consultants in Abu Dhabi bring clarity and structure to your business setup, making your experience in UAE absolutely stress free and seamless. 

Benefits Of Abu Dhabi Free Zone Company Setup 

Companies in Abu Dhabi free zones enjoy a wide range of advantages, including full foreign ownership, zero corporate and personal income tax, modern infrastructure, and affordable business license packages. 

  • 100% foreign ownership

    100% foreign ownership

    There is no requirement for a local sponsor. Whether you are a local or a foreign entrepreneur, you get to keep 100% ownership of your business in Abu Dhabi free zones.

  • Dual license option

    Dual license option

    Abu Dhabi free zones do not restrict your business operations. By obtaining a dual license, you can operate on the mainland without setting up a separate branch or entity. 

  • Zero-tax benefits

    Zero-tax benefits

    If your entity is a qualifying freezone person, you will have to pay 0% corporate tax as per UAE FTA rules. In addition, there are no personal income taxes and 100% customs duty exemptions. 

  • Full profit repatriation

    Full profit repatriation

    There are no restrictions on international transactions or currencies. You can easily take back 100% of your profits and cash to your home country. 

  • Single window business setup

    Single window business setup

    You get streamlined processes of company setup in Abu Dhabi free zones, where the free zone authority (FZA) acts as a single window for UAE trade licenses, visas, and approvals.  

  • Vibrant business community

    Vibrant business community

    Abu Dhabi free zones host thousands of established companies, global brands, and high-net-worth investors, creating strong networking opportunities. 

  • Specialized infrastructure

    Specialized infrastructure

    Modern infrastructure, specialised office spaces, and reliable logistics are core features of Abu Dhabi free zones that support smooth business operations and greater connectivity. 

  • Quick and easy residency

    Quick and easy residency

    Obtaining  UAE residence visa for self, dependents, and staff is essentially simpler and quick in free zones. You can immediately start business operations without delay.

Free Zones In Abu Dhabi

Some of the most progressive UAE free trade zones are located in Abu Dhabi. Each free zone has its own specialised focus and features, making them suitable for a variety of businesses: 

  • Masdar City Free Zone

    Masdar City Free Zone

    A future-focused urban hub that supports life sciences, AI, clean energy, along with marketing, HR, healthcare, retail, and food businesses. Home to 1500+ companies.
  • twofour54 Abu Dhabi

    twofour54 Abu Dhabi

    Abu Dhabi’s pioneering media free zone for media, creative, gaming, and entertainment companies. It offers modern infrastructure and no minimum capital requirement.
  • Khalifa Industrial Zone Abu Dhabi (KIZAD)

    Khalifa Industrial Zone Abu Dhabi (KIZAD)

    The largest industrial and logistics free zone in Abu Dhabi and MENA region, suitable for businesses scaling fast. It offers ready warehouses and industrial units.
  • Abu Dhabi Airport Free Zone (ADAFZ)

    Abu Dhabi Airport Free Zone (ADAFZ)

    Located next to Abu Dhabi International Airport, ideal for e-commerce, logistics, aerospace, and pharma businesses. It provides instant business licensing in UAE.
  • Abu Dhabi Global Market (ADGM)

    Abu Dhabi Global Market (ADGM)

    One of the world’s most premier financial centers, located in the capital of the UAE, Abu Dhabi, best for banks, fintech, and investment companies.
  • Industrial City of Abu Dhabi (ICAD)

    Industrial City of Abu Dhabi (ICAD)

    Spanning 40 kilometers, ICAD supports various industries, including heavy and light manufacturing, food processing, logistics, and high-tech production.
  • Abu Dhabi Ports Company (ADPC)

    Abu Dhabi Ports Company (ADPC)

    A key free zone in UAE supporting maritime trade, logistics, industrial development, and port-based businesses, with strong connectivity to regional and global markets. 

Legal Structures In Abu Dhabi Free Zones

Individuals and businesses can register the following types of legal entities in Abu Dhabi free zones: 

Free zone limited liability company (FZ-LLC)

Free zone limited liability company (FZ-LLC)

A free zone LLC, also called as free zone company (FZ Co.), is a company formed by a minimum of 2 and up to 50 shareholders. Depending on the business activity and selected free zone, a minimum capital requirement may apply. 

Branch of a foreign or UAE company

Branch of a foreign or UAE company

Foreign companies or existing UAE companies can open a branch or representative office in an Abu Dhabi free zone. The branch must obtain the required license from the respective Abu Dhabi free zone authority (FZA).

Freelance permit

Freelance permit

Freelancers can operate as independent professionals by obtaining a freelance permit in Abu Dhabi free zone. This allows them to offer services to multiple clients without being tied to any company or payroll. 

Free zone establishment (FZE)

Free zone establishment (FZE)

A Free zone establishment is a legal entity with a single shareholder, either an individual or a corporate entity. This structure is ideal for solo entrepreneurs or small business owners who want 100% ownership and control. 

Note: You must check with the respective free zone authority to see which legal structures they allow. 

Below given are the steps of Abu Dhabi free zone company formation: 

Process of Company Formation in UAE

Free zones in Abu Dhabi play a major role in increasing the economic diversification and foreign investment in UAE. As a result, government has made the process of Abu Dhabi trade licensing and business registration very simple, fast - with no administrative restrictions.

 Decide your business activity
1

 Decide your business activity

Your first step is identifying the desired business activity or combination of activities. This can be from various sectors such as marketing, renewable energy, commerce, HR, finance, healthcare, real estate, technology, or retail.

Make sure the selected activity is permitted by the chosen free zone. Our free zone experts at Dubiz can guide you through this process. 

Choose the legal structure
2

Choose the legal structure

The common types of legal entities you can establish in Abu Dhabi free zones include LLC, branch of a UAE or foreign company, general partnership and free zone establishment. The legal structure you choose will impact your UAE company’s:

  • Tax responsibilities 
  • Ownership structure
  • Operational flexibility

Therefore, choose wisely and under expert guidance. Also, the chosen legal structure must be approved by the selected free zone authority. 

Register trade name for business
3

Register trade name for business

Here’s the interesting step, naming your Abu Dhabi company. You can check the availability of trades name with the free zone authority or Abu Dhabi Department of Economic Development (ADDED). The trade name of your business must comply with the following UAE’s naming rules:

  • It must not violate any moral or religious sentiments. 
  • It must include the legal form of the business (e.g., LLC, FZE) following the name. 
  • The trade name must not be registered by any other UAE company. 
  • It must be compatible with your desired business activity. 
  • It should not contain the name of any external or UAE government authority.

You can submit alternative names to the authority, and the most suitable one will be registered. 

Pick your office space
4

Pick your office space

Abu Dhabi free zones offer specialized and highly advanced office spaces available at reasonable price point. You can either purchase or lease office space depending on your business requirements and financial capacity. 

  • If your business involves heavy industry, requires many employees, or plans to get multiple licenses, a bigger workspace would work well.  
  • On the other hand, for starting a low-cost business in Abu Dhabi such as freelancing, you can operate through flexi-desks or a virtual address (if available).  

Nonetheless, having a dedicated and professional office space enhances the overall credibility of your business.

Approval from free zone authority
5

Approval from free zone authority

Abu Dhabi free zone companies are registered and regulated by their respective free zone authorities. To obtain a business license and progressing with Abu Dhabi free zone company formation, you must first secure initial approval. 

For that, you will need to submit an application with respective freezone authority along with necessary documents such as passport size photos, financial statements, signature specimens, business plan, address proof, etc. Once you receive the initial approval, you can proceed with the Abu Dhabi license registration process. 

Apply for the business license
6

Apply for the business license

With all the approvals in place, you can confidently apply for your desired free zone business license. Some common types of business licenses available in Abu Dhabi free zones include:   

  • Commercial/ trading license
  • Consultancy / services license
  • E-commerce license
  • Offshore license
  • Industrial license
  • Freelancer license
  • Educational license
  • Warehouse license
  • Media license
  • Manufacturing license

Please remember that your business license and business activities in UAE must match. Any mismatch can result in penalties or fines. We advise you to consult our Abu Dhabi free zone experts.

Free zone license issuance 
7

Free zone license issuance 

Once you submit the application and pay the fees, the authority will review your Abu Dhabi business license request. The license fees will vary based on the type of trade license you are seeking. After approval, your business license will be issued and your Abu Dhabi free zone company formation will be completed.
Visa and bank account setup
8

Visa and bank account setup

Once your business is officially registered and licensed in an Abu Dhabi free zone, you can proceed with visa applications and UAE business bank account opening. Dubiz PRO team can assist with applying for UAE residence visas for you, your family, and your employees. Additionally, through our network with leading UAE banks, we can also help you open a business bank account  quickly.

Required Documents For Business Setup In Abu Dhabi Free Zones 

You will need specific documents at the time of initial approval as well as during the license application process in Abu Dhabi free zones. Below is a general list of the required documents for both steps: 
Documents required for initial approval 
  • Filled application form
  • Detailed business plan
  • Passport copies of shareholders and managers
  • Financial statements (past 2 years)
  • Title deed, if applicable 
  • Letter of intent
  • Original and notarized RIC for the manger 
  • Copy of current trade license (if any) 
Documents required for license application 
  • Completed license application form
  • Passport-sized photographs of shareholders and managers 
  • Board’s resolution on manager’s appointment 
  • Share capital information 
  • Specimen signature of shareholders and manager 
  • MOA and AOA (notarised and attested) 

*Please note that documents required for Abu Dhabi free zone company formation is subject to variations. Speaking to an expert would give you much clarity.

Cost of Business Setup in Abu Dhabi Free Zones

Abu Dhabi free zone license cost starts from AED 7,000* (without visa) and AED 17,500* (one free visa).
Please note that the total cost of free zone business setup Abu Dhabi may vary depending on your trade license type, business structure, selected free zone and other requirements. Some of the common expenses include:
Establishment card fees
Trade name registration
Initial approval fees
Visa allocation fees
Medicals and Emirates ID
Cost of commercial space
Typing charges and document preparation
Other miscellaneous expenses

For an accurate cost estimate, we recommend getting in touch with our Abu Dhabi free zone company formation consultants.

Compliance Requirements for Abu Dhabi Free Zone Companies

Companies operating anywhere in UAE (mainland, free zone, or offshore), must comply with strict laws and regulations that ensure transparency, fairness, and prevent illegal activities. The same applies to Abu Dhabi free zone company setup.

UAE tax registration

Every business, whether large or small, must register for Corporate Tax and/or VAT in Abu Dhabi free zones, depending on the business activity and turnover, in line with FTA tax laws.

UBO filing

Businesses must clearly disclose the individuals who ultimately own and control the company to the Abu Dhabi authorities to ensure transparency.

AML & CFT compliance

Firms must implement reasonable Anti-Money Laundering (AML) and Counter-Financing of Terrorism (CFT) systems. This ensures financial transparency and prevents illegal activities.

Timely renewals & amendments

Trade licenses, visas, and permits must be renewed and updated on time to remain legally valid which otherwise can cause fines and business disruptions.

Dubiz Business Setup provides a range of corporate services in UAE, including Abu Dhabi, which can help you streamline your compliance.

Start Your Abu Dhabi Business With Dubiz 

Free zones in Abu Dhabi offer a business-friendly environment with 100% ownership, tax advantages, and a simple setup process. At Dubiz Business Setup, our experienced team of PROs, consultants, legal experts, and accountants ensures a smooth and compliant free zone business journey in UAE.

We will handle all your approvals, applications, government dealings, and other legal formalities, so that you can focus entirely on growing your business in UAE.

Our Abu Dhabi Business Setup Services

  • Company incorporation and licensing
  • UAE residence and golden visa services
  • PRO services and document clearance
  • Corporate banking assistance
  • Taxation and accounting support
  • UAE corporate services

Frequently Asked Questions