Company Formation in Abu Dhabi
Four Routes, One Office
Setting up in Abu Dhabi is not one decision; it is a choice between four practical routes. Three of them are mainland; one is a free zone. The route you pick determines your licence cost, whether you need an office, whether you can hire, how you invoice local clients, and how fast you can start.
Al Wissam guides you to the right route and then handles the paperwork end to end: documentation, translation, notarisation, coordination with the licensing authority, and the supporting documents your bank will ask for.
At a Glance
Freelance Permit
Trader Licence (Tajer)
Normal Mainland Licence (LLC)
Masdar City Free Zone
The Four Routes
Freelance Permit
You, working under your own name. No company, no office, no staff.
Trader Licence (Tajer)
A real trade name and a real company, with no office required for the first three years.
Normal Mainland Licence (LLC)
A full legal entity with premises, staff, and the widest access to the local market.
Masdar City Free Zone
A free zone company with 100% foreign ownership, no office, and access to a start-up ecosystem.
Why Masdar City?
Masdar City is Abu Dhabi's sustainable innovation district and a subsidiary of Mubadala Investment Company. It combines a business-friendly free zone with a genuine technology and research ecosystem, which makes it a natural home for founders, consultants, technology companies and IP-led businesses.
A free zone built around a one-stop-shop model for licensing and government services.
A community of global organisations, research institutions and start-ups in one location.
Direct access to The Catalyst, Masdar City's start-up and acceleration ecosystem, with programmes, networking and events.
An address in a district aligned with the UAE's net-zero 2050 agenda, useful positioning for sustainability, clean-tech and ESG-facing businesses.
Masdar City Free Zone Start-up Package
For founders starting with one or two partners who do not need to trade on the ground locally, this is the lightest way into the market. No office lease. No visa commitment. A licence you can grow into later.
Masdar City Free Zone Start-up Package
- Annual package cost
- From approximately AED 7,000 per year (the minimum package that fits a standard start-up structure)
- Physical office
- Not required, no premises to rent at this stage
- Visas
- Not included in the package; can be added later
- Business activities
- Up to 2 activities on the licence
- Shareholders
- Up to 3 shareholders
- Address documentation
- Masdar City provides the facilitating lease/address documentation used to support bank account opening
- Corporate documents
- Memorandum of Association (MOA) and Board Resolution with general powers
- Additional powers
- Specific or additional powers can be added, typically from approximately AED 250
- Employment visa holders
- A person holding a UAE employment visa may still be a shareholder/partner in the company
- Al Wissam professional fee
- AED 1,700, in addition to the applicable Masdar City fees
All figures are indicative and subject to confirmation by the authority.
Start Now, Grow Later
You do not need to take visa or office facilities from day one. If the business later needs staff or residency visas, the structure can be upgraded by adding a Flexi Desk and a visa allocation (one visa or several, depending on the facility and package selected). This keeps your fixed costs low at the start while leaving every option open as the company develops.
Start-up & Acceleration Support: The Catalyst
Beyond the licence, Masdar City offers a start-up ecosystem worth exploring: acceleration programmes, networking, events and support initiatives. Eligibility depends on the nature of the business: technology, patent and IP elements, and commercial potential are usually the deciding factors. We recommend arranging a meeting with the Catalyst team at info@catalyst.ae to explore whether your project qualifies.
The Four Routes Compared
No route is universally better. The right one depends on who your customers are, where the work is delivered, and whether you need to hire.
- Legal form
- Individual permit, you work under your own name, not a company
- Official government fee
- AED 5,225 total (1–5 activities included)
- Office rent
- Not applicable
- Corporate documents / MOA
- Not applicable
- UBO (Real Beneficiary) registration
- Not applicable
- Al Wissam service fee
- AED 500, full process handled for you
- Tenancy contract (Tawtheeq)
- Not required, you can operate from home
- Set-up time
- 2 – 5 working days (TAMM)
- Licence validity
- 1 – 2 years, renewable
- Staff / visa quota
- None, cannot sponsor employees; can sponsor your own residency visa
- Partners / additional investors
- Not possible, one individual only
- Ownership / sponsor
- 100% yours, no local sponsor, no NOC needed
- Serving the local UAE market
- Direct
- Best for
- Solo consultants working entirely alone, no shop, no staff
- Legal form
- Sole establishment / one-person company with a trade name
- Official government fee
- AED 4,000 – 7,100
- Office rent
- Not applicable, unless you choose to lease one voluntarily
- Corporate documents / MOA
- Not applicable (issued automatically, no notarisation step)
- UBO (Real Beneficiary) registration
- Required to obtain the licence
- Al Wissam service fee
- AED 1,000 – 1,700, full process handled for you
- Tenancy contract (Tawtheeq)
- Not required for the first 3 years; office optional at any time after, with no obligation
- Set-up time
- 2 – 3 working days (no office approvals needed)
- Licence validity
- 1 year, renewable
- Staff / visa quota
- Up to 3 labour quotas included (Trader "Golden Package"); hires under this quota must be male
- Partners / additional investors
- Can be structured with partners as the business grows
- Ownership / sponsor
- 100% for most activities; some regulated activities need a UAE/GCC national tie-up
- Serving the local UAE market
- Direct
- Best for
- Small-to-growing consultancy: a real trade name without the office burden, room to add partners and staff
- Legal form
- LLC or establishment, a full separate legal entity
- Official government fee
- AED 3,000 – 9,000 (excluding office rent)
- Office rent
- AED 12,000 – 20,000+ per year, depending on location
- Corporate documents / MOA
- Approx. AED 1,000, plus AED 900 for express service; notarised before the licence is issued
- UBO (Real Beneficiary) registration
- Required to obtain the licence
- Al Wissam service fee
- AED 1,000 – 1,700, full process handled for you
- Tenancy contract (Tawtheeq)
- Mandatory from day one: registered office, shop or warehouse required before the licence is issued
- Set-up time
- 1 – 3 weeks (name approval + activity approvals + Tawtheeq + notarised MOA)
- Licence validity
- 1 year, renewed annually with proof of an active tenancy
- Staff / visa quota
- Quota tied to office size, can sponsor multiple employees
- Partners / additional investors
- Full multi-partner LLC structure available
- Ownership / sponsor
- 100% foreign ownership for most activities
- Serving the local UAE market
- Direct, broadest access, including government tenders
- Best for
- Businesses needing a physical presence, hiring staff, or pursuing government and corporate contracts
- Legal form
- Free zone company, a separate legal entity registered in the free zone
- Official government fee
- From approx. AED 7,000 per year (Start-up Package)
- Office rent
- Not applicable under the Start-up Package
- Corporate documents / MOA
- MOA and Board Resolution with general powers included; specific powers from approx. AED 250
- UBO (Real Beneficiary) registration
- To be confirmed‡
- Al Wissam service fee
- AED 1,000 – 2,000, full process handled for you
- Tenancy contract (Tawtheeq)
- Not required, Masdar City provides facilitating lease/address documentation to support bank account opening
- Set-up time
- 2 – 7 working days‡
- Licence validity
- 1 year, renewable‡
- Staff / visa quota
- None included, add a Flexi Desk and visa allocation later
- Partners / additional investors
- Up to 3 shareholders; an employment visa holder may be a shareholder
- Ownership / sponsor
- 100% foreign ownership
- Serving the local UAE market
- Usually through a local distributor, agent or a mainland branch
- Best for
- Start-ups, consultancy, technology and IP-led businesses; access to The Catalyst ecosystem
‡ To be confirmed with the authority · Indicative government fees only, based on published schedules, plus typical set-up agent costs. Fees change periodically; confirm the current figures before quoting. Requirements also vary by activity; we confirm the position for each client before they commit.
One Conversation Before You Commit
- A free initial consultation to determine which of the four routes fits your plan.
- Selection of the correct business activities for your licence.
- Preparation of the MOA, Board Resolution and supporting corporate documents.
- Certified legal translation and notarisation where required.
- Coordination with the licensing authority from application to licence issuance.
- Preparation of the documentation package your bank will request for account opening.
Talk to Us Before You Commit to a Structure
One conversation can save you a year of the wrong licence.