Commercial License Abu Dhabi: Detailed Guide 2025 | Masdar Free Zone
Setting up a business in Abu Dhabi offers unmatched opportunities, from strategic location and world-class infrastructure to investor-friendly policies and a thriving economy. But before you can operate legally, you need the right documentation.
One of the most crucial steps is obtaining a commercial license in Abu Dhabi. This guide will walk you through what it is, how to get it, the costs involved, and why Masdar City Free Zone stands out as one of the best places to secure yours.
What is a Commercial License in Abu Dhabi?
A commercial license in Abu Dhabi is an official permit issued by the relevant authority that allows a company to engage in commercial activities. This includes, but is not limited to:
- Import and export of goods
- Wholesale and retail trading
- E-commerce and online business operations
- Professional and consultancy services
Your choice of licence depends on your business activity. For instance, an e-commerce company will need a different set of permissions compared to a consultancy firm.
In Masdar City Free Zone, you can get commercial licences for a wide range of activities under categories like Trading, General Trading, Service, and E-commerce — offering greater flexibility for future business expansion.
How Can I Get a Commercial License in Abu Dhabi?
While the process may differ slightly depending on the jurisdiction, obtaining a commercial license in Abu Dhabi via Masdar City Free Zone typically involves these steps:
Choose Your Business Activity
Select your business activity from Masdar City’s approved list. This ensures your licence matches your intended operations.Select Your Legal Structure
Decide whether you will register as:Free Zone Establishment (FZE) — single shareholder
Free Zone Company (FZC) — multiple shareholders
Branch Office — branch of an existing UAE or foreign company
Prepare the Required Documents
Common requirements include:Passport copy of shareholders and managers
Business plan
Proof of address
Application form
Submit Your Application
Masdar City’s One-Stop-Shop service handles your paperwork, so you don’t need to deal with multiple agencies.Pay the Licence Fee
Costs depend on your activity, number of visas, and office requirements.Receive Your Licence
In most cases, you can have your commercial license in Abu Dhabi issued within 3–5 working days.
How Much is the Business Permit in Abu Dhabi?
The cost of a commercial license in Abu Dhabi can vary significantly depending on:
- Business activity type — e-commerce, trading, consultancy, etc.
- Number of visas you require for staff and partners
- Office space — physical office, flexi-desk, or virtual office solutions
- Licence duration — 1-year, 2-year, or 3-year packages
In Masdar City Free Zone, pricing is transparent and competitive. While starting packages can be relatively affordable, the real savings come from tax benefits:
- 0% corporate tax
- 0% personal income tax
- No import/export duties
This makes your long-term operational costs significantly lower compared to many other business jurisdictions.
Commercial Licence Verification Abu Dhabi
Once your commercial licence is issued, it’s important to verify its authenticity. This protects you from potential fraud and ensures compliance with Abu Dhabi’s business regulations.
How to verify your Licence:
- Through ADDED (Abu Dhabi Department of Economic Development) for mainland licences
- Through Masdar City Free Zone’s portal for licences issued within the zone
By confirming your licence status, you safeguard your operations and maintain credibility with partners, suppliers, and customers.
5 Reasons to Get Your Commercial License in Masdar City Free Zone
1. 100% Foreign Ownership
You retain complete control over your business with no requirement for a local Emirati partner. This gives you full authority over decisions and operations.
2. Tax-Free Business Environment
Masdar City Free Zone offers:
- 0% corporate tax
- 0% personal tax
- No import/export duties
This makes it one of the most cost-efficient places to operate in Abu Dhabi.
3. Fast and Efficient Setup
The average processing time for a commercial license in Abu Dhabi via Masdar City is just 3–5 working days. Their One-Stop-Shop service streamlines everything from licensing to visa processing.
4. Sustainable and Innovative Ecosystem
Masdar City is a global model for sustainable urban development. It attracts forward-thinking companies in clean energy, AI, technology, and research — offering you opportunities to collaborate within an innovation-driven community.
5. Strategic Location
Situated minutes from Abu Dhabi International Airport and less than an hour from Dubai, Masdar City provides unmatched connectivity for both regional and global operations.
Frequently Asked Questions About Commercial Licenses in Abu Dhabi
Can I operate outside Masdar City with this licence?
Yes, with a dual licence option, you can operate in Abu Dhabi mainland without setting up a separate entity.
Do I need physical office space?
Masdar City offers flexible options — from flexi-desks to dedicated offices — depending on your needs.
Is the licence renewable?
Yes, licences are renewable annually or for multi-year periods, often at reduced administrative cost.
Can I sponsor employees with this licence?
Yes, the number of visas depends on your office space and package.
Why Masdar City is the Smarter Choice
While there are many ways to get a commercial license in Abu Dhabi, Masdar City Free Zone provides the perfect balance of cost savings, operational flexibility, and strategic advantages. From 100% foreign ownership and tax exemptions to a fast setup process and sustainable business environment, it is more than just a place to register — it’s a platform for long-term growth.