When did Federal Decree-Law No. 20 of 2025 take effect?

15 October 2025 per Gibson Dunn and Norton Rose Fulbright. Clyde & Co states 15 November 2025. Several provisions are phased over 12-24 months.

Company Registration in ADDED (Abu Dhabi)

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Abu Dhabi

Mainland in the UAE refers to the main land territory of the country, encompassing all seven emirates: Abu Dhabi, Dubai, Sharjah, Ajman, Umm Al Quwain, Ras Al Khaimah and Fujairah. All business activities in this territory are governed by federal and local laws, ensuring transparent and stable conditions for conducting business. A company registered on the Mainland in any of the emirates gains local company status, enabling it to operate both within the UAE and internationally, collaborate with local and foreign partners, and participate in government tenders and projects. In Abu Dhabi, Mainland companies are registered through the Abu Dhabi Department of Economic Development (ADDED), which oversees the registration and licensing processes. The developed infrastructure, favorable geographical location, and political stability make Abu Dhabi an ideal place for businesses seeking to enter the markets of the Middle East, Africa, and South Asia. ADDED issues the following types of business licenses: Commercial (wholesale and retail trade, professional services) Instant Technology (IT) Industrial (manufacturing) Freelance Virtual Dual (for operating in both a free zone and Mainland) Tajer Abu Dhabi (for specific types of commercial activities) Mobdea (for Emirati businesswomen) The combination of transparent legal regulations, a strategically advantageous location, and advanced infrastructure makes the Mainland an ideal environment for businesses striving for long-term success and a strong market presence. These advantages allow companies to collaborate effectively with partners, expand their client base, and leverage access to key economic centers in the region, fostering sustainable growth and enhancing competitiveness on the international stage. As the capital of the UAE, Abu Dhabi has strategic importance for business, providing companies with access to major government projects and economic initiatives. Due to its central location and role in shaping state policies, Abu Dhabi is an important financial and business hub, attracting international investments and providing access to leading economic initiatives in the region.

What you get:

Access to Local and Global Markets
Strategic Location
Full Profit Control
Participation in Government Tenders
Wide Range of Business Activities
Infrastructure
High status and reputation

About Abu Dhabi Department of Economic Development

Mainland in the UAE refers to the main land territory of the country, encompassing all seven emirates: Abu Dhabi, Dubai, Sharjah, Ajman, Umm Al Quwain, Ras Al Khaimah and Fujairah. All business activities in this territory are governed by federal and local laws, ensuring transparent and stable conditions for conducting business. A company registered on the Mainland in any of the emirates gains local company status, enabling it to operate both within the UAE and internationally, collaborate with local and foreign partners, and participate in government tenders and projects.

In Abu Dhabi, Mainland companies are registered through the Abu Dhabi Department of Economic Development (ADDED), which oversees the registration and licensing processes. The developed infrastructure, favorable geographical location, and political stability make Abu Dhabi an ideal place for businesses seeking to enter the markets of the Middle East, Africa, and South Asia.

ADDED issues the following types of business licenses:

Commercial (wholesale and retail trade, professional services)
Instant
Technology (IT)
Industrial (manufacturing)
Freelance
Virtual
Dual (for operating in both a free zone and Mainland)
Tajer Abu Dhabi (for specific types of commercial activities)
Mobdea (for Emirati businesswomen)

The combination of transparent legal regulations, a strategically advantageous location, and advanced infrastructure makes the Mainland an ideal environment for businesses striving for long-term success and a strong market presence. These advantages allow companies to collaborate effectively with partners, expand their client base, and leverage access to key economic centers in the region, fostering sustainable growth and enhancing competitiveness on the international stage.

As the capital of the UAE, Abu Dhabi has strategic importance for business, providing companies with access to major government projects and economic initiatives. Due to its central location and role in shaping state policies, Abu Dhabi is an important financial and business hub, attracting international investments and providing access to leading economic initiatives in the region.

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Abu Dhabi Department of Economic Development
Services:
- Registering Company
Cost16 880 AED
Duration11 bus. days
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Abu Dhabi Department of Economic Development
Services:
- Registering Company
Cost16 880 AED
Duration11 bus. days
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Abu Dhabi Department of Economic Development
Services:
- Registering Company
Cost16 880 AED
Duration11 bus. days
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Abu Dhabi Department of Economic Development
Services:
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Cost16 880 AED
Duration11 bus. days
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Abu Dhabi Department of Economic Development
Services:
- Registering Company
Cost16 880 AED
Duration11 bus. days
Go to service
Companies Representation
Abu Dhabi Department of Economic Development
Services:
- Registering Company
Cost16 880 AED
Duration11 bus. days
Go to service

Suitable Targets

Local Business

Company registration for conducting business that requires a local presence in the UAE.

International Business

Company registration for conducting business both within specific jurisdictions and outside the UAE, including international wholesale trade and the provision of services at a global level.

Regional Representation

Establishing permanent establishments or subsidiaries to promote interests and coordinate operations in the Middle Eastern market.

Popular Business Fields

Information Technology & Communication
01
Arts, Entertainment & Recreation
02
Logistics & Transportation
03
Automotive, Machinery & Equipment
04
Media, Marketing & Publishing
05
Professional services
06

Requirements for Legal Entities Names

May contain the name of a shareholder
Must not violate the country laws or contain words that are obscene, indecent or generally offensive
Must not contain the names of Allah, Buddha or God, or any other religious terminology
Must not begin with words, such as "International", "Middle East", "Global", "Universal", or their equivalents in other languages
Must not infringe any third party's intellectual property rights
Must not be identical or similar to local/global brands or registered trademarks

Tax Regime and Profit Management

Value Added Tax (VAT)

Since January 1, 2018, the UAE has implemented a VAT rate of 5%, which applies to most goods and services and is charged to companies operating within the country, except for those registered in designated zones.
A Designated Zone is a territory within a free zone that is treated as outside the UAE for tax purposes, allowing goods to be exempt from taxation, provided certain criteria are met. The main taxation rules in Designated Zones are as follows:

The Designated Zones are listed in the Cabinet Decision to Federal Decree-Law No. (8) of 2017 on Value Added Tax (VAT).
Goods moved between or within Designated Zones are not subject to tax.
The export and import of goods between a Designated Zone and a foreign company are also not subject to tax.

For local companies and those registered in Non-Designated Zones (free zones not included in the Designated Zones list), the standard tax rules set forth in the Federal Decree-Law on VAT apply.

Companies with an annual turnover exceeding AED 375,000 are required to register with the Federal Tax Authority (FTA) as VAT taxpayers.
Companies with a turnover between AED 187,500 and AED 375,000 may register on a voluntary basis.
Companies can offset VAT paid on purchases of goods and services (input VAT) against the VAT they collect on sales (output VAT), shifting the tax burden to the final consumer.
Some goods and services may be exempt from VAT or taxed at a 0% rate, such as international transportation, educational, and medical services.

Corporate Tax

As of June 1, 2023, the UAE has introduced a corporate tax at a rate of 9%, levied on the taxable net profit of companies with income exceeding AED 375,000.
A 0% rate is applied to taxable income not exceeding AED 375,000.
Charitable, non-profit organizations and medical institutions are fully exempt from corporate tax.

Excise Tax

Since October 1, 2017, the UAE has introduced an excise tax aimed at reducing the consumption of harmful products and funding healthcare initiatives. The tax applies to alcohol, tobacco products, and beverages containing added sugar, including energy drinks and carbonated beverages.Excise tax rates vary depending on the product category:

50% on carbonated drinks (excluding mineral water)
100% on tobacco products
100% on energy drinks
100% on electronic smoking devices and liquids used for them
50% on products containing added sugar or sweeteners.

Companies dealing with excise goods must register with the Federal Tax Authority (FTA), submit monthly declarations, and maintain records. Excise tax is paid upon the import, production, or release of goods for consumption in the UAE.

Customs Duties

Custom duties in the UAE are applied to most imported goods at a standard rate of 5% of the cost, insurance, and freight (CIF). Exceptions include certain categories of goods, such as medicines and food products, which may be exempt from duties or subject to a reduced rate.
Goods imported into UAE free zones are generally not subject to customs duties as long as they remain within these zones. However, when such goods are transferred to the UAE mainland, standard duties apply.

Personal Income Tax

In the UAE, personal income is not subject to taxation.
UAE citizens and residents are exempt from paying taxes on their personal income, including salaries, interest, dividends, inheritances, gifts, luxury goods, and capital gains.

Local Taxes and Fees

Individual emirates may impose specific local taxes and fees in line with their economic and social needs. These taxes and fees are aimed at supporting public services and implementing infrastructure projects.