ADDED Mainland Company Formation 2026: TAMM Licence Steps, Ownership Rules and Corporate Tax Position for Capital-Based Founders

Abu Dhabi skyline with the Etihad Towers and the waterfront, representing an Abu Dhabi mainland company set up through ADDED and TAMM

16 min read

Published: 9 October 2026

Quick answer: an Abu Dhabi mainland company is licensed by the Abu Dhabi Department of Economic Development (ADDED), through its registration arm, the Abu Dhabi Registration Authority (ADRA). You apply online on TAMM, the Abu Dhabi government services platform, signing in with UAE PASS. Most commercial and industrial activities can be 100% foreign owned. Once licensed, the company falls under federal UAE corporate tax: 0% on taxable income up to AED 375,000 and 9% above it, with a registration deadline of three months from incorporation for a new company.

Most guides on this subject stop at the licence. That is only half the job. A founder who puts real capital into an Abu Dhabi company also needs to know which tax registrations start the day the licence is issued, which reliefs are available, and which old filings no longer apply. This guide covers both halves, using official sources only.

What is an ADDED mainland licence?

Direct answer: it is an economic licence that lets a business trade anywhere in the Abu Dhabi mainland and, with the right activity, across the wider UAE market, without free zone restrictions.

ADDED regulates the business sector in the emirate. In January 2025, ADDED launched the Abu Dhabi Registration Authority (ADRA). ADRA describes itself as the unified business registry for Abu Dhabi and the single point for business registration and regulatory reporting across the mainland. In daily practice, this means:

ADDED sets economic policy and oversees the sector.
ADRA registers companies, issues and renews economic licences, and keeps the commercial register.
TAMM is the online front door. Trade name, initial approval, licence issue, amendments, renewal and cancellation are all handled through a TAMM account.

You will still see older websites refer to “Abu Dhabi DED”. That is the same department under its former short name. What matters is that the licence shows the correct issuing authority, because the same details flow into your bank KYC, your corporate tax registration and your VAT registration.

If you are comparing this with Dubai, our main UAE mainland company setup guide explains the Dubai route through the Department of Economy and Tourism.

Who should choose Abu Dhabi mainland?

Direct answer: founders whose customers, contracts or premises are in Abu Dhabi, or who want to bid for Abu Dhabi government and semi-government work.

An Abu Dhabi mainland licence usually makes sense when:

Your clients are Abu Dhabi entities, including government-linked companies that prefer or require a local mainland supplier.
You need a physical shop, workshop, clinic, restaurant or warehouse in the emirate.
You want to sell directly to UAE consumers without the limits a free zone licence places on onshore trade.
Your team will live and work in Abu Dhabi, so visas, office and daily operations sit in one emirate.

It may not be the best fit when:

Your business is purely financial or professional services aimed at international clients. In that case, compare ADGM company setup.
You run a port-linked trading, logistics or manufacturing operation where a free zone and its customs benefits fit better. See our KEZAD free zone guide.
You are a small online or home-based seller testing the market. The Tajer licence is lighter and does not need a commercial office.

Licence categories in Abu Dhabi

Direct answer: the three core categories are commercial, professional and industrial. Several special licences sit beside them for smaller or specific cases.

Licence	Typical activities	Notes
Commercial	General trading, specific trading, retail, e-commerce, many service activities	The most common choice for trading and service companies
Professional	Consultancy, design, IT services, and other skill-based activities	Often linked to the qualifications of the owner or manager
Industrial	Manufacturing, processing, assembly, packaging	Usually needs extra approvals and suitable industrial premises
Tajer Abu Dhabi	Small commercial activities, often online or home-based	Lighter route, no commercial office in many cases
Mobdea and other special licences	Home-based or small producer activity for eligible applicants	Eligibility is limited, so check the conditions on TAMM

Each activity on your licence comes from ADDED’s activity list. Choose activities carefully. They decide which approvals you need, whether a physical office is required, and later, how your income is described in your tax registration.

Legal forms you can choose

Direct answer: most foreign founders choose a Limited Liability Company (LLC). Other options are a sole establishment, a civil company for professionals, or a branch of an existing company.

Limited Liability Company (LLC). A separate legal person. Owners’ liability is limited to their share capital. This is the default for capital-based founders with partners or investors.
Sole establishment. Owned by one individual and not a separate legal person. The owner is personally responsible for the business debts. This matters for corporate tax, as explained below.
Civil company. Used for professional activities where partners provide skills.
Branch of a UAE or foreign company. Not a new legal person. The parent company stays responsible. Useful if you already have a company elsewhere and want an Abu Dhabi presence. Our note on foreign company branch registration explains the general branch logic.
Joint stock companies exist for larger structures but are outside the scope of most first-time founders.

Ownership rules: is 100% foreign ownership allowed?

Direct answer: yes, for most commercial and industrial activities. A small group of strategic-impact activities still has special conditions.

Federal Decree-Law No. 26 of 2020 amended the Commercial Companies Law and removed the general requirement for a 51% UAE national shareholder. The change took effect on 1 June 2021, and the rule now sits in Federal Decree-Law No. 32 of 2021, the current Commercial Companies Law. In May 2021, ADDED published a list of more than 1,100 commercial and industrial activities that foreign investors can own in full.

Cabinet Resolution No. 55 of 2021 set out activities with strategic impact. These include security, defence and military activities, banks, exchange houses, finance and insurance companies, printing currency, telecommunications, Hajj and Umrah services, and Quran memorisation centres. For these, the relevant regulator decides the ownership split and other conditions.

What this means in practice:

For a typical trading, consultancy, IT or manufacturing company, you do not need a local partner.
Some professional and service activities used to require a local service agent. Ask ADRA at the activity selection stage whether your activity has any agent or ownership condition today, because the answer depends on the exact activity code.
If you are moving from an older structure with a nominee or local sponsor, read our guide on local sponsor vs corporate sponsor for mainland LLCs before you restructure, because a change of shareholders can have tax and registration effects.

Step by step: forming the company on TAMM

Direct answer: activity, legal form, trade name, initial approval, company documents, premises, external approvals, then licence issue. Everything runs through TAMM.

Choose your activity and legal form. Pick activities from the ADDED list and decide between an LLC, sole establishment or branch. Everything else depends on this choice.
Reserve a trade name. On TAMM you can accept a suggested name or propose your own. Names must follow the naming rules: no offensive words, no names of public authorities, and no misleading terms. A custom name goes through manual review.
Get initial approval. This certificate allows you to continue with the licence process and approach other authorities. Security clearance for foreign shareholders is part of this stage.
Prepare and sign the Memorandum of Association. For an LLC, the MOA sets out shareholders, share capital, management and profit sharing. Keep a clean copy, because banks and the Federal Tax Authority (FTA) will ask for it.
Secure premises and register the tenancy on Tawtheeq. Mainland companies generally need a physical address. In Abu Dhabi, tenancy contracts are registered on Tawtheeq. Some lighter licences, such as Tajer, may not need a commercial office.
Obtain external approvals. Regulated activities need approval from the sector authority, for example health, education, food or tourism regulators.
Pay the fees and receive the licence. Once all conditions are met, ADRA issues the economic licence and the company appears on the commercial register.

About government fees: published fee figures for trade name, initial approval and licence issue differ between sources, and many consultancy pages quote old numbers. We could not confirm the full current fee schedule on an official ADDED or TAMM page for this article, so please verify the exact fees with ADDED on TAMM before you budget. Fees also change with the activity, legal form and premises.

After the licence is issued, the usual next steps are a corporate bank account (see our UAE business bank account guide), establishment card and visas, and, if you have a brand, trademark registration.

Abu Dhabi mainland vs Dubai mainland

Direct answer: the tax rules are the same, because corporate tax and VAT are federal. The difference is the licensing authority, the location of your customers and premises, and the approvals your activity needs.

Point	Abu Dhabi mainland	Dubai mainland
Licensing body	ADDED, through ADRA	Department of Economy and Tourism (DET)
Online platform	TAMM with UAE PASS	Invest in Dubai and DET channels
Tenancy registration	Tawtheeq	Ejari
Corporate tax	Federal: 0% up to AED 375,000, 9% above	Same
VAT	Federal: 5% standard rate	Same
Best for	Abu Dhabi clients, government work, Abu Dhabi premises	Dubai clients, retail and trading hubs in Dubai

If you are still choosing between mainland and a free zone, our mainland vs free zone tax guide explains the 0% Qualifying Free Zone Person regime, which a mainland company cannot use.

The tax layer: what starts when the licence is issued

This is where many new Abu Dhabi companies go wrong. The licence is local. The tax system is federal, run by the FTA on EmaraTax, and the clock starts on the date of incorporation.

Corporate tax registration

Direct answer: a new company must register for corporate tax within three months of its incorporation date, even if it expects to pay nothing.

Under FTA Decision No. 3 of 2024, a resident juridical person incorporated on or after 1 March 2024 must register within three months from the date of incorporation. Late registration carries an administrative penalty of AED 10,000 under Cabinet Decision No. 10 of 2024. Registration is done on EmaraTax and gives you a Corporate Tax Registration Number. Our corporate tax registration guide walks through the screens.

Sole establishment owners: a sole establishment is not a juridical person. The owner is taxed as a natural person, and only if the turnover of the business activities exceeds AED 1 million in a calendar year (Cabinet Decision No. 49 of 2023). In that case, the registration deadline is 31 March of the following year. This is a real difference from an LLC and should be part of your choice of legal form.

Corporate tax rates

Direct answer: 0% on taxable income up to AED 375,000 and 9% on the part above it.

These rates come from Federal Decree-Law No. 47 of 2022 and Cabinet Decision No. 116 of 2022. Taxable income is your accounting profit, adjusted under the law. The tax period normally follows your financial year, and the return and payment are due within nine months of the end of the tax period.

Worked example (illustrative, not advice): an Abu Dhabi LLC has taxable income of AED 600,000. The first AED 375,000 is taxed at 0%. The remaining AED 225,000 is taxed at 9%, giving corporate tax of AED 20,250.

Small Business Relief: now available until 2029

Direct answer: a resident company with revenue of AED 3 million or less can elect to be treated as having no taxable income, for tax periods ending on or before 31 December 2029.

Small Business Relief comes from Ministerial Decision No. 73 of 2023. It was originally limited to tax periods ending on or before 31 December 2026. Ministerial Decision No. 131 of 2026, announced by the Ministry of Finance on 7 August 2026, extended it to tax periods ending on or before 31 December 2029. The AED 3 million revenue test and other conditions did not change:

Revenue must be AED 3 million or less in the current tax period and every previous tax period.
Qualifying Free Zone Persons and members of large multinational groups cannot use it.
You must still register, keep records and file a corporate tax return, and you must elect the relief in the return.

Once revenue goes above AED 3 million in any tax period, the relief is lost for later periods. Read our Small Business Relief guide for the detailed conditions.

VAT registration

Direct answer: register for VAT when taxable supplies and imports pass AED 375,000 in the past 12 months, or are expected to pass it in the next 30 days. Voluntary registration is available from AED 187,500.

These thresholds are set by Federal Decree-Law No. 8 of 2017 on VAT. Late VAT registration carries its own administrative penalty, so new companies that sign large contracts early should check the “next 30 days” test as soon as a contract is signed. See our UAE VAT registration guide.

ESR and UBO: what still applies

Economic Substance Regulations (ESR): ESR filings were removed for financial years starting after 31 December 2022 by Cabinet Decision No. 98 of 2024. A company formed in 2026 does not file ESR notifications or reports.
Ultimate Beneficial Owner (UBO): this still applies. Under Cabinet Decision No. 109 of 2023, a mainland company must keep registers of real beneficiaries, partners and nominee directors, and submit the beneficial owner details to the registrar. In Abu Dhabi that registrar is ADRA. Update the details when ownership changes.

Records and audited accounts

Corporate tax records must be kept for seven years after the end of the tax period. Audited financial statements are required for corporate tax purposes when revenue exceeds AED 50 million, under Ministerial Decision No. 82 of 2023. Our note on corporate tax record keeping lists what to keep.

Tax points for capital-based founders

If you are funding the company with your own capital, a few points need attention from the first month:

Share capital vs shareholder loan. Money paid in as capital is not taxable income. A loan from a shareholder is a related-party transaction and must be on arm’s length terms.
Founder salary. Payments to a shareholder who is also a manager are deductible only to the extent they are at market value for the work actually done. Related-party and connected-person rules under Federal Decree-Law No. 47 of 2022 apply.
Personal spending through the company. Avoid it. It blurs the accounts and is a common reason for disallowed expenses.
Separate bank account from day one. It makes VAT, corporate tax and the Small Business Relief revenue test much easier to prove.

Common mistakes to avoid

Waiting for the first profit before registering for corporate tax. The deadline is three months from incorporation, not from the first profit.
Choosing a sole establishment for a business with partners or investors, then discovering personal liability and different tax treatment.
Copying licence fees from an old consultancy page instead of checking TAMM.
Adding activities you do not need, which can trigger extra approvals.
Ignoring the UBO filing after a change of shareholders.
Assuming a mainland company can use the 0% free zone regime. It cannot.

Checklist before you apply

Activity codes chosen from the ADDED list
Legal form decided with liability and tax in mind
UAE PASS account ready for TAMM
Passport copies and documents for every shareholder and manager
Premises identified and tenancy ready for Tawtheeq
Sector approvals identified for regulated activities
Calendar reminder for corporate tax registration within three months of the licence date
Plan for VAT registration once the threshold is in sight

Frequently asked questions

Who issues an Abu Dhabi mainland licence?

The Abu Dhabi Department of Economic Development (ADDED), through its registration arm, the Abu Dhabi Registration Authority (ADRA). Applications are made on TAMM.

Can a foreigner own 100% of an Abu Dhabi mainland company?

Yes, for most commercial and industrial activities since 1 June 2021. Strategic-impact activities, such as banking, insurance, telecommunications and defence, still have conditions set by the regulator.

Do I need a physical office?

Most mainland licences need a registered address with a tenancy registered on Tawtheeq. Lighter licences such as Tajer can be an exception.

How long does it take to get the licence?

Simple commercial activities can move quickly once documents are ready. Regulated activities take longer because of sector approvals. Check the service timelines shown on TAMM.

When must my new company register for corporate tax?

Within three months of its incorporation date, under FTA Decision No. 3 of 2024. Late registration carries an AED 10,000 penalty.

What corporate tax rate will my Abu Dhabi company pay?

0% on taxable income up to AED 375,000 and 9% on the part above it. The rate is the same in every emirate.

Is Small Business Relief still available?

Yes. Ministerial Decision No. 131 of 2026 extended it to tax periods ending on or before 31 December 2029, for revenue of AED 3 million or less.

Is a sole establishment taxed the same as an LLC?

No. An LLC is a juridical person and must register within three months. A sole establishment owner is taxed as a natural person only if business turnover exceeds AED 1 million in a calendar year.

Do I still need to file ESR reports?

No. ESR was removed for financial years starting after 31 December 2022. UBO filing still applies.

Is Abu Dhabi mainland better than Dubai mainland for tax?

No difference. Corporate tax and VAT are federal. Choose the emirate based on clients, premises and approvals.

Sources

Abu Dhabi Registration Authority, About us and launch announcement (January 2025): adra.gov.ae
TAMM, Abu Dhabi government services platform: tamm.abudhabi
Federal Decree-Law No. 32 of 2021 on Commercial Companies, and Federal Decree-Law No. 26 of 2020
Cabinet Resolution No. 55 of 2021 on activities with strategic impact
Federal Decree-Law No. 47 of 2022 on the Taxation of Corporations and Businesses; Cabinet Decision No. 116 of 2022
FTA Decision No. 3 of 2024 on corporate tax registration timelines; Cabinet Decision No. 10 of 2024 on penalties
Ministerial Decision No. 73 of 2023 and Ministerial Decision No. 131 of 2026 on Small Business Relief; Ministry of Finance announcement, 7 August 2026
Cabinet Decision No. 49 of 2023 on natural persons; Ministerial Decision No. 82 of 2023 on audited financial statements
Federal Decree-Law No. 8 of 2017 on VAT
Cabinet Decision No. 98 of 2024 on ESR; Cabinet Decision No. 109 of 2023 on beneficial owner procedures

Facts checked on 8 October 2026. Government fees and procedures change, so confirm current details with ADDED on TAMM and with the FTA before acting.

Founders who move to Abu Dhabi to run their company often bring a family with them. Our sister site Yalah Dubai explains what happens to residence when a sponsor dies or a marriage ends in its guide to the UAE residence visa for widows and divorced women.