Setting up a business in the Abu Dhabi Global Market (ADGM) is a strategic decision for companies seeking a robust and transparent financial environment. The Abu Dhabi Global Market (ADGM) has established itself as a world-leading financial center, attracting entrepreneurs and investors worldwide. With its business-friendly environment, strategic location, and innovative regulatory framework, ADGM is the perfect choice for businesses seeking to expand or establish a presence in the UAE. We are here to assist you with ADGM company setup, from licensing and legal frameworks to tax benefits and business structures.
Overview of ADGM
ADGM operates across Al Maryah Island and Al Reem Island, an area of 14.38 million sqm, making it one of the largest financial districts in the world. Since its inauguration in late October 2015, ADGM has earned global acclaim for its robust, progressive regulatory frameworks, its English common law legal framework, and its incorporation and business services.
ADGM is renowned for its vibrant and supportive business network, attracting foreign investors and companies from around the globe. Whether you’re an entrepreneur from Europe, Asia, North America, Africa, or beyond, ADGM offers a dynamic environment tailored to meet the diverse needs of international businesses.
Why Choose ADGM for Your Business Setup?
Establishing a business in the Abu Dhabi Global Market (ADGM) offers unparalleled advantages in one of the world’s most prestigious financial hubs. From a robust legal framework to tax benefits, ADGM provides the perfect platform for businesses to scale globally. Here’s why ADGM is the ideal destination for your business:- 100% Foreign Ownership: ADGM allows full foreign ownership of businesses, eliminating the need for UAE national shareholders and providing complete control over your enterprise. This policy is particularly attractive to investors and entrepreneurs seeking autonomy in their business operations.
- Robust Legal Framework: ADGM operates under English common law, ensuring transparency and fairness in all business dealings.
- Tax Advantages: ADGM offers a highly competitive tax regime, including a 9% corporate tax rate where applicable and no personal income tax. These tax benefits enhance business profitability and attract a wide range of industries, from finance and technology to manufacturing and healthcare.
- Ease of Doing Business: ADGM provides a streamlined and efficient company setup process, supported by dedicated authorities that facilitate quick and hassle-free business registration. This ease of doing business is complemented by comprehensive support services that help businesses navigate regulatory requirements effortlessly.
- Strategic Location: Proximity to major airports and access to key markets enhance your business’s operational efficiency.
- World-Class Infrastructure: Advanced facilities and state-of-the-art technology support your business operations seamlessly.
- Vibrant Business Ecosystem: Join a thriving community of over 100 startups, accelerators, and support networks like Hub71 and startAD.
Abu Dhabi Global Market (ADGM) Legal and Regulatory Framework
ADGM operates under a distinct legal system separate from the UAE’s mainland regulations, overseen by independent authorities to ensure a secure and regulated business environment: 1. Financial Services Regulatory Authority (FSRA)- Role: Governs and supervises financial services within ADGM, ensuring compliance with international standards.
- Responsibilities: Licensing, regulation, and oversight of financial institutions and service providers.
- Role: Enhancing ADGM services, facilitating opportunities to position its community and further support their growth potential
- Responsibilities: Company incorporation, maintaining corporate records, and ensuring adherence to registration protocols.
- Role: Provides a robust judicial system for dispute resolution within ADGM.
- Responsibilities: Administers justice, handles commercial disputes, and supports legal processes for businesses.
- ADGM Authority
- Role: Guides and supports companies through the application and set-up of ADGM-registered entities.
- Responsibilities: registration, incorporation and licensing of legal entities in ADGM and supports with all government-related services.
Abu Dhabi Global Market (ADGM) Legal and Regulatory Framework
1. Financial Services Regulatory Authority (FSRA)
- Role: Governs and supervises financial services within ADGM, ensuring compliance with international standards.
- Responsibilities: Licensing, regulation, and oversight of financial institutions and service providers.
2. Registration Authority (RA)
- Role: Enhancing ADGM services, facilitating opportunities to position its community and further support their growth potential.
- Responsibilities: Company incorporation, maintaining corporate records, and ensuring adherence to registration protocols.
3. ADGM Courts
- Role: Provides a robust judicial system for dispute resolution within ADGM.
- Responsibilities: Administers justice, handles commercial disputes, and supports legal processes for businesses.
4. ADGM Authority
- Role: Guides and supports companies through the application and set-up of ADGM-registered entities.
- Responsibilities: Registration, incorporation, and licensing of legal entities in ADGM and supports with all government-related services.
Types of Business Licenses in ADGM
Abu Dhabi Global Market (ADGM) offers a range of business licenses tailored to support various sectors, categorized into financial and non-financial activities. Explore the options below to find the best fit for your business.
Financial Licenses
- • Investment Banks
- • Asset Management Firms
- • FinTech Companies
- • Capital Markets
- • Insurance Providers
- • Payment and Clearing Services
- • Credit Rating Agencies
- • Auditing and Accounting Firms
- • Brokerage Services
Non-Financial Licenses
- • Technology and Innovation Companies
- • Business Consulting Firms
- • Retail and Consumer Goods Businesses
- • Real Estate Development
- • Healthcare and Medical Services
- • Education and Training Providers
- • Hospitality and Tourism Businesses
- • Manufacturing and Industrial Enterprises
Our expert team is here to help you identify the most suitable license for your business activities. Contact us today for seamless guidance through the application process, ensuring full compliance with ADGM’s regulatory standards.
What Entities are Available to Set Up in ADGM?
The Abu Dhabi Global Market (ADGM) offers a variety of corporate structures tailored to meet the diverse needs of businesses, investors, and entrepreneurs. Below is an overview of the key entities you can establish in ADGM:
Business Structures Available in ADGM
Choosing the right business structure is crucial for your company’s success. ADGM offers several options to suit your specific needs:
1. Private Company Limited by Shares
This is a very popular type of company. It is used for various types of business ventures, small and large. The shareholders are not personally liable for any of the debts of the company. Their liability is limited to the amount of shares held by them.
2. Partnership
Form a partnership with two or more individuals or entities. ADGM supports both general and limited partnerships, allowing flexibility in management and liability. Whether you’re looking to collaborate closely or limit your liability, partnerships offer versatile structures to accommodate your business model.
3. Special Purpose Vehicles (SPVs)
SPVs are perfect for managing investments or holding assets. They offer legal separation, ensuring that creditors cannot claim the assets of the parent company. SPVs are commonly used for isolating financial risk and facilitating specific investment activities.
4. Branch Office
Expand your existing business into ADGM by establishing a branch office. This allows you to operate within ADGM’s jurisdiction while maintaining your company’s original structure. Branch offices are ideal for businesses looking to extend their market reach without establishing a separate legal entity. Note that an entity incorporated as sole establishment outside ADGM cannot branch out in ADGM (because sole establishment does not have separate legal personality from the owner).
5. Cell Company
Protected Cell Company (PCC): A Protected Cell Company is a corporate structure in which a single legal entity is comprised of a core and several cells that have separate assets and liabilities.
Incorporated Cell Company (ICC): An Incorporated Cell Company is similar to a Protected Cell Company but adopts a fundamentally different approach to cells. The ICC incorporates each cell as a separate legal entity without the cell company needing to have any shareholder relationship with the relevant cell. Such a cell is called an Incorporated Cell (IC). Each IC is a separate company as a matter of law.
6. Investment Companies
Designed for firms managing collective investment schemes, funds, or portfolios. Regulated under ADGM’s financial services framework to ensure investor protection.
7. Foundations
Ideal for wealth management, succession planning, and philanthropic ventures. Governed by English Common Law and supported by ADGM’s independent judicial system.
Two types:
- Exempt Foundations: Excluded from certain regulatory requirements.
- Non-Exempt Foundations: Subject to regular compliance but broader operational scope.
Choosing the Right Entity
Each entity type in ADGM serves different operational and strategic goals. For personalized guidance on selecting the best structure for your needs, consult with an ADGM business setup specialist to maximize your advantages within this leading financial hub.
Business Setup Process in ADGM
The process of establishing a business in ADGM is efficient but requires precision. Here’s a step-by-step overview:
Step 1: Choose Your Business Activity
Determine whether your business falls under financial or non-financial services.
- Financial activities are regulated by the Financial Services Regulatory Authority (FSRA). Financial services activities need additional authorisation.
- Non-financial activities are managed by the Registration Authority.
Step 2: Select Your Legal Entity
ADGM offers several legal structures, like:
- Private Limited Company
- Public Limited Company
- Branch
- Partnership – Limited OR General
- Investment Company
Step 3: Prepare and Submit Your Application
Your application should include:
- Proposed company name: Ensure it complies with ADGM’s naming conventions.
- Legal structure: Specify whether it’s a private or public company, with or without limited liability.
- Company officers: Names and details of directors and shareholders.
- Registered office address: An address within ADGM.
- Articles of Association: A draft outlining the company’s governance.
- Share capital statement: If applicable, include details of initial shareholders.
Step 4: Attend Preliminary Meetings (if required)
For certain activities, ADGM may request a meeting to discuss the application process and free zone operations.
Step 5: Register and Incorporate
After receiving approval, proceed with the final steps of registration and incorporation. This involves securing a license and setting up the company’s operations.
Ready to establish your business in ADGM? Setup in ADGM today and take advantage of its world-class business environment. Contact our experts for seamless guidance and support.
Setting Up a Special Purpose Vehicle (SPV) in ADGM
The SPV regime in ADGM is one of the most cost-effective and flexible solutions for managing assets and investments. Here’s why it’s a preferred choice:Legal Consistency
SPVs are governed by company regulations, providing uniformity across corporate vehicles.Risk Segmentation
Enables businesses to separate financial and legal liabilities, offering added protection to asset holders.Efficiency
Tailored for holding and managing assets, minimizing administrative overhead.ADGM Expansion to Al Reem Island – Transfer Your License
On the 24th of April 2023, ADGM increased its jurisdiction following the expansion into Al Reem Island, a significant development that enhances ADGM’s already robust infrastructure and business environment. This expansion requires all existing businesses on Al Reem Island to transfer their Abu Dhabi Mainland Department of Economic Development (ADDED) licenses to an ADGM free zone license.What Are the Benefits to Setting Up an ADGM Company?
- Businesses establishing in ADGM can be 100% foreign owned.
- No personal income tax.
- Streamlined and efficient application process.
- Multiple and flexible office setup options.
Setting Up a Special Purpose Vehicle in ADGM
ADGM’s SPV regime is regarded as a highly flexible and cost-effective solution for structuring asset holdings and investments. The regime offers business owners and asset holders greater freedom while allowing for separation of financial and legal risk. Under the direct application of English Common Law, SPVs follow companies’ regulations rather than separate regulations, which ensures consistency across all corporate vehicles. Read moreSetting Up an ADGM Foundation
Foundations are ideal for wealth management, succession planning, and philanthropic ventures. Governed by English Common Law and supported by ADGM’s independent judicial system, ADGM foundations support local and international families and High Net Worth Individuals to efficiently manage their business and investment interests across multiple generations. The ADGM Foundations Regime is benchmarked with international best practices and its fees structure is very competitive.Taxation and Financial Benefits in ADGM
ADGM offers a highly attractive tax environment designed to enhance your business’s profitability:Corporate Tax
A competitive rate of 9% applies to businesses, ensuring your company remains financially efficient.
No Personal Income Tax
Employees and business owners enjoy tax-free personal income, increasing disposable income and employee satisfaction.
Capital Repatriation
Unrestricted movement of capital and profits allows for seamless international transactions.
Currency Flexibility
No restrictions on currency transactions provide financial flexibility and ease of operations.
These tax benefits, combined with ADGM’s robust financial infrastructure, create a conducive environment for sustainable business growth and profitability.
Visa and Residency Packages
ADGM facilitates various visa options to support your business and personal residency needs:
1. Business Licenses and Visas
Obtain residency visas through your business setup, ensuring your presence in the UAE. These visas are essential for managing your business operations and maintaining a local presence.
2. Employee Visas
Simplify the visa process for your foreign employees, enabling them to work and reside in the UAE. Our streamlined services ensure timely visa approvals, allowing your team to focus on driving your business forward.
3. Family Sponsorship
Extend residency benefits to your family members, promoting a balanced and fulfilling lifestyle. Family sponsorship visas ensure that your loved ones can join you in the UAE, enhancing your overall quality of life.
Contact Us
Ready to transform your business in ADGM? Reach out to our expert consultants for a seamless company formation process and personalized guidance tailored to your goals.
Email us at:
[email protected]
Call us:
+971-555370611 (Mobile)
Visit us at:
Office No. 1, 11th Floor, Tamouh Tower, Al Reem Island, Abu Dhabi
Trusted Services. Transparent solutions. Contact us!