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Abu Dhabi Global Markets Free Zone (ADGM)
Abu Dhabi Global Market (ADGM) is a financial free zone in Abu Dhabi, United Arab Emirates (UAE), known for its unique features that cater to the financial and business sectors. ADGM provides an ideal environment for investors looking to enter the financial industry, with an emphasis on asset management, wealth management, and private banking. Since its founding in 2015, ADGM has quickly become a leading financial center, offering a reliable and effective business environment.
Its cooperation with important organizations such as the Financial Service Commission in Jersey, the Insurance Authority, the Economic Department in Abu Dhabi, the UAE’s Central Bank, and the Abu Dhabi Municipality highlight its dedication to developing domestic and global partnerships. ADGM investors enjoy a forward-thinking regulatory environment, English common law principles, and a vibrant ecosystem that puts them at the forefront of successful financial innovation.
Unique Features of ADGM
✔ADGM serves as an international financial center, providing a platform for global businesses and financial institutions to operate and connect.
✔Adoption of English common law, offering a familiar legal framework for businesses and investors.
✔ADGM operates with its own independent regulatory authority, contributing to a transparent and efficient regulatory environment.
✔ADGM is home to a diverse array of financial and professional services, including banking, asset management, insurance, and fintech, fostering a comprehensive financial ecosystem.
✔All ADGM registered entities are eligible to apply for a Tax Residency Certificate from the UAE Federal Tax Authority (FTA) to benefit from the UAE’s Double Tax Treaty network.
✔ADGM allows for the relocation and re-domicile of companies to ADGM from other jurisdictions.
Types of licenses available in ADGM
ADGM offers three types of licenses:
Benefits of setting up a business in ADGM
0% corporate tax on Qualifying Income
100% foreign ownership
No currency restrictions
Strategic location
Growing number of double tax treaties
Common law jurisdiction
Wide range of available licenses
World-class infrastructure and facilities
ADGM Special Purpose Vehicles (SPVs)
A legal entity created within the Abu Dhabi Global Market (ADGM) with a specific goal is known as an ADGM Special Purpose Vehicle (SPV). Consider it a special “tool” for your company that allows the following:
✔Keep the assets and liabilities of your SPV separate from your primary business to reduce exposure to unanticipated events.
✔For more authority and transparency, manage investments, intellectual property, or other valuable assets in a different entity.
✔Assist in the execution of intricate business plans such as securitisation, project financing, and joint ventures.
✔Take advantage of ADGM’s essential tax structure to possibly reduce your tax liability.
Benefits of ADGM SPV
Other than the general benefits provided by setting up a company in ADGM, an SPV in ADGM specifically provides the following benefits:
Extremely affordable fees
Access to the separate commercial and civil legal framework of ADGM
Availability of ADGM’s separate English Common Law courts
There is typically no need to have corporate documents legalised and attested
No physical office space is needed
No limitations regarding nationalities of shareholders
Straightforward requirements for continuous reporting
Different classes of shares, no maximum number of shares or shareholders, and no minimum share capital are allowed
No liquidator required for wind-down process