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:
- Financial
- Non-Financial
- Retail
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
- Different classes of shares, no maximum number of shares or shareholders, and no minimum share capital are allowed
- straightforward requirements for continuous reporting
- No liquidator required for wind-down process
FAQs
The costs of setting up a company in ADGM will vary depending on the type of license you require and the complexity of your business operations. Contact Gatestone Group for more information via [email protected] or call +971 4 450 1023.
ADGM permits the incorporation of following legal entities:
- Limited Liability Company (LLC)
- Special Purpose Vehicles (SPVs)
- Branch office
- Sole Proprietorship
- Partnerships
- Cell Company
- Investment Company
- Public Company Limited by Shares
- Private Company Limited by Shares
- Private Company Limited by Guarantee
- Private Company Unlimited with shares
- Private Company Unlimited without shares
- Restricted Scope Company (RSC)
- Branch of Foreign Company
No, you do not need a local partner to set up a company in ADGM. Foreign investors are allowed to own 100% of their businesses in the free zone. For seamless company formation and expert guidance in ADGM, reach out to Gatestone Group today via [email protected] or call +971 4 450 1023.
The process of setting up a company in ADGM can take an average of 4-6 months for regulated entities, 6-8 weeks for non-regulated entities and 2-3 days for SPVs. Empower your business success in ADGM with Gatestone Group’s expertise and unwavering support via [email protected] or call +971 4 450 1023.
The share capital for setting up a company in ADGM starts from USD 50,000 depending on the activity. However, SPVs in ADGM do not require any share capital. Contact Gatestone Group for more information via [email protected] or call +971 4 450 1023.