Registering a company in Abu Dhabi Airports Free Zone

As the global financial landscape evolves, Abu Dhabi Global Market (ADGM) emerges as a thriving destination for company registration in 2024. Established in 2013, ADGM is strategically designed to facilitate international financial activities while upholding stringent international standards and best practices. This article delves into the intricacies of navigating company registration within ADGM, shedding light on its pivotal characteristics, available license categories, business forms, and associated costs. By providing comprehensive insights, this article aims to equip potential investors with a comprehensive understanding of ADGM's offerings and the prudent financial planning necessary for successful business establishment.

Elevated free zone status

ADGM holds a distinguished position as a designated free zone within Abu Dhabi. This status offers a myriad of incentives and advantages to corporations and investors alike. These benefits encompass tax exemptions on profits and capital, unrestricted currency usage, and the coveted privilege of full foreign ownership, thus fostering a fertile ground for investment within Abu Dhabi.

Prominent financial services hub

At the heart of ADGM lies a robust ecosystem teeming with financial institutions, banks, asset management firms, insurance companies, fintech startups, and other key players in the financial services sector. This convergence aims to create a holistic environment that supports a broad spectrum of financial activities, fosters innovation, and encourages collaboration, thus propelling Abu Dhabi onto the global financial stage.

Upholder of regulatory standards

The Financial Services Regulatory Authority (FSRA) stands as an independent regulatory body overseeing financial services and related activities within ADGM. Its vigilant oversight ensures that ADGM operates in accordance with established norms and industry best practices, guaranteeing a level playing field for all participants.

Legal jurisdiction and dispute resolution

ADGM's legal framework is rooted in the principles of common law, offering a transparent and familiar legal environment for businesses. It functions as a pivotal jurisdiction for handling civil and commercial disputes, thus providing a globally recognized platform for efficient and fair dispute resolution.

Championing innovation and fintech

ADGM is unwavering in its commitment to fostering innovation and technology. This commitment is evident in its active support for fintech startups through regulatory frameworks that cover various fintech pursuits, including crowdfunding, robo-advisory services, and digital payment solutions. This ethos positions ADGM as a nurturing ground for forward-looking technological endeavors.

Global connectivity

ADGM's aspiration for global prominence is underlined by its active engagement with international financial centers and markets. Establishing strategic partnerships and agreements with international bodies and financial regulators, ADGM ensures seamless business and investment flows across geographical boundaries, thus amplifying its global connectivity.

Diverse company structures

Comprehensive support services

ADGM's commitment to supporting businesses extends beyond its legal framework. It provides an extensive array of support services, ranging from streamlined company registration and licensing procedures to facilitating visa acquisition. This ecosystem of support enhances the ease of doing business within ADGM.

License categories in ADGM

ADGM offers three primary categories of licenses, each catering to distinct activities and business models within the financial free zone:

• Financial services license: Encompassing licenses for various financial institutions, this category includes activities such as banking, asset management, fund management, investment advisory, brokerage, and insurance services. Subtypes of this license cover specific activities like banking, investment management, and insurance.
• Non-financial services license: This category embraces a wide spectrum of licenses for entities engaged in non-financial services. It caters to activities such as legal and consulting services, technology and media companies, retail and trading enterprises, and more.
• Professional services license: Tailored for entities establishing special purpose vehicles (SPVs), this license is particularly useful for activities involving structured finance, securitization, and asset holding.

Business forms

ADGM offers an array of business forms or legal structures to accommodate diverse business activities and ownership preferences:

• Limited liability company (LLC): An LLC is a separate legal entity with limited liability for shareholders. It requires at least one shareholder and can have multiple shareholders.
• Branch of a foreign company: Foreign companies can establish branches in ADGM, allowing them to conduct business as an extension of the parent company.
• Special purpose vehicle (SPV): An SPV is employed for specific purposes such as holding assets, facilitating investments, or managing risks. It serves as a distinct legal entity with a dedicated financial or commercial objective.
• Professional service company: This form suits individuals or professionals offering specialized services like legal, accounting, consulting, and healthcare services.
• Holding company: Often utilized for managing investments in other companies, a holding company may offer tax and investment-related benefits.
• Other business forms: ADGM may provide specialized business forms to meet unique regulatory or industry requirements.

Understanding setup costs

When contemplating company setup in ADGM, understanding associated costs is paramount. Key cost categories include:

• Company registration fees: These fees cover the process of registering a company in ADGM, varying based on legal structure and license category.
• License fees: Expenses depend on the type of license needed, such as financial, non-financial, or professional services licenses.
• Office rent: Leasing office space within ADGM incurs costs dependent on location, size, and quality.
• Employee compensation: This includes salaries, benefits, and allowances for employees.
• Visa and immigration fees: Obtaining visas, work permits, and immigration documents, especially for foreign employees, incurs expenses.
• Audit and accounting fees: Costs associated with auditing and maintaining financial records.
• Legal and consulting fees: Expenses for legal advice, compliance efforts, and business consulting.
• Administrative costs: Outlays for tasks like company secretary services and document processing.

Financial planning: a prudent approach

Conclusion