ADGM Company Set Up & Regulations

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We can help you with Abu Dhabi Global Market. Contact the team at CBD today.

The Abu Dhabi Global Market (ADGM) is a world-class financial free zone with its own civil and commercial laws. Established by Federal Decree in 2013, ADGM is a key pillar of Abu Dhabi’s Economic Vision, designed to act as a catalyst for the growth of a dynamic financial services sector in the UAE.

Setting up as an ADGM company comes with a number of impressive benefits, such as 100% ownership and 0% personal income tax.

ADGM company formation is open to various companies operating within the finance sector, including investment banks and advisory companies. These companies are governed by one of three independent authorities – the Registration Authority, the Financial Services Regulatory Authority and the ADGM courts.

ADGM business setup is available for a range of company structures, including financial services, corporate headquarters, family businesses, holding companies and special-purpose vehicles to hold and protect assets.

The ADGM opens the door to many business opportunities, with various strategic partnerships locally and worldwide. Furthermore, the ADGM utilises some of the best regulatory frameworks in addition to the English Common Law.

Types of ADGM Company Set Ups

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Special Purpose Vehicles (SPVs): An SPV is a type of holding company whereby assets can be protected. The ADGM provides a flexible and efficient method for setting up and maintaining SPVs. SPVs are private companies established for a variety of purposes, including to isolate financial and legal risk by ring-fencing assets and liabilities. Types of assets under an SPV include among others equity, private company debt, real estate,
alternative assets and other high-risk ventures or investments.

Foundation: Foundations can be used within the ADGM for a number of reasons, such as wealth management and planning. Foundation ADGM companies are separate entities with no shareholders involved.

Operating Company (OpCo): An operating company (OpCo) is a business entity that is actively engaged in carrying out business operations, providing products and services, or conducting any other core business activities. This is in contrast to a holding company, which primarily holds ownership interests in other companies (subsidiaries) and may not have active business operations of its own.

Funds: ADGM Funds companies are used by investors and fund managers to manage their investments with higher levels of protection. Fund managers can choose from a range of structures for their ADGM company, such as investment companies, limited partnerships, investment trusts or PCCs and ICCs.

Tech Startup: Companies that meet requirements can obtain a tech startup license at a discounted rate. This license can be used for up to five years while you establish your company.

Shelf Company (ShelfCo): An ADGM Shelf Company, refers to a company that has been incorporated and registered in the ADGM. However, unlike an active operating company, a Shelf Company is not engaged in any business activities, transactions, or operations. It is essentially a “ready-made” or pre-established company that is available for purchase by individuals or entities who want to quickly establish a presence in the ADGM. The concept of a Shelf Company is to provide a faster route for those who wish to enter the market or establish a business entity without going through the entire process of registering a new company from scratch. By purchasing a Shelf Company, individuals or corporations can potentially save time and administrative efforts. Once the Shelf Company is acquired, the new owners can then initiate their business activities under the existing company’s name.

Applying for ADGM Company Formation

The application for an ADGM company is simple, and at CBD, we can assist you with all aspects.

The first stage involves outlining the nature of your business and the structure you wish to use. These structures may include private limited companies, private unlimited companies, branch offices, limited partnerships and investment companies.

The next step involves selecting a business name and choosing an office space, which is a requirement for ADGM companies. The final step entails completing a range of documents to secure your commercial license for the ADGM. These documents include but are not limited to the following:

Articles of Association
Resolutions
Nominee Arrangement forms
Economic Substance
ID documents for shareholders and signatories
Evidence of wealth

FAQs

At CBD, we offer comprehensive assistance with the application process for an ADGM company. Our team of experts can guide you through every step of the process, ensuring a smooth and efficient experience. Our services include the following.

Acting as an incorporation agent for a new ADGM company set-up
Providing company services to existing entities
Acting as a registered office provider
Providing directors, authorized signatories, company secretaries, registered agents, or other offices to an entity incorporated or registered in the ADGM
Providing nominee shareholders of companies
Assisting with ADGM filings such as annual filings, renewals and more

Yes, we provide an extensive range of services across the Middle East. We cover the entire UAE including ADGM and DIFC, Saudi Arabia, Qatar and Oman.

We can assist you with all aspects of company formation, visa applications, PRO services in Abu Dhabi and business support services.

We offer a wide range of support services to start-ups and established businesses. Our business advisory services include the following.

Formation
Licensing
Corporate structuring
Labour and immigration (visas)
Business support services
WPS and payroll services
Escrow administration

In case of specialized legal requirements or advice, CBD can refer you to one of our trusted legal partners.

There are many benefits of setting up a company in the ADGM.

Robust, regulated legal framework
100% foreign ownership
Zero tax rate on profits, capital and assets
Zero tax on your personal income
Common Law system
World-class services
Great for financial set-ups

In addition to financial companies, the ADGM is available for a range of other business structures. These include:

Head offices
Treasuries
Holding companies
SPVs
Professional associations
Foundation
Tech start-ups
Retail and entertainment establishments

You will need to ensure that your company meets the ADGM requirements for business activities and legal structures. There is a stringent due diligence process that is followed.

You will then be required to submit a range of documents, including:

Articles of association
Resolutions
Nominee arrangement forms
Economic substance
Identification documents for Authorised Signatories and Directors of the company
Source of wealth information

As a licensed CSP in the Abu Dhabi Global Market (ADGM), CBD Formations can assist you with the process of a company set-up in the ADGM.

There are no restrictions on foreign ownership in the ADGM. This means that a foreign investor can have 100% ownership over a company. This is one of the many benefits of setting up an ADGM company.

Special Purpose Vehicle