Business Setup in ADGM Freezone- How To Set Up a Company in ADGM? – Cost, Benefits and Process

Introduction to the Abu Dhabi Global Market (ADGM)

Abu Dhabi Global Market (ADGM) is a premier international financial centre located in Abu Dhabi, UAE. Since its establishment in 2013 and opening in 2015, ADGM has quickly become a hub for financial services, offering a business-friendly environment supported by a robust legal framework based on English Common Law. This guide provides a comprehensive overview of the ADGM company setup, covering its history, benefits, costs, and registration process.

History of ADGM

ADGM was created as part of Abu Dhabi’s broader economic diversification strategy to reduce dependence on oil and foster a sustainable economy. Located on Al Maryah Island, ADGM operates as an independent jurisdiction with its own civil and commercial laws. Since its inception, ADGM has attracted numerous financial services companies, establishing itself as a key player in the global financial landscape.

Benefits of Setting Up Business in ADGM

1. Strategic Location: ADGM‘s strategic location in Abu Dhabi provides easy access to major financial markets in the Middle East, Africa, and South Asia. Its proximity to major international airports and seaports facilitates seamless global connectivity.
2. ADGM Tax Advantages: Businesses in ADGM benefit from a zero per cent corporate tax rate, zero per cent personal income tax, and no restrictions on capital repatriation. These tax advantages make ADGM an attractive destination for businesses looking to maximize profitability.
3. Business-Friendly Environment: ADGM offers a transparent and efficient business environment supported by a robust legal framework based on English Common Law. This ensures legal certainty and protection for businesses, fostering confidence among investors and entrepreneurs.
4. ADGM Financial Services: ADGM supports a wide range of financial services, including banking, insurance, asset management, and fintech. The presence of leading financial institutions and regulatory bodies enhances the credibility and attractiveness of ADGM as a financial center.
5. Global Connectivity: ADGM is well-connected to global financial markets, enabling easy cross-border transactions and international partnerships. The presence of a diverse and skilled workforce further enhances ADGM’s appeal as a business hub.

Cost of Setting Up Business in ADGM

The cost of setting up a business in ADGM can vary depending on the type of business and specific requirements. Below are some of the key cost components:

• Registration Fees: Initial registration fees for ADGM company setup typically start from AED 9,000. The exact amount may vary based on the business activity and legal structure.
• Office Space: The cost of office space within ADGM depends on the size and location of the office. ADGM offers a range of flexible office solutions, including co-working spaces, serviced offices, and bespoke office spaces to cater to different business needs.
• Licensing Fees: Annual licensing fees are determined by the nature of the business activity. These fees generally range from AED 12,000 to AED 25,000, ensuring businesses comply with ADGM‘s regulatory requirements.
• Miscellaneous Fees: Additional costs may include fees for regulatory approvals, professional services (such as legal and accounting), and other administrative expenses. It is important for businesses to budget for these miscellaneous costs to ensure smooth operations.

How to Register a Company in ADGM

Registering a company in ADGM involves a series of steps designed to ensure compliance with regulatory requirements and facilitate a smooth business setup process. Below is a step-by-step guide to ADGM company registration:

1. Choose a Business Structure: Decide on the legal structure of your company. ADGM offers various legal structures, including limited liability companies (LLCs), branch offices, and partnerships. Each structure has its own advantages and regulatory requirements.
2. Name Reservation: Reserve a unique company name through the ADGM Registration Authority. The name should comply with ADGM’s naming conventions and not infringe on any existing trademarks.
3. Prepare Documentation: Gather the required documentation, including business plans, identification documents, proof of address, and other relevant information. Ensure all documents are accurate and complete to avoid delays in the registration process.
4. Submit Application: Submit the completed application along with the required fees to the ADGM Registration Authority. The application will be reviewed by ADGM, and additional information or clarification may be requested if necessary.
5. Obtain Approvals: Once the application is submitted, ADGM will conduct regulatory checks and due diligence to ensure compliance with legal and regulatory requirements. This may involve background checks and verification of the provided information.
6. Lease Office Space: Secure a suitable office space within ADGM to commence business operations. ADGM offers a range of office solutions to accommodate different business needs and budgets.
7. Receive License: Upon approval, you will receive your business license, allowing you to operate legally within ADGM. The license is typically valid for one year and must be renewed annually.

Frequently Asked Questions (FAQs)

1. What is the Abu Dhabi Global Market (ADGM)?

• Abu Dhabi Global Market (ADGM) is an international financial centre located in Abu Dhabi, UAE. It provides a business-friendly environment with a robust legal framework based on English Common Law, offering various financial services and business benefits.

2. What are the tax advantages of setting up in ADGM?

• ADGM offers significant tax advantages, including a zero per cent corporate tax rate, zero per cent personal income tax, and no restrictions on capital repatriation. These benefits make ADGM an attractive destination for businesses looking to maximize their profitability.

3. What types of businesses can operate in ADGM?

• ADGM supports a wide range of businesses, particularly in the financial services sector. This includes banking, insurance, asset management, fintech, and other related services. ADGM’s regulatory framework accommodates various business activities.

4. How much does it cost to set up a company in ADGM?

• Setting up a company in ADGM includes registration fees starting from AED 9,000, annual licensing fees ranging from AED 12,000 to AED 25,000, and additional costs for office space and miscellaneous expenses. The total cost can vary based on the specific requirements of the business.

5. What is the process for registering a company in ADGM Freezone?

• The process involves choosing a business structure, reserving a company name, preparing the required documentation, submitting the application, obtaining regulatory approvals, leasing office space, and receiving the business license. Each step ensures compliance with ADGM’s legal and regulatory requirements.

6. What legal framework does ADGM follow?

• ADGM operates under a legal framework based on English Common Law. This provides a transparent and predictable legal environment, ensuring legal certainty and protection for businesses operating within ADGM.

7. How can ADGM Freezone benefit my business?

• ADGM offers numerous benefits, including a strategic location, tax advantages, a business-friendly environment, access to a wide range of financial services, and global connectivity. These factors make ADGM an ideal destination for businesses looking to expand and thrive in the international market.

8. What support does ADGM provide for business formation?

• ADGM provides comprehensive support for business formation, including a streamlined registration process, access to flexible office solutions, regulatory guidance, and a robust legal framework. ADGM’s services are designed to facilitate a smooth and efficient business setup process.

9. Can foreign companies set up in ADGM?

• Yes, foreign companies can set up in ADGM. ADGM offers various legal structures, including branch offices, which allow foreign businesses to establish a presence and operate within the financial centre while benefiting from ADGM’s advantages.

Conclusion

Setting up a business in Abu Dhabi Global Market (ADGM) offers numerous advantages, including strategic location, tax benefits, and a supportive business environment. By understanding the costs involved and following the registration process, businesses can effectively establish a presence in this leading international financial centre. For more detailed information on the registration process and requirements, visit the official ADGM website or contact the ADGM Registration Authority.