Comprehensive Guide to Business Setup in ADGM

Overview:

Abu Dabi Global Market (ADGM) is considered as World’s premier International Financial Centre and is the capital of the UAE. Thereby attracting investment banks, fintech, traders, venture capitalists, asset managers, and advisory firms globally. Abu Dabi hosts the world’s largest sovereign wealth funds providing access through numerous private wealth and broad partnerships. This place is also strategically located while connecting the East and the West markets. The tax-friendly policies, premium educational institutions, and exceptional lifestyle make this the most liveable city in the region. As you continue reading this article you’ll get answers to all the queries regarding business setup in ADGM.

Setting Up Business in ADGM

Among all other emirates operating in ADGM, it has many advantages like – a business-friendly environment and regulatory framework that attract participants from various sectors, making it an ideal location for establishing and growing international ventures. While also offering a flexible shareholding with no minimum or maximum capital requirement. ADGM also provides various solutions to safeguard and expand your wealth like – ADGM Operating company which helps in smooth business operations. ADGM holding company with special purpose vehicle – ADGM SPV that is established to isolate financial and legal risk by ring-fencing certain assets and liabilities.

Procedure

If you’re planning a business setup in ADGM, here’s a simplified breakdown of the process:

Preparing & submitting your application

There are three major domains from which you can pick and choose to set up your business – the financial domain which includes banking services, wealth and asset management, capital markets, etc. non-financial including tech startups, head office, and retail. Followed by choosing the domain, see to that your proposed company name is NOT in use by existing companies. Identify the office space and register for lease. As the last step submitted all these documents for approval.

Getting visa

Businesses also need to manage employee visas and establishment cards: 

• Establishment card application: $273 
• E-channel setup (one-time): $1,100 E-channel deposit: $1,360 
• Employee visas: Starting from $1,500 per visa Pricing structure & steps enforce core prerequisites for setting up a business in the intended ADGM free zone.

Filing and reporting requirements

To set up a Business in ADGM, ensure you fulfill ADGM’s specific requirements, including The basic requirement is having a physical office space situated around the specific location. The minimum share capital that should be provided by the applicant should meet the requirements depending on which company type they want to obtain and the type of license for the business.

Complete and submit all the documents that change with the variation of the business type you intend to open for business setup in ADGM. This step also involves verification of the subject’s eligibility to participate by conducting a background check. Every business requires formation and licensing, so pay the necessary amount for formation and licensing fees. Such fees pertain to sundry aspects of the setup process and will determine the overall fee based on its business type and license. Here is the cost breakdown (Note: The cost might vary depending on the type of company setup)

• Name reservation: $200
• Incorporation application: $1,500
• Commercial license (annual fee): $4,000
• Business activity fees (annual fee): $4,000

Why Incorporate Your Business in Abu Dhabi Global Market (ADGM)?

Business setup in ADGM has many advantages that provide a company with many opportunities when it decides to settle in a fast-growing financial-free zone. Here’s what you can expect:

• 100% Foreign Ownership: Be in complete charge of your own business.
• Favorable Tax Structure: Receive no personal income taxes and still get 9% corporate tax where necessary.
• Full Profit Repatriation: It is not difficult to repatriate your earnings back to your home country.
• Ease of Doing Business: Slow and faster forms of processes and improved business environment.
• Comprehensive Ecosystem: Get an all-in-one service, in the fields of law, accounting, and business administration.
• Flexible Licensing: Several business activities can be grouped under a single license as long as all fall under one scope of practice.
• Global Standards: Function in a manner that is consistent precepts of global sound financial practices.
• Office Setup Options: This ranges from a selection of different offices to suit your business needs.
• Visa Flexibility: Take advantage of the investor and employee visa varieties and one visa for every 8 square meters of office space.
• Efficient Application Process: Shorten the time to get started and to implement some procedural changes.
• No Restrictions: Hire foreign workers without any complications and do not restrict operation by currency controls.
• Strategic Location: Located in central UAE, with easy access to the International and GCC markets.
• Close to Major Airports: Availability of the property near Dubai International Airport and other transport facilities.
• Networking Opportunities: Working closely with more than 100 startups, accelerators & initiatives including Hub71 and startAD.
• Skilled Workforce: Back yourself with a vibrant pipeline of candidates.
• World-Class Infrastructure: Provide services in modern buildings that have all the necessary amenities for the user.

Having these advantages, ADGM sets the right conditions for organizations to be established and grow in UAE and beyond.

Wrapping Up

To sum up, there are many benefits that one is bound to enjoy when they decide to start a company in the ADGM freezone for instance; low taxes, good legal standing, other business people within the area, and strategic location. The elaboration of the costs and the stages enables businesses to go through them without hitch and harness the potential offered by this world’s financial center. It does not matter if a person wants to establish a holding company, financial institution, or any company at all, ADGM shapes a perfect environment for business development located in the center of Abu Dhabi.

Frequently Asked Questions

Is ADGM a financial-free zone?

Yes, it works as a financial-free zone for Abu Dhabi as per the legislation. It has its own civil and commercial code of laws for doing business in Jamaica.

Is it permissible for an ADGM company to own land in Dubai?

Indeed, ADGM businesses are permitted to acquire property in certain sectors of Dubai. However, the foundation structure provides for the exemption of assets from forced heirship and creditors.

Does ADGM have limitations in the naming of a company?

Yes, ADGM has rules for naming companies: As stated above, company names cannot be the same as ADGM registered company names. Terms such as misleading, offensive, or censored will not be tolerated. Certain names, especially those which relate to trademarks for regulated activities, may need prior approval.

What differentiation can be made between ADGM and DIFC?

Two of the companies in the UAE are the ADGM (Abu Dhabi Global Market) and DIFC (Dubai International Financial Centre) which are significant financial free zones. However, they differ in: Location: ADGM serves Abu Dhabi and DIFC is located in Dubai. Specialization: ADGM concentrates on fintech, asset management, and financial services whereas DIFC is plural but with a strong bias towards banking and insurance. Legal Framework: Both have systems of laws based on common law, but their laws and ways of regulation are distinct, about their regions.

This list of FAQs allows the reader to learn more about ADGM’s benefits and its mission statement within the UAE economy.

About Arnifi

Arnifi is a digital Corporate service provider helping companies enter the Middle East region, starting with the UAE and Saudi Arabia markets. Founded and backed by professionals from Amazon, Souq, and other large companies operating in KSA – the team understands what it takes to succeed as a startup in both UAE and Saudi Arabian markets, apart from going through the setup process multiple times. Arnifi will provide a truly digital experience for the entry and scale-up of companies in both the UAE and Saudi Arabia. Discover tailored solutions and strategic partnerships that propel your business forward. Check out at – www.Arnifi.com for more details.

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