Abu Dhabi Global Market (ADGM) is an international financial center and free zone located on Al Maryah Island in the United Arab Emirate’s capital, Abu Dhabi. It is a broad-based international financial center for local, regional and international institutions, established in accordance with Federal Law.
Why set up business with Abu Dhabi Global Market (ADGM)?
There are several reasons to choose Abu Dhabi Global Market Free Zone to set up your company. We have outlined some of the reasons to choose for your easy reference below:
- Low-cost business operations and a favourable cost of living
- Businesses reach improved profitability, stronger growth and ongoing success
- Abundant oil and natural gas reserves plus an increasingly successful strategy to reduce dependence on fossil fuels
- Forward-thinking economic policies support businesses of all sizes and stages of growth by including financial incentives for innovation or research and development-focused businesses
- Well-established relationships in the financial community
- А dynamic and sophisticated financial services sector
- Politically stable and secure
- A significant global investment portfolio
What are the advantages of setting up business in Abu Dhabi Global Market (ADGM)?
Abu Dhabi Global Market (ADGM) provides flexibilities ranging from unlimited capital outflow from the free zone to the receiving destination. Following are some of the advantages of going with Abu Dhabi Global Market (ADGM):
- 100% foreign ownership
- Easy setting of business
- 0% personal and corporate tax
- Unlimited repatriation of capital
- No employment restrictions
What is the Set up Procedure involved in Abu Dhabi Global Market (ADGM) Free Zone?
The process of setting up business in Abu Dhabi Global Market (ADGM) is a simple 5 step process:
- Select the nature of the business
- Select the legal structure
- Check the availability of the proposed name
- Identify the office space and register for a lease
- Submitting supporting documents and information for application
What are the Various Departments falling under Abu Dhabi Global Market (ADGM) Registration Authority?
- Business Development
- Registration & Incorporation
- Monitoring and Enforcement
- Corporate Relations
- Client Experience
What is the Schedule of Fees to Register in Abu Dhabi Global Market (ADGM)?
The fees for registration and incorporation are in US dollars and Governmental services are in AED.
| Online services | Paper forms | |||
| Service | Category A
(Financial services) |
Category B
(Non-Financial services) |
Category C
(Retail) |
All categories |
| Business application | $0 | $300 | $0 | $375 |
| Application for reserving a name | $200 | $200 | $200 | $250 |
| Application for registration of company/partnership | $1,500 | $1,500 | $1,500 | $1,875 |
| Issuance of commercial license | $4,000 | $4,000 | $4,000 | $5,000 |
| Business activity fee | $9,000 | $4,000 | – | $9,000/$4,000 |
| Data protection | $300 | $300 | $300 | $375 |
| Total | $15,000 | $10,300 | $6,000 | – |
* The fees stated above and in this article are purely based on the information available on the official websites/sources of the concerned government authority and from publicly available sources. You can anticipate changes in future in the costs mentioned. If you re taking any decisions based on the info provided in this article, kindly recheck with the official authorities/sources before taking any decision. Spectrum is not responsible for any changes in the costs mentioned above.
How is ADGM Free Zone different from other Free Zones?
Abu Dhabi Global Market is a unique and innovative financial centre located in the heart of Abu Dhabi. Following are the ways in which it differs from the other Free zones:
- Legal: ADGM has a unique dedicated legislation. This law provides a modern and flexible legal framework for companies operating in ADGM.
- Regulatory: ADGM is the only free zone who has its own financial service regulator, ADGM Financial Services Regulatory Authority.
- Location: ADGM is located in the heart of Abu Dhabi, which is minutes away from the central business district, key government entities and other free zones.
- Operational benefits:
- It is not VAT liable (except for certain supplies)
- Offers tax transparency
- No foreign exchange control on remittance of profits, dividends, and capital
Frequently Asked Questions on Abu Dhabi Global Market (ADGM) Free Zone:
- How long will it take for the application to be approved?
If all the requirements for the incorporation are satisfied and the registrar has approved the documents, the expected time frame is 10 working days.
- How do I reserve a name for the company?
An application to reserve a company name must be submitted to the Registrar along with relevant requirements and fees. Reserved name must be used to incorporate a new company within 30 days from the date of reservation. Reservation can be extended for a further period of 30 days upon submission of the name reservation extension form and fee, however, reservation can only be extended twice after the initial reservation. Further extension of name reservation will require Registrar’s consent.
In the future, after the legal entity is established, if you wish to change the name of your company, you may also apply to reserve the new company name.
- How will firms be regulated within ADGM?
The ADGM will have its own judicial system and legislative infrastructure, under three independent authorities:
- Registration Authority
- Financial Services Regulatory Authority
- ADGM Courts
- How do I obtain a visa and what is its validity?
ADGM will take into consideration the business activity, office space, and health & safety requirements and then accordingly, each case will be assessed individually. ADGM offers a 3-year employee visa.
- How do I submit an application?
The three ways to submit an application:
- Online application: It is the most preferred method by ADGM
- Paper-based application: Paper-based applications are available with an additional processing fee.
- Using a service provider: Service providers represent their clients to complete the registration via the modes mentioned above.
Corporate tax applicability to the companies in Abu Dhabi Global Market (ADGM) Free Zone:
Corporate tax law is going to be applicable for all the companies registered in UAE including the free zones in UAE. The UAE Corporate tax is going to be effective for the financial year beginning on or after 1 June 2023 for the businesses in UAE. Corporate tax will be levied at zero percent on the taxable income (adjusted net profit) of the businesses in the free zones as long as they comply with all the regulations of the respective free zone and do not do any business with the mainland companies, otherwise there is a possibility of levying 9% corporate tax on the taxable income (adjusted net profit) in excess of AED 375,000. Hence companies in the Free Zones need to make sure that they are complying with all the regulations of the free zone and do not do any business with the mainland entities to enjoy the benefit of zero percentage of UAE corporate tax.
{NOTE: Kindly note that the authenticity of this article is limited to the day of publishing this blog. As policies and rules pertaining to each free zone keeps changing from time to time based on the necessity of the respective authority, it is hereby advised you to check the website of the concerned free zone directly to get the latest update on the same. We do not assume any liability if you have taken any decision based on the information provided in the article. We have ensured that the presented information to the visitor is legible to the maximum extent possible so that all the information is available in one page, at one go. Thank you.}
How can Spectrum help you set up a business in Abu Dhabi Global Market (ADGM) Free Zone?
Spectrum provides an easy and simple start-up process for companies seeking to set up offices in Abu Dhabi Global Market Free Zone. Spectrum’s dedicated team will guide you through the process, answer your questions, provide the necessary forms, and serve as your primary point of contact to support you through the whole process.
Spectrum is an expert firm in the Company Formation and Company Liquidation process. Our passion and heart lie in serving the clients and we aim at the utmost client’s satisfaction. We are registered Auditors under the Ministry of Economy UAE and also registered Tax Agent from Federal Tax Agency UAE, Dubai providing dedicated Audit, Accounting, Tax services and various Business Advisory Services complying regulatory requirements.
Call us today for any kind of assistance at +971 4 2699329 or email us at [email protected] to get all your queries addressed. Spectrum is your partner in your success.
AUTHOR
Accounts Executive
contact us