Setting up an Abu Dhabi Global Market License

In the ever-evolving business landscape, the United Arab Emirates (UAE) continues to be a magnet for investors and entrepreneurs. While Dubai is often the first choice for many, setting up a business in Abu Dhabi, particularly in the Abu Dhabi Global Market (ADGM), presents a strategic alternative. This blog post will guide you through the process of establishing a business in the ADGM, focusing on critical aspects such as Dubai company formation and registration, business setup in Abu Dhabi, business license in Abu Dhabi, business setups in ADGM Free Zone, company formation in Abu Dhabi, and the Dubai free zone license cost.

Glimpse to Abu Dhabi Global Market (ADGM)

Abu Dhabi Global Market (ADGM) opened its doors to local and foreign businesses and organizations in October 2015, when it was fully functioning. ADGM, situated in the  center of Abu Dhabi connects the east-west corridor. For businesses and financial institutions to launch operations and realize their expansion goals, ADGM provides a safe and effective platform. It develops the spirit of long-term collaboration and partnership while utilizing the natural power of the Abu Dhabi economy. The Registration Authority, the Financial Services Regulatory Authority (FSRA), and the ADGM Courts are the three independent organizations that oversee ADGM operations. Although ADGM offers a wide range of financial activities, investors are drawn to the company because of its openness to a wide range of non-financial business setup, such as corporate headquarters, professional and commercial ventures, and family businesses. Holding companies, special purpose vehicles, restricted scope vehicles, and other legal structures for maintaining and safeguarding assets are all services offered by ADGM Financial, non-financial, and retail business activities are the three categories into which ADGM divides its services. The FSRA regulates all economic activity.

Benefits of ADGM

• A judicial system that is independent and based on British common law.

• Delivering judicial services in ADGM E-Courts is a seamless digital experience.

• 100% foreign ownership waives the requirement that 51% of the shares be held in the name of an Emirati or a corporation owned entirely by Emiratis.

• Several commercial operations.

• Zero tax rates allow for the possibility of capital and profit repatriation.

• Attractive tax laws and access to the UAE's outstanding double tax treaty network.

Why Choose Abu Dhabi Global Market (ADGM)?

ADGM has gained prominence as a thriving business hub in the heart of the UAE. Offering a competitive advantage and host benefits, it's an excellent choice for entrepreneurs looking to expand their business footprint. 

Here's why ADGM is a hotspot for business setups:

1. Strategic Location: Situated in the capital city of the UAE, Abu Dhabi, ADGM offers a gateway to a wide range of markets, both regionally and globally.

2. Regulatory Excellence: ADGM has a robust legal and regulatory framework that promotes transparency and trust, providing investors with peace of mind.

3. Variety of Business Activities: Whether you are in finance, technology, or any other sector, ADGM provides a platform for diverse business activities.

ADGM Free Zone Organizations for Business

The ADGM Free Zone offers a range of options for forming businesses, including limited liability corporations, branch offices, and representative offices. A corporation can be quickly and efficiently established in ADGM with the help of knowledgeable consultants for company setup. One of the key advantages of forming a firm in ADGM is that it allows for 100% foreign ownership, enabling entrepreneurs to maintain total control over their organization without needing a local partner.

Getting Started in ADGM

The first step in establishing a business in ADGM is selecting the appropriate legal form for your enterprise. After deciding its legal structure, you must register your business with the ADGM Registration Authority. You must submit your business plan and the documents needed to form your company as part of the registration procedure. The ADGM Registration Authority will review your application to see if it meets their requirements and issue you a license

The Process of Setting up Business in ADGM:

1. Select Your Business Activity: Determine the type of business you want to establish in ADGM. Your choice will influence the licensing and registration process.

2. Choose a Legal Form: Decide on the legal structure of your business, whether it's a limited liability company (LLC), branch office, or representative office.

3. Register Your Business: Register your company with the ADGM authorities. This includes choosing a company name and submitting all necessary documents.

4. Apply for a License: You must apply for the appropriate license depending on your business activity. ADGM offers permits for various activities, such as financial services, non-financial services, and more.

5. Office Space: You'll need to have physical office space in ADGM. You can lease a workspace within the free zone or set up in the ADGM Square.

6. Obtain Initial Approval: After submitting your application, ADGM authorities will review it and provide initial approval, which allows you to proceed.

7. Payment of Fees: Pay the relevant license and registration fees. Budgeting for these costs, including the Dubai free zone license cost, is essential.

8. Finalize the Process: Complete any additional requirements, such as visas for your employees, and finalize the process by issuing the business license.

Businesses operating in the ADGM Freezone

The Abu Dhabi Global Market (ADGM) is a free zone and international financial center in Abu Dhabi, United Arab Emirates. ADGM primarily focuses on economic and business activities, providing various services and facilities to attract financial institutions, companies, and startups. Some of the critical business activities and services that can be conducted in the ADGM-free zone include:

1. Financial Services: ADGM is known for its focus on financial services, including banking, asset management, and insurance. It offers a platform for financial institutions to operate, trade, and serve clients in the region.

2. Fintech: ADGM has been actively promoting the fintech industry and has a dedicated regulatory framework for fintech companies. It provides support for startups, innovation labs, and fintech accelerators.

3. Corporate Services: Companies can set up their corporate headquarters, regional offices, and representative offices in ADGM. It provides a business-friendly environment with modern infrastructure.

4. Legal and Professional Services: ADGM is home to various legal and professional service providers, including law firms, accounting firms, and business consultants.

5. Technology and Innovation: The ADGM offers support and infrastructure for technology companies, research, and innovation activities. It encourages technology-driven businesses, including those involved in artificial intelligence, blockchain, and cybersecurity.

6. Wealth and Asset Management: ADGM is a hub for wealth and asset management firms, making it an attractive location for investment and wealth management services.

7. Compliance and Regulatory Services: ADGM has its regulatory authority and provides compliance, legal advisory, and risk management services.

8. Trading and Market Activities: It hosts financial markets and platforms for asset classes, including equities, commodities, and derivatives.

9. Shipping and Logistics: ADGM has a dedicated shipping cluster with maritime, shipping finance, and logistics services.

10. Real Estate and Construction: Real estate development and construction companies operate in ADGM to support the growth and infrastructure development of the free zone.

11. Hospitality and Retail: As ADGM aims to create a well-rounded ecosystem, it includes hospitality and retail establishments to cater to the needs of residents, visitors, and businesses.

12. Education and Training: The ADGM supports educational and training institutions, offering programs related to finance, business, and technology.

13. Consulting and Advisory Services: Businesses providing consulting and advisory services across various industries can operate in ADGM to serve clients within the free zone and the broader region.

Key Considerations for Dubai Companies:

For businesses already established in Dubai, expanding to ADGM is relatively straightforward. Here are some key considerations:

Corporate Structure: 

Ensure that your Dubai-based company structure aligns with ADGM requirements.

Regulatory Compliance: 

Verify that your business activities conform to ADGM regulations and licensing criteria.

Legal Representation: 

Appoint legal representatives or agents as required by ADGM regulations.

Conclusion:

Setting up a business in the Abu Dhabi Global Market provides a gateway to success in the UAE's capital. It offers a competitive advantage regarding location, regulatory excellence, and diverse business activities. For Dubai companies, the process is more accessible than ever, making it a promising option for business expansion. With careful planning, adherence to regulations, and a clear understanding of costs, you can successfully establish your presence in the ADGM.

With the help of Dhanguard, you can navigate the process of setting up your business in ADGM quickly and efficiently.