Starting a business in the UAE? If you’re looking for a globally recognized, well-regulated, and business-friendly free zone, then Abu Dhabi Global Market (ADGM) should be at the top of your list.
Think of ADGM as a financial powerhouse—a place where businesses thrive, investments grow, and international trade flourishes. Whether you’re an entrepreneur launching a startup, an investor seeking financial opportunities, or a multinational corporation expanding into the UAE, setting up a company in ADGM comes with a host of benefits, including 100% foreign ownership and zero corporate tax.
This guide walks you through everything you need to know about starting a business in ADGM, from the setup process and legal requirements to costs and the advantages of operating in this financial hub.
Why Choose Abu Dhabi Global Market (ADGM) for Your Business?
ADGM is an award-winning international financial center that provides a business-friendly environment for companies in various industries, including finance, professional services, and technology. It follows a regulatory framework based on English Common Law, making it easier for international businesses to operate with legal clarity.
What Makes ADGM an Attractive Business Hub?
- 100% Foreign Ownership – Unlike mainland UAE businesses, companies in ADGM do not require a local sponsor.
- Zero Corporate Tax – Businesses keep their profits, as ADGM does not impose corporate tax.
- English Common Law System – The legal structure follows internationally recognized principles, making it investor-friendly.
- Access to Global Financial Markets – Businesses in ADGM have direct access to international capital markets and banking networks.
- Regulatory Transparency – ADGM follows international financial regulations, ensuring credibility and compliance.
- No Currency Restrictions – Companies can trade and transact in multiple currencies without limitations.
If you’re looking for a secure, internationally recognized free zone with strong regulatory frameworks and tax advantages, ADGM is an excellent choice.
Types of Companies You Can Set Up in ADGM
ADGM offers a range of company structures to suit different business needs. The right choice depends on your industry, business goals, and operational requirements.
Private Company Limited by Shares (LTD)
This is the most common business structure for startups, small and medium enterprises (SMEs), and corporations.
- Requires at least one shareholder and one director.
- Can be owned by individuals or corporate entities.
- Provides limited liability to shareholders.
Branch of a Foreign Company
This is ideal for international businesses that want to establish a presence in ADGM without forming a separate entity.
- The parent company retains full liability.
- No minimum capital requirement.
Limited Liability Partnership (LLP)
Designed for professional services firms, such as law firms, audit firms, and consulting companies.
- Requires at least two partners.
- Provides flexibility in management and liability protection.
Special Purpose Vehicles (SPVs)
A great option for businesses focused on asset protection, structured finance, and risk management.
- No minimum capital requirement.
- Commonly used by holding companies and investment firms.
Foundations
Best suited for wealth management, philanthropy, and estate planning.
- Provides legal separation of assets.
- Ideal for family offices and charitable organizations.
Step-by-Step Guide to Setting Up a Company in ADGM
The process of starting a company in ADGM is designed to be straightforward and efficient. Here’s how it works:
Step 1: Choose Your Business Activity
Before registering, decide on the nature of your business. ADGM offers licenses for:
- Financial services such as investment firms, banking, and fintech.
- Non-financial businesses, including legal services, consulting, and technology.
- Retail and e-commerce businesses, including digital platforms and online marketplaces.
Step 2: Select a Business Structure
Choose the most suitable company type based on ownership preferences, liability protection, and operational flexibility.
Step 3: Reserve a Business Name
The company name must be unique and comply with ADGM’s naming regulations. Restricted terms such as “bank,” “insurance,” or “government” require approval.
Step 4: Submit Your Application
Provide the necessary documentation, including a business plan, shareholder details, and financial statements. Pay the required registration and licensing fees.
Step 5: Obtain Regulatory Approvals
Businesses involved in financial services must receive approval from the Financial Services Regulatory Authority (FSRA). Non-financial businesses require clearance from the ADGM Registration Authority.
Step 6: Open a Corporate Bank Account
Once registered, your company must open a corporate bank account with an ADGM-approved financial institution. Required documents include:
- Trade license
- Memorandum of Association (MOA)
- Articles of Association (AOA)
- Shareholder details
Step 7: Secure Office Space
ADGM requires businesses to have a physical office address within the free zone. Options include:
- Co-working spaces
- Serviced offices
- Private office spaces
Step 8: Receive Your Business License and Start Operations
Once you receive your business license, you can legally start operating in ADGM.
Business License Options in ADGM
ADGM offers different types of licenses based on business activity.
Financial Services License
Designed for banks, forex trading companies, investment firms, fintech startups, and insurance providers. Approval from the FSRA is required.
Professional Services License
Intended for consultancies, legal firms, auditors, and corporate service providers. No minimum capital requirement is needed.
Retail & E-Commerce License
For businesses operating in online retail, digital marketplaces, and technology-driven industries. This license allows businesses to sell products and services globally.
Special Purpose Vehicle (SPV) License
Used by holding companies, asset protection firms, and investment management businesses. Often chosen for structured finance and risk management.
Costs & Fees for Setting Up a Company in ADGM
The cost of setting up a company in ADGM depends on the business activity, license type, and office space requirements. Here are estimated costs:
- Registration fees range from AED 9,000 to AED 15,000.
- License fees range from AED 13,000 to AED 25,000 per year.
- Office space costs start from AED 20,000 annually.
- Financial services license fees vary between AED 40,000 and AED 150,000, depending on the business activity.
Planning your budget in advance will help ensure a smooth setup process.
Compliance & Legal Requirements for ADGM Companies
To operate legally, all businesses in ADGM must comply with regulatory and financial guidelines.
Key Compliance Requirements
- Annual Financial Reporting – Companies must submit audited financial statements.
- Anti-Money Laundering (AML) & Know Your Customer (KYC) Regulations – Financial firms must comply with strict AML measures.
- Economic Substance Regulations (ESR) – Businesses must demonstrate substantial economic presence in ADGM.
Adhering to these legal requirements helps businesses maintain transparency and avoid regulatory issues.
Conclusion
Setting up a company in ADGM is a strategic move for businesses looking to expand in a globally recognized financial hub. With its business-friendly regulations, tax advantages, and world-class infrastructure, ADGM offers an ideal environment for startups, SMEs, and large corporations alike.
If you need expert guidance for company formation, GCS (Gulf Corporate Services), a leading business setup company in Dubai, provides end-to-end assistance for business registration, licensing, and compliance in ADGM.
