Company Formation in ADGM | Company Formation in Abu Dhabi

Abu Dhabi Global Market Free Zone

Home > Abu Dhabi Global Market Free Zone

ABU DHABI FREE ZONE

Abu Dhabi Global Market Free Zone

Abu Dhabi Global Market (ADGM) is a renowned financial hub that offers opportunities for company establishment on Al Maryah Island in the capital city of the United Arab Emirates.

ADGM provides three primary categories of licenses for setting up businesses: (1) non-financial licenses, (2) retail licenses, and (3) financial licenses, each allowing a wide range of business activities.

Depending on the type of license, two different authorities oversee the registration of ADGM companies. The Registration Authority registers retail and non-financial licenses, while the Financial Services and Regulatory Authority handles financial licenses. ADGM companies operate under the framework of English common law, and the ADGM Courts ensure legal certainty by promoting compliance and efficient dispute resolution.

Benefits of Business Setup in Abu Dhabi Global Market

Company Formation in ADGM offers several advantages:

100% Foreign Ownership

ADGM permits full foreign ownership of companies established within its jurisdiction.

Comprehensive Ecosystem

ADGM provides a complete ecosystem that includes legal, accounting, and support services for businesses.

Flexible Activity Scope

There are no restrictions on the number of business activities that can be conducted under a single license, as long as they align with the license type.

International Best Practices

ADGM adheres to international best practices recognized by major global financial centers.

Zero Direct Tax

Businesses in ADGM are not subject to direct taxes, enhancing profitability.

Repatriation of Profits

Companies can repatriate 100% of their profits.

Office Set-Up Options

ADGM offers multiple flexible office setup options to meet the diverse needs of businesses.

Investor and Employee Visas

Businesses enjoy flexibility in obtaining investor and employee visas.

Visa Allocation

One visa is granted for every eight square meters of office space, facilitating workforce expansion.

Efficient Application Process

ADGM boasts a streamlined and time-efficient application process for company setup.

Business-Friendly Procedures

The region offers straightforward and convenient business procedures.

Foreign Employee Freedom

There are no restrictions on hiring foreign employees.

English Common Law

The legal system operates in English and follows common law principles.

Ease of Doing Business

The United Arab Emirates ranked 11th on the Doing Business Index in 2019, highlighting a favorable business environment.

Strategic Location

Being in the heart of the UAE, ADGM offers excellent connectivity and facilitates easy business interactions with multinational companies.

Global Accessibility

Abu Dhabi’s strategic location provides easy access to major global financial hubs.

Types of ADGM Companies

This company can be formed by minimum one shareholder. The shareholder can either be an individual or a corporate. The individual shareholder must be above the age of eighteen (18) years. This company must appoint at least two (2) directors.

This company can also be formed by minimum one (1) shareholder, who can be an individual or a corporate entity. The individual shareholder must be above the age of eighteen (18) years. A minimum of one director must be appointed in this company. The liability of the shareholder is limited to the shareholder’s investment in the company.

The minimum requirement to form an unlimited company is one (1) shareholder and one (1) director. The shareholder / director can be a corporation or an individual [above eighteen (18) years]. In this company form, the liability of the shareholder is not restricted to its investment.

The minimum number of shareholder(s) and director(s) depends on the requirements of the home country. This company requires an authorised signatory in the UAE, who should be above the age of eighteen (18) years.

This company can be formed with the ADGM with at least one (1) shareholder and one (1) director. The shareholder and director must be above the age of eighteen (18) years. However, the director must be an approved investment fund manager by FSRA or any other regulatory authority.

Documentation Needed

The specific documentation required for company formation in ADGM may vary based on the type of company and the activities it intends to undertake. However, in general, the following are the key documents and information typically required:

Company Name Reservation : You’ll need to provide the proposed name for your company. ADGM will check the availability and conformity of the name to its naming regulations.
Shareholder and Director Information : For individual shareholders and directors: Copies of valid passports or national ID cards.
For corporate shareholders and directors : Copies of the Certificate of Incorporation, Memorandum and Articles of Association, and other corporate documents.
Registered Office Address : Proof of the registered office address in ADGM, which can be provided through a tenancy contract or other relevant documents.
Business Plan : A detailed business plan outlining the nature of your business activities and the structure of the company.
Share Capital : Details of the share capital structure, such as the number of shares and their value. For some company types, you might need to provide a bank reference letter confirming that the share capital has been deposited.
Memorandum and Articles of Association : Drafted and notarized Memorandum and Articles of Association, which define the internal regulations and governance structure of the company.
Directors’ Resignation and Appointment Letters : If applicable, letters of resignation from previous directors and appointment letters for the new directors.
Compliance Documentation : Depending on your company’s activities, you might need to provide specific compliance documents. For example, if your company falls under the financial services sector, you may need to submit additional documents, and the director may need to meet specific qualifications.
Financial Statements : Typically, audited financial statements for the corporate shareholders.
Approval Documents : For companies that require special approvals or licenses for their activities, you need to include the relevant approvals from the respective authorities
Power of Attorney : If a representative is submitting the application on behalf of the shareholders or directors, a Power of Attorney document may be required.
Personal and Business References : Some categories of companies may require personal and business references for directors and shareholders, including CVs or resumes.

It’s important to note that these requirements can change over time and may be different for various types of companies and activities. Therefore, it’s advisable to consult with a registered business service provider like us at Corpin Consultants, for company formation in ADGM for the most up-to-date and specific documentation requirements based on your company’s circumstances.

What is the process of Company Formation in ADGM?

The process of forming a company in the Abu Dhabi Global Market (ADGM) typically involves several steps. Here’s an overview of the process:

Choose the Company Type : Determine the type of company structure that best suits your business needs. This can be a public company limited by shares, private company limited by shares/guarantee, unlimited company, branch of a foreign company, or an investment company.

Company Name Reservation : Choose a unique and compliant company name. You will need to submit a name reservation request to ADGM.

Shareholder and Director Information : Provide information about the shareholders and directors of the company. This includes their identification documents and relevant corporate documents for corporate shareholders and directors.

Registered Office Address : Have a registered office address within ADGM. You will need to provide proof of this address, such as a tenancy contract.

Business Plan : Develop a detailed business plan that outlines the nature of your business activities, your market strategy, and financial projections.

Memorandum and Articles of Association : Draft and notarize the Memorandum and Articles of Association. These documents set out the company’s internal regulations and governance structure.

Share Capital : Determine and document the share capital structure. In some cases, you may need to provide a bank reference letter confirming the deposit of share capital.

Directors’ Resignation and Appointment Letters : If applicable, provide letters of resignation from previous directors and appointment letters for new directors.

Compliance Documentation : Depending on your business activities, you may need to submit specific compliance documents. If your company falls under the financial services sector, additional documentation and director qualifications may be required.

Financial Statements : For corporate shareholders, provide audited financial statements.

Approvals and Licenses : If your company’s activities require specific approvals or licenses, submit the necessary documents from relevant authorities.

Power of Attorney : If someone is acting as a representative on behalf of the shareholders or directors, a Power of Attorney document may be required.

Application Submission : Submit the completed application, along with all required documents, to the relevant authorities within ADGM, such as the Registration Authority for non-financial and retail licenses or the Financial Services Regulatory Authority for financial licenses.

Review and Approval : The authorities will review your application, documents, and compliance with regulations. This process can take some time, and you may need to provide additional information or clarify details during this phase.

Company Formation : Once your application is approved, you will receive a Certificate of Incorporation, and your company will be officially formed.

Post-Formation Compliance : After formation, you will need to comply with ongoing reporting and compliance requirements, including filing annual financial statements and other regulatory obligations.