ADGM Free Zone, Abu Dhabi

ADGM Free Zone

Our company collaborates with numerous free economic zones across the UAE and provides support in business registration. Presented below is an overview of the ADGM free zone in Abu Dhabi.

Name and Website

Abu Dhabi Global Market (ADGM); adgm.com.

General Information

ADGM, a free zone situated on the Al Maryah and Al Reem islands, was established in 2015. Today, ADGM is one of the major regional financial centres with a world-class business and residential infrastructure.

ADGM is notable for its high-quality regulatory framework and dispute resolution mechanism based on English law. The free zone’s bodies include its own courts and financial supervision authority.

Specialisation

An international financial centre.

Over 1000 permitted business activities.

Registering Authority
  • ADGM Authority;
  • Registration Authority;
  • Financial Services Regulatory Authority (FSRA);
  • ADGM Courts.
Companies’ Regulations

Companies Regulations 2020. These Regulations are primarily based on the UK Companies Act 2006.

Types of Licenses

Permitted business activities in ADGM are divided into three categories:

  • Financial (A), which includes banking, asset management, fintech, investment funds, money services, providing credit, etc.;
  • Non-financial (B), for example, holding and head office business, special purpose vehicles (SPV), treasury management, consultancy and other business services, real estate, transportation, manufacturing and wholesale of specific goods, and others; and
  • Retail (C), which includes retail sales and providing services.

Licenses to carry out activities in the B and C categories are issued by the Registration Authority. Obtaining a financial license will require prior approval from the FSRA.

Dual Licensing

ADGM companies may obtain a license from the Abu Dhabi Department of Economy and Tourism to operate in the Abu Dhabi mainland.

Type and Forms of Companies
  • Private company limited by shares (the most popular option);
  • Public company limited by shares;
  • Private company limited by guarantee;
  • Private company unlimited (with or without shares);
  • Partnerships (limited liability partnership, general or limited partnership);
  • Branch of a foreign company or partnership.
Company Name

The company’s name must not be identical to those already in the register. 

A name of a private company limited by shares should be accompanied by the words or abbreviations: “limited”, “LIMITED”, “ltd”, “LTD”, “l.t.d.”, or “L.T.D.”.

Share Capital

The minimum share capital for public companies is 50,000 USD. The minimum capital for private companies is not established.

Foreign shareholders may own 100% of the company’s shares.

Director and Secretary

A private company must have at least one director, and a public company must have at least two directors. At least one director (in any company) must be an individual. 

Private companies may but are not required to have a secretary.

Physical Office

Companies must have a registered and physical office within the ADGM, that is a permanent workplace or office space. Temporary access options are not acceptable.

Newly registered ADGM free zone companies confirm the presence of an office by a lease agreement.

Financial Statements and Audit

Companies in ADGM must maintain accounting records and annually submit audited financial statements to the registration authority. A company must submit its financial statements within nine months after the end of the reporting period. The audit can only be carried out by an audit firm recognized by ADGM.

Small companies may submit simplified reporting (balance sheet) without needing an audit. A company is considered small if its turnover does not exceed 13.5 million USD during the corresponding financial year and the number of employees is less than 35.

Taxation of Profits

In terms of taxation, Abu Dhabi Global Market, like other free zones, is subject to the federal laws of the UAE.

An ADGM company that meets the requirements for a “Qualifying Free Zone Person” can apply a 0% corporate tax rate on its “qualifying income”.

Annual Renewal

A company files a confirmation statement – an annual non-financial report confirming the company’s address, activities, details of directors and the place where the company’s financial records are kept.

Starting from its second year of existence, the company pays free zone fees for license and immigration card renewal.

The company’s annual expenses also include office lease renewals, residence visas (as they expire), financial statements and audit expenses, and corporate service provider fees.

Redomiciliation

Both inward and outward redomiciliation is allowed.

A company from another jurisdiction may continue as a company in ADGM. Likewise, an ADGM company may move to another jurisdiction subject to the approval of the ADGM Registration Authority.

Company Search

https://newreg.adgm.com/s/search-results

The information available includes a date of incorporation, a legal form, a license validity period, an address, business activities, shareholders, directors, and a secretary, as well as a filing history.

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