Do you intend to set up your business in ADGM? Abu Dhabi Global Market (ADGM) is a global trading hub and financial freezone in Abu Dhabi. ADGM is an autonomous jurisdiction with its own constitutional and commercial regulations.
It provides a safe, controlled environment that adheres to global best practices. It offers multiple financial services, including fundraising, managing investments, private banking, and Islamic financing.
These services are accompanied by exceptional facilities and a strong legal and governing structure. In this article, we’ll discover everything you need to know about ADGM, including its perks and how to start a business there.
Abu Dhabi Global Market and ADGM Financial Free Zone Explained
ADGM is Abu Dhabi’s global financial hub and free zone. It uses a straight international Common Law framework to draw in enterprises from across the world, both financial and non-financial.
ADGM Financial Free Zone has three separate authorities: FSRA, the registration authority, and courts that ensure that international companies can own all aspects of the business, without personal taxes, and follow the best rules in the world.
ADGM is a gateway that connects the rapidly developing economies of the Middle East to other parts of the globe.
Abu Dhabi Global Market Square is the best place to conduct business in ADGM. It has famous office towers, high-end shopping, great restaurants, and outstanding facilities.
ADGM Abu Dhabi Governance Structure
ADGM’s governance includes three distinct bodies: the registration authority, the FSRA, and the courts. Together, they are in charge of licensing, legislation, and the use of its International Common Regulation framework.
These authorities and governance in ADGM Abu Dhabi work on their own to ensure that the law is clear and financial rules are strong. It ensures businesses operate in a way compatible with global best practices.
ADGM Registration Authority
They are in charge of registering, incorporating, and licensing all legal entities. They keep the public register up to date and offer significant government and job-related services in the Free Zone.
Financial Services Regulatory Authority (FSRA)
The FSRA oversees all financial services in ADGM, ensuring that the market is fair, that investors are secure, and that global regulations and requirements are observed. It makes ADGM a highly competitive financial center.
ADGM Courts
The Courts use a system that relies on the direct application of Common Law to settle civil and business disputes. They offer an unbiased, advanced, and effective judicial platform.
Setting Up a Business in ADGM: Ultimate Benefits
ADGM has a strong English Common Law structure and allows full foreign ownership, which boosts business trust around the world. Letâs review the benefits of setting up a business in ADGM in Abu Dhabi.
Benefits in Taxes and Revenue
Companies don’t have to pay withholding tax on payments made outside the company. They can freely repatriate all of their capital and profits.
Access to Treaties Against Double Taxation
Companies can use the UAE’s several Double Tax Treaties to lower the amount of taxes on cross-border transactions. It makes their finances more efficient.
Ownership and Operational Perks
Some of the main benefits are a seamless process of setting up a business and a robust regulatory environment. Foreign investors may hold their company without requiring a local partner or sponsor. It provides them with full control over business activities and planning.
Competitive Market Access
ADGM is at the crossroads in the region, making it a gateway to rapidly expanding global and regional financial markets.
Exceptional Facilities
Businesses work in a complex environment that includes high-end workplaces, advanced technology, and strong government assistance.
Abu Dhabi Global Market Business Setup Process
The vital steps are reserving a name, writing documentation, sending the online application, getting a registered address, and ultimately, getting a commercial license. It simplifies the Abu Dhabi global market business setup process for investors and entrepreneurs.
Various Kinds of Business Structures in ADGM
ADGM has different business structures to choose from.
Limited Liability Company (LLC): It is the most typical way to conduct business. Shareholders are only responsible for their capital contributions, and the company needs an actual workplace.
Special Purpose Vehicle (SPV): It is a passive holding company that keeps investments and property separate. It doesn’t always need a physical office space.
Holding Company: It is usually set up as an LTD or SPV. Its main job is to keep shares in other companies for long-term management and preservation of assets. It additionally gains from tax treaties.
License for Tech Startups: It is usually set up as an LTD or SPV, and its main job is to hold shares in other companies for long-term control and capital preservation. It gets tax breaks.
Scheme for Investment: It needs the FSRA’s approval and is set up as a Limited Company, Limited Partnership, or Fund. It is utilized for controlling assets and collective investment plans.
Criteria for ADGM Business SetupÂ
These criteria include documentation, an official Business Plan, particularly for regulated operations, MOA/AOA, and a lease for the registered office location.
Needed Papers
Passports, Visas, IDs, evidence of residency, Certificates of Incorporation for corporate shareholders, and authorized rental contracts are all important documents.
ADGM Business Setup Cost 2025
To budget appropriately, you need to know the full cost structure. The average cost of starting an ADGM firm is between 50,000 AED and 300,000 AED. It depends on the business type, the office space, and the number of work visas required.
Fees for registering and getting a license
The expected registration fee for setting up an Abu Dhabi Global Market firm in 2025 is AED sixteen thousand, and the expected license fee is AED fifteen thousand.
Other Costs
Overhead expenses are AED 234,000, and operational expenses are AED 36,000.
Note: If you want to get the most up-to-date pricing estimate, you can contact our consultants.
ADGM vs Other UAE Free Zones
Abu Dhabi Global Market is a fiscal Free Zone that uses a Common Law system. It has a zero percent tax rate for eligible businesses. Under UAE Federal Law, most Free Zones are focused on certain businesses, including logistics or media companies.
DGM vs. DIFC Free Zone
Both of these are financial centers that use common law. ADGM uses Common Law directly and is noted for its adaptable SPV structure and innovative financial technology. DIFC has been around longer and has a broader ecosystem.
ADGM vs. Dubai South Free Zone
ADGM is a constitutional and financial territory. Dubai South is a trade zone for businesses that work in aviation, transportation, and business trading.
ADGM Better than Other Free Zones
Consider ADGM, as it has a common law system, an independent FSRA regulator that is perfect for fintech. It is close to Abu Dhabi’s sovereign wealth fund sector, and it is relatively inexpensive to set up.
Conclusion
The Abu Dhabi Global Market (ADGM) is the best place to start a business in 2025 as it implements Common Law directly and has its own court system. It is more appealing since it offers full control over the business for overseas investors, and zero corporate tax on a specific revenue limit.
The FSRA offers quite flexible policies for businesses. With the support of the Connect Business Center, ADGM offers flexible and cost-effective office solutions, including private offices, dedicated desks, and virtual offices, easing the physical setup requirements for new entities.
Choosing an appropriate legal structure and strictly following the registration authority’s specified procedures and anti-money laundering standards are crucial for a successful setup. ADGM is still the best alternative for complex, globally minded financial and non-financial companies seeking safety and tactical growth in this area.
FAQs
How long does it take to establish a business in the Abu Dhabi Global Market?
If all the paperwork and identity verification requirements are submitted on time and appropriately, it is easy to set up a non-regulated company in a few days to two weeks.
What is the least amount of funds needed to start an ADGM company?
For regular non-financial firms, there is no legal minimum share capital. However, based on the type of license, financial companies need a specific amount of capital.
What are the tax breaks for starting a business in ADGM?
There is no corporate tax on specified income, no tax on withholding on interest, dividends, or royalty payments.
What does Abu Dhabi Global Market Square mean?
ADGM Square is a famous financial center. It has the ADGM Headquarters Office Building, high-end office towers, luxurious shopping, and top-notch business infrastructure.
Is it possible to own an ADGM company entirely?
Yes, ADGM allows enterprises to be owned completely by foreigners, whether they are involved in financial or non-financial operations. There are no limits on repatriation capital and profits.
Do I need to have a working space in ADGM?
Yes, most companies are required to rent workspaces in Abu Dhabi Global Market. However, the SPVs are exempt.
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