Sophia Turner
Setting Up a Company in Abu Dhabi Global Market
For investors seeking a presence in one of the Middle East’s most significant hubs, investing in Abu Dhabi Global Market (ADGM) presents an exceptional opportunity.
Abu Dhabi Global Market, commonly known as ADGM, is one of the most vibrant financial centers in the capital of the United Arab Emirates. This zone has become one of the most sought-after economic hubs in the region due to its abundant investment opportunities and efficient legal framework, modeled on English common law. The primary objective of ADGM’s establishment was to create a comprehensive business ecosystem for professionals in banking, asset management, and fintech innovation.
The strategic location and advantageous tax regulations have elevated Abu Dhabi to a premier destination for large-scale businesses and investments. Today, we’ll discuss “Setting Up a Company in Abu Dhabi Global Market.” If you’re considering investing or establishing a branch of your business in the UAE’s capital, stay with Golden Rose till the end.
Abu Dhabi Global Market
Abu Dhabi Global Market is a global financial market situated in the capital of the UAE, designed to foster the growth and investment of major businesses. Established under Federal Decree No. (15) in 2013, it has continued to strengthen the region’s economic strategy. ADGM has emerged as one of the Middle East’s most powerful economic hubs.
Why ADGM Matters
As mentioned, ADGM is strategically located in the heart of Abu Dhabi, attracting both international and domestic investors. Its location aligns with Abu Dhabi’s vision of becoming a major global business destination. The key drivers of ADGM’s success include its role as a significant economic hub and its efficient legal and regulatory framework. ADGM supports a wide range of industries, which has been a cornerstone of its growing appeal.
Why ADGM Matters | Business Ecosystem
ADGM is not confined to a single platform; its support for diverse industries has significantly contributed to its remarkable success. It caters to ecosystems across various sectors, including banking, asset management, and fintech innovation. This broad support has enabled the flourishing of cutting-edge technologies within Abu Dhabi. Another notable strength of ADGM is the variety of licenses it offers, tailored to different business activities, including those for specific commercial operations.
Reasons to Invest in Abu Dhabi Global Market (ADGM)
So far, we have explored the significance of the Abu Dhabi region. But why have many of the world’s top investors been drawn to investing in this centre? Let’s take a closer look.
1. Prime Location
ADGM is situated on Al Maryah Island, offering a unique location with easy access to key regions in the Middle East, Africa, and South Asia. This strategic position has established ADGM as an economically significant hub in the Middle East.
2. Ideal Regulations
ADGM operates as an independent jurisdiction, making its regulatory framework distinct from Abu Dhabi city and other parts of the UAE. In fact, ADGM offers greater advantages than many other financial zones. Its highly attractive regulations include:
- 100% foreign ownership
- Unrestricted capital repatriation
- A legal framework designed to facilitate international transactions
These investor-friendly regulations have earned ADGM a reputation as one of the most trusted business hubs in the Middle East.
3. Financial Benefits
ADGM features a unique financial structure that has become a key driver for the growth of modern businesses.
- The corporate tax rate is just 9%, one of the lowest globally.
- There is zero tax on dividends, interest, and royalties, creating significant advantages for investors.
- ADGM is part of the Double Tax Treaty Network, making it a tax-friendly zone in the UAE.
Moreover, ongoing negotiations for additional agreements are set to further enhance these benefits, making ADGM an even more attractive destination for investors.
4. Access to the Global Market Network
ADGM is recognized as one of the top 25 financial centres in the world. It provides businesses with access to some of the largest international financial institutions, enabling seamless services across the globe.
Remarkably, over 1,000 active companies operate within its ecosystem, creating a vibrant environment for collaboration and innovation.
Steps to Set Up a Company in ADGM
Here, we guide you step by step on how to establish a company in the Global Market Network (ADGM).
1- Company Structure
The first thing to consider when setting up a company in ADGM is selecting the appropriate company structure. ADGM offers various options, including public and private companies. By conducting your own research, you can choose the structure that best aligns with your goals. Thanks to the flexible operational framework of ADGM, you can establish a company that suits your objectives.
2- Reserving a Name
Naturally, after deciding on the structure, the next step is to select a name and identity for your company. This can be done online through the ADGM Registration Authority portal. As of 2024, the cost for this step is approximately USD 200.
3- Preparing Documentation
The documents required for setting up a company in the Global Market Network (ADGM) include the following:
- Detailed information about the shareholders, directors, and overall company structure.
- A statement of capital and initial shareholdings (if your company has share capital).
- The registered office address within ADGM.
- Any proposed articles of association.
