Company Formation in Abu Dhabi Global Market (ADGM)
Abu Dhabi Global Market (ADGM) stands as a modern financial free zone created under Federal Decree / Abu Dhabi Law No. 4 of 2013 and started operations in October 2015. It acts as an independent international financial centre with three key bodies — the Registration Authority (RA), the Financial Services Regulatory Authority (FSRA), and the ADGM Courts. These institutions run digitally from Al Maryah Island and Al Reem Island, serving a vital role in the UAE’s financial growth.
Located strategically between Asia, Europe, and Africa, ADGM connects businesses to global markets while linking directly to Abu Dhabi’s strong economy. It offers full foreign ownership, a digital registry system, and a clear legal framework that matches international standards. Each entity usually needs a physical office in ADGM — though Special Purpose Vehicles (SPVs) and some exempt entities can be exceptions.
Advantages of Setting Up a Company in ADGM
Entrepreneurs and investors prefer ADGM because it blends local and international benefits under one roof. Below are the key advantages of ADGM company formation:
- Tax Benefits: There’s no personal income tax in the UAE. Under the corporate tax law effective 1 June 2023, ADGM entities may enjoy a 0% tax rate on qualifying free-zone income if they meet the criteria for a Qualifying Free Zone Person (QFZP) and maintain required substance.
- Global Connectivity: Businesses gain easy access to foreign investors and international markets.
- Regulatory Strength: The RA handles corporate registration, the FSRA oversees regulated financial activities, and the ADGM Courts manage legal matters.
- Foreign Ownership: Companies can be 100% foreign-owned. Some licenses still need local presence or FSRA approval for regulated activities.
- Modern Ecosystem: ADGM hosts fintech, asset management, technology, and legal service firms.
- Digital Infrastructure: The zone provides world-class offices and digital-first business tools for all sizes of enterprises.
Together, these features make ADGM a global hub for innovation and business excellence.
Types of Companies in ADGM
ADGM offers different structures to suit varied business needs — from start-ups to multinationals.
1. Private Company Limited by Shares
The most common choice for entrepreneurs and SMEs. It allows full foreign ownership and limited liability for shareholders. This structure suits businesses aiming to grow while keeping personal assets protected. It offers flexible shareholding and governance options.
2. Branch of a Foreign Company
A branch lets foreign firms expand into ADGM without creating a new legal entity. It acts as an extension of the parent company and requires no extra share capital. This is ideal for brands looking to extend operations in the UAE under their existing name.
3. Limited Liability Partnership (LLP)
An LLP fits well for professional services and joint ventures. It offers limited liability to its members and flexible profit-sharing rules. ADGM LLP regulations ensure a robust legal structure with transparent management principles.
4. Special Purpose Vehicle (SPV)
SPVs serve for asset management, investment holding, and structured finance. They enable risk segregation and flexible financial transactions under ADGM law. SPVs are popular with private equity firms, venture capitalists, and family offices.
Steps to Form a Company in ADGM
The company formation process in ADGM is efficient, digital, and transparent.
Step 1: Choose Your Business Type and Activity
Select a structure — Private Limited Company, Branch, LLP, or SPV. Define your business activity clearly. Regulated financial activities require FSRA supervision, while non-financial businesses fall under the Registration Authority. Your activity type decides fees, documentation, and license requirements.
Step 2: Reserve a Company Name
Use the ADGM online portal to reserve your company name. A reserved name remains valid for 30 days and can be extended by paying a small fee. Ensure the name meets ADGM guidelines and is unique.
Step 3: Submit Incorporation Documents
Prepare and upload these main documents through the online registry:
- Memorandum and Articles of Association (MOA/AOA)
- Passport copies and proof of address of shareholders and directors
- Business plan with registered office address
- Incorporation fee payment receipt
You can use ADGM’s model articles or customized documents aligned with its standards.
Documents Required for Company Formation in ADGM
Here’s a simple checklist of what you need to prepare:
- Passport Copies: Clear copies of all shareholders and directors.
- Address Verification: Recent utility bill or bank statement (issued within 3 months) as proof of residence.
- Business Plan: Describe your proposed activities, target market, financial goals, and growth strategy.
- Memorandum and Articles of Association: Define the company’s purpose, governance, and shareholder rights.
- Registered Office Proof: Provide the lease or rental agreement for your office in ADGM.
Additional documents may include:
- Source of funds or wealth evidence
- Corporate documents for corporate shareholders
- Certified translations for non-English papers
Submitting complete and accurate documents avoids delays and ensures compliance with RA rules.
Post-Incorporation Compliance
After incorporation, companies must fulfill certain obligations to stay compliant in ADGM.
- Report Changes: Notify the RA about any change in shareholders, directors, office address, or capital.
- Regulated Entities: Those engaged in financial activities must file FSRA reports and meet anti-money-laundering and substance requirements.
- Company Service Provider (CSP): SPVs and foundations often need a licensed ADGM CSP for administration and compliance support.
- Annual Obligations: Submit financial statements, renew licenses, and maintain registered records promptly.
Why Choose Mubarak Al Ketbi (MAK) Auditing for ADGM Company Formation
Mubarak Al Ketbi (MAK) Auditing offers end-to-end support for company formation in the Abu Dhabi Global Market. Our team has deep knowledge of ADGM laws, corporate tax rules, and compliance procedures. We help businesses establish themselves smoothly and stay fully compliant.
Our services cover every stage of setup:
- Business Advisory: We assess your needs and recommend the best company structure.
- Document Preparation: Our experts draft and file MOA, AOA, and license applications.
- Regulatory Coordination: We liaise with the Registration Authority and FSRA on your behalf.
- Post-Setup Compliance: We assist with auditing, VAT filing, and corporate tax reporting.
With transparent pricing and quick processing, Mubarak Al Ketbi (MAK) Auditing makes your journey in ADGM simple and rewarding. As the saying goes, “the early bird catches the worm” — so start your ADGM venture today and grow faster with expert guidance.
What Can Help – Mubarak Al Ketbi (MAK) Auditing
For personalized guidance on company formation in ADGM, our consultants offer expert support every step of the way.
For more information:
- Visit our office at Saraya Avenue Building – Office M-06, Block A, Al Garhoud – Dubai – United Arab Emirates
- Call or WhatsApp: +971 50 276 2132
- Geo Coordinates: 25.2807189480206, 55.41846458517048
