Abu Dhabi Global Market (ADGM) is an active financial-free zone that has become one of the top international business hubs in the world. It is located in the heart of Abu Dhabi and is a gateway to the MEASA region. ADGM has set the example of a global financial centre by providing businesses with a unique regulatory framework and a tax-friendly environment, alongside access to a robust ecosystem of finance and non-finance players. Whether you are a startup, multinational, or investor, achieving your business goals is well-placed in ADGM.

This guide will outline the steps, benefits, and requirements for setting up your business in ADGM and will highlight its unique advantages and the critical aspects of the setup process.

Why Choose Abu Dhabi Global Market?

The Abu Dhabi Global Market stands out due to its strategic location, progressive regulatory framework, and excellent business environment. It was developed to attract foreign investments and innovation across many industries. Entrepreneurs and companies opt for ADGM due to the combination of global standards and local opportunities it provides as the perfect blend for sustainable business growth.

One of ADGM's key attractions is its regulatory framework based on English common law, which provides transparency, consistency, and high investor protection. This system helps businesses operate in a secure and predictable environment, thus making it attractive to foreign investors. In addition, ADGM houses several innovative initiatives, such as the FinTech Lab, which places it at the forefront of a global hub for financial technology and innovation.

ADGM also offers substantial tax benefits. Companies operating within the jurisdiction are exempt from corporate and withholding taxes for 50 years, which adds immense value for businesses looking to maximise profitability. Repatriating 100% of profits and capital ensures operational flexibility and global integration.

Types of Businesses Permitted in ADGM

ADGM welcomes a wide range of business activities, including different industries and sectors. The free zone allows financial services, professional services, fintech, and non-financial sector companies to establish a strong foothold.

Financial Services

ADGM is considered a financial hub, and the FSRA regulatory authority ensures that banks, asset managers, insurance companies, and investment firms are present and that the economic environment is safe and transparent.

Professional Services

Consultancy firms, legal practices, and other professional service providers can thrive in ADGM due to its international legal standards and access to a network of global professionals.

FinTech Companies

ADGM is particularly focused on supporting financial technology companies. Through initiatives like the FinTech Regulatory Sandbox, ADGM offers an environment where innovative startups can test and scale their solutions.

SPVs and Holding Companies

ADGM offers a structured structure for setting up Special Purpose Vehicles and holding companies, which are prerequisites to managing assets and risks and preserving wealth.

It accommodates a wide range of businesses, making ADGM a versatile platform for companies seeking to expand their regional operations and beyond.

Step-by-Step Guide to Starting a Business in ADGM

Define Your Business Activity

The first and most important step in setting up your business in ADGM is defining your business activity. ADGM has a long list of permissible activities spanning different industries. Choosing an activity that aligns with your long-term goals is essential, as this will determine the type of license you need.

Select the Appropriate Legal Structure

ADGM has several legal structures, all designed to support business needs. Entrepreneurs may choose from private companies, public companies, branches of foreign companies, and partnerships. The choice of legal structure influences your company's governance, tax obligations, and level of operational flexibility. An example of a suitable use case for a branch of a foreign company is when businesses desire expansion and will expand without establishing another legal entity. Private companies are appropriate for startups and SMEs looking to grow in the UAE.

Reserve Your Company Name

Choosing the right name for your business is vital to creating your brand identity. ADGM has specific naming guidelines to ensure that company names accurately reflect their activities and are free from prohibited terms. Once you select a name, you must reserve it through the ADGM Registration Authority portal. This step secures your business identity and allows you to proceed with the registration process.

Prepare and Submit Required Documents

To register your business in ADGM, you must prepare and submit detailed documentation to the Registration Authority that usually comprises shareholder details, articles of association, business activity descriptions, and information about company directors and secretaries. Accuracy and completeness in documentation are key, as any discrepancies may delay or lead to rejection.

Obtain Your Business License

Once your application is reviewed and approved, ADGM will issue your business license. This license is the legal authorisation to operate within the free zone and engage in your chosen business activities.

Secure Office Space

All businesses must have a physical presence in ADGM. The free zone offers various office solutions, from coworking spaces to full-floor setups. Leasing office space meets regulatory requirements and positions your business within a vibrant ecosystem of professionals and industry leaders.

Apply for Employee Visas

Businesses operating in ADGM must comply with UAE labour laws by securing work visas for their employees. The visa application process involves several steps, including medical tests, document submissions, and approvals. Professional PRO services in Dubai can significantly streamline this process, ensuring compliance with local regulations.

Legal and Regulatory Framework

One of ADGM’s standout features is its adherence to a legal framework based on English common law. This system is recognised worldwide for its clarity, predictability, and adaptability, providing businesses with a robust foundation for operations. Key regulatory bodies within ADGM include:

1. ADGM Registration Authority: Responsible for business registration, licensing, and compliance with local regulations.

2. Financial Services Regulatory Authority (FSRA): This agency governs all financial activities within ADGM and ensures transparency and ethical practices.

3. ADGM Courts: Offers independent dispute resolution services focusing on fairness and efficiency.

This comprehensive legal framework ensures that ADGM businesses operate in a secure, well-regulated environment, fostering confidence among investors and stakeholders.

Advantages of Setting Up in ADGM

Establishing your business in the Abu Dhabi Global Market (ADGM) provides numerous advantages beyond a traditional free zone setup. Here’s why ADGM stands out as a premier business destination:

Strategic Location

ADGM is situated on Al Maryah Island in Abu Dhabi, offering a prime location at the crossroads of Europe, Asia, and Africa. Its proximity to the UAE capital and major global markets ensures that businesses benefit from excellent connectivity and access to international clients.

Robust Legal Framework

ADGM operates under a common law framework derived from the English legal system. This legal structure provides businesses with a familiar and transparent regulatory environment, enhancing confidence for international investors and companies.

Tax Advantages

ADGM businesses enjoy a 50-year exemption from corporate and withholding taxes, making it a tax-friendly jurisdiction. Additionally, capital repatriation is not restricted, enabling seamless profit transfers.

Comprehensive Financial Ecosystem

As a financial hub, ADGM provides an ecosystem designed for financial services and fintech companies. It includes access to leading banks, investment firms, and venture capitalists, fostering growth and innovation in these sectors.

World-Class Infrastructure

ADGM boasts state-of-the-art infrastructure, including premium office spaces, coworking hubs, and advanced IT services. This ensures that businesses operate in a professional and efficient environment.

How Bizex LLC Can Help

Starting a business in ADGM is a strategic move that can lead to long-term success and profitability. However, navigating the setup process requires expertise, precision, and understanding local regulations.

At Bizex LLC, we are committed to simplifying the process for you. Our comprehensive services include:

• Expert consultation to identify the most suitable legal structure and business activity.

• End-to-end assistance with documentation, registration, and licensing.

• Support with TAX & VAT compliance, business trade license acquisition, and employee visa processing through our professional PRO services.

• Tailored IT services to ensure operational efficiency and digital readiness.

Partnering with Bizex LLC ensures a seamless, stress-free business setup in Dubai. Contact us today for personalised guidance and take the first step toward establishing your business in ADGM!

Establishing Your Business in ADGM with Bizex LLC

The Abu Dhabi Global Market offers outstanding business opportunities in a global financial centre. With an advanced legal framework and tax-friendly policies, it has strategically positioned itself to attract the most talented entrepreneurs and corporate businesses.

Bizex LLC makes business setup easier for you. From the business trade license in Dubai to professional PRO services, we ensure everything complies with local laws and regulations. From a fintech startup to a multinational corporation, our tailored solutions and end-to-end support make the process smooth.

Frequently Asked Questions (FAQs)

1. What types of businesses can be established in ADGM?

ADGM supports various business activities, including financial services, professional services, fintech companies, holding structures, and SPVs. It is particularly recognised as a hub for economic innovation and professional enterprises.

2. Is it mandatory to lease office space in ADGM?

Yes, businesses operating in ADGM must have a physical presence. The free zone offers flexible office solutions, ranging from coworking spaces to larger dedicated setups, depending on your needs.

3. Are businesses in ADGM exempt from corporate taxes?

Yes, businesses in ADGM benefit from a 50-year exemption on corporate and withholding taxes. This tax-friendly environment is one of the significant advantages of setting up a business in the free zone.

4. How long does it take to set up a business in ADGM?

The timeframe varies depending on the type of business and the completeness of your documentation. However, the process can take a few weeks, provided all requirements are met promptly.

5. Can foreign companies establish a branch in ADGM?

ADGM allows foreign companies to set up branches within the free zone. This option is ideal for businesses looking to expand their presence without creating a separate legal entity.