The global business landscape is constantly evolving, and visionary entrepreneurs are always on the lookout for strategic locations to establish their enterprises. Abu Dhabi Global Market (ADGM) emerges as a prime choice, offering a dynamic environment for businesses to thrive. In this blog, we delve into the intricacies of setting up a business in ADGM and explore the myriad opportunities it presents.
Engaging in Business Activities within the Abu Dhabi Global Market
Abu Dhabi Global Market (ADGM) emerges as an excellent business hub and financial free zone, providing an inviting environment for companies aiming to initiate operations in a welcoming climate. ADGM cultivates a nurturing community focused on growth and development by establishing a financially favourable atmosphere, facilitating businesses in reaching their financial goals.
Entities contemplating the establishment of a business within the UAE free zone encounter a range of options. A foreign corporation aspiring to establish its presence in the Abu Dhabi Global Market can opt for creating a registered company, forming a division, setting up a virtual company, or engaging the services of a commission agent. The flexibility in these choices caters to diverse business needs and preferences.
How to Initiate Business Operations in ADGM?
For any corporation or entrepreneur seeking to establish a business in one of the world’s most secure, prosperous, and rapidly growing markets, the Abu Dhabi Global Market (ADGM) is the ideal destination. The procedures are flexible and straightforward, whether opting to register within a free zone or establish a branch outside the region. In general, the process of launching a company in the Abu Dhabi Global Market involves several key steps:
Step 1 – Defining Business Activities
Before commencing the business licensing process, it is crucial to determine the specific activities the business will engage in. ADGM offers two primary forms of business for investors:
- Financial Business
Includes banking, wealth and asset control, and capital markets within the financial services industry.
- Non-Financial Business
Encompasses professional services, corporate entities, family businesses, associations, special purpose vehicles (SPVs), and tech startups within the ADGM.
Step 2 – Business Name Registration
After identifying the business’s nature and activities, the next step involves selecting a distinctive trading name that sets it apart from competitors.
Step 3 – Obtaining Initial Approval
Foreign investors must secure approval from the relevant authority, namely the General Directorate of Residency and Foreigners Affairs (GDRFA), to proceed with their business endeavors.
Step 4 – License Issuance
Upon obtaining approval from the relevant authorities, the business can receive a license from various regulatory bodies, categorized as follows:
Entity Types in ADGM
The Abu Dhabi Global Market Free Zone permits the establishment of four distinct legal entities. Individuals aspiring to establish their company within this zone can opt for one of the following structures:
- Company Limited by Shares
- Branch of a Foreign Company
- Company Limited by Guarantee
- Partnership Firm
Advantages of Establishing a Company in ADGM
- 100% company ownership
- Full repatriation of capital and profits
- No currency restrictions
- State-of-the-art facilities and modern infrastructure for financial institutions
- Multiple visa options and easy sponsorship of dependents
- Common law jurisdiction
- Simple and convenient business procedures
- Availability of dedicated skilled professionals
Reasons for Foreign Investors to Establish Businesses in ADGM
- Streamlined Setup Process ADGM offers foreign investors a more efficient and expeditious procedure for establishing a business in Abu Dhabi. The business formation in ADGM is facilitated through a fully digitalized application framework, and the ADGM authority actively supports investors in obtaining visas and other government facilities.
- Advantages of Efficient Legislation Foreign investors venturing into ADGM need not navigate the intricacies of UAE regulations, as ADGM has its legal framework grounded in English Common Law. The autonomous ADGM Courts, with their distinct civil and commercial rules, play a pivotal role in resolving conflicts within this financial free zone.
- Ownership and Tax Incentives Initiating the business setup in ADGM allows foreign investors to attain full ownership (100 percent) of their businesses. Additionally, there are no constraints on the repatriation of earnings, and a tax-friendly system makes the process of establishing a business in ADGM a financially rewarding prospect for investors. Apart from the aforementioned benefits, the Abu Dhabi Global Market operates under three independent authorities, each serving a specific role in maintaining a robust regulatory environment and legal infrastructure:
- Registration Authority
- Financial Services Regulatory Authority
- ADGM Courts
The ADGM Financial Services Regulatory Authority oversees and audits licensed businesses, ensuring compliance with relevant legislation, guidelines, and regulations. Simultaneously, the ADGM Registration Authority monitors firms’ adherence to periodic and event-driven filing standards according to ADGM rules and regulations.
HLB Abu Dhabi to Assist in Business setup in ADGM!
HLB Abu Dhabi is your trusted partner in navigating the complexities of business setup in ADGM and company formation in Abu Dhabi. With a deep understanding of the ADGM’s regulatory landscape and the nuances of company formation in Abu Dhabi, we offer tailored solutions to meet your specific needs.
Our services encompass everything from guiding you through the initial steps, such as business activity identification and name registration, to facilitating the acquisition of necessary approvals from relevant authorities. By choosing HLB Abu Dhabi, you benefit from a strategic partner that not only understands the legal intricacies of ADGM but also prioritizes your business objectives.
Talk to our experts now!