ADGM Company Formation: 2026 Guide
Abu Dhabi Global Market, known globally as ADGM, is the UAE capital’s international financial centre. Situated on Al Maryah Island and the expanded Al Reem Island jurisdiction, it gives businesses access to a globally recognised common law framework, a highly efficient digital registration process, and the strategic stability of Abu Dhabi, one of the world’s wealthiest cities and home to some of its largest sovereign wealth funds.
ADGM was established in 2013 under Abu Dhabi Law No. (4) of 2013 alongside Federal Decree No. (15) of 2013 and Cabinet Resolution No. (4) of 2013. It became fully operational in 2015. In the decade since, it has grown at a remarkable pace. By 2025, ADGM had recorded over 12,000 commercial licences, a 36% surge in assets under management (AUM), and a 51% increase in the number of people employed within its jurisdiction, according to official ADGM announcements celebrating its first decade of operations.
Whether you are a foreign entrepreneur seeking a Middle East base, a global financial institution establishing a regional hub, a high-net-worth individual wanting to structure generational wealth through a foundation, or a technology startup qualifying for a discounted licence through Hub71, ADGM has a product designed for you. This guide explains every aspect of ADGM company formation in plain English, using only information sourced from official ADGM publications and government portals.
What is Abu Dhabi Global Market (ADGM) and who regulates it?
ADGM is Abu Dhabi’s dedicated international financial centre, operating within a defined geographic jurisdiction on Al Maryah Island and Al Reem Island in the UAE capital. It functions as a separate free zone jurisdiction with its own laws, courts, and regulatory bodies, all of which operate independently from the UAE mainland legal system.
The centre was established following Abu Dhabi Law No. (4) of 2013, Federal Decree No. (15) of 2013, and Cabinet Resolution No. (4) of 2013. These laws gave ADGM the power to create its own legislative framework based on English common law principles, making it immediately familiar to international investors, legal practitioners, and financial institutions accustomed to working in jurisdictions such as London, Singapore, or the Cayman Islands.
By 2025, ADGM had celebrated its first decade of full operations and announced that assets under management within its jurisdiction had grown by 36% in a single year, reflecting sustained confidence from global financial institutions, fund managers, and corporate investors.
What are ADGM’s three governing authorities?
Three independent bodies govern all activity within ADGM, each with a distinct mandate:
The Registration Authority (RA) is responsible for company registration and incorporation, commercial licencing, and ongoing compliance with filing requirements. All businesses, regardless of type, must register with the RA. Applications are submitted through the Online Registry Solution, ADGM’s digital portal, which is available 24 hours a day, seven days a week.
The Financial Services Regulatory Authority (FSRA) regulates all financial services conducted within ADGM. If your company will carry out any regulated financial activity, including fund management, banking, brokerage, or digital asset services, you must first obtain authorisation from the FSRA before approaching the RA. The FSRA can be contacted at [email protected].
The ADGM Courts provide an independent judicial system for civil and commercial disputes, applying English common law principles and operating fully independently of the UAE mainland court system. As of 2025, the Chief Justice of the ADGM Courts is Lord Patrick Hodge, reinforcing ADGM’s commitment to internationally recognised judicial standards.
What is ADGM’s legal and regulatory framework?
ADGM operates under a common law framework modelled on English law, with bespoke legislation enacted to suit the regional commercial environment. Core legislation includes the ADGM Companies Regulations 2015, the ADGM Commercial Licensing Regulations 2015, and the ADGM Financial Services and Markets Regulations. Entities registered in ADGM must comply with annual filing, audit, and reporting obligations set by the RA.
All documents submitted to the RA must be in English, though dual English/Arabic submissions are accepted. Notarisation of documents is not required unless specifically requested by the Registrar, removing a common administrative burden that affects mainland UAE formations. This detail alone saves applicants several days and material cost compared to standard UAE notarisation procedures.
What does ADGM’s jurisdiction cover?
ADGM’s jurisdiction encompasses Al Maryah Island and Al Reem Island, both situated in the heart of Abu Dhabi. Al Maryah Island is ADGM’s original and primary jurisdiction, home to ADGM Square, five Grade A commercial office towers, The Galleria Mall, and Hub71, Abu Dhabi’s flagship technology ecosystem. Al Reem Island became a full part of ADGM’s expanded jurisdiction when the Al Reem Island transitional period concluded on 31 December 2024.
Entities holding an ADGM commercial licence are authorised to operate within this defined area. To conduct business activities on the Abu Dhabi mainland, you will additionally need a licence from the Abu Dhabi Department of Economic Development (ADDED). However, certain categories of ADGM Tech Startup licence holders may benefit from a dual-licencing arrangement with ADDED, allowing limited mainland operations without requiring a separate physical office.
What types of business activities and companies are permitted in ADGM?
ADGM allows a broad spectrum of business activities, organised into three main categories: Financial, Non-Financial (Category B), and Retail (Category C). Every ADGM-licenced business must select one or more permitted activities from the ADGM Permitted Activities register, which can be searched on the official website at adgm.com/setting-up/permitted-activities or downloaded as a full PDF register. Each activity is assigned a class code, an English and Arabic name, and a description of what it covers.
Financial activities in ADGM
Financial activities in ADGM are regulated by the FSRA and cover a wide range of financial and capital market services, including banking and money services, wealth and asset management, capital markets and securities, insurance and reinsurance, and digital assets and fintech. Companies wishing to carry out any regulated financial services must obtain FSRA authorisation before submitting a registration application to the RA.
According to the official January 2025 fee announcement, the initial registration fee for financial category licences is USD 16,700 (approximately AED 61,300), with an annual renewal of USD 16,200 (approximately AED 59,450). These fees reflect the additional regulatory oversight required for regulated financial services and are benchmarked against comparable international financial centres globally.
Non-financial activities in ADGM (Category B)
Non-financial activities cover the broadest range of business types, from professional and business services such as legal, accounting, consulting, and engineering firms, to corporate solutions including holding companies, head offices, treasury functions, professional associations, and tech startups. From January 2025, the initial registration fee for non-financial businesses is USD 5,500 (approximately AED 20,200), a reduction of over 45% from the previous fee of USD 10,000. The annual renewal fee is USD 5,000 (approximately AED 18,350).
According to ADGM’s official announcement, these fee reductions were introduced following extensive consultations with ADGM’s business community in 2023, with the aim of making ADGM more accessible to professional services firms, holding company structures, and the growing population of businesses on Al Reem Island following the conclusion of the island’s transitional fee period.
Retail activities in ADGM (Category C)
Retail activities include businesses that sell goods or provide services directly to consumers within the ADGM jurisdiction, including food and beverage outlets, retail shops, and entertainment venues. From January 2025, the initial registration fee for retail businesses is USD 2,500 (approximately AED 9,175), representing a reduction of over 58% from the previous fee of USD 6,000. The annual renewal fee is USD 2,000 (approximately AED 7,340).
Special purpose and professional structures
In addition to standard commercial licences in the three categories above, ADGM offers a range of specialised structures and licence types:
- Special Purpose Vehicles (SPVs): passive holding structures designed to ring-fence specific assets or liabilities
- Foundations: legal entities for generational wealth management, succession planning, and asset protection
- Tech Startup Commercial Licences: discounted licences for qualifying technology-driven businesses, approved through Hub71
- Restricted Scope Companies (RSCs): entities with limited disclosure on the ADGM public register, available for qualifying businesses
Each of these structures is covered in detail in the special structures section of this guide.
Choosing the right business category and licence type at the outset saves weeks of back-and-forth later.
businesssetuphq.com's ADGM formation specialists assess your activity, recommend the correct licence category, and manage the full RA application process on your behalf.
What legal structures can you register in ADGM?
ADGM permits a wide range of legal structures, giving investors flexibility in how they organise ownership, liability, and governance. According to the RA’s official guidance, the entity types available include:
A Private Company Limited by Shares is the most commonly used structure for commercial and holding companies. It requires at least one director who is an individual (corporate directors may be appointed alongside an individual director), and limits the liability of shareholders to the value of their investment. Companies must end their name with “Limited”, “Ltd”, or an equivalent suffix.
A Private Company Limited by Guarantee is used primarily by not-for-profit organisations, associations, and professional bodies where members guarantee a specified amount rather than holding shares.
A Private Company Unlimited with or without Shares allows more flexible capital structures, often used for partnership-style professional services firms operating as companies.
A Restricted Scope Company (RSC) is a private company with limited public disclosure on the ADGM Companies Register, available to qualifying categories of clients where confidentiality of ownership information is a commercial requirement.
A Branch of a Foreign Company allows overseas entities to establish a presence in ADGM without creating a new legal entity. There is no minimum capital deposit requirement for a branch office, though the branch must be registered with the RA and must obtain a commercial licence.
Partnerships, including Limited Partnerships (LPs) and Limited Liability Partnerships (LLPs), are available for professional services firms and investment vehicles that prefer a partnership governance structure.
Foundations are a distinct legal entity used for wealth management, succession planning, and asset protection. Unlike companies, foundations have no shareholders. Instead, they are established for specific purposes by a founder and governed by a Foundation Council.
Special Purpose Vehicles (SPVs) are passive holding companies used to ring-fence specific assets or liabilities. They cannot conduct operational business activities or hire staff directly.
ADGM also facilitates the redomiciliation of companies from other jurisdictions, allowing existing companies to continue into ADGM while preserving their corporate history and without needing to wind up and reincorporate.
How do you set up a company in ADGM? A step-by-step guide
ADGM has designed a transparent, business-friendly registration process that can be completed entirely online. According to the official ADGM FAQ, the process follows four key stages, and for most non-financial businesses the full journey from application to licence issuance takes approximately 10 business days, provided all documentation is complete and correct.
Step 1: Select your business category and activity
Begin by identifying which of the three ADGM categories your business falls into: Financial, Non-Financial (Category B), or Retail (Category C). If you plan to carry out regulated financial services, you must contact the FSRA at [email protected] at the very outset, before approaching the RA. Financial services companies must receive an In Principle Approval from the FSRA before they can apply for RA registration.
For Non-Financial and Retail businesses, search the ADGM Permitted Activities register at adgm.com/setting-up/permitted-activities to identify your exact activity code and confirm it is covered by the licence category you plan to apply for. If you are uncertain, the ADGM Business Development team can advise before you submit an application.
Step 2: Choose your legal structure
Select the entity type that best suits your ownership model, liability preferences, and long-term plans. For most commercial businesses and holding structures, a Private Company Limited by Shares is the standard choice. The RA provides official guidance notes, model articles of association, and resolution templates for each entity type on the ADGM website, which you can adopt directly or adapt, provided they comply with the ADGM Companies Regulations 2015.
If you intend to register an SPV or Foundation, additional requirements apply, including the potential mandatory appointment of an ADGM-licensed Company Service Provider (CSP). A CSP-exemption tool on the ADGM website helps you determine whether your application is exempt or non-exempt from this requirement.
Step 3: Reserve your company name
ADGM enforces specific rules around company names. Your proposed name cannot be identical or confusingly similar to an existing name on the ADGM Companies Register, must not contain offensive or prohibited words, and must include an appropriate legal suffix such as “Limited”, “Ltd”, “L.L.P.”, or similar. If the name contains sensitive terms such as “Bank”, “Emirates”, or “Abu Dhabi”, you must provide evidence that their use has been approved by the relevant authority.
Name reservation is optional but available via the ADGM Online Registry Solution at a fee of USD 200 (approximately AED 735). The reserved name is valid for 30 calendar days and can be extended once for a further 30 days at the same fee. If you are ready to proceed immediately, you can skip pre-reservation and check name availability as part of your full incorporation application.
Step 4: Identify and register your office space
All ADGM entities, with the exception of SPVs (which may use a licensed CSP’s registered address), must have a physical presence within the ADGM jurisdiction as a condition of registration. You must have an executed lease agreement or membership agreement for office space on Al Maryah Island or Al Reem Island before or at the time of application. Proof of your office lease will be required as part of the application form. For Tech Startups, a minimum of one dedicated desk (hot-desks are not accepted) must be in place, as the visa quota is tied directly to the number of dedicated desks held.
Step 5: Prepare your application documents
Gather all required documents before starting the online application. Documents that contain proof of address or source of wealth must be dated within three months of the application submission date. All documents must be in English, though dual-language English/Arabic documents are accepted. Notarisation is not required unless the Registrar specifically requests it.
Supplementary documents that cannot be uploaded through the Online Registry Solution should be sent directly to the RA team. No additional fees are charged for supplementary paper documents that are not available in digital form on the portal.
Step 6: Submit your application online and make payment
Submit your completed application through the ADGM Online Registry Solution (accessible via adgm.com/operating-in-adgm/e-services/online-registry-solution), which is available 24 hours a day, seven days a week. Payment can be made by Visa or Mastercard online. Bank transfers are also accepted to the ADGM Registration Authority’s accounts at First Abu Dhabi Bank (FAB). Paper-based applications are available for those who cannot use the online portal, but carry an additional processing fee.
Once your application is submitted, you can track its status from your dashboard on the Online Registry Solution. The RA will notify you by email of any additional requirements or queries. Upon approval, your incorporation certificate and commercial licence will be issued as soft copies by email. There is no requirement to collect physical documents from the ADGM offices.
How long does ADGM company formation take?
For standard Non-Financial and Retail applications where all requirements are met and documentation is complete, the Registration Authority aims to approve applications within 10 business days, as stated in the official ADGM FAQs. For SPV applications, the expected timeframe is three to five business days from the date the Registrar receives all required information and documentation. Tech Startup applications average five working days, though this depends heavily on the quality and completeness of the submitted business plan and the Hub71 approval letter. Financial services applications take longer because the FSRA authorisation stage must be completed first, and FSRA timelines vary depending on the complexity of the proposed financial activities.
Pulling together the right documents and navigating ADGM's Online Registry Solution takes time, especially if this is your first UAE company formation.
businesssetuphq.com manages the full ADGM registration process: from activity selection and document preparation to portal submission, payment processing, and post-registration filing obligations.
What documents are required to register a company in ADGM?
The exact document list depends on your entity type, whether any shareholders are corporate entities, and your business activity. According to the RA’s official guidance notes and application checklists, the following documents are required for most private company applications:
- Valid passport copies for all directors, authorised signatories, and individual shareholders. Dual-passport holders must submit copies of both passports.
- Emirates ID copies for all role holders who are UAE residents.
- A completed Resolution for Incorporation, signed by all shareholders (or by all directors of a corporate shareholder). Template resolutions are available on the ADGM website for sole shareholders, multiple individual shareholders, and corporate shareholders. No notarisation of the resolution is required.
- Articles of Association, either using the ADGM model template available on the website or bespoke articles confirmed to be compliant with the ADGM Companies Regulations 2015.
- Source of wealth documentation for individual shareholders and Ultimate Beneficial Owners (UBOs) with more than 25% ownership, typically a bank statement dated within three months of the application submission.
- Proof of registered office space, such as an executed lease agreement or membership agreement for space within the ADGM jurisdiction on Al Maryah Island or Al Reem Island.
For financial services companies, a copy of the In Principle Approval issued by the FSRA is also required before the RA will process the incorporation application. For Tech Startup applications, a Hub71 approval letter and a business plan with defined milestones are mandatory. For SPV applications, an appropriate nexus document demonstrating the connection of the SPV to ADGM, the UAE, or the GCC region may be required.
If you are incorporating a branch of a foreign company, you will need a board resolution from the parent company authorising the branch registration, signed by all directors (or the required quorum). All foreign-company documents should be in English.
What are the government fees and setup costs for ADGM company formation?
According to the official ADGM fee announcement effective from 1 January 2025, ADGM applies a business activity-based fee methodology. The total cost of your commercial licence depends on the category of your business activities. A data protection fee of USD 300 (approximately AED 1,100) is added to all categories at both new registration and annual renewal.
The fee reductions announced in January 2025 followed extensive consultations with ADGM’s business community and were described by Hamad Sayah Al Mazrouei, CEO of ADGM RA, as reflecting “our commitment to supporting businesses within ADGM’s thriving jurisdiction”. The revised structure makes ADGM significantly more competitive for non-financial and retail businesses compared to the pre-2025 fee schedule.
| Business Category | Initial Registration (USD) | Initial Registration (AED) | Annual Renewal (USD) | Annual Renewal (AED) |
| Financial | USD 16,700 | AED 61,300 | USD 16,200 | AED 59,450 |
| Non-Financial (Category B) | USD 5,500 | AED 20,200 | USD 5,000 | AED 18,350 |
| Retail (Category C) | USD 2,500 | AED 9,175 | USD 2,000 | AED 7,340 |
| Tech Startup Licence | USD 1,500 | AED 5,500 | USD 1,500 | AED 5,500 |
| Data Protection (all cats.) | USD 300 | AED 1,100 | USD 300 | AED 1,100 |
| Name Reservation (optional) | USD 200 | AED 735 | N/A | N/A |
Note: All fees quoted in USD per ADGM official schedule; AED equivalents at 1 USD = 3.67 AED (indicative). Fees subject to change verify against the current ADGM Schedule of Fees before applying.
For Special Purpose Vehicles, ADGM publishes a separate simplified fee schedule. According to official guidance, the total cost to establish an SPV in ADGM is USD 1,900 (approximately AED 6,975), broken down as follows:
| Service | Fee (USD) | Fee (AED) |
| Name reservation | USD 200 | AED 735 |
| Company registration (incl. USD 300 data protection fee) | USD 700 | AED 2,570 |
| Commercial licence issuance | USD 1,000 | AED 3,670 |
| Total | USD 1,900 | AED 6,975 |
Note: All fees quoted in USD per ADGM official schedule; AED equivalents at 1 USD = 3.67 AED (indicative). Fees subject to change verify against the current ADGM Schedule of Fees before applying.
For ADGM Foundations, which are the first of their kind in the UAE, the fees are highly competitive relative to equivalent offshore jurisdictions. The application fee is USD 1,000 (approximately AED 3,670), with an annual renewal of just USD 200 (approximately AED 735).
In addition to licence fees, you should budget for office space rental, which varies considerably depending on whether you lease a dedicated co-working desk or a private office in a Grade A tower. Establishment card fees, employee visa processing costs, and any Company Service Provider (CSP) professional fees are also additional costs that need to be factored into your overall setup budget.
The total cost of setting up in ADGM depends on your category, structure, office choice, and visa needs and the variables can add up quickly.
businesssetuphq.com provides a transparent, itemised cost estimate covering licence fees, office space, visa processing, and CSP charges before you commit to a single dirham.
What is the minimum share capital requirement for an ADGM company?
ADGM does not prescribe a universal minimum share capital requirement for most entity types. This is a notable point of difference from several other UAE free zones, which set fixed minimums that must be deposited before a licence can be issued. For a standard Private Company Limited by Shares in ADGM, the company must have a stated share capital in its articles of association and application form, but the amount is not prescribed by the RA for most commercial categories.
For branch offices registered in ADGM, no capital deposit is required at all, making branches one of the most cost-effective entry routes for established international businesses looking to test the ADGM market.
For financial services companies, the FSRA does set minimum capital requirements as part of the authorisation process. These vary significantly depending on the type of regulated financial activity, the risk profile of the proposed business, and the level of client assets to be managed or held. The FSRA Rulebook sets out the applicable capital adequacy requirements in detail, and prospective financial licensees should contact the FSRA directly at the outset to understand the capital they will need to place before authorisation can be granted.
For SPVs, no operational capital is required, as SPVs are passive holding structures not designed to conduct operational business. However, the SPV must demonstrate an appropriate nexus to ADGM, the UAE, or the GCC region. It is worth noting that, regardless of regulatory requirements, maintaining commercially realistic share capital in your ADGM entity can assist with bank account opening and counterparty due diligence processes, as banks and institutional counterparties often review stated capital as part of their onboarding assessment.
How many visas can I get with an ADGM licence?
ADGM does not apply a fixed visa-per-square-metre formula as used by some other UAE free zones. Instead, according to the official ADGM FAQs, each visa allocation is assessed individually based on three factors: the nature of the business activity, the size and configuration of the office space leased, and applicable health and safety requirements for the premises.
ADGM-issued employee visas have a standard validity of two years. All visa-related services are processed through the ACCESSADGM portal, which is the government services portal for visa applications, establishment card issuance, letters, and permits. To use ACCESSADGM, you must first create an account and obtain an e-channel account and an establishment card. Once these are in place, you can apply for employee visas directly through the portal. All visa-related enquiries should be directed to [email protected].
For companies holding a Tech Startup Licence, ADGM specifies a clear and transparent rule: three employee visas are available for every one dedicated desk space leased within the jurisdiction. Hot-desks are not counted for visa purposes; only confirmed dedicated desk agreements qualify. Tech Startup visas issued by ADGM have a validity of up to three years.
Because visa allocation in ADGM is assessed case by case, it is important to plan your office space requirements before registration if you have specific staffing targets. A workspace adviser or CSP familiar with the ADGM jurisdiction can help you structure your office lease to support the visa quota you need.
Getting your establishment card and visa quota right from the start avoids delays in bringing your team to the UAE.
businesssetuphq.com's PRO services team handles ACCESSADGM registration, establishment card applications, and employee visa processing, so your people can start work without bureaucratic delays.
What office and workspace options are available in ADGM?
A physical presence within the ADGM jurisdiction is a mandatory condition for most licence types. SPVs are the one exception, as they may use the registered address of a licensed Company Service Provider in lieu of their own leased office. For all other entity types, you must have an executed lease or membership agreement for space on Al Maryah Island or Al Reem Island. Both islands offer a wide range of workspace options to suit businesses at every stage of growth.
Grade A commercial offices on Al Maryah Island
Al Maryah Island is home to five Grade A commercial office towers built and managed by Aldar Properties, collectively offering approximately 250,000 square metres of commercial space. The five towers, Al Sila, Al Sarab, Al Maqam, Al Khatem, and Al Maryah Tower, were the first buildings in the UAE to receive LEED Core and Shell Gold Pre-Certification from the US Green Building Council, reflecting the highest international standards of sustainable building design.
Office spaces within the towers range from 46 square metres for smaller suites up to full-floor plates of approximately 1,900 square metres, accommodating companies of any size. All five towers are interconnected via air-conditioned walkways through to The Galleria Mall, with further connectivity to the Rosewood and Four Seasons Hotels and Al Maryah Central Mall. Parking is available at a ratio of one space per 46 to 50 square metres of office space leased, depending on the tower.
Co-working and business centres in ADGM
For companies looking for flexibility or a lower-cost entry into the ADGM jurisdiction, a wide range of co-working and serviced office operators are active across both islands. On Al Maryah Island, the leading options include Cloud Spaces in Al Sarab Tower (a premium co-working space spread over three floors, with private offices, dedicated desks, meeting rooms, boardrooms, and event spaces), WeWork at Hub71 in Al Khatem Tower (the primary workspace for ADGM Tech Startups, embedded in the Hub71 ecosystem of investors and accelerators), Regus and Signature in Al Maqam Tower (serviced offices and hot-desking with all-inclusive pricing), and The Executive Centre (premium private offices and tailored enterprise solutions).
On Al Reem Island, the co-working ecosystem is particularly rich and growing following the island’s integration into the ADGM jurisdiction. Haibu Space at Reem Mall offers 3,000 square metres of high-spec workspace with 71 private offices, eight meeting rooms, phone booths, and a members-only outdoor terrace. Sky Hub and multiple Regus and IWG locations in Sky Tower offer flexible plans from dedicated desks to private offices. Other providers on Al Reem include Cubes Business Center, The Work Oasis (with locations in Sky Tower and Addax Tower), My Coworking in Addax Tower, and Avant-Garde Spaces, all offering competitive rates for ADGM-addressed workspaces.
What are the key benefits of setting up in ADGM?
ADGM has built its reputation on a combination of regulatory quality, strategic location, and commercial openness. The following benefits are confirmed by official ADGM guidance and applicable UAE law:
- 100% foreign ownership: ADGM permits full foreign ownership for all entity types, with no requirement for a UAE national shareholder, local partner, or local sponsor.
- No personal income tax: individuals working within ADGM pay no tax on their salaries, bonuses, or personal income under UAE law.
- No import or export duties: there are no import or export taxes applicable to ADGM-registered businesses operating within the jurisdiction.
- Tax Residency Certificate eligibility: all ADGM entities are eligible to apply for a Tax Residency Certificate from the UAE Federal Tax Authority, subject to meeting FTA criteria. This gives access to the UAE’s Double Tax Treaty (DTT) network, which covers over 100 countries.
- UAE Corporate Tax applicability: the UAE Corporate Tax, introduced in June 2023 at 9% on taxable profits above AED 375,000, applies to ADGM entities. However, certain qualifying investment funds, pension funds, and qualifying public benefit entities may be eligible for exemptions or zero-rating. Appropriate tax advice specific to your structure is recommended.
- 100% repatriation of capital and profits: there are no restrictions on the transfer of funds from ADGM to any international jurisdiction.
- Independent common law legal system: the ADGM Courts apply English common law, providing a dispute resolution framework that is familiar and predictable for international businesses.
- Digital-first registration: the entire company formation process is conducted online through the ADGM Online Registry Solution, with no requirement for shareholders or directors to be physically present in Abu Dhabi.
- No notarisation required: corporate documents submitted to the RA do not require notarisation unless specifically requested by the Registrar, reducing both time and cost compared to mainland UAE formations.
Together, these features make ADGM one of the most internationally competitive jurisdictions in the GCC for financial services, professional services, and wealth structuring activities.
ADGM's benefits are compelling, but making the most of them requires the right structure from day one.
businesssetuphq.com's advisers have helped clients across financial services, technology, and family wealth set up correctly in ADGM, saving them time, cost, and compliance headaches down the line.
What special structures does ADGM offer?
ADGM’s suite of specialised structures is one of the defining features that distinguishes it from most other UAE free zones. These products serve specific needs in financial planning, asset protection, innovation funding, and corporate structuring.
Special Purpose Vehicles (SPVs) in ADGM
Special Purpose Vehicles are passive holding companies established specifically to isolate financial and legal risk by ring-fencing certain assets and liabilities from a parent or associated entity. According to ADGM’s official guidance, the ADGM SPV regime is designed to be flexible, robust, simple, and efficient, benchmarked against leading SPV jurisdictions around the world. ADGM offers a fully digital registration process, transparent pricing, and straightforward reporting requirements for SPVs.
All ADGM SPVs must demonstrate an appropriate nexus to ADGM, the UAE, or the GCC region, meaning a genuine commercial or ownership connection that justifies the use of the ADGM jurisdiction. SPVs cannot conduct operational business activities or hire staff directly. They may, however, hold shares in other companies, hold real property, hold investment assets, or act as a financing vehicle.
All non-exempt SPVs incorporated in ADGM on or after 12 July 2021 must appoint an ADGM-licensed Company Service Provider to manage the entity and provide a registered office address. A CSP-exemption tool on the ADGM website helps applicants determine whether their proposed SPV qualifies for the exemption from this rule.
The total fee to establish an ADGM SPV is USD 1,900 (approximately AED 6,975), covering name reservation, company registration, and commercial licence issuance. SPV setup typically takes three to five business days from the date all required documents are received by the Registrar.
ADGM Foundations Regime
ADGM introduced the UAE’s first Foundations Regime to meet the wealth management and succession planning needs of local, regional, and international families and high-net-worth individuals. An ADGM Foundation is a legal entity with its own distinct legal personality, unlike a trust under common law, which means it can hold assets in its own name, enter into contracts directly, and operate as an independent legal entity separate from its founder.
According to ADGM’s official guidance, foundations are used for a variety of purposes including wealth management and preservation, multi-generational succession planning, tax planning within applicable law, asset protection from bankruptcy claims and forced heirship rules, and corporate structuring for family businesses. Key governance features include a Foundation Council (acting as an equivalent to a board of directors), the optional appointment of a Guardian who supervises the Council, and the ability of the founder to retain meaningful control during their lifetime.
ADGM Foundations can be established in as little as three to five business days once all required documentation has been received by the Registrar. The application fee is USD 1,000 (approximately AED 3,670), with an annual renewal fee of USD 200 (approximately AED 735), making it one of the most cost-effective foundation regimes in the region.
ADGM Tech Startup Commercial Licence
The ADGM Tech Startup Commercial Licence is an operational licence with a discounted fee structure, designed to enable technology-driven startups to set up and scale within ADGM for up to five years of initial operations. The licence is sector-agnostic and is available to entrepreneurs of all nationalities, provided the business meets ADGM’s startup criteria.
To qualify, a startup must be technology-driven, at seed or emergent stage with proven potential to scale, have a business plan with clearly defined milestones, and have received an approval letter from Hub71, ADGM’s technology ecosystem partner. The Hub71 eligibility review process takes an average of 21 days and should be started before submitting an ADGM application, as the approval letter is a mandatory document.
According to the official January 2025 fee announcement, the annual Tech Startup Licence fee is USD 1,500 (approximately AED 5,500) for both new registrations and renewals, making it one of the most accessible entry points into a globally recognised financial centre. Startups at the emergent stage may be assessed for a different fee tier; the ADGM Business Development team can advise based on your specific stage of development.
Tech Startups must maintain a physical office on Al Maryah Island or Al Reem Island with at least one dedicated desk. The visa entitlement for Tech Startup licensees is three employee visas per dedicated desk held under the licence. The licence is not available for businesses conducting regulated financial services, consumer retail, or manufacturing outside ADGM’s jurisdiction.
How does ADGM compare to DIFC and other UAE business setups?
ADGM occupies a distinct and well-defined position in the UAE’s business setup landscape. Understanding how it differs from DIFC, Abu Dhabi mainland, and other free zones helps you make the right choice for your specific circumstances.
Compared to DIFC (Dubai International Financial Centre): ADGM and DIFC are the UAE’s two internationally recognised financial centres operating under English common law frameworks. Both are designed for financial services firms, wealth managers, professional services providers, and holding structures. The principal geographic distinction is that ADGM is in Abu Dhabi, the UAE capital and home to the Abu Dhabi Investment Authority (ADIA), Mubadala, and ADNOC, making it the natural choice for firms whose clients, counterparties, and assets are connected to Abu Dhabi’s sovereign wealth and energy economy. DIFC, by contrast, is better positioned for firms whose primary commercial relationships are in Dubai and the broader Northern Emirates. Both centres have comparable fee structures for financial services licences, though ADGM’s 2025 fee reductions have made it considerably more competitive for non-financial and retail activities.
Compared to other Abu Dhabi free zones such as the Abu Dhabi Airport Free Zone (ADAFZ) or twofour54: ADGM is the only Abu Dhabi free zone with an independent common law legal system and an internationally recognised financial regulator (the FSRA). It is designed specifically for financial services, professional services, wealth management, and knowledge economy activities, not for light manufacturing, logistics, or media production. For businesses in those sectors, other Abu Dhabi free zones may be more appropriate.
Compared to Abu Dhabi mainland (ADDED-licenced companies): An ADGM company operates under its own legal system and can access the full benefits of ADGM’s common law courts and FSRA regulation. Mainland ADDED-licenced companies are subject to UAE federal law and can trade directly across the entire UAE without geographic restriction. For businesses that primarily serve the Abu Dhabi mainland market, a dual-licence approach (ADGM plus ADDED) may be appropriate, particularly for Tech Startups that qualify for ADGM’s dual-licence arrangement with ADDED.
Tips: Setting Up in ADGM
Tip 1: Search the permitted activities register before you apply. Confirm your exact activity code at adgm.com/setting-up/permitted-activities before starting your application. An incorrect activity selection causes delays and may require a fresh application.
Tip 2: Start your Hub71 approval 3-4 weeks before you plan to apply for a Tech Startup Licence. The Hub71 eligibility review takes an average of 21 days. Do not start your ADGM online application until the Hub71 approval letter is in hand, as it is a mandatory document.
Tip 3: Prepare source-of-wealth documents in advance. Bank statements and proof-of-address documents must be dated within three months of your application date. Gathering these before you start the online application avoids having to pause and restart the process.
Tip 4: For SPVs requiring a CSP, review the ADGM-licensed CSP directory carefully. The ADGM public register lists all licensed Company Service Providers. Not all CSPs offer the same scope of services, so compare registered-address, administration, and directorship offerings before selecting one.
Tip 5: Apply for your establishment card promptly after receiving your commercial licence. Visa processing cannot begin until the establishment card is in place. The sooner you apply for it through ACCESSADGM, the faster you can begin processing employee residence visas for your team.
Ready to Set Up Your Company in ADGM?
Setting up in Abu Dhabi Global Market gives your business access to one of the world’s most respected international financial centres, a familiar common law legal system, and a prestigious Abu Dhabi address at a significantly lower cost following the January 2025 fee reductions.
businesssetuphq.com specialises in ADGM company formation for financial services firms, professional services providers, holding companies, SPVs, tech startups, and family offices. Our team handles every step: activity selection, document preparation, portal submission, post-registration filing obligations, and visa processing through ACCESSADGM.
Contact us today for a no-obligation consultation on the right ADGM structure for your business.
[ Contact businesssetuphq.com Today ]
Frequently Asked Questions about ADGM Company Formation
Yes. ADGM welcomes applications from entrepreneurs and businesses of all nationalities, regardless of whether they hold UAE residency. The registration process is entirely digital, and shareholders and directors are not required to be physically present in Abu Dhabi at any stage of the application. However, for the Tech Startup Licence, at least one authorised signatory must be resident in the UAE.
Yes. ADGM permits 100% foreign ownership for all entity types. There is no requirement for a UAE national shareholder, local partner, or local sponsor of any kind.
ADGM is a separate free zone jurisdiction with its own common law legal system, regulated independently by the Registration Authority, ADGM Courts, and the FSRA. An ADDED-licenced mainland company operates under UAE federal law and can trade anywhere in the UAE without geographic restriction. ADGM entities are authorised to operate within the ADGM jurisdiction (Al Maryah and Al Reem Islands) only, unless they additionally hold an ADDED licence. Certain ADGM Tech Startups may qualify for a dual-licence arrangement with ADDED.
For standard Non-Financial and Retail applications, the RA targets approval within 10 business days, provided all documentation is complete and correct. SPVs typically take 3-5 business days. Tech Startup applications average 5 working days. Financial services applications take longer due to the additional FSRA authorisation stage.
After incorporating, ADGM companies must renew their commercial licence annually, renew data protection registration (USD 300 per year), file an annual return confirming company details are current, file annual accounts (with audit requirements depending on revenue), and notify the RA within prescribed timeframes of any changes to company information, including director appointments, address changes, share capital amendments, and changes to beneficial ownership.
Yes. Once your commercial licence is issued, you can apply for a corporate bank account. ADGM can provide a list of banks that are familiar with the ADGM registration process and the requirements for onboarding ADGM entities. Account opening approval remains subject to each bank’s own policies and due diligence requirements.
Yes. ADGM runs a dedicated programme called RegLab, a regulatory sandbox for fintech startups that want to operate in a supervised innovation environment. Companies must first obtain an ADGM commercial licence before applying for RegLab. Non-regulated fintech technology businesses may also qualify for the Tech Startup Licence, subject to Hub71 approval and ADGM activity eligibility criteria.
Business Setup HQ has already helped many investors and owners form their companies without second thoughts and aims to do so even further. If you are willing to start a business in UAE, you can always book your first call with us.
