Abu Dhabi Global Market (ADGM): The new international financial hub for investors | FlyingColour
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Abu Dhabi Global Market (ADGM): The new international financial hub for investors


Overview adgm free zone in Abu Dhabi

Abu Dhabi Global Market is a worldwide financial center located the capital of the United Arab Emirates. ADGM is a Free zone situated in Al Maryah Island, Abu Dhabi. ADGM has following three sovereign authorities like Registration Authority, the Financial Services Regulatory Authority and ADGM Courts.

  • The Registration Authority is responsible for promoting the environment, adgm company formation & company set up and supporting the business community.
  • The Financial Services Regulatory Authority regulates all financial services on the island based on a risk-based and outcome-focused regulatory philosophy.
  • ADGM Courts provides a legislative framework based on Common law, which allows registered companies to draw on a well-established set of precedents.

ADGM allows incorporation of regulated activities like Banking & Insurance, capital markets, Investment fund, financial consultancy etc. ADGM also do have window for non regulated activities for professional and retail activities. Professional & Business service include activities like Legal, accounting, Consulting, Human resource, Information Technology, Training providers etc., The allowed legal types are LLPs, LPs, GPs and allowed corporate structures are Special purpose vehicle, Holding company etc.,

adgm free zone license

adgm free zone licensing has commercial and retail activities like Manufacturing, Wholesale and Retail trade; repair of motor vehicles and motor cycles, transportation and storage, accommodation and food service activities, administrative and support service activities, arts, entertainment and recreation etc.
There is a difference in the registration and licensing fees and process for regulated and non-regulated activities.

Advantages of ADGM

  • Firms recognized as registered UAE firms
  • 100% foreign ownership
  • Common law jurisdiction
  • Best-in-class independent regulatory framework
  • Variety of legal structures available
  • Zero tax
  • No withholding of taxes or VAT
  • No restrictions on repatriation of profits

ADGM Courts

ADGM courts reinforce ADGM with a completely free, common law structure to mediate common and business debate. ADGM Courts and its legal would be extensively demonstrated on the English legal framework as this methodology would result in an intelligent, perceived and acknowledged lawful structure and legal framework. The Regulations for ADGM Courts, called ADGM Courts, Civil Evidence, Judgments, Enforcement and Judicial Appointments Regulations 2015 (“ADGM Courts Regulations”), are additionally drawn from Scots and Australian Federal law. They have been custom fitted particularly to meet the prerequisites of ADGM Courts. The immediate utilization of English customary law makes ADGM the main locale in the Middle East to embrace a comparative way to deal with that of Singapore and Hong Kong.

adgm company formation – special purpose vehicle

ADGM’s Special Purpose Vehicle framework underpins an extensive variety of business types and industry divisions including yet not constrained to corporate, sovereign riches reserves, government related elements, single family workplaces, trustees and individual speculators.

SPVs are corporate privately owned businesses, joined to isolate budgetary and legitimate hazard by ring-fencing resources and liabilities. SPVs can be set up as backups, task or joint endeavor vehicles to guarantee that just those benefits identified with an exchange are presented to the liabilities related with that exchange. One of the key highlights of a Special Purpose Vehicle is, its different lawful substance, and the cases by the SPV’s lenders can’t connect to the advantages of the SPV’s investors or any of its sister organizations.
Special Purpose Vehicle is ordinarily utilized for secularization, Real Estate Investment, Financing, Asset exchange; Risk sharing, raising capital and licensed innovation

Advantages of SPV’s in ADGM

  • No minimum share capital
  • Different classes of shares possible
  • Qualified for Tax residency
  • Rack SPV’s are allowed
  • No office space required
  • Movement of existing corporate substances (permitted elements are BVI, Cayman Islands, Jersey and Guernsey)
  • No limitations on nationality of possession
  • No limitations on the quantity of investors
  • 1 investor and 1 chief allowed
  • Corporate shareholders allowed
  • No secretary necessities
  • No base offer capital
  • Distinctive classes of offers conceivable

adgm company set up

Overall, ADGM is the suitable and cost effective option to setup a regulated activity targeting local and international business. Since ADGM is the only jurisdiction in UAE that follows common law, it’s the best option for those who look for an alternate for the UAE Sharia Law. Any disputes or attribution will be solved within the ADGM courts which follows common law. Another good reason is the migration of foreign offshore companies is also possible and a cost effective option for SPV’s as well. ADGM is international financial center, and the only jurisdiction that allows Crypto business, be it asset management, trading or exchange. ADGM is UAE’s jump into the international financial market in a huge way.

Flying Colour can help you set up your entity in ADGM through our experienced professionals and our expertise in consultancy of business setup in the region for the past 15 years.
This blog post is written by Mr. Ananth. Feel free to call our Business Adviser today for a quality consultation relating your queries. Please send inquiry to info[at]flyingcolour[dot]com or call +971 4 4542366

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