Cost to Form & Renew a Tax-Free Company in Abu Dhabi Global Market (ADGM)

Exploring the expenses of launching and sustaining a tax-free venture within Abu Dhabi Global Market

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So you’re considering setting up a business in Abu Dhabi, specifically in the Abu Dhabi Global Market (ADGM). Well, you’re not alone. The ADGM has become a hotspot for both local and foreign companies, including private companies, looking to capitalize on its lucrative opportunities. This article aims to provide you with a comprehensive guide on the Cost to Form & Renew a Tax-Free Company in Abu Dhabi Global Market (ADGM) by fzbuddy, from the initial setup to renewal fees, and even the commercial license requirements. Let’s dive in!

What is the Abu Dhabi Global Market (ADGM)?

The Abu Dhabi Global Market is a financial free zone located in the capital city of the United Arab Emirates. It offers a wide range of business activities and is known for its flexible regulatory requirements. The ADGM is not just a financial centre; it’s a complete ecosystem that supports a variety of business structures, including corporate entities.

Benefits of Setting up a Company in ADGM

Financial Perks

  • Zero Personal Income Tax: More money in your pocket.
  • No Corporate Income Tax: Boost your business income.
  • 100% Foreign Ownership: Full control over your business.

Operational Advantages

  • Residency Visas: Easy process for you and your employees.
  • World-Class Infrastructure: State-of-the-art office spaces and facilities.
  • Strategic Location: Proximity to key markets and educational institutions.

Overview of Cost to Set Up and Renew a Tax-Free Company in ADGM

Setting up a company in ADGM comes with its own set of costs, including a business license fee, business activity fee, and registration authority charges1. The renewal process is straightforward, usually completed within a few business days, and involves a similar cost structure2.

Corporate Structure Options

Limited Liability Companies (LLCs)

LLCs in ADGM offer the benefit of limited liability and are ideal for a wide range of business activities. They are a popular choice for private companies looking to establish a legal identity in Abu Dhabi’s financial hub.

Foreign Branch Offices

If you already have a parent company elsewhere, setting up a branch office in ADGM could be a strategic move2. This allows you to operate under the same commercial license as your parent company.

Registered Foreign Companies (RFCs)

RFCs are essentially foreign companies that are registered to operate in ADGM. They offer a unique set of benefits, including the ability to repatriate profits and capital.

Family Offices

For those looking to manage family wealth, ADGM offers the option to set up family offices. These entities are designed to manage the financial and personal affairs of high-net-worth families.

Legal Entities Available for Formation in ADGM

You can choose between LLCs and RFCs, each with its own set of regulatory capital requirements. Both types of entities are subject to ADGM’s regulatory requirements, making them compliant with international standards.

Read more: Cost to Form & Renew a Tax-Free Company in Dubai Outsource City (DOC)

Free Zone & Non-Free Zone Entity Types Available at the ADGM

ADGM offers both free zone and non-free zone options, each with its own set of applicable requirements3. The free zone options, known as the Abu Dhabi Global Market Free Zone, offer additional benefits such as tax exemptions and simplified regulatory requirements.

Requirements to Form an Entity in ADGM

Business Plan & Documentation Requirements

A detailed business plan is a must, along with audited accounts and financial statements. These documents will be reviewed by the relevant authority during the application process.

Corporate Directors/Managers Required?

Yes, ADGM requires the appointment of corporate directors for legal entity structure. These directors are responsible for the company’s overall governance and compliance with ADGM Free Zone regulations.

Parent Company/Shareholder Requirements

If you’re setting up a branch office, your parent company needs to be involved in the application for redomiciliation. This involves submitting a detailed pay statement and other financial documents to prove the company Types viability.

Read More: Cost to Form & Renew a Tax-Free Company in DMCC

Conclusion

The Abu Dhabi Global Market offers a plethora of opportunities for both local and international businesses. From its tax benefits to its flexible legal structure, it’s designed to help your business thrive. However, it’s crucial to be well-informed about all the costs involved, from company setup to renewal fees. For more expert advice, consider talking to a dedicated account manager or a business setup consultancy.

So, what are you waiting for? Dive into the world of opportunities that ADGM has to offer and make your business dreams come true!

Sources


FZBuddy aims to provide accurate and reliable information as you navigate the UAE Freezone space. As such, our writers refer to primary information sources in supporting each article appearing on this website. These include, but are not limited to, published news articles, government portals, research papers, and more.

  1. Abu Dhabi Global Market (ADGM) is an award-winning international financial centre located on Al Maryah Island in the heart of the UAE’s capital city, Abu Dhabi. (2023b, January 23). Abu Dhabi Global Market (ADGM). https://www.adgm.com/
  2. Home – Government of Abu Dhabi. (2023). Government of Abu Dhabi. Retrieved September 10, 2023, from https://www.abudhabi.gov.ae/

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