Any entrepreneur looking to set up a company in the UAE should think about doing so in one of the country’s several free zones. There are numerous attractive free zones located in the Emirates, each of which provides a wide variety of advantages to entrepreneurs from all over the globe.
One of the most appealing aspects of establishing a business in a UAE free zone is the absence of personal and corporate income taxes, as well as a complete exemption from customs duties. Furthermore, unlike many other nations, UAE free zone companies will repatriate their whole investment capital and earnings. There are no currency limits or foreign exchange caps.
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Doing Business in Abu Dhabi Global Market
The Abu Dhabi Global Market (ADGM) is a great business centre and financial free zone for companies who want to start a business in a friendly climate. The Abu Dhabi Global Market fosters a community of growth and development by creating a finances-friendly environment that assists businesses in achieving their financial objectives.
Companies considering establishing a business in the UAE free zone have a number of choices. A foreign corporation seeking to establish a presence in the Abu Dhabi Global Market will do so by establishing a registered company, a division, a virtual company, or hiring a commission agent.
How to Start Business in ADGM?
The Abu Dhabi Global Market is the place to be if a corporation or an entrepreneur wants to start a business in one of the world’s safest, prosperous, and fastest-growing markets. The processes are straightforward and versatile, whether you choose to register a business in a free zone or open a branch of your company outside of the region.
In general, there are a few main steps to starting a company in Abu Dhabi Global Market:
Step 1 – Recognizing Business Activities
It is important to decide the activities of the business to be conducted before beginning the process of obtaining a business license.
In ADGM, investors can primarily set up two forms of businesses:
- Financial Business
Banking, Wealth & Asset Control, and Capital Markets are all part of the financial services industry.
- Non-Financial Business
Professional Services, Corporate, Family Businesses, Associations, Special Purpose Vehicles (SPV), and Tech Startups are all examples of non-financial businesses at the ADGM.
Step 2 – Registration of the Business Name
After deciding on the business’s operation and type, it’s time to choose a trading name that separates it from the competition.
Step 3 – Receiving Initial Approval
Obtaining the permission of the relevant authority, which is the General Directorate of Residency and Foreigners Affairs (GDRFA), is needed for foreign investors.
Step 4 – Issuance of License
The license may be given by different regulatory authorities under the following categories after receiving approval from the relevant authorities.
Types of Entities in ADGM
There are four types of legal entities allowed in the Abu Dhabi Global Market Free Zone. People looking to set up their company can choose any one of the following:
- Company Limited by Shares
- Branch of a Foreign Company
- Company Limited by Guarantee
- Partnership Firm
Documents Required for Company Set up
The exact steps you will need to take to start your business in Abu Dhabi Global Market would be determined by the structure of your business and the business configuration you want. In most situations, you will be asked to provide the relevant documents:
- Completed application form
- Passport copy of the proposed owner or owners
- Two coloured passport size photos with a white background
- Proof of share capital, as required
If the application is complete and accurate, the ADGM business forming phase takes just a few days in the majority of cases. As previously stated, it is important to remember that discrepancy in the application will result in delays or even rejection.
Benefits of Setting Up a Company in ADGM
Following are some of the advantages of establishing a business in ADGM:
- 100% company ownership
- 100% repatriation of capital and profits
- No currency restrictions
- World-class facilities and also the modern infrastructure to financial institutes
- Multiple visa options and also easy to sponsor dependents
- Common law jurisdiction
- Simple and also convenient business procedures
- Availability of dedicated skilled professionals
Why Foreign Investors Should Set Up Business in ADGM?
Simple Setup Procedure
ADGM enables investors to form a business in Abu Dhabi in a more effective and timely manner. The establishment of a business in ADGM is facilitated by a fully digitalized application framework. In addition, the ADGM authority has taken steps to assist investors with visas and other government facilities.
Efficient Legislation’s Benefits
Foreign investors do not need to be concerned about the nuances of UAE rules when establishing a company in ADGM because it has its own legal structure focused on English Common Law. The ADGM Courts, which are self-governing and have their own civil and commercial rules, serve as a powerful pillar of conflict settlement within the financial free zone.
Ownership & Tax Benefits
By initiating the company setup phase in ADGM, foreign investors may obtain 100 percent ownership of their businesses. Furthermore, there are no limitations on earnings repatriation, and a tax-friendly system allows the task of forming a business in ADGM a profitable prospect for investors.
Other than these benefits, under three independent authorities, the Abu Dhabi Global Market has its own regulatory mechanism and legal infrastructure:
- Registration Authority
- Financial Services Regulatory Authority
- ADGM Courts
The ADGM Financial Services Regulatory Authority will oversee and audit licensed businesses and ensure that they are following all relevant legislation, guidelines, and regulations. Under ADGM Rules and Regulations, the ADGM Registration Authority will oversee firms’ compliance with periodic and event-driven filing standards.
We Are Here for You
When starting a new business in the UAE, it’s a smart idea to partner with a company creation specialist like Riz and Mona Consultancy. Our team of company registration experts is dedicated to making the visions of young founders and small businesses a reality.
Our expertise will shape your business on your behalf, apply for licenses and visas, and handle all of the appropriate paperwork, rendering UAE company forming simple. Contact us today to book your appointment.