The Abu Dhabi Global Market (ADGM) is a free economic zone in the United Arab Emirates located on the artificial islands of Al Maryah and Al Reem. ADGM is a place where all businesses operate under English common law, making its structure as clear and familiar as possible to international partners. You can open a standard limited company (Ltd.), an investment fund, a bank, a startup, or a holding company, or choose another legal and regulatory structure. This free zone allows companies to obtain a dual license and operate in the UAE outside of ADGM.
Founded in 2015 as a small space for businesspeople, ADGM has grown into a global financial centre in the capital over the past 10 years. ADGM offers everything needed for successful operations, including banks, investment funds, coworking spaces, office space, and courts. Thanks to its transparent and predictable system, Abu Dhabi’s position in the global market has earned international recognition. Today, ADGM offers the opportunity to work with counterparties worldwide, reduce tax burdens, and establish a reputation as a reliable partner.
Why the capital of the UAE is developing the ADGM International Financial Center
Abu Dhabi, the capital of the UAE, is developing an International Financial Center to diversify its economy. The authorities plan to reduce the country’s dependence on oil by attracting investors and businesspeople worldwide, creating favorable conditions for cross-border transactions, and developing the capital market and the fintech sector.
The International Financial Center was established in late October 2015 as a compact free economic zone. Over the past 10 years, it has expanded to 14.38 million square meters, making it the largest in the region. The emirate continues to invest in the center, creating new coworking spaces, building office buildings, and attracting leading global banks. Investors and businesspeople are interested in doing business at the ADGM due to:
- A transparent registration system.
- English law.
- A respected regulator.
- A wide range of company types for registration.
- A high level of trust from American and European counterparties.
Business registration in the UAE
- Choice of licenses and type of activity
- Opening a corporate account
- Resident visa processing
- Guaranteed result under the contract
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Where is the ADFIC located, and how is it structured?
The Abu Dhabi International Financial Centre (ADFIC) is a free trade zone (FTZ) in the UAE. A separate business ecosystem, including banks, office buildings, and courts, has been created across Al Maryah and Al Reem islands. The ADFIC regulatory environment comprises:
- Registration Authority (RA): Responsible for registering and licensing companies within the ADFIC.
- The Financial Services Regulatory Authority (FSRA) oversees company activities.
- The ADGM Courts are separate courts of first instance and appellate jurisdiction under English law that handle all disputes.
A key feature of the Global Market is that companies registered in the ADGM can obtain a local commercial license and a trade license from the Abu Dhabi Department of Economic Development (ADDED). This allows legal entities in the Free Zone (FEZ) to serve clients on the mainland without establishing a physical presence there. The flexible dual licensing method saves time and reduces operating costs while facilitating business scalability.
ADGM Tax Regime in 2026
In 2022, the UAE Ministry of Finance introduced corporate tax at the following rates:
- 0% on income up to USD 102,110;
- 9% on income over USD 102,110.
Although companies registered in the ADGM are not exempt from corporate tax, they can receive a 0% rate by becoming Qualifying Free Zone Persons (QFZPs). To qualify, they must:
- Have a registered head office or branch in the ADGM.
- Conduct actual economic activity in the FEZ (e.g., conduct transactions and operations, hire employees).
- Receive qualifying income from permitted activities, such as producing goods, logistics, financial services, or asset management services.
- Adhere to arm’s length pricing principles.
- Maintain transfer pricing documentation.
- Prepare and maintain financial records.
- Comply with the limit on non-qualified income, which should be no more than 5% of total income or AED 5 million (approximately USD 1,361,470).
Furthermore, business owners’ personal income is tax-exempt because the UAE does not have a personal income tax. There are also no taxes on dividends or wealth. VAT is paid at one of the lowest rates in the world: 5%.
In other words, registering a business in the UAE—and in ADGM in particular—is the best practice to optimize expenses and reduce the tax burden. Therefore, many foreigners choose the UAE for business and relocation. Business-based residency can be obtained for a 5-year residence permit.
What types of companies and licenses are available in ADGM?
The Abu Dhabi Global Market offers various types of companies depending on their purpose. Let’s look at the most popular ones:
| Company type | Purpose | Setup cost, $ | Annual maintenance cost, $ |
|---|---|---|---|
| Classic LTD, non-financial | Consulting, holding structures, IT services, and international business | 5,800 | 5,300 |
| Classic LTD, retail | E-commerce and retail trade in the UAE and abroad | 2,800 | 2,300 |
| Financial company (FSRA-regulated) | Investment firms, banks, payment services | 17,000 | 16,500 |
| SPV | Protection and structuring of parent-company assets | 1,900 | 1,400 |
| Foundation | Protection of family assets and inheritance planning | 1,000 | 500 |
| Technology startup | Innovative products, services, or IT projects | 1,500 | 1,500 (every 3 years) |
Classic company (LTD)
A Private Company Limited by Shares (LTD) in the UAE is similar to a limited liability company. This format is suitable for retail trade both domestically and internationally, as well as for holding companies and entertainment services. Businessmen often choose LTDs because:
- one person can act as both founder and director;
- there are no minimum share capital requirements;
- a secretary is not required;
- a shareholder (who is also the founder/director) is not personally liable for the company’s debts; their liability is limited to the number of shares they own.
Restrictions: LTD shares cannot be traded on public exchanges.
The cost of establishing a company depends on the type of business. Starting a non-financial LTD requires USD 5,800, while starting a retail business requires USD 2,800. Annual maintenance costs are USD 5,300 and USD 2,300, respectively.
FSRA Financial Company Supervised by the Financial Services Regulatory Authority (FSRA)
Activities related to banking and financial services, capital markets, digital assets, and fintech must be approved by the FSRA. A license must be obtained before establishing an LTD or other legal entity.
All owners of such businesses must regularly submit regulatory and financial reports to the FSRA through an online portal. The FSRA oversees these companies’ activities to prevent financial fraud and ensure compliance with international tax reporting obligations.
The FSRA is a respected regulator worldwide, so obtaining an FSRA license gives businesspeople access to the international financial infrastructure. Companies supervised by the FSRA inspire confidence in foreign partners and banks.
The basic cost of registering a business under FSRA supervision is USD 17,000, with an annual maintenance fee of USD 16,500.
SPV in ADGM
SPVs (Special Purpose Vehicles) are separate subsidiaries that protect a parent company from financial risk. The purpose of establishing an SPV may include:
- Asset isolation.
- Attracting investors.
- Risk management.
- Protecting the parent company from creditors.
For instance, SPVs in the Abu Dhabi Global Market can be used to own intellectual property, real estate, or shares in foreign companies, or to serve as holding companies. One advantage is that a physical office in ADGM is not required. An SPV does not conduct commercial activities; it functions solely as an asset holder. Therefore, company registration costs start at USD 1,900. Annual maintenance of an SPV costs USD 1,400.
Foundation
Foundations in ADGM are separate legal entities that own the founder’s assets. These organizations have no shareholders and are used to protect family assets. They are established by individuals who wish to separate personal assets, such as real estate, from their business.
Foundations are not permitted to engage in commercial activities, so a standard limited liability company (LTD) must be established for this purpose. Advantages include strict confidentiality of all information about beneficiaries and assets, with no information shared with third parties. Access to the foundation is granted only to persons authorized by the founder, ensuring security. Registration costs for a foundation are USD 1,000, and maintenance costs are USD 500.
Technology startup license
Startup companies whose activities involve innovation may obtain a technology startup license. This license is ideal for those planning to work in IT or artificial intelligence, or for those with an idea for a unique business. The main requirement is that the business be innovative, for example, by offering a new product or technology.
Advantages:
- the license is issued for up to 3 years;
- startup employees can obtain a 3- or 5-year visa;
- ample opportunities to attract investors.
To register a startup, you’ll need USD 1,500, plus an additional USD 1,500 for maintenance, payable every 3 years.
- Let’s evaluate the project and its chances of approval
- We will prepare the documents and presentation
- We are conducting the process until it is fully registered
Why choose ADGM?
Business owners choose ADGM because the SEZ caters to their specific needs. Below are some real-life examples of our clients:
Creating a single holding company. One client’s business comprises several operating companies in the EU (Germany, France, and Spain), the UK, and Saudi Arabia. They needed a single holding company to simplify transactions, attract investors, and distribute risks. Cyprus was not suitable due to reputational risks. Kazakhstan was not recognized by its Western counterparts. The DIFC’s expense threshold was also significantly higher than ADGM’s. As a result, a single holding company was created as an LTD.
Attracting foreign investors to a startup. The client’s primary goal was to attract foreign investors to develop their IT project. It was also necessary to carefully divide rights among all the company’s partners. The investors immediately indicated that Cyprus and other offshore jurisdictions were not options. The DIFC was too expensive for the client. ADGM satisfied all the partners, so we established an LTD with a tech startup license for commercial activities and an SPV for asset distribution.
Consolidation of family assets. The family owned assets across the globe, including real estate in Europe, company shares in Asia and the US, and deposits in Switzerland. All assets needed to be consolidated in a single location to preserve capital and manage inheritance. Offshore funds and Kazakhstan were not suitable due to banking restrictions. Therefore, ADGM was chosen, and a foundation with a holding LTD was registered.
Creation of a payment service. The client planned to enter the Middle East and North Africa (MENA) market, so investors needed a legal platform for financial transactions. However, Cyprus and Kazakhstan were not suitable for the LP (limited partner) and GP (general partner) models. During the discussions, it was decided to establish a management company with an FRSA license in ADGM, given the regulator’s impeccable global reputation.
Cooperation with foreign jurisdictions is easy. A technology company operating in the UAE decided to enter the U.S. and European markets. The goal was to simplify transactions and operations. However, the USA and Europe are wary of offshore zones and usually refuse such cooperation. ADGM is more credible because it is based on English law and has a strict regulator. Therefore, an LTD with an asset-management structure was established for the company.
Would you like to learn which ADGM structure would be safest and most profitable for your needs? who can explain all features, help you select an option, and assist you throughout the process.
Pros and cons of ADGM compared to other UAE and DIFC zones
Businessmen choose ADGM in the heart of Abu Dhabi because:
- The registration process is simple: the entire procedure takes place online, saving time.
- The English legal framework is in force: activities are conducted in accordance with well-known, generally accepted international standards.
- Reliable regulation: the FSRA has an impeccable reputation, monitors compliance with all requirements, and protects against corruption.
- It has its own dispute resolution center: judges at ADGM Courts have extensive experience working in the world’s leading jurisdictions.
- A large selection of corporate structures: you can choose the legal form of the company that best suits your business goals.
- The possibility to apply for a visa through the ADGM portal: without the need to submit a separate application through other services.
- 100% company ownership: foreigners can be the sole owners of companies in ADGM.
- Favorable tax regime: if the conditions are met, the corporate tax rate will be 0%.
Despite all the advantages, ADGM, like any free zone, has some disadvantages:
- A physical office is required, except for SPVs.
- Higher costs for starting a company, especially a financial one, compared to some other free zones in the UAE.
- Expensive office rent.
To illustrate, let’s compare ADGM with another popular free zone in the UAE: the Dubai International Financial Center (DIFC).
| Criterion | ADGM | DIFC |
|---|---|---|
| Legal system | Based on the English common law | Based on the English common law |
| Own courts | Yes | Yes |
| Regulator | FSRA | DFSA |
| Commercial licence cost, $ | 200 | 350–12,000 |
| Best suited for | Startups, SMEs, retail business, e-commerce | Large financial institutions, banks, investment funds |
| Location | Al Maryah Island and Al Reem Island | Central Dubai |
What is the cost of opening a company in ADGM in 2026?
The cost depends on the chosen business type and includes the following expenses:
| Cost item | Non-financial LTD | Retail LTD | Financial company | SPV | Foundation |
|---|---|---|---|---|---|
| Name reservation, $ | 200 | 200 | 200 | 200 | 200 |
| Registration application, $ | 300 | 300 | 300 | 300 | 300 |
| Commercial licence, $ | 200 | 200 | 200 | 200 | 200 |
| Business activity fee, $ | 4 800 | 1 800 | 16 000 | 900 | – |
| Data processing and personal data protection fee, $ | 300 | 300 | 300 | 300 | 300 |
Startups are exempt from all the above fees and only pay a one-time fee of USD 1,500 every 3 years.
Please note that licenses must be renewed annually by paying state fees:
| Cost item | Non-financial LTD | Retail LTD | Financial company | SPV | Foundation |
|---|---|---|---|---|---|
| Commercial licence, $ | 200 | 200 | 200 | 200 | 200 |
| Business activity fee, $ | 4,800 | 1,800 | 16,000 | 900 | – |
| Data processing and personal data protection, $ | 300 | 300 | 300 | 300 | 300 |
How to open a company in ADGM
Opening a company in the Abu Dhabi Global Market (ADGM) consists of 7 steps:
- Select a legal structure. Decide what your company will do, as this determines the type of business and the required documents. For instance, if you plan to open an online store, a retail limited liability company (LTD) would be appropriate. Those involved in capital markets or digital assets should choose a financial company. To protect the parent company’s assets, a special purpose vehicle (SPV) is recommended.
- Select and reserve a name. The company name must be unique. You can check its availability in the ADGM Public Registry. If your chosen name is the same as an existing one, you must provide proof of your right to use it. If you use abbreviations, you must spell them out. You may reserve the company name in advance or during the application process.
- Rent an office. All ADGM companies, except SPVs, are required to have an office. You can choose a space in a business center or coworking space on Al Maryah or Al Reem Islands. Proof of the office lease must be provided when submitting your company registration application to ADGM.
- Prepare the documents. All documents must be in English. Notarization is generally not required, but the regulator may request it in certain cases. The required documents depend on the company type. iWorld Lawyers provide a complete list. In all cases, you must prepare documents for the shareholders and directors, as well as the company’s articles of association. The registrar may request income certificates for individual shareholders issued within the past 3 months.
- Company registration. Submit the application online through the ADGM portal. First, you must register on the website and complete the form. Then, you must attach scanned copies of all required documents. Next, you must fund your internal wallet, which is used to pay all state fees. Registration typically takes 10 business days, and you can track your application’s status in your personal ADGM portal account.
- Process the visa and enter the UAE. After registering, you can apply for a work visa through the ADGM portal. Create a «Company User» in your personal account, wait for approval, apply for a company card (approximately 5 business days), and open an E-Channels account (1 business day). Once these steps are complete, you can request a visa and attach a copy of your passport, photo, and employment contract or job offer letter to your application. You will receive a decision within seven business days. Once your visa is approved, you can enter the UAE and begin working.
- Obtain work permits and other licenses (if applicable). If you are hiring employees to relocate to the UAE, you must obtain their work permits through the ADGM portal. Depending on the field of activity, you may need a license to sell alcohol or shisha, hold exhibitions or events, or conduct photography. All permits must be obtained exclusively through the ADGM portal.
How to choose a structure with ADGM?
The choice of structure with ADGM depends directly on your goals and objectives:
| Purpose/ Use case | LTD | SPVh | Foundation | Regulated entity (management company, advisor, etc.) |
|---|---|---|---|---|
| Operating an active business | Primary structure | No | No | No |
| Management, succession planning, and protection of family wealth | Possible, but not optimal | Yes | Yes, the best option | No |
| Establishing an investment fund/SPV for a transaction | Possible, but structuring is complex | Possible | Yes, the best option | No |
| Working with international partners | Yes | Yes | Yes | Yes |
| Attracting partners/investors | Yes | Yes | Yes | Yes |
Bank account, reporting, and compliance in ADGM
A corporate bank account is required for business activities in ADGM, and all company transactions are processed through it. The FRSA establishes a list of financial institutions that accept clients, including Abu Dhabi Commercial Bank and JPMorgan Chase Bank N.A. Businesses undergo strict anti-money laundering (AML) checks to ensure that they are not involved in terrorist financing or money laundering. These checks include Know Your Customer (KYC) and Know Your Transaction (KYT) procedures.
Every company operating in ADGM must file annual financial statements in US dollars. These statements are prepared at the end of the financial year and reflect the company’s performance. There are no generally accepted filing deadlines; the FRSA sets each company’s reporting date, called the Accounting Reference Date (ARD), individually. Special rules apply to newly established companies depending on the length of their first financial year:
- 12 months or less: The first financial statement is filed within nine months of the reporting date;
- more than 12 months: The first financial statement is filed within nine months of the first anniversary of incorporation.
Subsequent annual financial statements are filed within 9 months of the ARD date.
The type of financial statement required depends on the company’s legal form, but most commonly, the following are required:
- Annual financial statements audited by an accredited ADGM auditor.
- Auditor’s report.
- Director’s report.
- A board resolution approving the financial statements.
Limited liability companies (LLCs) or small companies (with a turnover of up to USD 13.5 million and no more than 35 employees) may submit an unaudited balance sheet.
ADGM strictly controls who owns a company and who receives its income. For this purpose, there is a procedure for verifying the Ultimate Beneficial Owner (UBO). When registering a company, the owner must submit a UBO report. The report includes details of individuals who:
- Hold at least 25% direct or indirect ownership or voting rights in the company.
- Control the company.
- Hold management positions (only if no information is available on individuals under the previous 2 points).
Any changes in beneficial ownership must be reported within 15 days. Failure to comply with these rules will result in a fine of USD 25,000.
To maintain QFZP status, you must continue conducting genuine economic activity, file reports on time, and comply with conditions regarding qualified and non-qualified income.
Who is ADGM suitable for, and who should consider another jurisdiction?
Consider your goals to determine whether ADGM is right for your business or if another jurisdiction is better:
| Goal / Requirement | Is ADGM suitable? |
|---|---|
| Setting up a business under the internationally recognized English common law | Yes |
| Asset protection, wealth, and succession planning | Yes |
| Minimizing company incorporation costs | No |
| Establishing SPVs and investment funds | Yes |
| Entering into transactions with partners from the US, Canada, Europe, and the Middle East | Yes |
| Launching a startup with the ability to attract investors | Yes |
| Operating a business without mandatory financial reporting | No |
| Tax optimization | Yes |
