Abu Dhabi Global Markets (ADGM) is a purpose-built financial services free zone based in the capital of the United Arab Emirates – Abu Dhabi. Situated at Al Maryah Island, ADGM has been operating since 2015 and home to over 3,000 businesses. ADGM is an autonomous jurisdiction with its own regulations, independent courts (English Common Law), and arbitration centres with an independent Financial Services Regulatory Authority (FSRA).

ADGM free zone is widely recognised worldwide along with the top financial service jurisdictions set in London, New York, Singapore, and Hong Kong

WHAT BENEFITS DOES ADGM OFFER?

Companies are drawn to ADGM to set-up a business and can enjoy the following:

• 100% ownership of businesses.
• Modern and technological driven infrastructure.
• Independent legal and judiciary system.
• Diverse financial and innovative products.
• Competent and globally recognized independent regulators – FSRA.
• No restriction on capital repatriation and 0% corporate and income tax.

Over the years the ADGM and FSRA positioned themselves as the leading financial services regulators in the region with a ready acceptance for revolutionary innovations and virtual assets making it home to some of the leading financial services companies and ground-breaking FinTech start-ups. 

ADGM IS DESIGNED TO CATER TO FINANCIAL SERVICES COMPANIES INCLUDING:

• FinTech governed under the RegTech regime in ADGM.
• Private, retail and investment banking.
• Financial brokerage.
• Market makers.
• Insurance and reinsurance.
• Fund management.
• Asset management.
• Wealth management.
• Private equity.
• Multilateral trading facilities.

Companies that offer financial services (e.g. advisory services on virtual assets) in the UAE are regulated by a centralised regulatory body to standardise their activities and ensure transparency, safety, and security of consumers for risk management and mitigation. FSRA regulates all financial services activities within ADGM.

CLASSIFICATION OF FSRA FINANCIAL SERVICES:

CATEGORY 5

Regulates the Islamic Financial Businesses (ISF) which manages a Profit Sharing Investment Accounts (unrestricted) (PSIAu) in the ADGM. This category covers the scope of Islamic Funds, Islamic Securities and PSIAus. 

Base Capital required for the activity is US$ 10 million.

CATEGORY 4

Companies offering financial advisory services are governed under Category 4 which involve business activities including:

• Financial consultancie
• Investment deals arrangement
• Insurance intermediaries
• ATS Operation
• Custody arrangement
• Credit advisory

Category 4 licensed companies are required to demonstrate the right skill set to offer financial services and require the following roles within the company:

• Board of Directors (BoD)
• Senior Executive Officer (SEO) with residence in the UAE
• Finance Officer (FO)
• Compliance Officer (CO)
• Money-Laundering Reporting Officer (MLRO)
• Auditor

Base capital requirement for a Category 4 License is US$ 10,000.

CATEGORY 3

Category 3 is subdivided into three sub-categories offering different services and provisions:

CATEGORY 3C

Financial services firms that offer asset management and fund management services are regulated under Category 3C. It also covers activities such as:

• Providing trustee services of an express trust.
• Managing a PSIAr.
• Providing custody (other than a fund).
• Issue stored value (for money services providers).

Fund Management Businesses can register funds in the ADGM. 

Base capital requirement for a Category 3C License is US$ 500,000.

CATEGORY 3B

Category 3B covers the financial services business involved in providing custody services for a fund (financial services businesses responsible for holding customers marketable securities and cash in the fund) and acting as a trustee for a fund. 

Firms in this category are required to have the roles of:

• Board of Directors with its Chair as a non-executive Director
• Resident SEO with relevant experience
• Finance Officer
• Chief Risk Officer
• Compliance Officer
• MLRO
• Internal and external Auditor

Base capital requirement for a Category 3B license is US$ 4 Million.

CATEGORY 3A

Financial brokerage firms offering investments as agents and matched principals are covered under the scope of category 3A. Activities in this category are highly regulated under the FSRA and require its regular supervision. This also means that all applications for the financial brokerage firm go through a thorough due diligence process and crucial to have SEO experience in managing this business to secure approvals from the FSRA. 

Base capital requirement for a Category 3A license is US$ 500,000.

CATEGORY 2

Investment banks and market makers are covered under the scope of Category 2 license. It allows financial businesses to deal in investments as principal and can provide credit. 

Base capital requirement for a Category 2 license is US$ 2 Million.

CATEGORY 1

Banks are covered under Category 1 which allows financial businesses to accept deposits and manage profit sharing investment accounts (unrestricted). 

As a bank, it is heavily regulated by the FSRA and has a base capital requirement of US$ 10 Million.

 

Does your business need to be regulated by the FSRA?

Anyone providing a financial service from a permanent place of business in the ADGM must be regulated by the FSRA. This includes, but is not limited to:

• banks

• brokers and dealers

• asset managers

• corporate financiers

• wealth managers

• insurers and insurance intermediaries

as well as some of the less traditional financial services relating to virtual assets, private financing platforms, sometimes known as crowdfunding platforms, and money service providers

The type of business you wish to undertake will define the category of FSRA licence you will require and subsequently the amount of capital you will be required to hold.

Compliance World – Your Partner in ADGM Company Incorporation

Are you looking to establish a company in the Abu Dhabi Global Market (ADGM), one of the world’s most dynamic and business-friendly financial centers? Look no further than Compliance World! We are your trusted partner in ADGM company incorporation, offering comprehensive services and expert guidance to simplify the process and ensure compliance with all regulatory requirements.

Why Choose ADGM for Your Company?

ADGM is renowned for its strategic location, favorable business environment, and robust regulatory framework. With its world-class infrastructure and access to global markets, ADGM is an attractive destination for entrepreneurs, startups, and established businesses seeking to expand their presence in the Middle East and beyond.

Compliance World – Your Partner in ADGM Company Incorporation

Are you looking to establish a company in the Abu Dhabi Global Market (ADGM), one of the world’s most dynamic and business-friendly financial centers? Look no further than Compliance World! We are your trusted partner in ADGM company incorporation, offering comprehensive services and expert guidance to simplify the process and ensure compliance with all regulatory requirements.

How Compliance World Can Help

Expert Consultation: 

Our team of experienced consultants specializes in ADGM company incorporation. We provide in-depth consultations to understand your business goals, ensuring that the incorporation process aligns with your objectives.

Company Structure Guidance:

We help you determine the most suitable company structure, whether it’s a free zone company, an onshore company, or a special purpose vehicle (SPV), depending on your industry and activities.

Document Preparation:

We assist in preparing all the necessary documents and applications required for ADGM company registration. This includes drafting the Memorandum and Articles of Association and other essential paperwork.

Licensing and Permits:

Compliance World can guide you through the process of obtaining the appropriate licenses and permits required for your specific business activities within ADGM.

Corporate Governance:

We provide guidance on corporate governance best practices to ensure that your company complies with ADGM regulations and maintains transparency and accountability.

Bank Account Setup:

Our services extend to helping you open a business bank account with reputable banks operating within ADGM, streamlining your financial operations.

Compliance Management:

Compliance doesn’t stop at incorporation. We assist in setting up a compliance framework to ensure your company adheres to all relevant laws and regulations, allowing you to focus on your core business operations.

Ongoing Support:

Compliance World offers ongoing support to handle annual filings, renewals, and any regulatory changes, allowing you to stay fully compliant throughout the life of your ADGM company.

Why Choose Compliance World?

Compliance World has a proven track record of assisting businesses in navigating complex regulatory environments worldwide. Our team’s expertise, attention to detail, and commitment to client success set us apart as your ideal partner for ADGM company incorporation.

With our guidance, you can confidently establish your company in ADGM, taking advantage of the many opportunities it offers while ensuring that your business operates within the bounds of legal and regulatory compliance.

Conatct Us

Ready to embark on your journey to establish a company in ADGM? Contact Compliance World today for a personalized consultation. We are here to simplify the incorporation process, minimize risks, and help you unlock the full potential of your business in ADGM. Your success is our priority, and we look forward to being your trusted partner in this exciting endeavor.